The Bricks & Mortar Strategy

The ANZ Bank Australian Property Outlook – January 2008 states that “In raw terms, since 1984, residential property has enjoyed an extraordinary compound annual total return of 13.4%, only slightly below that of equities (13.8%) and far above both commercial property (10.3%) and bonds (9.4%).  But in risk-adjusted terms, residential property has delivered vastly superior returns to all other asset classes.  … In risk-adjusted terms since 1984, residential property returns have more than tripled those of equities and more than doubled those of commercial property and government bonds.”
There is a range of factors that the astute investor will consider when acquiring an investment property. At the top of the list is buying in the right place at the right time.
In our Bulletin last week, using research from Herron Todd White (Australia’s largest independent property valuer), we looked at the market cycles in each region and concluded that Sydney and South East Queensland are both excellent investment options as they are in the “rising market” phase.
                                           

Focus on South East Queensland (SEQ)
For those interested in SEQ, respected property forecaster Residex advises that the best opportunities lie in house and land packages (units are in oversupply). 
For most investors, Brisbane itself is a bit expensive for house & land.  But selected regions just north and south of the city, and close to the coast and to major transport links, provide the right combination of affordability, high rentals, and very attractive capital growth prospects, supported by strong population growth and business & government infrastructure investment. 
We have focused on the shires of Coomera (to the south) and Caboolture (to the north) that Residex has identified as providing capital growth over the next five and 8 years of 5-10% per year (more taking account of rentals).  We have prepared detailed investment reports on these regions.

If you have missed out on previous investment cycles do not miss this opportunity.
House and land packages