With the interest rates on hold at 3%, investors are in the game and they are looking at Queensland. A number of investment experts have laid down the golden rules for investors who are new to wealth creation using property investments. Tegan DeClark from Ray White Toowoomba has noted an increasing number of calls from buyers who are first time investors and are looking to gain knowledge about areas to invest and have mentioned Queensland and in particularly, regional areas as investment hot spots by the experts. With a tightening rental market, low stock levels and planned development in infrastructure, such as the Wellcamp Airport Projects, markets such as Toowoomba are on the move.
When it comes to investing, listen to the advice from experts in property investment. Here are some tips for investing in Real Estate in today’s market
Don’t trade in and out of property
Karen Young from Property Zest explains that buying in and out of properties quickly can erode any profit you may have made in a short amount of time. “There are taxes, duties, legal fees, agent commission and more. Think of property as a 5 year investment and in the least, you’ll be better off.” Also she suggests, look for projects and investment in the region. “I’m particularly interested in large scale projects with long term effects, all these things bring people to the region both during the construction phase and in the long term.”
Buy where it’s booming
“My mantra is ‘buy where it’s booming’. I believe that it’s the location that makes you money, not the property itself. The property is simply a vehicle” Says Daimien Patterson of www.propertyinvestmentmentor.com.au , he believes that when you’re looking at the location, you need to consider four factors; lack of land supply, lack of skilled labour, increase in population and an increase in average wages.
Investing is a business
Trent Cripps from Your Future Strategy explains that you need to approach your investing like a business. “You need to understand your market, therefore you have to take all the factors into consideration, you would not be completing your due diligence if you overlook one or two things” Mr Cripps also notes that timing is important. “You want to get into the market before we possibly see 1 or 2 more interest rate cuts this year, which could lead to strong growth in the market, don’t wait until later in the year, if you do your due diligence and buy right, now is a great time to invest.
Look for signs of positive growth
“Investment in key infrastructure and new developments are always key that an area is about to take off.” Says Kim Clarke, Managing Director at Xcel Properties who mentions that Innovation and creativity from local councils and industries who are taking something old and giving it a new life is also a sign that things are beginning to turnaround. Ms Clarke has picked the top 5 hot spots in Queensland; Toowoomba, Mackay, Rockhampton, Moreton Bay and Gladstone “The reason I choose these areas is that they are on the upward cycle right now, the best time to purchase property is when it is just about to come out of a downward cycle and is on it’s way up”
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