From the myriad factors that determine a property’s price potential, location – and specifically proximity to community services, and availability of facilities and infrastructure – seems to hold firm as the recurrent key to future capital growth.
Schools, shopping centres, public transport, parks and, increasingly, cafes and restaurants, are all desirable aspects of suburban living and favourable attributes to potential buyers and potential tenants.
Commuting time in general will always be a key consideration for residents of metropolitan areas, and are therefore the driving force behind buyer demand for inner to middle ring suburbs in our larger cities. And as our State grows, access to good local amenities will be the driving force behind the growth of our outer ring suburbs in the south east particularly.
Infrastructure projects also have an important role in the growth of property prices. Improved infrastructure provides improved services for local residents as well as providing improved access for surrounding regions.
New infrastructure also plays a key role in creating local and regional employment opportunities and such projects are generally in line with government planning instruments at both a local and regional level.
The numbers of investors in the Queensland market is still tracking slightly below historical averages however low interest rates and vacancy rates in many areas below 3 per cent is likely to encourage more investment activity in the months ahead.
REIQ research shows the main reasons for purchasing an investment property are the potential for capital growth, to help fund retirement or for negative gearing purposes.
But no matter what type of property you’re looking to buy, or whether you’re a seasoned or first-time investor, it is crucial that you start by doing your homework.
Investors also need to ensure their financial situation will allow for interest rate increases or a period of time when the property may be vacant.
Qualified staff at REIQ accredited agencies can also provide investors with informed opinion on market trends.
They are also aware of the property types that tenants are looking for and the rents achievable for particular types of property.
Ensuring you buy the right property not only makes it easier to rent out, but also makes it easier to sell if the need arises.
Property investment remains an attractive long-term wealth creation strategy with the ability to produce income and capital growth.