Setting Up an Investment Home in Queensland
- 17 April 2018
Like many Australians, you might be considering investing in property. Whether it be to set yourself up for retirement, to create a portfolio of properties to grow wealth, or simply to invest your savings in something as traditionally safe as property, setting up an investment home requires a few key elements to make it a successful endeavour. Here, we take a look at what it takes to set up an investment property in Queensland.
Choosing your location
The Australian property market has long been regarded as a strong investment opportunity, and we’ve seen continual steady growth across most of our major cities. Nowadays, however, as the cities become more crowded and force both first home buyers and investors to search elsewhere, outer-lying areas are becoming more popular regions for investment. The same can be said for Queensland.
The state’s capital, Brisbane, is a hub for business and development, however, Queensland is unique in its geographical characteristics. Unlike our southern neighbours, New South Wales and Victoria, Queensland is a large state, with populations and regional centres spread out across its expanse. Distances between major cities within Queensland are far greater than those of our neighbouring states, and this poses both challenges and opportunities for investors.
As an investor, you might choose to buy property in any one of Queensland’s major regions, including the Sunshine Coast, the Gold Coast, the greater Brisbane area, Logan, or further north to Hervey Bay, Moreton Bay and even the far norther towns of Cairns, Mackay and Townsville.
Northern areas of Queensland have experienced somewhat of a property downturn in recent years, due to shifts in the mining investment and employment in these areas. However, South East Queensland and the regions of Hervey Bay and Moreton Bay still offer great opportunities for investors. Choosing your location will come down to doing your research and understanding what each region has to offer. Would you like to invest in an area that you’re familiar with, or are you happy to go further afield to find the right opportunity? If you’re hoping to receive a rental income or even sell in the future for a profit, considering proximity to local amenities and employment opportunities will also be important factors. Furthermore, knowing what development and investment is planned for each area will help you to make an informed decision.
Choosing the property
Once you’ve decided which region you’d like to invest in, the next thing to consider is what type of property you’d like to purchase. In most areas, new and near-new homes will attract higher rental returns than established properties. So, if you decide on a new home, you’ll need to consider what type of home you’d like to build. Whether you decide to build a two, three or four-bedroom property will depend on both your budget, and what you hope to achieve from the property. A house and land package can provide you with a stress-free solution to building a new home. This type of package includes both the land and the home build in the price, and will deliver you a turn-key new home which is ready for your renters to move straight into.
It’s also important to think about the type of renters you’re hoping to attract. Catering to families with three and four-bedroom homes means that your prospects are broader as you’ll appeal to a wider range of renters, so this is something worth considering. Property consultants at Villa World can help you to choose a house and land package which will suit both your budget and the outcome you’re hoping to achieve. Be sure to take advantage of their expert advice and let them help you to choose the package that’s right for you.
The fine print
Are you buying as an individual, as part of a partnership, or within a trust? Perhaps you’re investing money from a self-managed super fund, or as a part of a company? Of course, there’s more to investing than simply choosing a home and having it built. Investing of any kind requires expert legal and financial advice to ensure that your investment performs well for you. Even deciding what kind of mortgage you’ll utilise for your investment requires a lot of careful consideration. It’s important to speak to a mortgage broker to find the home loan that best suits your situation, as well as your financial advisor and/or solicitor to ensure that you’ve got all the finer details sorted.
If you’re hoping to invest in property and could use some help in deciding upon the best house and land package, get in touch with Villa World today.