Tips for investing in Queensland
Queensland has long been known as the state to buy an investment property. It not only is the tourism capital of Australia but provides property options which can serve as negative gearing, holiday rentals for other tax purposes. Here are some of the best tips for finding the best investment property in Queensland.
1. Don't bargain hunt
Often, people look for a cheap property to buy as an investment option. This is a very dangerous path, as the buying price has nothing to do with the amount of money the property will make in the years to come. Instead of bargain hunting, look for pockets of growth within suburbs and choose one which fits your budget.
2. Look for suburbs full of 'owner-occupiers'
This is usually a tell-tale sign the suburb has more wealth. 'Owner occupiers' are people who own their home and choose to live in it. They are more likely to have spent money on renovations and repairs over the years, so if you are buying into one of these suburbs, the house is more likely to be in better shape. In investment heavy suburbs, where there are hardly any 'owner-occupiers,' properties are more likely to be neglected and the suburb is likely to have little to no growth. Stephen McGee from National Property Buyers told Smart Property Investment: “I think if you throw all of the property transactions in a basket in Australia, the latest stats are... between 30 and 35 per cent are investors, and the remaining 65 to 70 per cent are owner-occupied, so why would you want to put your money in a smaller basket with 35 per cent?"
3. Don't follow the herd
Following typical investor behaviors might be just the thing to get you into trouble. Typical investors are listening to the hype from developers and market news from email chain mail. Often, they buy into house and land packages which will never be worth as much as the day they are new. Often these projects don't work out. The safest option is already established suburbs, where you can already measure trends. That is how you can ensure the purchase is protected.
4. If you are interstate, use a local Queenslander
If you are from another city and looking to purchase in Queensland, you should look for an expert who in based in Queensland. You shouldn't trust an agent in another part of the country, because chances are, they know little more than you do about the market. It's simple really: If you are buying from afar, use a local agent to where you are seeking to buy.
5. Local buyers agents are often overpaid
If you choose to employ someone's services to find you a property in Queensland, make sure they are actually doing you a service. If not, you might as well spend the money on an airfare to Queensland yourself. If you are in Australia, sometimes it is just as easy for you to research and get to know the Queensland market intimately from another state. This will save you thousands in fees for a job you can do yourself.