Why it’s so hard to find good investments right now, and how you can do it anyway

Whether you’re just poking your toes into the investor market, or you know your way around the investing housing market, we’re sure that 2021 has been an interesting year for you. Every market around the country has been hotter than hot, and there haven’t been too many investment opportunities around.

Given how hot the market is – and how thin on the ground opportunities are – it’s clear that coming prepared pays. It pays to have your finance secured, your must-have’s in order, and a list of potential properties ready to go. But how do you even find a list of potential properties in a market this hot? In one word: research.

When trying to enter this market, taking a moment to better consider exactly what type of investment property you want is crucial. After all, it’s easy to say that you want a property with “great returns” or one in “a highly visible location“. As an investor (or potential investor), you should have a laundry list of ‘have’s’ and ‘have-not’s’: do you want something that is located geographically close to where you live currently so you can deal with any issues quickly? What sort of renter are you looking for? Is the property something you plan on living in at any point? How easy is it for you to make changes to the property if you need to? Do you plan on providing it fully furnished? What sort of returns do you want to make on a quarterly and yearly basis?

And some states are simply to difficult to enter into: whether it be due to monetary constraints or due to lack of stock, it’s no surprise that investors are looking further afield to try and find their investment properties. The New South Wales and Victorian markets are, in particular, very inflated, and so a number of investors are turned their eyes towards the Sunshine State for more affordable properties (but still with great returns, given how tight the market is there).

With the market in mind, finding ideal opportunities can be quite difficult.

There are some opportunities though, particularly within the Queensland market. One option that we can see becoming increasingly popular is the Investment Home. These developments allow you to place a high-quality house within different hotspots, where you can then rent them out. You simply just have to choose the housing estate – all of which are within 30-45 minutes drive from the Brisbane CBD, and close to schools, shops and public transport – then put down the deposit, and watch as it is built.

Each of these houses are four bedroom, three bedroom configurations, with high-end finishes. The unique ability to build them within the hotspot of your choice, combined with the house design itself, means that these properties are expected to generate up to $900 a week in rent. This sort of investment opportunity is also “hands-free”, given that you have a property management team actually managing the house for you – the ideal solution if you’re in another state. It is also not NDIS. These types of investment houses also popular with the bank – given you can supply the average 10% deposit, of course – and it’s not uncommon for them to be willing to loan up to 90% of the purchase price given how secure the investments usually are. Given this, an investment opportunity of this type is ideal for someone who wants to hit the ground running, without over leveraging themselves.

We’ve done the maths for you: if you pay $589,900 for your investment property, and rent it at $900/week, then you can expect that:

  • Your monthly rental income is $3,900
  • Your monthly repayments on the mortgage are $2,100
  • Your monthly cash-flow is $1,800*

If you’d like to know more about this opportunity, please enquire below and one of the PropertyMash Buyer’s Agents will be in contact regarding how they can help you.

*Please note that these figures are estimated and based on a 2.63% interest rate. Individual situations may vary.

Written: 17 December 2021

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