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Monday, 1 December 2014

New Homes for Brisbane Property Investments

By Colin James


(Brisbane) Latest figures for property values in Brisbane City have house owners laughing all the way to the bank, as the statistics prove that property values are on trend to increase by 2.2 per cent every year.

Investment property guru Micki Holder claims that the projected unusual growth in Queensland real estate values is inciting many people to speculate in the property market,"There is a definite market for backers needing to buy quality real estate which will serve as investment property. First time stockholders abound, however they have done their homework and there is an expectancy that rental yield will be positive, if not honest-to-goodness competitive. Investing in house and land packages is a highly attractive option. "

Holder announces that doubt is a big element that holds many potential real estate investors back, in particular there is concern around repairs and maintenance costs,"Buying a rental property in a high demand area nearly guarantees low vacancy rates, however the capability for high repair costs on existing housing stock is the gigantic unknown. "

"Making a capital gain is a driving factor for some financiers, who intend to retire off the profits of a rental property that they have paid down over a period of 20 years or so". Holder asserts that good rental yield and capital gains do not always co-exist, however she explains that house and land packages address lots of the chance factors presented by older housing stock,"Many of our clients come to us for confirmation that purchasing an investment property in a blue chip area of town is not a financially responsible course of action. They are extraordinarily surprised at this analysis, given the increases anticipated in capital gain projected over the lifetime of the investment, say 20 years. "

Capital gains tax and the cost of maintaining an older property located in a blue chip area can make severe inroads into any increase in property worth. Holder says that having a spotlight on rental yield from house and land packages shifts the point of view away from capital gain.

A yearly rental yield of 6 percent is typical for the properties that Holder presents to her clients. Holder asserts that a 20 to 25 percent deposit will be enough to get a foot in the door, with many properties being paid off during the course of 20- 25 years. However , Holder asserts that with rental yields providing a competitive investment, many of her clients decide to have a low debt ratio and live off the rental proceeds,"Generating retirement income from a new home is viewed as very low risk by our clients," claims Holder.




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