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Investing

Suburbs in south east queensland

Should you buy property in South East Queensland?

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You may think that this is a silly question considering that Victorians and Sydneysiders are coming up to South East Queensland in droves and snapping up property. The First Home Owner Grant has also taken most of the available house and land stock off the market. I have not seen property move this quickly in the last decade or more.

But what does the data say? First Home Owner Grants and a locked down State can drive the demand but is it sustainable?

By 2041, South East Queensland is expected to accommodate an additional 1.98 million people, bringing its total population to 5.35 million This growth will require more than 30,000 new dwellings each year as well as more transport, jobs and services and if you consider that the average population growth over the last 10 years has been 65,000 pa then the region must meet these growth figures or we have a serious shortage. 

Add on the unanticipated high demand from Victoria and Sydney and we may not have met the required build quota for last year.

Suburbs are showing vacancy rates well below the 3.5% industry acceptance with many at 0.5% or lower. I have met so many people in the last 6 months who cannot find a rental property, the queues are too long to even get an inspection.

Dr Shane Oliver, Head of Investment Strategy and Economics and Chief Economist at AMP, has recently published positive figures for the Australian property market. His analysis shows that despite a reversal of 2.8% in the middle of last year, prices in capital cities are going up. Average Australian property prices will rise 5-10% in 2021/22 due to low interest rates and economic recovery incentives.

He expects house and land and townhouses to be the best performers and that small cities and regional property will see price rises catching up with major cites and regions. However, he also believes these factors may have less effect in the next 3-5 years, meaning this bull market may not last.

The ratio of Australian house prices to incomes and rent are some of the highest in the world. Australian income to house price is 5.9 times, Melbourne 9.5% and Sydney 11 times. This is very high when compared to 3.6 in the USA and 4.5 times for the UK. Interest rates are very low and there has been too much speculation about how long this will last – we still have low rates.

How does this bode for South East Queensland? SEQ has kept property prices much lower. A 4 bed, 2 bath, 2 car home in Mount Waverley, 30 minutes from Melbourne will cost around $950,000. A 4 bed, 2 bath, 2 car house and land package in Logan Reserve, 35 minutes from Brisbane City costs $471,000.  Income to house price is much lower in SEQ, which will give the region a lot more lee-way when it comes to the rest of the Australian property market.

Property is a long term investment and if you have the right strategy that pays off your mortgage quickly and maximises the tax benefits and depreciation on a new home, then you have a passive income for life. 

The property market in South East Queensland has all the right data to make it one of the top investment opportunities in Australia. Low prices, high rent and high demand when compared to many major cities and regions give it a big edge.

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The 5 Steps to Buying Your First Home

By Investing

So many people are saying that this year is the best time ever to buy a property, interest rates are low, the first home buyer’s grant has been extended and the market is strong. I think differently – if you buy the right property and have a process then any time is a good time to buy.

Step 1

Are you in the financial position to buy the property that you want? May be a better question is are you in any position to buy a property?

Your first step is to see a finance broker who will sit down with you and tell you exactly how much lenders are willing to loan to you. A good broker is absolutely essential to the whole process. A good broker will choose a lender to suit your situation and financial needs, they are not bound to the big banks and so can find you the best deal that saves you thousands over the years.

Step 2

Go online and see what is selling in your area. Realestate.com and Domain.com are good references and will show you exactly how much homes are selling for and whether you can afford the home of your choice. Sometimes a compromise is necessary if you want to buy in that suburb, but at least you will know before you start.

If you are buying a new house and land package call a couple of local builders to get a finished price. Many of the listings for house and land do not include things like landscaping and other necessary items can be left out, so you want to know the total package price.

Step 3 

Increase your chances of securing a loan by considering the following:

  • Paying off your credit card debt and reducing the card limit. 
  • Reducing or paying off other debt
  • If you cannot reduce debt then consolidate it, a good broker can save you thousands on your debt repayments and make it look good on your loan application
  • Most lenders take a very close look at your annual expenditure and can even figure out if it is accurate by what you spend your money on. Reducing daily, weekly and monthly expenditures will go a long way to securing a loan.
  • A good job that pays regularly is a must. You have to show that you receive regular wages and are in a secure position.

Step 4 

Having enough for a deposit is also essential. The first home buyer grant in most cases requires only a 5% deposit compared to the 20% that most lenders want. On a $500,000 home that is the difference between $25,000 and $100,000.

You also have to account for stamp duty and other costs, something that your broker will include when calculating your borrowing capacity.

If you cannot afford the deposit then you will not obtain the government grant for first home buyers. 

If you are not going for the first home buyer grant then many lenders are prepared to lend the required amount if the buyer does not have a 20% deposit, but they charge a Lender’s Mortgage Insurance (LMI) which can cost around $10,000 and upwards.

Step 5

Find someone who can help you through the contract process and through the whole build. It is so much easier when this is being managed for you.

A good solicitor will make sure that the contract is in your favour and subject to finance. They will walk you through the contract using plain English and take care of any last minute changes that you or the builder may have.

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Pet cows and sirloin steak

By Investing

I recently visited my mate’s place who owns a large permaculture farm and has a beautiful wooly calf who acted like a puppy dog when it was feeding time. I asked my mate his name and he told me it was Sir – short for sirloin! He chose the name because he breeds cattle for its meat and so cannot afford to let his heart rule his head when feeding the family.

So why would you use a real estate agent over a property investment specialist?

If you are buying your home, your place of residence then normally you would buy with your heart, you would let your heart rule your head. It has to be something that resonates with you, that makes you feel great about your purchase and your future life in that home.

I know a lot of very good real estate agents who help people make the best decision they can because they understand that when choosing a home these decisions are made from the heart.

Property investment is very different, data is king. A property investment professional understands this and presents the best fit strategy for you based on your personal data and property data.

You cannot let your heart rule your head when investing in property, it would be like playing roulette, the odds are not in your favour.

As property investment professional we look at future population forecasts – more people coming into an area means more demand for housing. We look at infrastructure spending – if the government is spending billions in an area then they believe their population figures are right and are putting the coping mechanisms in place. We also look at the economy of the region because you need a sustaining mechanism to keep the people in the area. 

Then there is affordability and gaining the best rental income you can so that you can pay off your mortgage quickly and gain passive income for life. Demographics also play their part and other historical trends that may be relevant. 

A good property investment specialist takes all this into account and more when making a decision for you,

So the moral of this story? Don’t get attached to your cute calf if you are going to eat its meat.

Conveyancing SunShine Coast

Conveyancing on the Sunshine Coast

By Investing

Do You Need Conveyancing on the Sunshine Coast or can you use a company anywhere in Queensland?

Conveyancing Sunshine Coast is as busy as any Region in Queensland right now. Many investors are turning to property as the safest and best investment in these uncertain stock markets. A good conveyancer can be worth their weight in gold and save you money on a deal or keep a contract in place if you need more time.

There can be a countless number of contracts to sign when buying a property and understanding the terminology can be very difficult without the right help. 

A good conveyancer does not necessarily need to be a top level lawyer or be large solicitor’s company to get the job done for you and you do not need to go to conveyancing Sunshine Coast to find one. All legislation within conveyancing Sunshine Coast is Queensland based and so a good conveyancer can be found anywhere in the State – remember you do not ever need to meet your solicitor/conveyancer.

All you need is a good internet connection and a reliable mobile signal to keep in touch with your conveyancer.

 

We have used conveyancers in New South Wales, Victoria and Queensland for clients depending on the required legislation. If you live on our Sunny Coast and you want to find a good company then any recommendation in Queensland would be OK as long as it is a good recommendation!

If conveyancing Sunshine Coast is something that you want then there are great companies that we can recommend. These conveyancers will liaise with all parties involved including banks, the seller, other conveyancers and many more in order to get the job done for you. This gives you peace of mind knowing that you have a tried and tested company making sure nothing is overlooked. 

What does a good conveyancer do? They will handle the legalities of the following areas for you:

  1. Review the contract
  2. Signing the contract
  3. Cooling off period
  4. Finance
  5. Building and pest
  6. Searches
  7. Going to unconditional contract
  8. Settlement
  9. Post settlement

Ensuring compliance is achieved in a timely manner between all parties and that the contract is in both the buyer’s and the seller’s interest is something only a good conveyancer can do.

 

Are you looking for a Conveyancer?

At Marland and Riley our conveyancers are one of the leading property lawyers in Queensland and are well known throughout the building and development industry. We provide a quality, personalised and cost effective legal service to the residential property market in Queensland, Australia.

It is important that a Seller and Buyer selects an independent lawyer who will fully protect their interests under the Contract of Sale throughout this conveyancing process, following their instructions only throughout the transaction. In all transactions our conveyancer will provide our client with a Statement of Independence to confirm they have no financial, business or family relationship with the other side, Selling Agent or any other person associated with the transaction. Let our conveyancers make the whole process easy.


Want to find out more?
Book a free meeting with the Marland and Riley team about conveyancing and investing in property on the Sunshine Coast. We want to help you

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Why You Should Invest in New Property

By Investing

Some people look to old property when deciding to invest, but most of them do not realise what they are taking on. There is money to be made in renovating an old home if you know what you are buying and have a good idea of what the market will value it at once you have put your blood, sweat and tears into making it look new.

If you are not willing to put the effort into renovations then you have to take into account ongoing maintenance costs on an old home. Even the most experienced investors get caught out with unexpected repairs like faulty wiring eventually going wrong or  ceiling boards sagging due to damp roof spaces – the list is long – believe me I know!

There are many advantages to investing in new house and land packages that can save you $1000s and cause much less stress when compared to buying an old home:

 Maintenance 
This is the obvious one, but it is a very good one. As an investment owner you do not want to spend any time at all on your property avoiding the stress of repairs and maintenance. A good property manager that will do all of it for you but you still feel that nagging worry in your head. Then there is the loss of profit to deal with also.

A new property comes with a warranty on the structure and on fittings, which gives you breathing space and when the warranty has run out you at least have the luxury of knowing that the property is still new and in good condition.

Tax Deductions
A new property has a much higher depreciation value saving you thousands on your tax each year. Many investors use property investment to reduce their taxable income. If you are not in such a good position, the tax depreciation on one new investment property can still save you thousands of dollars.

This claimable depreciation is a great tool to gain more profit on your investment. A good property investment uses the tenant and the tax man to pay for the property and pay off your mortgage in less than half the time.

Greater Rental Yields and Better Tenants
A new home is more appealing to tenants and in good areas they will virtually queue to take a look. A new home attracts a better tenant who is more likely to look after the property and will pay a higher rent.

If your tenants are looking after the property it means less maintenance costs down the track and more profit. 

Higher rents means you can pay off your mortgage in less time, which is the whole idea to investing in property – gaining passive income for life – income that continually rises and an investment that historically has shown to rise exponentially over the decades.

High Growth Corridors
Builders and Developers generally build in high growth areas where they are guaranteed to sell. These areas have all the advantages of being close to shops, schools, transport and employment. In South East Queensland the State and Federal Governments have spent $billions on infrastructure in key areas where the population forecasts are high. This means that the government has put its money where it knows it will be needed to cope with that population growth. Economic growth is also boosted by construction initially and sustained by new retail centres and commercial and industrial hubs.

Energy Efficiency
All new homes come with a 6 star rating for energy efficiency. This means the tenants are warmer in the winter months and cooler in the summer. Energy saving fittings are also attractive to the more discerning tenant who is willing to pay more for these little luxuries.