Housing affordability and high rental yields drive interest in SEQ
Southeast Queensland is proving a popular option for interstate investors looking to maximise their return with properties that offer a high rental yield, yet value for money.
Infinity Group mortgage broker and financial coach, Graeme Holm, was recently in Brisbane presenting at the National Achievers Congress, and noted among his client list there was increasing interest in southeast Queensland as investors looked to secure maximum bang for their buck.
“Investment-wise at the moment we have about 500 clients looking to invest in southeast Queensland and those numbers are growing,” he said.
“I’d expect to see 750-800 inquiries specifically related to the southeast area this year.”
Mr Holm said the rising interest in the southeast corner was generated by two key components: the affordability of housing and a high rental yield.
“When buying property people often look to capital growth but if you want to invest, a property needs to offer a positive cash return so you can pay down that mortgage,’’ he said.
“In southeast Queensland you can spend $400,000 to $500,000 and still rent the property for $400 a week, which is a 5 per cent gross return.
“To me that indicates the southeast is severely undervalued.”
Among Mr Holm’s clients investing in southeast Queensland is Sydney couple Craig and Kim Rosewall.
The Rosewalls now have eight properties, including investments in Redland Bay, Brassall, Redbank Plains, Toowoomba and north Queensland, along with their family home in Sydney and a new investment in Melbourne.
With a number of those properties featuring dual occupancy, Mr Rosewall revealed the couple were receiving a total of eight income streams.
“We’ve purchased in areas considered the ‘golden triangle’ where there is infrastructure, facilities like hospitals and universities, and access to Brisbane,’’ he said.
“We could have bought in Sydney’s eastern suburbs, spending $1 million on a home, but there’s no way we would have received the equivalent rental yield, so why would we do that?”
Mr Holm explained that his clients ranged from young rent-vestors to couples with families and baby boomers, whose key focus was trying to get ahead.
In addition to focusing on positive investment yield courtesy of markets such as Queensland, Mr Holm noted his aim was to offer “financial personal training” that allowed his clients to budget, plan and account for their expenditure.
“People need to have a budget, a plan, be accountable and be a little disciplined, so they can be financially free in seven to 10 years, not 30,” he said.