Any major purchase in life involves carrying out plenty of research, which is certainly true when it comes to applying for an investment home loan. Once you’re sure you have got the right product in place, it’s time to start thinking about where to make that all-important purchase.
The REIQ Residential Rental Survey for December 2014 could offer some reassurance if you’re thinking about investing in the Queensland market. It points out that some areas are offering decent returns to investors, providing of course that you know where to look.
CEO of the Real Estate Institute of Queensland (REIQ) Antonia Mercorella explained that the south-east of the state is where many of the most lucrative opportunities lie.
Ms Mercorella continued: “Moreton Bay and Redland City both recorded a significant drop in vacancy levels, seeing their vacancy rates move below 1.5 per cent.
“Despite the Christmas period, REIQ agents say tenant demand remains strong in these areas, with two-to-five applicants per rental listing.”
The group also pointed out that the rental market is being influenced by changes to property sales. Improved conditions have led to a rise in activity in terms of the sale of former rental stock, which means fewer properties are available for tenants.
Ms Mercorella noted that many investors have been waiting many years for the market to pick up, so it’s hardly surprising that they are using the opportunity to enter the market now.
Investors may also find a growing number of new-build properties at their disposal. The latest data from the Australian Bureau of Statistics shows that residential building approvals were strong throughout the course of 2014 and improved 1.7 per cent in December alone.
Analysis from the Housing Industry Association revealed that approvals ended the year 10.7 per cent higher than it started, which was mainly buoyed by a rise in detached home and multi-unit construction.
You can contact a Smartline Mortgage Adviser on 13 14 97 for home loan advice. Or completeour call request form and we’ll call you!
DISCLAIMER: The information contained in this article is correct at the time of publishing and is subject to change. It is intended to be of a general nature only. It has been prepared without taking into account any person’s objectives, financial situation or needs. Before acting on this information, Smartline recommends that you consider whether it is appropriate for your circumstances. Smartline recommends that you seek independent legal, financial, and taxation advice before acting on any information in this article.