There’s never been a better time to buy a home as an investment to rent out to other people in Brisbane and here’s why:
The Market Is Steady Which Means It Hasn’t Peaked
There have been plenty of winners in the Brisbane property market already, that’s for sure. The last 5 years have been all upside with decent returns in all classes of property but unlike some of Australia’s other cities – growth hasn’t been outrageous, it’s been steady. That means there’s still plenty of room for more growth and we believe there’s still potential for 10% gains or so over the next 18 months.
With bank accounts paying next to nothing in interest but mortgage rates at pretty much an all-time low; you can’t sniff at 10% on an investment. Of course, if you take a mortgage to buy a place to rent, you get to profit without a huge amount of capital to invest in the first place.
Rents Will Cover The Mortgage
It’s worth noting that things have got better for renters in Brisbane. Back in 2012, every renter was paying more in rent than they’d have paid on an equivalent mortgage. Now things are a bit more even but there’s no doubt that if you buy the right property that the rental income should cover the mortgage payments. That means while you borrow the money, somebody else will be paying it back for you.
That’s a really nice way to earn a return. Not only do you profit once on the rise in house prices but you profit again as the equity in the home grows because someone else is paying off the mortgage for you.
Superannuation Isn’t Enough
We all want to retire from work one day and live an easier life. The trouble is that Australians are living longer and longer. That means our superannuation funds won’t cover us from 65 in a life of luxury anymore. We’re going to need more money. What could be better than a guaranteed income in retirement?
If you buy a home to rent it out; rents go up each year but mortgage payments stay roughly the same. Eventually, mortgage payments finish and the rents still keep rolling in. If you had two or three homes to rent out plus your superannuation, you could have a great start to retirement and if you wanted a big cash windfall to live out your dreams, you could always sell the home you’d bought.
It’s Easy When You Know How
Finally, if you let a real estate agent handle the property management for you including tenant management – you’ve got an investment which requires very little hands-on effort from you. In short, you can earn money practically while you’re sleeping and build a better future without taking on a second or third job to do it.
That’s why the time is right to buy a property to rent it out in Brisbane; your whole life will be better for it.
