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House & Land Packages QLD Brisbane | Property Investment


What to consider when investing in a house & land package in QLD


Strong population growth in Brisbane coupled with an increased demand have resulted in low vacancy rates, higher gross rental yields and strong capital growth for Brisbane house and land packages.

Brisbane is part of South East Queensland which is Australia's fastest growing region. Its population will climb from 2.8 million in 2006 to 4.4 million in 2031 and 754,000 new homes will need to be built according to the State Government’s South-East Queensland’s Regional Plan.

Here are the important factors to consider when buying a Brisbane house & land package for investment in Queensland.

Location


Brisbane’s laidback lifestyle, cafes and restaurants, cultural centre, nightlife and close proximity to the beaches on the Sunshine Coast are a popular drawcard for tenants. Traditionally, housing developments in Brisbane are located in areas that have a high rental demand. It is important to analyse your desired Brisbane location and check:

  • what is the capital growth of the region
  • whether there are any major developments or infrastructure planned
  • what is the average rent and yield of similar new houses and
  • what is the rate of population growth and the demographics of the area.

Remember investing in property is a long term strategy and the property market is a cyclical market so make sure you check previous reports as well as current reports and projected planning reports for the area.

Rental income and yield


Houses appeal to families, couples and retirees who require pet friendly and larger bedrooms, outdoor living areas and storage space. Check rental reports in the Brisbane region you wish to buy an investment property in and find out how other similar houses in the area are performing so you can find out the potential rent you can charge for your investment property.

Traditionally, new house and land developments are located in Brisbane areas that have a high rental demand such as:

  • within 10kms of the Brisbane CBD
  • located near restaurants and cafes
  • close to amenities like a shopping centre or hospitals
  • access to nearby schools or one of Brisbane’s many universities such as the Queensland University of Technology
  • a short distance from public transport and highways and
  • located in a region with a diverse industry and employer base.

Buying a new house and land package that fits most of these criteria will result in a low vacancy rate, higher gross rental yields and strong capital growth.

Capital growth


Historically, Brisbane’s house prices have been more affordable than its eastern city sisters, Melbourne and Sydney but increased demand is driving prices up. The best performing houses in terms of capital growth have always been within 10km of Brisbane. House and land packages generally have a greater potential for capital growth than apartments because of the land content.

The advantage of buying a house and land package is the greater potential to add value to the property such as paving the driveway, building an additional bathroom and adding a pool without having to adhere to a restrictive Body Corporate as you would do with an apartment, unit or townhouse but you do have to comply with local planning laws.

Capital growth in Brisbane can be affected by the following factors:

  • If a house is bought off the plan and there is a long settlement period, there may also be potential for capital growth when the property is finally completed.
  • The location of the property. Historically, the best performing houses in terms of capital growth have always been within 10km of Brisbane.
  • The population growth, future lack of affordability and scarcity of land in Brisbane.
  • Whether there are any major developments or infrastructure planned for your Brisbane location such as a shopping complex or a new highway.

It’s important to research the long term capital growth of the area that you are planning to buy in as capital growth is the one of the main reasons why people purchase new houses as investment properties.

Tax credits


One of the major drawcards for buying a new house and land package in Brisbane is that there are considerable tax benefits.

If you own an investment property, you may be able to deduct capital works deductions which apply to the period your property is rented or is available for rent and are generally spread over a period of 25 or 40 years.

Any legitimate expense incurred in running your investment property should also be tax deductible against your overall income. These can include:

  • repairs and maintenance of fixture and fittings;
  • loan interest and related bank fees;
  • property management fees;
  • insurances;
  • any legitimate expense incurred in running your investment property;
  • capital works deductions such as extending your house, painting your house or adding an extra bathroom;
  • depreciation – the ability to claim the cost of replacing fixtures and fittings such as carpets, curtains and so forth in advance of actual replacement.

Expenses


As well as the usual costs of buying an investment property, a house and package is also subject to land tax and it is calculated annually as at midnight on 30 June of the year preceding the year of assessment (i.e. 20010 assessment is based on land holdings at 30 June 2009) in Queensland.

A house generally does not have the high maintenance costs of an apartment such as elevators, pools and large landscaped gardens and you will not incur strata fees.

Expenses to factor in your budget when buying a house for investment property purposes include:
  • stamp duty and other relevant taxes
  • conveyancing fees
  • loan application and valuation fees
  • mortgage insurance (if applicable)
  • a tax depreciation report and
  • building and home contents insurance.

Other ongoing expenses include land tax, council and water rates, property management fees and landlord’s insurance.

Buying a house in Queensland is a shrewd investment as housing affordability continues to decline in the eastern states of Sydney and Melbourne. The potential for capital gains growth, a bigger resale value and more control over your investment are all strong incentives for adding a Brisbane land and house package to your investment portfolio.

Find Investment Property has listings for some of the best Brisbane land and house packages currently available so start searching to find your next property deal and add a Brisbane off the plan property to your investment portfolio.


Find Investment Property is the best property investment resource online and features the latest new apartments and off the plan investment properties. Whether you are looking to buy investment property or looking for the best property investment research, Find Investment Property has the real estate investment properties you need.