{"id":10814,"date":"2017-03-17T15:50:42","date_gmt":"2017-03-17T04:50:42","guid":{"rendered":"http:\/\/www.realestatetalk.com.au\/?p=10814"},"modified":"2017-03-17T15:50:42","modified_gmt":"2017-03-17T04:50:42","slug":"investing-in-queensland-urban-vs-regional","status":"publish","type":"post","link":"https:\/\/channels.realty.com.au\/realtytalk\/investing-in-queensland-urban-vs-regional\/","title":{"rendered":"Investing in Queensland – Urban vs Regional"},"content":{"rendered":"

The property cycle means that demand for properties in each state and territory can rise and fall depending on how the market in those locations are faring.<\/strong>
\nIt’s well understood that Sydney is at the top of its market cycle and Melbourne is perhaps not far behind.
\nThe third most populous capital city is Brisbane where the property market has been relatively subdued for a number of years now.
\nQueensland’s relatively affordability compared to southern states is also an attractive investment proposition.
\nThese two variables are behind the recent resurgence in interest in the Sunshine State’s property market from interstate investors as well as potential interstate migrants.
\nInvestors and homebuyers are currently undertaking research about where to invest in Queensland as well as Brisbane’s best investment suburbs.
\nSo, with more buyers interested in sunny Queensland, we’ll outline where the best opportunities are and where the areas are that should perhaps best left alone.<\/p>\n

Should I invest in inner urban areas or more affordable regional areas?<\/h3>\n

Brisbane, which is home to more than 2.3 million people, has a property market that is much more affordable than Sydney and Melbourne. The latest data shows that its median house price is just $540,000 versus Sydney’s at $1.1 million and Melbourne’s at about $800,000.
\nThis affordability equation is what is driving demand with many investors also considering Queensland’s even more affordable regional locations as well.<\/strong>
\nQueensland is one of the most decentralised States in Australia, which means many of its regional locations<\/a> have significant populations as well as self-sustaining economies.
\nHowever, it’s important for investors to consider whether regional locations are one-industry, such as mining, which will generally result in property markets that can be classed as risky.
\nThe generally lower population growth of regional areas also means that they’re won’t necessary make better investment locations than a well-located investment grade property in urban areas such as southeast Queensland.<\/p>\n

What is your investment strategy?<\/h3>\n

\"Businessman
\nThere are a number of investment strategies generally used by investors which are usually reflective of their financial dreams and goals \u2013 regardless of the state<\/a> or territory where they buy.
\nThe most common property investment strategies include:
\nBuy and hold<\/em>:<\/strong> is a long-term strategy to create wealth through capital gains<\/a>, which are only released at the end of your property investment journey \u2013 and preferably on or after retirement.
\nRenovate and sell<\/em>:<\/strong> is a short-term investment to increase equity through capital improvements, however, there are significant entry and exit costs involved such as stamp duty and sales commissions so it’s usually better to renovate and rent.
\nPositive cash flow<\/em>:<\/strong> is a medium- to long-term investment where the primary objective is to generate an income from a property via high rental returns.
\nLand banking or holding property for future development<\/em>:<\/strong> involves creating wealth via developing (e.g. subdivision; building units or townhouses to make best use of the land); or on-selling property to a developer; or holding for its potential for council re-zoning in the future.
\nNegative gearing<\/em><\/strong>: is not a strategy as such but can assist investors by using taxation benefits to subsidise the holding costs of an investment property. Over time, investment properties generally start yielding positive cash flow via increased rental returns, which means that negative gearing is no longer applicable.
\nDifferent types of properties mean that investors may use different strategies, but generally speaking it’s always advisable to adopt a buy and hold formula as the creation of wealth from property is achieved via capital growth over the long-term.<\/p>\n

What should I look for in a property investment?<\/h3>\n

With so many buyers and investors researching<\/a> where to buy in Queensland, it’s important that they also consider what to look for in a property investment.<\/strong>
\nInvestment grade properties are usually the same in every capital city because they’re the ones that appeal\u00a0to a wide range of\u00a0affluent owner occupiers – they are in the right location; have\u00a0street appeal\u00a0as well as a\u00a0favourable aspect\u00a0or\u00a0good views; offer secure off street\u00a0car parking; have the potential to\u00a0add value\u00a0through renovations; and have a\u00a0high land to asset ratio.
\nIn addition, homebuyers and investors should consider any potential flood impacts on properties in Brisbane in particular.
\nOther factors to consider include:
\nLook for the right location<\/em><\/strong><\/p>\n