Invest in Brisbane’s Skyrocketing Rental Market Using the Bank’s Money – By Chris Gilmour

The Brisbane housing market has been red hot in recent years. It was the strongest property market in 2021 and held that strength through most of 2022. But with rising interest rates, high inflation, and a decline in consumer confidence, property price growth is finally starting to cool, bringing some much-needed relief for struggling buyers. 

This does not mean we are headed for a correction anytime soon. In fact, CoreLogic data released at the end of June 2022 confirmed that median prices still grew by 0.1% throughout the month. 

Cash flow positive investment assets are back. 

Where conditions get interesting for investors is the rental market. With so many new residents from interstate, driven here by pandemic conditions, there just aren’t enough rental properties on the market. So while rental rates might have been high in 2020 and 2021, it’s now nearly impossible for renters to secure a lease in their preferred areas. Ultimately, rental rates continue upwards at an incredible trajectory, creating an attractive market for investors. 

The insanely hot rental market has resulted in an environment where everyday investors are finding cash flow positive properties. While negative gearing is an effective tax savings strategy, positively geared assets deliver income right into investors’ pockets. 

We may just be entering a golden era of property investing – where buyers get both cash flow positive real estate assets and the confidence the value will appreciate in the coming years. Potential investors should not let this market slip through their fingers. 

If you’re a homeowner, did you know there are strategies to leverage your home’s equity, enabling the purchase of a cash flow positive investment property?

Use the bank’s money to build your property portfolio. 

If you dream of owning an investment property and building a real estate portfolio – you’re not alone. However, many forget that you don’t need to have a huge deposit sitting in your savings account to secure an investment property. In the past few years, most markets in Australia have skyrocketed, meaning that you could very likely be sitting on all the cash you need in the equity of your existing property. 

Unlocking the equity in your home can enable you to use funds loaned to you by the bank to acquire your first investment property. And in today’s market, there’s plenty of opportunity for that property to be either currently cash flow positive or will shortly be cash flow positive and rental prices continue upwards.

But here’s where it gets even more exciting. Brisbane, the Sunshine Coast, and Gold Coast are all increasingly attractive investment markets because of their appreciation capacity. As your investment property’s equity increases through appreciation and your monthly payments, you’re taking steps towards repeating the process. With some time and patience, you could be well on your way to purchasing a second real estate investment property once again using the bank’s money, not your hard-earned savings. 

Millions have implemented this investment strategy, but today’s market couldn’t be more ideal for Brisbane residential real estate investors. 

Don’t follow the trends of negative market sentiment. Brisbane’s golden era of investing is now. So let’s talk about how you’ll capitalise on these once-in-a-lifetime market conditions.