Interview with Michael Donoghue of of Acru Property about the making sure that you next purchase is a financial success.
Hi Michael, thanks for speaking with us today and sharing you insight into 2016 and investing in property. Interstate buyers could become more popular in 2016 with Brisbane properties now being marketed in Sydney in particular, to alert potential buyers to the value for money compared to other states.
Inside Tips on Investing
Q: What is you No.1 tip on investing in Brisbane property?
The one thing that becomes really important when looking to invest in property is knowing that:
- Land appreciates. Land is a scare commodity that will increase over time
- Buildings depreciate over time. Buildings need upkeep to keep them properly maintained over time. When buying property you need to have a very healthy land component such as 30-40% of the value of the property.
Q: How much are you going to need and how you are going to structure the finance?
- It is crucial before you get started to see a bank or mortgage broker to see how much you can or can’t get or how much lenders are prepared to lend to you.
- Structure the loan properly: make sure you have a good accountant, one who knows about investment property and what and what can’t be claimed because there are some great ways to claim deductions on to make sure that it works well to make sure that it is a financial success for you.
Q: How do you know how much you should pay for a property?
It can take years of experience of where and how a market is going in a suburb. If you are new to this, one of the best things you can do is research. We have a great free tool that we can provide you on request (email: firstname.lastname@example.org) that will show you the instant facts, most of our clients request this and do their own research. Know your limits and stick to this.
2016 Market in Queensland
Q: Are first home buyers are likely to have more opportunity to enter the property market in 2016, and how is the market looking in South East Queensland?
A rise in domestic travel is likely to create demand for short term holiday rentals all over the country. There will be an increase in casual holiday letting. Inner city and CBD for 2016 shows as previously mentioned in my blogs the large amount construction of apartments and oversupply of units will bring value to the market and investments. 2016 and 2017 will still sell very well. People see greater value for money (in Brisbane) compared to say Sydney and Melbourne. More buyers are now willing to share that holiday property with others by offering short term lettings when they’re not using it. For expats living and working in Asia or the UK, 2016 might also be the time to invest in a home close to the city, coast or university. Gold Coast will continue to show growth with the continued infrastructure lead by the Commonwealth Games in 2018. This is really starting to kick in and more jobs created. Cairns has a large development going ahead which will drive foreign investment.
Closer to home in Brisbane, the infrastructure in the inner city Casino developments will also lead Tourism numbers and foreign investment to the inner city and CBD. Brisbane has an exciting time ahead with new jobs and growth which will lead on to the housing market. Queensland and South East Qld has plenty of opportunities and is much more affordable than the other states.
If you want more facts on buying locally in Brisbane, talk to Michael or ask us for the Simple Steps in Buying a Property Guide.
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