Reasons why living in and around Brisbane is a top choice
You may already know this, but Brisbane with its suburbs continue to be one of the top capital cities pick for most Australian property investors.
The recent national survey spearheaded by Property Investment Professionals of Australia (PIPA) found out that investors are optimistic about the long-term advantage of owning residential real estate and disregarding apprehensions about firmer lending conditions, the property price bubbles and oversupply.
Buyers generally have a positive outlook over their property purchase in Brisbane
More than 70 per cent of those who are surveyed agrees that is the proper time to invest in property, while 61 per cent wants to buy a property in the next six to 12 months. This is in comparison to 58 per cent last year.
Regardless, concerns over changes to investor lending policies still loom large, with around 43 per cent of respondents stating a considerable impact in their ability to acquire finance, compared to 32 per cent in 2016.
The rising rates on interest-only loans are also becoming a key issue, while the majority of investors (around 55 per cent) with interest-only loans claimed that they would not struggle to meet the updated principal and interest repayments.
The survey results confirmed that investors still remain steadfast to property as a good investment option over the long-term. The majority of property investors are disregarding short-term challenges and are instead choosing to focus on the long-term wealth benefits that residential real estate provides.
Most investors recognize that some negative issues are only on short-term cash flow position and not a property investment strategy. Moreover, only a small minority choose real estate just for tax concessions.
Brisbane is still the top capital city pick
As stated above, Brisbane is still one of the top capital city picks, with around 43 per cent of investors choosing it as their ideal destination for property investment.
Melbourne comes next after Brisbane as the second most popular investment destination (32 per cent), which is followed by Sydney (7.8 per cent), Adelaide at (6.6 per cent) and lastly, Perth at (5.5 per cent).
As clearly seen, property investors are now savvier with most continuing to look outside of the biggest property markets of Melbourne and Sydney, which are now closing to the peak of their cycles.
The top factors why Brisbane still attracts investors are affordability as well as the potential for great yields. The city of Brisbane invests in infrastructure that makes the city more livable and investors are counting on these
When it comes to financing, more than 23 per cent stated that they prefer refinancing their loan for an interest rate differential of 0.5 percentage points, on the other hand, 23 per cent would choose to refinance for one percentage point. Your choice of financing, in any case, is up to you. It’s wise to talk to your broker and research well before you commit.
As borrowing costs rise, you’ll want to look for the best deal in a community that is set for growth. The house and land packages in Yarrabilba, for instance, is perfectly positioned between Brisbane’s CBD and the Gold Coast and is ready for its new residents to start benefiting from shops, schools and community facilities as well as multiple new amenities and facilities on the rise. Purchasing here means good rental potential in the future as it is readily connected to many prime locations.
Now is the time to consider and look for your new home or investment property in Brisbane. Best of luck!