According to Suzana Wade of Locate Property, having Brisbane featured on the world’s best city list by time magazine is such an amazing accomplishment for Brisbane. Those who are aware of Brisbane’s ongoing growth and development over the past ten years are not surprised by this recognition but exciting times lay ahead says Suzana.
Brisbane has recently undergone infrastructure, hospitality, and retail developments that have drawn tourists from all over the world, making it ever-popular for travelers and business people alike. The formerly semi-industrial areas, such as the James Street Precinct, have been transformed into vibrant, thriving communities that highlight Brisbane’s lovely climate and regional businesses with a restaurant scene that finally rivals anything in Sydney and Melbourne and that is before the opening of the Queens Wharf Casino project.
The upcoming Olympic and Paralympic Games in Brisbane in 2032 are anticipated to further the city’s economic growth and development and make it a more desirable travel destination for both tourists and investors.
The city has already undergone a massive change and this recognition by Time magazine is not only an acknowledgment of such but a prediction of how Brisbane is likely to further develop.
Brisbane has been on the top of investors’ shopping lists for quite a while now and although was often seen as lagging between Sydney and Melbourne, we now see Brisbane taking centre stage even more so as a result of the Time magazine recognition. The value of homes in Brisbane is likely to rise as a result of increased real estate investment as more people become aware of its appeal and rising popularity.
Not least of all, it should be noted that Brisbane being on the world’s best city list by Time magazine’s list of the most incredible places to visit in 2023 is a glaring indication of the city’s rising fame and acclaim. Given that this recognition is likely to increase demand for Brisbane real estate, now is a great time for investors and homebuyers to profit from the city’s quick growth. Brisbane’s real estate market is expected to continue to be a thriving and profitable investment opportunity for years to come because there are numerous options for buyers.
Renting out a property that you own while paying rent to live somewhere else initially seems like a strange thing to do. But “rent vesting” is becoming more and more common, which is due to a mix of financial and lifestyle factors.
Why would you do that?
Gaining entry into the housing market is a key benefit of rent vesting. While 66% of Australian homes are owner-occupied, the percentage for people under the age of 35 is much lower at 50%.
Young adults are increasingly choosing to live with their parents, helping out with a little bit of board while also using a tenant to help pay off an investment property. It might make it possible to buy a house or invest in real estate more quickly than would otherwise be possible.
More and more “rent vestors” are renting homes in desirable suburbs where they can’t afford to buy while investing in a less desirable but potentially more profitable area. The variation in rental yields is what is causing this trend. In comparison to yields of over 6% offered in more affordable suburbs, rents in desirable neighborhoods typically run as low as 2%.
In the opposite circumstance, some people choose to rent inexpensively while purchasing a more expensive property, frequently in the hope that the investment property will experience a faster rate of capital growth.
Then there are those who want or need to move frequently but still want the security that owning a home can bring.
You’ll make it work if you want to.
Despite how appealing the lifestyle advantages may be, rent vesting must also be financially viable. You must be able to afford your rent as well as any net costs associated with your investment property, at the very least.
Long-term, rent vesting also aims to put you in a better financial position than you would be in otherwise, so it’s important to understand the real estate market and form an opinion on price trends.
Additionally, there are a number of tax considerations to keep in mind, both good and bad:
If the expenses for your investment property (interest payments, council rates, insurance, agent fees, etc.) exceed the rental income, or if the property is negatively geared, you may be able to claim a tax deduction against your earned income.
Any excess of rental income over expenses is taxed at your marginal tax rate.
You must use your after-tax income to pay the rent on the home you currently reside in.
While a profit from the sale of a primary residence is tax-free, any profit from the sale of a rental property is subject to capital gains tax.
Please visit the ATO for further advice or seek advice from your licensed Accountant
Is it suitable for you?
Do you like the thought of enjoying the sea views from your rented home while a tenant settles the mortgage on your prime investment in a burgeoning neighborhood? It might be worth investigating. Just make sure you comprehend the idea completely. Although they might not offer advice on direct real estate investment, your financial advisor can serve as a sounding board to make sure you have everything covered.
For any rent vesting advice or to enquire about a one-on-one with Suzana Wade from Locate Property, contact us today.
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