Holmview, Queensland for Property Investing.

Holmview Suburb Profile

Median house price: $367500 (Oct ’20). In general, the house prices are on rise in QLD.
Transport: car, bus, bike

State: Queensland
Size: 4 sq km
Location: 12.5km south of Logan Central

Holmview is a growing residential suburb located in the city of Logan and the state of Queensland. It’s found south of Logan Central and south-west of Brisbane, Queensland’s state capital. Before it became a suburb in 2003, Holmview was designed a locality by Queensland Place Names Board in 1975.

Holmview takes its name from the railway station found in its area which was built in 1885. Before it became a residential hotspot, Holmview was known for its brewery which was established by August Thorsborne. Locals refer to the brewery as the brewery waterhole. In 1891, the brewery was closed due to financial troubles.

Area
Holmview has a size of approximately 4 sq km. It has 4 parks covering 5% of its total area. The suburb is mostly “undeveloped bush” and is bordered in the north by the Logan River.

Real Estate

Holmview’s median sale price was about $367,500 (in Oct 2020), which has then shown an upward trend like the rest of Queensland. The median sale price of Holmview still remains significantly lower than the national average making it a good investment option.

Lifestyle
Living in a suburb bordered by the Logan River and near Brisbane CBD combines the beautiful nature outdoors and the conveniences of modern life. And with a good median property price, it’s not surprising to see why many people are looking to Holmview to stay.

The transportation in Holmview is good but can be better. Commute to Brisbane CBD takes approximately one hour and a half via bus. While around 30 minutes via car.

Holmview has no schools in its vicinity but it has wonderful schools in its nearby suburbs. The nearest primary school is found in neighbouring suburbs such as the Edens Landing State School which is found in Edens Landing. The nearest secondary school is in Windaroo Valley State High in Bahrs Scrub, Loganlea State High School in Loganlea, and Beenleigh State High in Beenleigh.

Population and Demographics
Holmview has a population of 2,351 based on the latest 2016 census. This number was a result of 68.5% growth from its 2011 population of 1,395. Most households are paying an average of $1400 – $1799 of mortgage per month. People in Holmview also work mostly in trade occupations.

Why Live and Invest in Holmview?

  • Holmview is an expanding suburb that has huge potential, because of its strong market conditions, it will attract more investors in the future.
  • Residential pricing is set to rise in the coming years because of the population boom in Holmview.
  • In the coming years, Holmview’s strong job market and low cost of living will attract more people from nearby states.
  • Holmview is a great place to start a family and raise children with plenty of nearby schools, park, and entertainment areas to enjoy.

    We can help you plan your investment strategy and also find the best property for you. Contact us today.

After Australia’s first recession in 30 years, many people are worried about the property market in 2021. Will there be another house market crash? How will consumer confidence affect the property market? According to various forecasts, Australia is anticipating a healthy housing price growth for next year.

Although the exact future of the housing market remains uncertain, we have seen how the market prevailed during the COVID-19 pandemic. If the market survived 2020’s wrath, 2021 can only bring smooth and fast recovery. Experts are certain 2021 will be a year of growth for the property market.

We have seen how property prices increasing in 2020 have defied predictions of a 10-20% drop due to the pandemic recession. So, what’s in store in 2021? Here are some of the market predictions for next year and beyond.

  • ANZ economists forecast price gains of around 9% in all capital cities in Australia. They also predict Sydney prices to rise by 8.8 per cent while Melbourne will slow slightly at 7 per cent.
  • Westpac forecasts a small 5% decline in house prices in 2021 but a 15% surge in 2022 and 2023.
  • Macquarie forecasts a 6% – 7% rise in property price by the end of 2020. This momentum will continue up to 2021.
  • CBA forecasts a 6 per cent peak and a strong rebound in prices in the second quarter of 2021.
  • CoreLogic believes the national home value index will surpass pre-Covid levels in 2021.
  • Rent prices will grow in 2021 as borders open and tourism resumes. House prices in Brisbane will see the strongest growth over the next three years. Recovery in Perth will be long and slow in 2021.
  • House prices will rise in Melbourne just below the pace of inflation
  • Queensland will be rank #1 as the destination for internal migration.

Australian Housing Market Face A Better Year in 2021
Consumer confidence has increased and will increase even more. People are finally spending money and buying stuff again. Business is back from the dead and we’ll see more houses sold again. The rate cut will also give investors more confidence to invest in properties. We’ll see a healthy property market in 2021.

Home loan borrowing will skyrocket.
The industry will be all well again. Last September, Australians borrowed almost $16 billion to purchase new homes or renovate their old ones. This is a huge increase from the 2019 figure. Primarily caused by rock-bottom interest rates and generous government incentives, more people will borrow and buy homes. This is great news for all investors and sellers.

Banks will open for new businesses.
There will be fewer and fewer bank loan deferrals. People will be able to pay their mortgages on time and save more money.

We are positive that 2021 will be a good year for the housing market in Australia. The country is on track to exit the recession and the economy will be well again. Economists believe the nation’s GDP growth will recover sooner than expected.

Are you ready to make the most of these favourable market conditions? Contact us on (02) 8814 5275 or at https://www.mirren.com.au/contact/ for a complimentary consultation.

Brisbane property market set to rise in 2021!

If you’re looking to expand your investment property portfolio in 2021, we highly recommend looking into Brisbane. The River City has become one of the best property hotspots after COVID-19.

Brisbane’s property values remained resilient this year despite the economic problems brought by the pandemic, but new forecasts from ANZ and NAB expects a strong start in 2021.

Finally, after remaining flat over the last few years, the Brisbane property market looks to a brighter start in 2021. Since it’s house prices sunk in June 2019, Brisbane’s dwelling prices have now risen up to 3.5% over the last year.

But that’s not all, we’re still going to see its prices up for 2021. Let’s look at the forecasts made by Australia’s biggest financial institutions: NAB and ANZ.

ANZ reports a solid rise but a slow pace of gains

The latest ANZ housing report shows that house prices will continue to rise until 2021. Reports say that it could even rise to around 8 per cent on average by the end of the year and around 4 per cent in 2021.

The cause of this is found to be the combination of pent-up demand and low volumes. After the border closures and restrictions brought by COVID-19, people will want to start buying real estate again. This will drive huge growth in the property market.

Although there will be a rise in house prices, ANZ also notes that the pace of gains will be slow. This is already happening in December of this year with prices slowing to 1.4 per cent compared to 1.9 in November.

House price recovery has already begun starting in Sydney and Melbourne. Since last May, Sydney and Melbourne’s house prices are now at 9 per cent. Brisbane and Melbourne are very close to reclaiming their peak with Melbourne set to achieve this goal in just a few months.

After these states, other capital cities will follow thanks to low-interest rates and improved access to credit. We’re now seeing Adelaide’s price improve as well as Perth’s. While Hobart will have a slower pace of growth despite strong prices.

NAB expects house price rise in 2021

The National Australian Bank (NAB) expects a rise of around five per cent over 2021 and six per cent over 2020, with house price growth faring better than the apartment sector. According to the report, these outcomes are all driven by state-specific factors.

Brisbane along with Hobart and Adelaide will have the biggest gains with a rise of 7.4 per cent. This is followed closely by Perth at five per cent. Sydney and Melbourne, Australia’s two biggest housing markets will expect a weaker return because of the slowdown in population growth due to the border closures at the start of the year.

In the table below you’ll see NAB’s Q3 2020 forecast. It includes the dwelling price forecast for four consecutive years starting from 2019. It includes Australia’s top 6 capital cities: Sydney, Melbourne, Brisbane, Adelaide, Perth, and Hobart.

Here’s NAB’s Q2 forecast:

What More To Expect?

  • BIS forecasts Brisbane will see the strongest growth over the next three years.
  • Oversupply in the apartment sector will continue to drag down Brisbane’s wider housing market.
  • Prospective buyers will be lured by Brisbane’s affordability. Overseas migrants will want to stay in Brisbane.
  • There will be steady population growth and additional job creations as well as a low unemployment rate.

Make the most of the positive property market conditions in Brisbane. We can work with you to create a profitable investment strategy and find a cash flow positive investment property in Brisbane, in a timely manner.

Call us on (02) 8814 5275 or contact us here for a complimentary consultation.

Median house price: $705,000
Median house rental value: $570 per week
Gross rental yield: 4.3%
Transport: car, train, bike
Population: 457,000
State: ACT
Size: 814.2 square km

Canberra home values remained at a record high in September 2020.
(Source: CoreLogic)

Canberra is the capital city of Australia, located at the northern end of the Australian Capital Territory and is Australia’s largest inland city. Canberra has consistently produced rental market gains for the past 15 years.

Canberra is said to be derived from the word, Kambera or Canberry, which is claimed to mean “meeting place” in an Indigenous language, it is the home to important institutions of the federal government, national monuments and museums.

Considering it is a Capital City, the rental prices are just slightly below when compared to Sydney, whereas the property prices are far lesser, contributing to higher returns.

Canberra has a size of approximately 814.2 sqm and is the hub for the largest flower festival in the Southern Hemisphere – Floriade.

The median sales prices of houses in the area is $705,000, while the median house rent value is $520 per week. Both houses and units have good demand. The gross rental yield for houses comes to about 4.3%.

Investors enjoy one of the lowest rental vacancy rates, which is one of the significant advantages of investing in Canberra.

Employment and Population

The ACT has recorded consistent growth in population over the years with the recent figures coming to 457,000.

The ACT has a strong labour market, with a shallow unemployment rate of about 3.9 per cent, which is even lower than the NSW average.

Enterprise is high along with most employment by the Federal Government, both directly and indirectly.

Lifestyle

Canberra is a great place to live with ample job opportunities, and overall peaceful lifestyle, minimal traffic jams and a large selection of amenities.

With sunshine enjoyed over 246 days a year and with many open spaces bike tracks and parklands across ACT, Canberra is well known for its pleasant environment.

The connectivity is excellent with good roads and public transport, including the Lightrail completed in 2019.

Also called ‘University Town’, it is the city with the highest educated residents in Australia. Home to six university campuses with 63000 tertiary students from around the world;

  • Charles Sturt University, Barton
  • Australia National University (ANU), Acton
  • University of New South Wales, Campbell
  • University of Canberra, Belconnen
  • Australian Catholic University, Watson
  • Australia National University Medical School, Garran
  • Being a relatively small city, it hosts the third largest student population in Australia.

With great affordable property prices, business enterprise & public sector job opportunities on the rise, Canberra is a great Property Investment opportunity.

We can work with you to create a profitable investment strategy and find a cash flow positive investment property in Canberra.

Contact us on (02) 8814 5275 or at here for a complimentary consultation.

Median house price: $454,000
Median house rental value: $380 per week
Transport: car, train, bike
Population: 2,504
State: Queensland
Size: 16.9 square km
Location: 10km south of Logan Central

Park Ridge is a suburb located around 10 km south of Logan Central in Queensland, Australia, and 26km south of central Brisbane. Once a rural region known for its agricultural lands and bushland, Park Ridge is now a developing low-density residential suburb.

Many people mistake Park Ridge as a modern real-estate area but the area itself is actually over 100 years old. Before it was named Park Ridges, the area was called Logan Ridge.

Park Ridge has a size of approximately 16.9 sqkm. It has 8 parks covering around 0.7% of its total area.

In 2011, 77.5% of the homes in Park Ridge were owner-occupied compared with 74.5% in 2016. Currently, the median sales price of houses in the area is $454,500 while the median house rental value is $380 per week.

Park Ridge is one of the many suburbs in the area including Park Ridge South, Logan Reserve, Crestmead, Heritage Park, Regents Park, Boronia Heights, and Greeenbark.

Developments and Real Estate Statistics
Recent developments include the Crestmead Logistics Estate, which is a new business estate with construction of around $1.5 billion dollars. It’s said to be Queensland’s largest industrial project which also aims to bring more than 6000 new jobs and commercial business to the area.

Logan City Council also envisions development for the Park Ridge Master Planned Area which will provide 8,000 jobs by 2026 and a population increase of 30,000 people. There will be urban communities, more employment areas, and infrastructure that will provide community facilities. Despite the urban planning, Park Ridge wants to make the most of its natural assets so it remains one of the most nature-rich areas in QLD.

Looking at its average 5-year gains, there is long-term growth in the area. Compared to other Australian suburbs, Park Ridge had a weaker performance when it comes to an appreciation of property value.

Lifestyle
Living at Parks Ridge will connect you and your family with the large selection of amenities in the area. This includes the 8 parks, hotels, local retail centers, schools, and medical facilities.

Schools on Park Ridge include the Park Ridge Primary School, Park Ridge State High School, Parklands Christian College, Park Ridge Early Childhood Centre, Park Ridge Preschool, and Park Ridge Childcare & Preschool.

Overall, Park Ridge is a peaceful, quiet, clean, and neighbourly community perfect for professionals, singles, retirees, as well as old and new families. It might not be as convenient as its 30 kilometres away from Brisbane CBD, but the suburb is growing and has loads of potential.

Population and Demographics
The population of Park Ridge in 2011 was 2,328 people. After five years, in 2016, the population grew to 2,509 showing a population growth of 7.8%.

The median household income in Park Ridge is $67,756.

Great commercial development creating ample job opportunities, situated close to the city while providing a great residential location, Park Ridge is an ideal investment property hotspot. We can help you plan your investment strategy and also find the best property in Park Ridge. Contact us today.

Median house price: $408,888
Median house rental value: $390 per week
Median apartment rental value: $460 per week
Highlight: Upcoming industrial estate set to bring 6000 new jobs in the area
Transport: Car, bus, train, bike
Population: Approximately 3,254
State: Queensland
Location: 11.5 km south of Logan Central

The highlight that makes Logan Reserve a fantastic investment opportunity is the upcoming Crestmead Logistics Estate, a $1.5 billion industrial estate that is set to become QLD’s largest industrial projects set to bring 6000 new jobs to the area.

The Estate, which is set to deliver 650,000m2 of warehousing, business, logistics and manufacturing buildings, will generate over 6,000 full-time jobs to the local Logan economy.

This industrial project has made Logan Reserve a desired investment property hotspot for savvy property investors. Logan City Council Mayor, Darren Power, said the Council is committed to ensuring that Logan remains an attractive place for businesses to establish and grow.

“This latest project is evidence of that. This project is a game changer for the city, creating 6000 new jobs for local people. These kind of projects are a strong endorsement for investment in our city and we anticipate this growth in the commercial sector to continue,” he said.

With several new properties and estates being built, Logan Reserve and neighbouring master planned suburbs like Park Ridge are great property investment prospects.

Set out for exponential commercial growth, Logan Reserve is a suburb in the Logan City region, 11km south of Logan Central.

The suburb was built in 1862 when 500,000 acres of land from the Logan Agricultural Reserve was released for the provision of farms for settlers. This was also how it got its name.

Cotton was the suburb’s first mass-produced crop and the first public building was a small school from 1864. The early settlers were mostly from Yorkshire. They were all timber farmers which remained the primary industry of the region from the 1890s to the early 20th century.

Once a well-known suburb for timber manufacturing, Logan Reserve is now a growing residential hot spot. With large properties, cottage-style dwellings, and huge country estates, Logan Reserve attracts residents and tourists every year.

Logan Reserve is now known as one of Queensland fastest growing city. It is currently under transformation with more than $3 billion funds for infrastructure. The suburb is offering a quaint and simple lifestyle with lots of bushland homes and a few suburban-style streets. The median property prices for houses are $408,888 and $390 per week for rental units. Stock on the market for both houses has been down to -0.93%. Also, the average time to sell a house in the region is 256 days.

Location and Transport

Transportation is largely dependent on the Logan Reserve Road which connects it to the Brisbane CBD via Pacific Motorway. Travel via car to the city is approximately 44 minutes while travelling using rail takes about 60 minutes. The train stations also provide access to different railway lines and various bus routes.

Property Types

Bushland homes stand proud in Logan and are well suited to the ‘older’ and ‘established’ couples and family demographic in the area. Nestled between Brisbane’s CBD and the Gold Coast, Logan Reserve is the suburb for both kinds of people. If you want a slice of Queensland countryside while living at the doorstep of a big city, Logan Reserve is the perfect spot.

As a residential region of Logan City, Logan Reserve proves to be an unbeatable location that combines quiet life with convenience and affordability. Vacant land is rare here in Logan Reserve. Every property is selling fast. If you’re looking to secure an investment property in Logan Reserve, contact us now.

Population

Recent data from the Australian Bureau of Statistics lists the median age of residents in Logan Reserve as 29 years. Of the approximate 3,521 residents, females consisted of 50.1% while males were 49.9%. There are around 911 families on average.

Life in Logan Reserve

Logan Reserve is a thriving suburb with ongoing developments on the way. People have access to modern conveniences while enjoying the area’s natural paradise.

Living in Logan Reserve allows you to experience the opportunities in Brisbane while having access to the Gold Coast lifestyle. There are fantastic parks within short walking distance and houses are all aesthetically pleasing.

A family-oriented suburb, Logan Reserve is conveniently close to several parks and sporting facilities. There’s the Stoneleigh Reserve Park and Crestmead Park which has several beautiful low-key walking tracks and huge open spaces perfect for those seeking a beautiful time away from the chaotic city life. The parks also have several playgrounds for kids and picnic spots for family.

The perfect place for community-oriented people and families, the suburb of Logan Reserve attracts those who love nature, bushwalking, and water sports. As one of Queensland’s fastest-growing cities, Logan’s remarkable transformation is being powered by $3 billion in government spending on infrastructure.

Logan City’s largest shopping center, The Hyperdome can be reached from the suburb in less than 15 minutes. There are also numerous stores, supermarkets, and Cinema complexes for everyone to enjoy.

The City of Logan is bursting with things to do and places to explore. From its Global Food Market that’s open every Sunday to its world-renown Beenleigh Artisan Distillery. For those who’d rather be out in the sun, exploring nature and seeing animals, The Daisy Hill Koala Centre is a great place. Cyclists also find excellent terrain in Logan Reserve.

In Logan, you’ll also find quality private and public schools. There’s also a local medical centre and a hospital that’s just a 10-minute drive away. There are also several shopping centres with easy road access to Brisbane and only a 44-minute drive to Brisbane airport.

  • The community’s friendly attitude in Logan Reserve is one of the best things about living in the suburb. You’ll definitely feel safe, relaxed, and comfortable when you’re staying there.
  • The parks and schools are only a few minutes drive away

Great commercial development creating ample job opportunities, situated close to the city while providing a great residential location, Logan Reserve is an ideal investment property hotspot. We can help you plan your investment strategy and also find the best property in Logan Reserve. Contact us today.

Housing is often considered the most important asset by the majority of Australians. In the country, housing is one of the largest components of wealth. As consumer trust increases in the real estate industry after the COVID crisis, we’ve seen small yet impactful changes that determine the future of housing and real estate investment. In this article, you’ll read some of the important trends that we have identified over the course of the year.

The Housing Market Has Remained Stable Despite Grim Forecasts
We’ve probably heard about the previous predictions of an incoming property market crash and significant declines. But, fast forward, September the declines have not been as steep as first predicted. In fact, more investors are confident than fearful of the long-term stability of the industry.

Despite saying this, we also don’t claim that all markets are stable. There have been markets that were seriously affected. For example, Sydney’s eastern suburbs where vacancy increased by 2.5 percent in February and 5.2 percent in June. In contrast, Liverpool remained stable despite the lack of tourists. Its vacancy remains unchanged at 2.7 percent.

Australian economic and property report also found that the Australian market has managed to hold its value. This is despite earlier predictions that prices could significantly plummet down to almost 30% due to COVID-19. After the drought, bushfires, and then the pandemic, the property market remained strong and when compared over the years, it even managed to recover in 2020.

We believe that housing remains important to people despite the crisis. Businesses may have decided to let go of their large office spaces in replace of smaller ones. However, people are still looking for residential properties and the demand hasn’t gone down. Overall, investors are confident that the property market will be resilient until the end of the year. We’re yet to see steep price falls, and it’s nowhere as horrible as per the previous forecasts.

House Prices Aren’t Falling
Stimulus from the government is also helping people keep up with their mortgages. Furthermore, people with jobs aren’t spending as much. And well-paid, white-collar employees have been safe from job losses.

Well-funded banks with the power to freeze mortgage payments are one of the key reasons for good house prices until today. They have been tirelessly supporting struggling homeowners and preventing house price decline.

House prices rise quickly and decrease slowly. According to property researcher John Lindeman, when a boom is happening, properties tend to increase in price. But when buyer demand falls, every investor waits until a buyer turns up. Sellers who find it hard to sell their properties often take their property off the market rather than sell it at a lower price. They hold it until things improve. This is exactly what’s happening in Australia right now.

There are also hardly any forced sellers right now. This is largely due to the low-interest rates that help Australians keep up with their mortgage payments. Likewise, homeowners and investors who are having financial issues due to COVID-19 have been given able to regain their loss and defer their loan payments

Currently, around 800,000 people have deferred repayments during the pandemic and experts are concerned this can lead to an “economic cliff” by the end of September when the loan deferral period ends.

A Decrease in Transaction Activity and Rentals
Perhaps, the most significant impact of the pandemic on our property market is the decrease in rentals and transaction activity.

Rental listing fell around 39% during the national stage 2 COVID restrictions in March. This pattern continued and affected sales volume in the months of April and May where it dropped 11.3% from their record last year.

Now that the restrictions have been reduced, listings are back and private sales have been looking strong. The largest rental value decline occurred in the South Sydney region where rental values have been down 4.1% six months ago.

High Price of Homes in Australia’s Expensive Suburbs
Investors will be thankful to know that most capital cities in Australia aren’t severely affected by the economy. As of now, many of Australia’s most expensive suburbs have been continuing to see price growth. Data from various research on house prices shows that premium property remained stable in price from the start of the year until July. The top Melbourne market performed well with almost 20% growth. At the same time, suburbs in Sydney also grown around 27% in price.

Unemployment is The Largest Risk to The Property Market
As many Australians face unemployment, the number of current, upcoming, and potential investors have also reduced. Based on the current data, around 3.% of the working population lost their job since March. Which was then welcomed by a surprise fall in jobless rate as 111,000 people found work in August.

If there’s a group that is most hit by the pandemic, it’s the renters. COVID-19 happened during all-time high unemployment in Australia. The rise of unemployment continued and young people are the most affected.

Particularly, those working in the tourism, arts, and hospitality industry. Rental markets are also affected due to the decline of overseas migration. A large percent of Australian renters are migrants who’ve been from other countries before coming to Australia.

Investors are Spooked, Investment Confidence is Down
Despite the improvements in the health sector, The COVID-19 anxiety is still plaguing the confidence of many current investors and potential investors. While housing is usually considered one of the safest investments, most investors haven’t experienced this kind of market downturn before.

With many auctions and open home inspections prohibited during the pandemic spread, many sellers would resort to holding on to their properties. Restoring investor confidence through stimulus packages is one solution to fix the economy and alleviate the anxiety of investors. It won’t be an immediate solution but if successful, we’ll see the positive impact of it flow into the property market.

Low-Interest Rates Can Help The Property Market
The official interest rates in the country are now at 0.25%. Experts chime in that if you want to ease another downturn, banks should cut the cash rate again.

Should You Invest in a Property This Year?
It is worthy of a reminder that property investment is always long term, and however the economy changes, people will always need good homes to stay in which guarantees the sustenance of the rental markets.

It’s clear that no matter how resilient the property market is, it’s still isn’t immune to the economic crisis. It also makes sense that many Australians are nervous.

The current economic plunge was brought by a health threat. This time the economic issue will be short-term and things will go back to normal once the scare is done.

And although the efforts to contain the virus has brought significant changes to the economy, experts are confident that soon employment will rebound and consumer confidence will increase.

Through studying the pace of recession recovery, it’s expected that the impact of this recession will be short-lived than the 1990 recession or the Global Financial Crisis in 2008.

With the unexpected changes to jobs and more, the pandemic us taught us that finance security is more important now than ever. Investment properties are integral to Australia’s economy and with a sound investment strategy, we can be better equipped for the future. Contact Mirren to book a complimentary strategy consultation.

References:

https://www.realestate.com.au/insights/six-key-reasons-why-house-prices-arent-plummeting-despite-the-recession/

https://www.reuters.com/article/us-australia-property-poll/australia-housing-market-revival-to-continue-into-2020-reuters-poll-idUSKBN1XW00B

Using your equity to add more properties to your investment portfolio is one of the best ways to get funding for your property investment plans. Unlike saving up for the downpayment which can take a long time, using the equity you have right now can help you get started much earlier.

**What Is Equity? **

Have you ever heard of the word ‘equity’ being used by real estate experts? Or have you read articles (like this one) that mention it? Perhaps you’ve heard your broker say “tap into your equity” or something similar…so what is equity?

In simple terms, equity refers to your property’s current market value minus the amount of money you owe on it. Anyone who owns a property has some form of equity no matter how small. In the absence of savings, your equity can help you grow your property portfolio.

Equity is also a common term often used when people talk about property investment strategies. People who are looking for funding will always go to their equity first before trying a home loan from the bank or the government.

How To Invest in New Properties Using Your Equity?

1. Increase the equity in your current home or investment property
Investment properties are like the seeds you plant and watch while they grow. If you want to reap your profits sooner, you must be willing to speed up growth or increase the value by adding fertilizers or in properties, doing renovations. Pay down your loan quickly or buy something at a lower market price then renovate and develop it to sell at a higher price. Both these strategies are some ways you can increase the equity of your property.

2. Get a valuation on your property
With the help of your broker, you can check your current property valuation. If you want to do it yourself, you can also do so by comparing your property online and through real estate agent appraisals.

3. Figure out how much equity you need to afford another investment property
Try to keep it below 80% so you don’t have to pay Lender’s Mortgage Insurance (LSI). You can also use your savings along with your equity. If you have a mortgage on your home, it’s better to lower your mortgage first then extract equity for investing. Remember that home loans are not tax-deductible so if you want to get the most out of your money, use your savings to lower your home loan first.

4. Cash in your equity
Instead of relying on your income from your salary or your business, why not cash in your property equity today? If you’ve purchased an investment property in the last ten years, check your equity. You might already have access to a large pool of cash without even realizing it. You can then use this equity to fund a cash purchase for another property you want to invest in. A lot of homeowners have refinanced their investment properties to gain access to their equity and fund cash purchases on areas with lower property values.

5. Use Your Equity To Get a Bigger Loan
If you don’t have enough equity to buy another investment property, you can always use the funds as a deposit for your next investment. So if you have $200,000 equity in your property, you can borrow up to 80% of that or a total of 160,000 to use as a deposit for your new loan.

Things To Remember:

  • You can maximize your equity through cosmetic renovations in your home. You can do kitchen and bathroom renovations or recarpet and repainting. You can also do extensions in rental investment properties such as granny flats and rooms to increase your cash-flow opportunities.
  • When borrowing equity, always ask your lenders first how much you can borrow and the costs of LMI in the long term.
    If unsure how to use your equity to get a loan, speak with a mortgage broker who specializes in this field.
  • Don’t forget to do risk-analysis each time you get a new investment property. Be realistic and know whether or not you can pay back the loan if you face a period of rental vacancy or a sudden rate rise. Always have an investment strategy that looks for both the current as well as long term benefits. A property strategist at Mirren can help you make the right decisions.

Using your equity to fund new property investment properties is a wise strategy in building your real estate portfolio. However, always be wary of the properties you choose to invest in. Don’t invest in properties that might be too risky for your financial state. If you do, make sure you have plenty of cash reserves. Being prepared for a financial emergency can help you through tough times. That’s why it’s always wise to create a plan before rushing towards a deal. If you’re unsure about the best practices, it’s always wise to consult with a professional to help you out.

Have you planned to add an investment property to your portfolio, but are now hesitant to go ahead? We have helped several of our clients – both first-time investors and seasoned investors, navigate through this current crisis in the best possible manner. We’re happy to give you a complimentary, no-obligation strategy session to discover the best course of action for you. Reach us here.

COVID 19 is testing the Australian economy. While it’s still too soon to tell the extent of the impact it could have on the property market, numerous experts forecasted that there may not be as much negative impact as they first predicted.

Contrary to the initial grim forecasts including CoreLogic’s property market update during the height of the pandemic, price falls are expected to be modest and much smaller. While it’s wise to be wary, there’s no real cause for concern for the property investors who have strategically invested in their properties considering the locations and their life goals. Experts are confident that the Australian economy and the housing market shall rise again.

In addition to that, Australian Govt’s economic response to the pandemic in the form of cash flow assistance for businesses, SME loan guarantee scheme, mortgage holidays, Job Seeker and JobKeeper payments had helped in softening the market weakness and savvy investors are still looking at investing in good properties.

First Home Buyers are still Active

Due to the reducing property prices, first home buyers are now ready, more than ever, to make their first purchase and realise their dreams of owning a house.

First Home Loan Deposit Scheme coupled with Australian Govt’s Home Builder Grant and NSW Govt’s recent announcement to increase stamp duty threshold limit to $800,000 from $650,000 has added to the activity in the market by first home buyers.

Property Prices Plummeting? Not anymore.

House prices have fallen just 2 per cent since the last March-June quarter and property prices continue to grow in Regional Australia showing that coronavirus has impacted the property market differently at different locations.

This is despite hundreds of headlines saying that the housing market is swiftly going down or that prices are very low. During an unemployment crisis and bans on open homes and public auctions, Australian property markets have remained resilient. People are still selling and buying. There’s still activity in the market despite rising unemployment. This is a very positive and welcome result from the previous forecasts by Reserve Bank of Australia governor Philip Lowe.

How does a decline in economic growth and unemployment affect property prices?

During rising unemployment, fewer people will be able to afford a house. For those who still have their jobs, losing their current one may also discourage them from entering the property market. But there’s a bigger and less known scenario during the unemployment crisis.

Historically, increases in the unemployment rate have not necessarily led to house price falls. In fact, the opposite had been the case. The unemployment rate and the monthly growth rate in Australian dwellings have been moderately, positively correlated at about 0.5 for the past two decades.

This means housing growth rates have fallen when unemployment has fallen, and housing growth rates have risen in times when unemployment has risen.

While this may seem counter-intuitive, the housing markets perform well when unemployment rises. That is because when unemployment surges and the economy weakens, the monetary response has been to lower the cash rate. The cheaper cost of debt actually creates growth in housing for those who can still afford to buy.

Tips for Property Investors during the pandemic,

Diversify Their Property Portfolio

Investing in two or three properties is better than investing in only one or nothing at all. Imagine if you invested in a property in an area that doesn’t grow — after five years you won’t have any equity to spend or use to buy other properties. However, if you have three or more properties in different areas, there’s a huge chance that two of those areas will grow and you’ll have access to more equity to purchase another property.

Access Your Equity

Investors can borrow against their homes through a mortgage or a line of credit. This is the safest way to access equity. So in simple terms, you can use your existing home to get a loan for an investment property you’re planning to take.

Understand that property is a long term investment

Panic buying and forced selling have become one of the common results of this pandemic. But it’s important not to succumb to this pressure, as long as you have the funds, don’t force sell an investment. Many investors can lose great properties that are still capable of generating income just because they were spooked by the forecasts and panic. As long as your investment property is still earning, there’s no reason to offload it.

Long-term investments are the only thing that can keep you away from short-term price fluctuations. Invest in a long-term time horizon.

Hold cash reserves

You don’t know when the next opportunity will knock on your door so being prepared can be your biggest strength. A prepared investor will always have the cash to spend when he needs it the most. Extra cash is more than just security, it can also save you during the lowest points in your life.

Buy Value

This is the most obvious strategy and the easiest thing you can do. If you want to minimize losses, then do it right from the start, buy a property that is well worth its price. Start by reducing the risk and your chances of misfortune. Need to know which property will give you the best value? We can help, contact us today!

Take informed decisions

Don’t base your decisions on what other people are doing. Always, believe in sound financial principles and from experts who know their books. Most of us are just following the herd, going with the flow because it gives us a false sense of security. But that’s not the right way to think. Make important decisions based on critical thinking, data, and fundamental financial principles with a focus on long-term planning.

At the end of the day, as an investor, it’s important to feel comfortable with the investment decisions you make in the current property market. Clarity and assurance are always better than not being able to sleep at night knowing that you have loans you can’t pay.

Need help with the strategic planning of your property investment plans? Contact us for a complimentary, no-obligation session.

Renovating properties may seem like an easy way to earn real estate money and increase the value of your home. All you need to do is buy cheap property, add improvements, then increase the price. Sounds simple, right? Not quite. 

While renovating can indeed help you maximize profits, it’s not as easy as it may seem. Although your main plan is to make your property attractive, you need to follow a strategy to ensure your renovation will be successful. 

So how do you start a profitable renovation project? Here’s a beginner’s guide on how to renovate your home and maximize your profits during selling: 

Understanding Valuation

If you want to learn how to properly price your investment property, you first need to grasp the concept of valuation. This is important to ensure that you don’t overcapitalize the property or make uneducated guesses about the profit you will make. 

According to Investopedia, accurate real estate valuations “can help investors make better decisions when it comes to buying and selling properties”.

People who assess property values are called “valuers” and they follow a specific method in measuring the price of each investment property. When they inspect properties, they consider three important elements of your home: 

1) Land– this includes your location, size, topography, and the dimension of property

2) Dwelling  – this includes house age, construction, and condition.

3) Site improvements – this includes fencing, landscaping, pools, or other constructions built separately from the house itself.

Someone who doesn’t understand valuation can price their property ridiculously high, which can affect its sale position in the market.  

Know Your State Building Regulations 

Now that you know a bit more about your home’s value, let’s proceed to the second most important step in maximizing your valuation: planning. 

Before renovating a house or unit you might need a council or body approval first. Most of the time, you don’t need approval for interior renovations, however, if you plan to change exteriors or walls in the property then you may need council approval. 

It’s a grave mistake to start renovating without knowing the rules and regulations of your state. There are also penalties and fees for people who skip this step. 

Determine Your Budget 

Every renovation starts with a budget. Plan how you would allocate your money for the property. 

Don’t cheap out on important products or materials just to save money.  

If you want to cut costs, be smart about it. Opt for low-cost finishing materials. Try to retain the same layout of the room so you don’t have to spend time moving big appliances like gas ranges or sinks. 

Another important thing to remember: save some extra funds for an emergency. Don’t forget miscellaneous funds for repairs and unexpected problems you’ll have to deal with during the renovation process.  

Research Design Trends

You can’t just put everything and anything you like to see in your property. You need to be intentional with your design. 

Before doing renovations, make sure you do your homework. 

Is there a particular design that’s unique to the neighborhood? 

Who are your potential buyers? 

What design do you think will appeal to them? 

Refining The Exterior

Your house’s exterior is actually the first impression you give to the buyer. It’s what they’ll most likely see first when you post photos of your property online. 

The best way to renovate your exterior is through a paint job. It will refresh the look of your home and make it look neat and brand new. 

When upgrading the exterior of an old home, it’s also important to focus on the most important eyesores: dirty paint, rotting siding, cracks (if its a brick home), or damaged roofing. These little things can be a big turn off that can affect your house’s valuation. 

Landscaping 

A beautifully landscaped patio can be your property’s best selling point, so make sure you’re also including it in your renovation.  

Transform boring parts of your yard into gardens or new pathways can be a good renovation plan. Also, instead of changing the slope of your garden, embrace it and work with what you have. 

Upgrading Kitchen

The kitchen is another important area to focus on in your renovations. The kitchen is the heart of the home. It’s where most conversations, family gatherings, and special moments happen. If you want your property to stand out, pay attention, and focus on renovating the kitchen.

Since most buyers want a functional kitchen that includes modern appliances and ample storage, experts say the kitchen is where you should allocate the most money if your renovating interiors. However, it doesn’t mean that you should overdo it. A great trick for remodelling kitchen is to refinish kitchen cabinets. This can create a brand new look and feel within the space. 

Upgrading Bathroom 

Like the kitchen, the bathroom can be one of your property’s best selling point. The more functional and aesthetically pleasing your bathroom, the greater the chance it will attract buyers. When renovating the bathroom, don’t forget to add storage. 

The bathroom storage should be simple, space-saving, and functional. You don’t want to put a large storage cabinet in an already small bathroom. 

Replace Flooring or Carpets  

The floor is also one of the first things that buyers will notice when entering your property. To exceed buyer expectations, you need to keep your property’s flooring updated, clean, and stylish. This is why it is essential to fix broken tiles, replace old carpets, and polish dirty hardwood floors.