Yet again, Melbourne and Sydney just aren’t faring quite as well as Brisbane and other suburbs in South East Queensland. In fact, experts are predicting that prices are set to increase in the upcoming year as compared to other capital cities, which are projected to display falling housing prices.
Could this data be one of the reasons that purchasing investment properties in South East Queensland has become so much more popular in recent times? We couldn’t help but notice that a significant proportion of clients that purchase Dual Key Homes are residing in Sydney or Melbourne.
We decided to ask some of our clients what has driven the decision to purchase in Queensland instead of locally…
Purchase price
The number one response was that purchase price being lower in South East Queensland as compared to capital cities elsewhere was one of the primary determining factors in purchase decisions. A lower price for a brand new home and land package when combined with strong rental property demands in a suburb result in much higher yield (return on investment) than was possible otherwise.
Side note: You can view our home and land packages to compare prices here
Projected growth
Houses have outperformed apartments regarding growth, so while a client from Sydney or Melbourne may be able to afford a small apartment unit locally, the chances are that purchasing a freestanding house up north will result in better property values over ten years or more.
From a long-term strategy, considering projections for growth are particularly important in securing an investment set to deliver higher valuations, therefore potentially freeing up much-needed equity for acquiring additional investment properties.
Clients that understand that multiple sources of passive income result in better security at retirement have shown real interest in acquiring dual occupancy homes that deliver two rental income stream from the one build. They have then purchased additional dual key properties over time- for the price of three build they have 6 rental income streams instead of the three they would be receiving if they had purchased single residence homes.
Ease of purchase
Clients making repeat purchases explained that ease of purchase was one of the driving forces in selecting Dual Key Homes. Land was sourced for them; plans were optimized for tenants, ROI% calculations were already done. They were able to have confidence in a secure positive cashflow investment with the majority of the details already taken care of for them.
If you are considering a Queensland investment property, what would be the main factors influencing your decision to purchase?
Go here to find out more about dual key homes
Recent Comments