Bank of Queensland 2/03/2015

Bank of Queensland Now could be the best time to take your first step onto the property ladder. In contrast to a hot potato, you don’t want to let hot property go too quickly. Real estate investments take time, so before playing your financial cards in the market, it’s important to do your research.

With the official cash rate now at a record low, it’s likely that many people are putting down the monopoly board and considering real property investments for the first time. Home loans are likely to become more affordable than ever before, which means now could be the best time to take your first step onto the property ladder.

When should you invest?

Beyond the historically low cash rate, there are many factors that can influence the right time to purchase a real estate investment property. Many of these considerations will be largely personal — like reviewing your finances, looking at your family situation and measuring your desire to take on the responsibility.

However, you also need to be looking at property prices and making forecasts on how value may climb or fall over the next few years. While prices are currently high in a number of areas across Australia, are the markets likely to stay this way?

Where should you be investing?

While the ever-popular Melbourne and Sydney are likely to remain in high demand, experts are suggesting new investors look further north when purchasing a nest-egg property.

BIS Shrapnel Managing Director Robert Mellor has spoken out about the benefits of buying in Brisbane, indicating that this and other popular tourist sports across Queensland could become the next hot investment markets.

However, it’s not just the major centres offering great opportunities. Mr Mellor has also pointed to the regional hubs on the outskirts of capital cities across Australia as key places to consider for investments.

For a first-time investor, these outer suburbs, within 10 kilometres of the city districts, are a potentially beneficial choice as they offer many of the comforts of the inner city but with a much lower cost. And, as populations in the capital cities continue to climb, these comfortable centres are likely to experience a rise in demand from those looking for a home out of the madness of the city but within commutable distance.

What is Australia’s hot property?

According to the real estate investments experts, apartments may not be the best bet when making a property investment in 2015. Previously considered the answer to urban sprawl and climbing demand in capital cities, Mr Mellor has advised against high-rise apartments in central business districts.

This is because current rates of growth could slow, meaning oversaturation of apartment supply. There is going to be little return on your investment if you can’t find enough people willing to rent or buy your property in the future!

Whenever you buy a property, you’ve got to take into consideration who’s going to rent it and who’s going to buy it from you, said Mark Kelman, author of Become a Property Millionaire in your Spare Time.

Have you started thinking about a real estate investment in 2015?

www.boq.com.au/investment-loans.htm for some great tips and ideas.

This article is for general information purposes only and is not intended as financial or professional advice. It has not been prepared with reference to the financial circumstances of any particular person or business and should not be relied on as such. You should seek your own independent financial, legal and taxation advice before making any decision about any action in relation to the material in this article.