If you are considering buying an investment property in Brisbane, you wouldn’t be alone.
Data from the Australia Tax Office and analysis from the Reserve Bank of Australia reveals about 10% of Australia’s adult population have recently invested in Brisbane property.. The number of property investors has increased from the early 2000s and shows no signs of slowing.
While investing in property has many benefits, all investments come with some degree of risk.
Of course, these risks can definitely be mitigated, and you can economically flourish with some of our top tips to investing in Brisbane.
Evaluate your expenses and finances
Even though the long-term economic benefits from investment properties are highly attractive, the first thing you should do is sit down and consider your finances.
It doesn’t have to be difficult, but take the time to list your current assets, income(s), your monthly budget, and the additional expenses incurred or income available, when buying a property.
Based on these numbers, it will be far easier to understand what money you can realistically afford to invest.
Your bank or broker can a good overview of the various costs that can be incurred with the initial purchase, and then ongoing costs or income available.
Costs to buy
- Purchasing price
- Stamp duty
- Legal fees – Conveyancing and searches
- Loan Mortgage Insurance (if applicable)
- Building inspections, pest control
Costs to own or additional income available
- Rates (council and water)
- Body corporate (if any)
- Property management (if any)
- Repairs and maintenance costs
- Additional income available, to be generated.
Engage an experienced property consultant
Buying an investment property is often confusing for those who don’t have previous experience in the area, and aren’t aware of current trends.
Quite often, identifying properties with potential for capital growth and producing positive cash flow, are missed simply due to inexperience.
At Property Queensland, we are consistently aware of changing market conditions, property and economic trends. Furthermore, our insider knowledge often allows a property to be secured before it’s been advertised, so clients are far ahead of the game.
When investigating a property, consultants can evaluate the likely fluctuations and changes in the market that will affect the capital growth of the property. A professional can process this information efficiently and effectively, to provide you with the advice on what property will return the greatest profit.
Although not always considered necessary, a professional could be the key to having a most highly profitable property.
Identify the type of property
Working with your property consultant is imperative to identify the type of property that is right for you.
The first aim is to identify a property that will increase in value in the long-term, no matter the short term economic circumstances.
We recommend looking at the different expenses associated with various properties and the type of tenants you expect to attract. Of course investing in a home won’t incur the body corporate fees required for an apartment.
Additionally, if you purchase a home in the suburbs, it is more likely that your tenants will be a family, compared to a flat in the city.
These are decisions that should reflect your circumstances, but can be made with the assistance of a consultant.
Do your research on the demographics
Before arranging inspections, research the market and area you are considering investing into.
Buying into an area that you are familiar with, will not necessarily return a high profit, or a positive cashflow.
By looking outside of a familiar suburb, you can ensure that it is an area with high growth potential. If new suburbs are being developed, then research their viability and current predictions on the likely expansion.
Other points to consider are the services surrounding the area, such as schools, universities, entertainment areas, or public transport. A property close to a university is likely to attract students compared to retirees.
Also, evaluate if there are any proposals for significant planning projects, such as major venues or roadways.
Thoroughly inspect the property and the area it is located in
It is critical to remember that as the owner, you will be responsible for any maintenance or repair costs. It would be advisable to invest in a property with minimal or no probable repair costs, to limit your expenses.
These are just a few of our basic tips to consider when buying an investment property in Brisbane, however, a professional consultant at Property Queensland will yield the optimal results for your new property.
If you would like professional advice, then please get in touch with us today.