With the softening in property prices, particularly in the Sydney market, prices have eased sufficiently to make entry into the housing market here for first homebuyers affordable.

However, as an investment, the property prices are still too high and consequently the rental returns are not that great.

When you compare the prices of properties available in WA and QLD, you would be paying at least a 100k less for the same type of property, and getting relatively the same rental as you would with a similar property in Sydney, and sometimes even higher. What’s more, chances are you will get something that is near new or brand new for the same price, and therefore, from a taxation point of view, there would be better tax concessions.

Personally, in my opinion, most of us may have already missed the boat in WA, because the prices now are significantly higher than what it was the same time last year, making the returns less lucrative. For example, last year we were able to get some of our clients’ house and land packages for under 290k, whereas, this year, there is nothing available in the same style and area for less than 340k, and increase of 50k. Having said that, there is still money to be made here over the long term, especially with properties closer to the water.

QLD on the other hand, is still relatively low in price range, and the rental returns are almost dollar for dollar in areas that are seeing a lot of infrastructure changes. In normal speak, that means that that particular area is set to grow in value in the very near future.

For investments, my dollar is still on QLD, and to some extent WA as opposed to NSW and Victoria, mainly due to the entry price and rental returns, as well as the potential of more, faster growth.

 So if you would like to get into an investment property today to build more wealth and security for your future (and who doesn’t?), give me a call on 1300 302 166 or email to victor@rightgroup.biz. I will hold you hand through the process.