5 BULLET POINTS

Jun 22, 2017
Michael Matusik

I don’t like the term ‘hotspots’. For mine, it doesn’t really ring true when it comes to property.  There are very few instances in which investment ‘heat’ is induced to a very specific location.

Residential property investment is a long-term hold.  The statistics show that most buyers make more money on resale, the longer they hold the property.  The cost of buying and selling property, coupled with our current tax system, makes short-term property holds quite expensive; often cost prohibitive.

Those who try to ‘hotspot’ often miss the mark.  Many are, for mine, speculators – not property investors.  This is fine.  It is just that most investors don’t have the time or experience to sufficiently profit from property speculation.  For those who do – then, good luck to them.

For us mere mortals, I think it is more important to consider property investment from a wider point of view.  Most readers should consider buying an investment property in locations with:

  1. Established population base – say, over 100,000 permanent residents, plus population growth/increasing household formation;
  2. Consistent rental returns, typically over 5% or $1 in rent for every $1,000 spent;
  3. Increasing home renovation activity – shows local owner reinvestment, which means more owner-residents;
  4. Improving employment prospects – full-time jobs over part-time ones, and
  5. Rising household incomes – ability to upgrade locally or pay more in rent.

Our new Pulse Point Report picks up on the last two items.  Out next week.  And our recently released Population Report covers the first item above.  Go here to buy your copies. 

Next month, our two planned SEQ postcode reports will tackle items 2 and 3 above.  We will let you know when they become available.  But you can save heaps by getting all our docos.  Go here to save!

Keen to hear your thoughts.

Until next time,

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Michael Matusik

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