We are always looking for ways to help our valued clients to achieve a greater return on investment from their property. Today we’re going to be taking a general look at some of the updates in the Brisbane rental property market and are going to be exploring some key topics that property owners in Brisbane absolutely need to be across.
At Beyond Property Management, we’re all about enhancing the value and performance of your property investments and ensuring that you have the best possible portfolio in your hands. We know that exceptional property management is about a whole lot more than just getting in some tenants; we prefer to deliver a holistic property management experience that really benefits you.
What’s happening in the Brisbane rental property market
Recent updates from Corelogic have shown that Brisbane rental prices have been on the rise – with rates around the country up 1% Brisbane is leading the charge with a total increase of 1.4%. This is great news for property owners who are looking forward to some increases after a relatively stagnant period for quite a while! So, what can you expect?
But what does this mean for you? Well, if your home is being rented at the Queensland median of $436 a week, then you can expect a total increase of $6.10 per week. If we look at that per year, you can expect to see an increase of $317.20 per year.
This would be enough to pay some rates (at least a portion of them!) and makes a difference no matter which way you look at it. But even though that’s a small difference it’s not a huge amount — so what else can you do to capitalise on potential growth and ensure you are sorting out your cash flow?
As you would know from working with Beyond Property Management in the past, we pride ourselves on ensuring that you’re getting the best possible return on investment. While we do all that we can to support our clients, we know that return on investment stems from more than just taking care of your property.
So consider: What type of loan structure do you have in place? Is this serving your needs as best you can? Perhaps it’s worthwhile looking at your mortgage and working out if you need to change lenders.
Let’s see property savings in action…
Here’s an example from Pete Mastroianni, Managing Director Of Loans Only mortgage brokers:
“The average Brisbane mortgage is around $352,800. If you’re making interest-only repayments on the investment, then the outlay on a loan of this amount is going to be $305 per week over a 30-year term. If your loan is out on a rate of 4.5% and you can secure a better interest-only rate of 3.99%, then this is a saving of $34 per week – which over a year makes it $1,768! You will find that this amount pays your rates and you’ll likely have some money left over.”
While this is a short example, you can clearly see that even a small change can make a big difference. Of course, there are fees associated with making a change of lenders, but it just might be worth your while. That said, banks will compete on price, which means that you’ll likely get a better deal from a lender if you ask them. You might like to work with a broker whose focus is on investments as this can help you identify any hidden value.
Other factors to consider when adding value to your investment portfolio
We would like to cover a couple of other areas where value might be found for your investment portfolio:
- Have you got a depreciation schedule in place? You need to ensure that you have spoken to your accountant prior to tax time and know what you can claim on within your property
- Have you had your property valued recently to find out about any appreciation in the assets you own?
- Are you focused on ensuring you’re getting the best from your rental properties? If not – speak to us about how we can assist you in providing this service.
We love being a part of our client’s investment journey. We are committed to offering more than just rent collection and administration services and are always happy to speak to anyone about how we can help.
Until we speak – Happy Investing!
Principal, Beyond Property Management