Why Interest Rate Rises Are Good For Investors

I speak to many investors daily and it’s interesting to hear their different views on interest rate rises.

First-time investors tell me they're going to "wait and see" and they end up doing nothing, which is very different from the more knowledgeable investor.

These more experienced, savvy investors look at the bigger picture and see that interest rate rises - if accompanied by rental rises - are actually a good thing.

First of all, rises in interest rates can scare away some buyers. This then makes it much easier for investors to get into the property market as there is less demand from owner-occupiers, first-time buyers and novice investors.

Also, the rate rises we're seeing now are actually very small, especially when we remember that rates have fallen 1.9% over the last 6 years.

Yes, it's predicted to get back to levels it was 5-6 years ago, however, in that period, rents have increased a whopping 25-45% depending on where you are. So if interest rates do go up by 2% or so, investors will still be better off.

So to those of you who are sitting back to see what’s going to happen, in that time you could have arranged a fixed-rate mortgage and bought a property that will guarantee you 5% rental return adding to that potential growth.

Nicola McDougall, the chair of the Property Investment Professionals of Australia said it well:
"While the RBA tends to cut rates very quickly when the economy slumps ... it tends to lift rates extremely slowly".

Here's a good article if you'd like to read more: https://www.domain.com.au/news/why-rising-interest-rates-are-good-news-for-property-investors-1135584/

Dwyer Quality Homes Stronger Than Ever

Dwyer Property Investments and partner builder, Dwyer Quality Homes are family-owned local businesses. We have been building houses in SE QLD for over 37 years are today stronger and busier than ever.

Dwyer Quality Homes Stronger Than Ever

There’s a lot of talk out there about the rising cost of labour and construction materials. Earlier this year, these cost increases saw building giant Probuild call in the liquidators. Now local builders Pivotal Homes here on the Sunshine Coast are in some trouble too. The list of reasons is long but some building companies were too top-heavy, some just misjudged the market or took on more contracts than they could handle.

I am pleased to say that our building partner, Dwyer Quality Homes has always stayed ahead of the game and although times can be hard, we have in place a financial structure that ensures future-proof stability for our clients.

Dwyer Quality Homes

Since our early days in 1985, we have always planned for the future. We have long-term contracts with all our employees and our suppliers, and these relationships ensure that your Dwyer Property Investment build will be built on time and on budget.

Often businesses get themselves into strife when they speculate and stretch into unknown markets. New builders gamble on lower margins and find themselves in trouble when faced with rising labour and material costs.

Dwyer Property Investments along with Dwyer Quality Homes are both SE QLD experts with nearly 4 decades of local building know-how.  Our supply chains and business acumen are strong and as a family-owned business, we look after our clients like they are one of us.

Regardless of what the market throws our way, we will always be here to help you on your investment journey, building your property portfolio and continuing to grow your future wealth.

If you have any questions about the state of the construction market today and how that affects local builds in SE QLD, please give me a call - or if you prefer, email me anytime here.

2 Exciting New Videos Released On The Dwyer Property Investment YouTube Channel

Just a quick note today to let you know about 2 exciting new videos we've released on the Dwyer Property Investment YouTube channel.

Today's videos explain what's involved when buying a house and land package and also what's included in your free financial property report.

The term house and land package can often be misinterpreted by buyers who think it is only one contract.  Watch this video to find out what a house and land package actually is:

Before jumping into property choices and loan structures, a vital step to any successful property investment is working through your personalised financial property report.

As part of our consulting service, we help investors understand all elements involved when buying an investment property, including the tax implications, the hidden costs and the specific financial benefits available to you.

This video explains what your free report will contain:

WATCH OTHER DWYER PROPERTY INVESTMENT VIDEOS HERE

Click here to see other video topics that might be helpful on your investment journey and don't forget to subscribe so we can keep you up to date as new videos are added.

Don't wait to invest. Invest, then wait.

Property Investment Shouldn’t Be Complicated, But Many People Get It Wrong

Property investment shouldn’t be complicated, but many people get it wrong because they skip the most important steps at the beginning and jump straight into looking at houses.

It’s true some steps aren’t fun and can be daunting at times, but you don’t have to do it alone. We have nearly 40 years’ experience in building and investing here on the Sunshine Coast so let us help you with your investment journey.

Below are my most important tips for property investors. If you follow these steps first, your investment journey will not only be more fun, but it will be more successful too.

 CHOOSE THE RIGHT LOCATION

One of the most important things you need to do up front is research different property investment locations.  If you don’t choose a location with high growth potential, nothing else matters because your investment will fail.

There are lots of things to consider and here are a few things to look out for:

On top of these important things, all Dwyer Property Investments locations must also adhere to strict criteria that factor in market trend data such as migration and population growth, demographics, rental yields and capital growth, in addition to critical infrastructure development by local, state and federal governments.

Harmony Estate on the Sunshine Coast

Above: Harmony Estate on the Sunshine Coast - An appealing location for owner-occupiers

MAKE A LONG-TERM PLAN

You’ve probably heard the saying “time in the market beats timing the market”. Maximising returns from an investment property is less about buying in at the perfect time and more about how long you’ve spent in the market.

The sooner you buy your first investment property, the more time you’ll have to build equity with property’s natural long-term growth. As a general rule, property values double every 10 years or so.

DO THE MATHS

Remember to “buy with your head, not your heart”.  You should always do the sums on rental income, mortgage repayments, tax concessions, and depreciation to make sure you understand all the financial elements of your property investment.

CONSIDER YOUR LOAN OPTIONS

Loans can be extremely complicated. Should you put more cash into your deposit and avoid lenders mortgage insurance or should you put down a smaller deposit and keep some cash for another investment? Do you go with fixed or variable? Principal and interest or interest only? So many questions to ask and the answers will be different for different people and their individual circumstances.

An independent mortgage broker can help you find the loan that will give you the greatest return on your investment based on your individual situation.

use existing equity

USE EXISTING EQUITY

If you don’t have a cash deposit, you could consider using equity from an existing property to get into the investment market. This is different to putting your family home up as security, you may be able to safely access the equity you’ve built up in your home to put towards an investment property.  This is another area where a professional financial expert can help guide you.

KNOW YOUR LIMITS

New builds or renovators delight? Newly built properties are eligible for depreciation tax relief, are more desirable to tenants, and require less maintenance. However, some investors prefer older style houses.  It all depends on your individual style and skill set. If you have plenty of spare time, great vision, and cash flow, a renovation may be a good investment for you - or you might prefer a new build where you avoid some of the unknowns.

At Dwyer Property Investments we have seen it all and know all the right questions to ask to ensure your investment journey has no surprises and everything is covered off.

Once we’ve considered all these steps above, then you are ready for the fun bit, looking at houses.

You will feel a lot more comfortable about your investment and your future when you have done these important pre-investing steps.

Email me here and we can discuss the next best steps for you: [email protected] 

 

Why are some terrace investments cheaper than others?

Yesterday a client asked me why the just-released terrace houses on Unison Way in Harmony Estate were cheaper than other terraces.

I thought this may interest you too... The reason is - for a limited time - this land can be bought directly from the land developer at the wholesale price without any builders margin or costs which saves buyers money. In addition to that, there are over $18,000 savings in government stamp duty reducing the overall cost of purchasing these lower than others we have sold and built.

I wanted to quickly share this with you because these newly released, fixed-price terraces will not last long given their incredible location on Harmony Estate's most sought-after street.

The Unison Way terraces directly overlook the greenway conservation area which is guaranteed not to be built out giving leafy green views forever.

Dwyer Quality Homes has secured 7 of these conservation frontage lots at wholesale prices and this saving is being passed directly onto investors.

Lock in the build price today and avoid any rise in build costs and also avoid paying extra stamp duty.

Plus you can be cash-flow positive from day one with the added security of our 3-year rental guarantee (no vacancies, arrears or lost income for 3 years!)

 

Dwyer Property Investments offers a full financial property analysis to all qualified buyers. Click the button below to arrange your free, no-obligation consultation or call me directly on 1800 088 437.

Afraid Of Building? Enter The Fixed Price, Single Contract Investment Property Purchase

I've listened to a lot of clients over the past months and some say they are afraid of building an investment property.  With so much in the media about building delays and price increases, that fear is totally understandable.  Without some protection and guarantees upfront, the process can be quite scary.

LAYERS OF PROTECTION

As regular readers of these property updates would know, we introduced our 3 year rental guarantee to protect investors from any worry of no rental income.

Now we've introduced a new additional layer of protection for our buyers - the fixed price, single contract investment property purchase - but only on a select number of properties.

risk free

FIXED PRICE SECURITY

From day one we lock in an agreed fixed price that represents great value for you. We've been leading builders on the Sunshine Coast for nearly 40 years now, selling over 30 of these terraces. So we know exactly what's involved in building these houses.

We secured land at 2021 prices and have booked materials and trades for the entire build so now we can pass that fixed price security onto you.

You pay 10% now and nothing more until the build is complete - the same day your rental guarantee starts.

The process is as simple as buying an existing house on a single REIQ contract, just with a longer settlement to accommodate the build time.

In summary:

Construction is already underway on these upmarket terraces right in the heart of the Sunshine Coast. There are only 2 left for sale from the original 5 of designer terraces on Balmy Walk at Harmony Estate. Selling now for $839,900.

afraid of building

 

What really causes the market to rise?

Most people don’t know what drives property growth and the answer might surprise you.

Yes, the economy, location and interest rates playa part but the key factor driving long-term property growth is owner-occupiers, and not property investors as many people think.

What really causes the market to rise?

Owner-occupiers control most of the market, owning almost 70% of property in Australia. This means they're the ones supporting important, stable growth in the long term.

Don’t get me wrong, investors absolutely contribute to the property market. But this is seen in the form of short-term ups and down in the market – much less important for those with a long-term property investment strategy.

That’s why it’s so important to invest in property that appeals to owner-occupiers – something a lot of people overlook when investing.

Dwyer Property Investments has over 35 years of experience in the South East Queensland property market, so we know exactly what owner-occupiers are looking for.

Each of our premium quality properties considers the following factors to appeal to both tenants and homeowners:

This way, your investment will have great rental return, while also appealing to the 70% of those who drive prices up – owner-occupiers.

Balmy Walk Terraces at Harmony Estate - An appealing location for owner-occupiers

Above: Balmy Walk Terraces at Harmony Estate - An appealing location for owner-occupiers

If you want to learn more about investing in appealing property, schedule your free,
no-obligation consultation with the button below, or call me directly on 1800 088 437.

Don't wait to invest. Invest, then wait.

Jason

Does guaranteed rental income for 3 years sound too good to be true?

We get a lot of questions about our unique 3-year rental guarantee so I thought I would take a minute to explain how it all works.

In a nutshell, your rent is paid by us every week for the 3 year period and is not linked to the occupancy rate or the price a tenant is paying to live there.

At Dwyer Property Investments, we want to take away as many risks as we can for you when buying an investment property - and knowing your income is covered for the first 3 years certainly does that.

Yes, it does sound too good to be true, but I can assure you it's not. Here, a happy client of ours, Peter sums it up perfectly…
“The benefits of the guarantee are not that you get higher than normal rental yield, it’s simply that it takes any risk of vacancy away. It’s really just like having a 3-year commercial lease on a residential property.” - Peter Campbell, Property Investor

We are all about taking the risks and the hassle out of buying an investment property. Here are some common questions we get asked:

HOW MUCH RENT DO I GET?

We will pay you the market rate rent. And you will know what that is up front - before you buy - because the gross rental return is on all our property brochures. Your rent is paid every month for a full 3 years for a worry-free investment.

AM I LOCKED IN?

Not at all. There are no lock-in contracts.

WHAT HAPPENS AFTER 3 YEARS?

At the end of your 3 years of guaranteed rent, you can either; Stay with us and simply switch to our property management division Move to another property management agency Or manage the property yourself… It’s completely up to you!

Our 3-year rental guarantee makes buying a Dwyer Property Investment RISK FREE so have a look at our properties here. And if you'd like to have a chat about our properties or our 3-year rental guarantee, call me on 1800 088 437.

Don't wait to invest. Invest, then wait.

Your investment future - 4 success stories

Over the years, Dwyer Property Investments has helped hundreds of people invest in property in South East Queensland, backed by our risk-free 3-Year Rental Guarantee.

I thought you might be interested in some of our success stories. Just click on the link to hear our clients describe – in their own words – the experience of buying an investment property through Dwyer.

Our terraces at Harmony Estate on the Sunshine Coast, for example, were selling three years ago for $550,000. They are now going for more than $800,000 – that's over $250,000 of equity gain in 36 months or a staggering 45% growth at 13.3% p.a!

Listen to our clients talk about investing through Dwyer...

Dave and Jules (below) had some experience of building, but they found the construction process with Dwyer so easy that they also bought two investment properties – setting them up for a comfortable retirement.

David and Jess were keen to invest but didn’t know where to start. With step-by-step help from Dwyer, they ended up buying two terraces and are now enjoying guaranteed rental income and steady capital growth from both properties.

Tessa was initially a bit anxious about taking the step of investing in property, but in the two years since she purchased a Dwyer terrace she’s had more than $120,000 of equity gain. Her only regret? Not having invested sooner.

Jayne and Alex relocated from Brisbane to the Sunshine Coast and now live in one of our contemporary four-bedroom terraces. They were so impressed with the quality and style of their home that they’re gearing up to buy another terrace as an investment.

If you like what you just heard and want to know more about how we can help you become a successful property investor, too, give me a call on 1800 088 437.

Don't wait to invest. Invest, then wait.

Double-digit Property Pricing Growth is still Predicted By Most Analysts for 2022

I’m writing to you with a personal message to quickly check-in and see if you’re still thinking of investing in South East QLD property this year.

First though, Happy New Year.  I hope you had a nice break.

As you probably know, there's still strong growth in the region thanks to continued demand and a growing realisation (especially in NSW and VIC) of the benefits of living in SE QLD.

I know I’m biased, but the worst-kept secret is out; it truly is a magnificent strip of land between the coastal and hinterland regions of SE QLD and North East NSW.  The location and climate have always been ideal but with the huge investment in the local infrastructure from Federal, State and local governments building schools, shopping precincts and improving transport, the region is now an investor magnet.

2022 should be the year to make your property investment decision. It’s not just the location or the demand impact of the pandemic you need to consider - there's also the coming Olympic Games and its expected effects over the entire region.  Exciting times ahead.

In short, double-digit pricing growth is still predicted by most analysts for 2022.  By investing now, if this growth continues, your investment equity will be substantial.

Plus, we're still offering our 3-year rental guarantee on every investment property so you can feel confident with your investment returns and cash flow.

However, I certainly don’t want to waste your time or clutter your email inbox if you’re not interested at this stage.

So could you please let me know if investing in SE QLD is still of interest to you this year?

Just hit reply now or click here and I’ll have some more details about our 2022 investment property stock sent right to you.

Yours for a bright 2022,

Jason.