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.

Treat Yourself Or Invest Now And Move In Later

As a special Christmas offer, we have this stunning new award-winning builder’s display home available to buyers looking for a premium property in a high-growth area with excellent investment returns and the potential to become their forever home.

Located just 90 minutes from Brisbane in the well-established Pelican Waters estate in the southern Sunshine Coast suburb of Caloundra, this contemporary two-storey house will earn savvy investors who borrow the full purchase price ($2,689,750) over $500 per week in the hand after all costs have been paid. Plus, the future capital gains that a unique and sought-after waterfront property like this can make.

If you’ve been thinking of moving or retiring to the Sunshine Coast, then the beautiful Pelican Waters is a magic place to live. Or, if you’re not quite ready to relocate but don’t want to let this opportunity go, put some quality tenants in the property who can help pay it off and just watch the equity grow. High-end waterfront properties are some of the most sought after and, currently, there is limited supply – which is driving the big price gains at the top end of the market.

 

Treat Yourself Or Invest Now And Move In Later

 

Rental Income Guaranteed

Guaranteed rent of
$2200pw gross with
no risk of vacancy
for 3 years

 

Welcome home... to The Spinnaker

A captivating coastal-chic home with sleek modern lines, The Spinnaker has been cleverly designed to create an eye-catching façade and flood the interior with natural light, as well as capture the tranquil canal water views.

The ground floor is dedicated to entertaining and family living, with an open-plan kitchen and dining area that includes your own cellar and guest suite, while the first floor boasts an expansive master bedroom with a luxurious ensuite opening out onto the balcony, two more bedrooms, a separate media room with a sitting room and an office.

Treat Yourself Or Invest Now And Move In Later Floorplans

ABOVE: The Spinnaker floorplan

 

Property features - deluxe package inclusions

REQUEST BROCHURE

 


Why display homes make great investments:


Coastal living at its best

Pelican Waters is a masterfully planned waterfront residential community that offers an unrivalled lifestyle, whether you are after a relaxed place to retire close to the Coast’s fantastic amenities or you’re a professional with a growing family who wants to make the most of this growing region’s business potential.

Coastal living at its best

Pelican waters lifestyle benefits

Plethora of recreational and social activities, including Caloundra markets, Rumba resort precinct, Bulcock Beach Esplanade, bowls club, bike paths, water sports, surf beaches and more.

 

Will the property market crash?

I’ve heard reports and read various shock jocks once again touting that the great property crash is just around the corner. Not surprisingly, these are the same people who predicted a 30% drop in prices soon after the COVID outbreak, which never happened – in fact, the opposite did.

Yes, properties are expensive at the moment and this will stop some would-be buyers and investors from securing a good property, but this has nothing to do with the chance of a market collapse.


Properties in Australia have never crashed – there have been the necessary and predictable market corrections, with prices falling slightly in some areas. But homeowners don’t just sell up if the value of their house decreases by a few percentage points and nor do investors (which make up around only 15% of the property market) – why would they sell at a loss?


Property owners will generally sit it out and, as the history of the Australian market has always shown, prices will bounce back and then continue to rise again. This is the same property cycle that the country has experienced since we began keeping property price records over 100 years ago.

There’s also been talk of interest rate rises creating mortgage stress and resulting in thousands of homeowners defaulting on their mortgages; of banks repossessing the homes and selling them all off in fire sales that will flood the market with cheap properties and bring the market crashing down… does that sound like a likely scenario?

Does anyone really think that governments, the Reserve Bank, financial regulator APRA and the entire banking industry want this to eventuate or would even go close to it? Governments have spent trillions to keep Australia from a total collapse during the pandemic, so does anyone truly believe that they would allow a total collapse of the economy now? I don’t think so.

Will the property market crash

Interest rates will, in time, slowly increase but by very moderate amounts and this will only be done to slow inflation and wage growth. If wages were higher, then the majority of homeowners would have more money to pay the slightly higher interest rates. In fact, Australians are ahead of their mortgage payments compared to what they would be in normal circumstances and have more cash than pre-COVID times.

Australians love property and they love talking about property, which is why sensational headlines grab people’s attention – and we all know that bad news gets a lot more attention than good news.

These voices are a minority. So, if you want to invest in property, do your research, read widely from economists and trusted sources and think about what has happened to property historically.

Once you’ve done that and you decide you still want to ride the property wave, then South East Queensland is the perfect place to do it.

Designer Balmy Walk terraces

ABOVE: Designer Balmy Walk terraces -  ready to build now

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.

Why a Dwyer display home is the ideal property investment

If you’re looking for an upmarket investment property in South East Queensland that has excellent long-term capital growth, why not consider a new display home master-built by Dwyer Quality Homes.

Highly sought-after for their upmarket inclusions, prime locations and solid rental yields, display homes tend to appeal to seasoned investors for their growth potential and are great as part of a multi-property portfolio.

Here are some reasons why display homes make great investments:

With house prices across the region steadily rising, the three Dwyer properties below are already starting to increase in value – despite being priced only nine months ago.

And in the current market, they are all cash-positive, meaning they not only cover all your costs (including loan repayments) but also put money in your pocket from day one.

Located in the burgeoning areas of Newport and Palmview – both within easy reach of Brisbane and the Sunshine Coast – the Portofino, Astrid and Astoria display homes would make a great addition to your property portfolio based on capital growth alone.

If you'd like a free personalised investment analysis of these properties, or information about any other properties we have on offer, call me on 1800 088 437.

THE SPINNAKER - PELICAN WATERS

The Spinnaker Pelican Waters

List price: $2,689,750

Gross rent per week: $2,200

Weekly loan repayments*: $1500

Cash-positive amount per week: $530

*Assumes 20% deposit in cash and interest only loan at 2.5%

A captivating coastal-chic home located on the Pelican Waters canals, the four-bedroom Spinnaker is the ultimate in entertaining and family living. Downstairs features an open-plan kitchen and dining area with a butler's pantry, bar zone and cellar, while the upper level boasts an expansive master bedroom with balcony, a guest suite, a media/sitting room and an office. The striking contemporary façade catches the eye, as do the gorgeous water views from almost every light-filled room in the house.

Why avoiding lenders’ mortgage insurance doesn’t always pay off for property investors

Anyone who’s done some research on property investing would have come across the term “lenders’ mortgage insurance” (LMI), which is set up to protect the lender if you were to default on loan repayments. It’s usually a one-off fee for those investors who borrow more than 80% of the property’s value.

How much you pay for that type of insurance depends on a number of factors – like where you borrow, the size of your home loan, your deposit amount and even your job. But LMI is added onto your loan and is probably going to be less than five dollars per week in extra interest.

Many first-time investors try to avoid paying LMI, but you can actually use it to create even more wealth.

To give an example, say you have $100,000 in cash or equity for a deposit. If you try to avoid paying LMI by putting down a 20% deposit, then you can buy ONE $500,000 property.

However, if you split your deposit and pay only 10% but buy TWO properties, you instantly have $1 million worth of investments.

By opting into the lenders’ mortgage insurance, you now have two properties increasing in value and your gains over time will be greater. The bottom line is: don’t be scared of using LMI to your advantage, as you could make more money from whatever deposit you have.

For more information, contact Jason Dwyerfrom Dwyer Property Investments on 1800 088 437.

*The information contained in this article is intended to be of a general nature only. It has been prepared without taking into account any person’s objectives, financial situation or needs. ​Dwyer Property Investments recommends that you seek independent legal, financial and taxation advice before acting on any information in this article.

How APRA’s tighter lending rules affect property investors

Last week, lending regulator APRA (Australian Prudential Regulation Authority) began introducing measures to tighten borrowing rules and cool down what some believe is an overheated housing market.

APRA has said that more rules and lending limits could follow so, if you were planning on buying an investment property in the near future, it might be worth thinking about moving up your timing.

Here’s what you need to know about the change that makes it harder for you to get a loan, before it comes into effect on 31 October – just a couple of weeks away.

How APRA’s tighter lending rules affect property investors

What has changed?     

APRA has instructed banks to increase the interest rate risk buffer for new borrowers from the current 2.5 percentage points to a minimum of three. This means borrowers will need to be able to meet repayments at least 3% higher than the loan product rate to get their finance approved.

The buffer provides an indication of your capacity to service the loan in the event of a rate hike. If you apply for a mortgage with an interest rate of 2.5%, for example, the bank must check that you’ll still be able to repay it if the rate rises to 5.5% – rather than the previous serviceability threshold of 5%.

APRA stopped short of introducing broader market-slowdown measures such as raising interest rates. Instead, it opted for a targeted approach – making it more difficult to borrow money rather than more expensive.

 

Why has APRA tightened lending rules?

Rapidly rising property prices and greater home loan lending (up 47% on last year, notes Canstar) have resulted in higher levels of debt – one in five households is borrowing up to six times their income to buy a house, according to APRA.

Concerned that people are taking on more debt than they can afford to repay, the regulator has tightened the lending rules in order to lower the number of loans that are approved. With interest rates forecast to rise in 2024, APRA is hoping to avoid the kind of financial instability that comes when borrowers start to experience mortgage stress.

Who will be impacted most?

The coming change is expected to bite investors, because “they tend to borrow at higher levels of leverage and may have other existing debts (to which the buffer would also be applied)”, said APRA.

First-home buyers – who typically have lower incomes and deposits – will also be affected, as they face the prospect of being able to borrow less at a time when property costs more.

APRA expects that the maximum borrowing capacity of the typical buyer will be reduced by around 5%, as shown in the table below.

 

Estimated borrowing power by income level

ANNUAL INCOME AV. VARIABLE RATE PLUS 2.25% BUFFER AV. VARIABLE RATE PLUS 3% BUFFER DIFFERENCE
$39,000 $166,000 $158,000 $8000
$59,800 $338,000 $321,000 $17,000
$90,500 $578,000 $548,000 $30,000
$130,000 $882,000 $835,000 $47,000

Source: Domain.com.au, based on Canstar Home Loan Borrowing Calculator. This table is indicative only – please see here for more detail.

APRA’s intervention isn’t a bad thing in principle, as it will stop buyers who can’t service their debt from getting in over their heads. But, from November 2021, securing a loan is only going to get harder and you’ll be able to borrow less.

If you’re thinking of investing in the next 12 to 18 months, finding a property and getting finance approved now might be the difference between buying a quality property in a high-yield, high-growth area and having to compromise on your returns.

For more information, contact Jason Dwyer from Dwyer Property Investments on 1800 088 437.

*The information contained in this article is intended to be of a general nature only. It has been prepared without taking into account any person’s objectives, financial situation or needs. ​Dwyer Property Investments recommends that you seek independent legal, financial and taxation advice before acting on any information in this article.

 

WHAT THE EXPERTS ARE SAYING

 

“APRA is focused on ensuring the financial system remains safe and that banks are lending to borrowers who can afford the level of debt they are taking on – both today and into the future.”

– Wayne Byres, APRA chair

 

“It will be vital for the government and the regulator to monitor the situation closely into 2022, to ensure their efforts do not sap broader market confidence during our economic recovery.”

– Ken Morrison, Property Council of Australia CEO

“The changes are designed to protect people from taking on risky levels of debt; however, it will hurt first-home buyers who typically have smaller incomes and deposits.”

– Sally Tindall, RateCity research director

“Many households don’t borrow at capacity, but anyone who was planning to will have to reassess their budget and potentially their home-buying plans.”

Steve Mickenbecker, Canstar chief commentator

“Further macroprudential tightening seems more likely than not…”

– David Plank, ANZ head of economics

Sunshine Coast property market continues to defy COVID

A lot has happened since COVID hit last March. But the one constant has been the enduring resilience of the Sunshine Coast property market – it’s stronger than ever. In fact, it’s literally gone nuts over the past 10 months.

The region is now outperforming Greater Brisbane and even the Gold Coast, not to mention capital cities like Sydney and Melbourne. Prices here have risen 23% in a year – that’s the biggest annual increase in 17 years. And for the first time, the median house price is now over $800,000.

These market conditions are a combination of many factors. Record-low interest rates mean buyers can borrow more money. But there’s also been a monumental lifestyle shift during the pandemic, and lifestyle-driven locations like the Sunny Coast are experiencing the steepest price gains because of the higher demand.

Southerners are migrating here in record numbers and the Coast only needs a few thousand extra people moving to the area to really put pressure on the housing market. It was only a few weeks ago that the premier paused interstate arrivals because “Queensland was being loved to death”, as she put it.

But it’s not just interstate buyers. In all my years of selling property, I’ve never had so many locals looking for quality investment properties right here on the Coast.

Of course, the flipside is that good properties – and good land for building – are now in short supply due to this unprecedented demand. This shortage will continue to push up prices, which is great for capital growth.

For more information, contact Jason Dwyer from Dwyer Property Investments on 1800 088 437.

*The information contained in this article is intended to be of a general nature only. It has been prepared without taking into account any person’s objectives, financial situation or needs. ​Dwyer Property Investments recommends that you seek independent legal, financial and taxation advice before acting on any information in this article.

Why property is the best investment

Every type of investment has its pros and cons. But property has long been the preferred path to financial independence and wealth for many people. Here are 10 reasons why.

1. Performance
Despite the fluctuations of “boom and bust” cycles – and the recent dire warnings of a property market collapse during the COVID-19 pandemic – the sector is a consistently solid performer. Over the past 30 years, Australian house prices have increased on average by 7.25 per cent per year, according to the RBA.

2. Stability
Investing in property is considered to be “safe as houses”. Unlike the share market, property is generally more stable due to the amount of time that transactions take. This minimises wild fluctuations in value and tends to deter the short-term speculators who can increase volatility. In fact, the majority of investors (about 70%) are owner-occupiers.

3. Simplicity
You don’t need specialist or technical knowledge to start investing in property. Compared to the complex world of share trading, it’s a familiar asset that is easy to understand. Plus, information and data is readily available for free, allowing you to easily research the market and make well-informed decisions.

4. Borrowing Power
Compared to, say, a share portfolio, it’s relatively easy to get finance for a property investment – especially with the help of a mortgage broker. Lenders are more likely to approve loans on residential property than any other asset class and will lend a higher proportion of the value (up to 90%) and at lower interest rates. This greater borrowing power enables you to benefit from the capital growth of a larger asset and increase your profit.

5. Income
One of the great advantages of real estate is that it can provide investors with secure income that steadily increases over time and helps you pay the mortgage (using someone else’s money). If your property is positively geared – that is, it generates more in rental income than it costs in loan repayments and other ownership-related expenses) – then you also get the added benefit of positive cash flow.

6. Security
With fewer people able to afford their dream houses and the level of home ownership slowly falling in Australia, the proportion of tenants is predicted to rise in the years ahead. As long as people choose to live in bricks-and-mortar dwellings, property will always be in demand – meaning plenty of opportunities for people to earn money from this type of investment.

7. Flexibility
Property is a very flexible investment. Whatever your financial goals, you should be able to find a strategy that suits you – whether it’s maximising long-term capital growth to build a retirement nest egg or putting money in your pocket now through positive cash flow (where rents outweigh your costs). It also offers investors complete control, as you directly own the asset. Want to raise the rent? No problem. Need to move in for a while? You can do that, too.

8. Capital Growth
Residential property has a proven history of consistently strong capital gains, with some regional areas (such as Queensland’s Sunshine Coast) outperforming many capital cities. Provided you invest in a quality property in a sought-after location with strong growth potential, the value of your investment should continue to grow in value – doubling every 10 years or so.

9. Easy Entry
Property investing is not just for the rich; many people can create wealth this way. Even if you don’t have a cash deposit, you can still achieve your goal of becoming a property investor by drawing on the usable equity in your home, for example, or setting up a self-managed super fund (SMSF). Seek professional advice about the options available to help you get into the market.

10. Tax Benefits
Tax relief, in the form of deductions and depreciation, makes investing in property more attractive and affordable for Australians. Investors can claim investment-related expenses (including running costs and interest on any loan used to buy the property) as tax deductions, lowering the tax payable. They can also benefit from depreciation – the decline in value of the property, fixtures and fittings over several years.

2032 Olympic Games set to strengthen Sunshine Coast property market and region

Queensland’s successful bid for the 2032 Olympics is a game changer for this state, particularly the Sunshine Coast, where many events will take place.

Hosting the Games will not only put us on the world map, it also represents a huge economic opportunity for South East Queensland. Preparing for the event will create thousands of jobs and deliver a big boost to the regional building and tourism industries.

Importantly, critical infrastructure projects for transport, services and amenities will be fast-tracked. The road upgrade between Brisbane and the Coast will be one of the biggest wins for locals; while new and refurbished sporting arenas will be a great asset for Australian sportspeople generally, attracting major international events for years to come.

How will it impact the local property market, specifically? Like everything else, short- and long-term housing will be in high demand. Showcasing what a great place the Sunshine Coast is to the world will inevitably bring more people here to live. And it’s very likely that this will have a positive flow-on effect for property in the region.

But even without the Games, we can expect house prices to roughly double over the next ten or so years. This means local property investors are already looking at significant growth by 2032. Buying now lets you beat any price rise and has the added benefit of 10 years’ capital growth. On top of that is the rental income you’ll enjoy due to the increase in housing demand the Games will create.

There’s little doubt that the Olympic Games will help the Sunshine Coast build on its growing reputation as one of the strongest property investment markets in the country.

For more information, contact Jason Dwyer from Dwyer Property Investments on 1800 088 437.

*The information contained in this article is intended to be of a general nature only. It has been prepared without taking into account any person’s objectives, financial situation or needs. ​Dwyer Property Investments recommends that you seek independent legal, financial and taxation advice before acting on any information in this article. 

Do women make better property investors than men?

Occasionally, I’m asked whether women make better property investors than men. In my experience, women approach investing differently to men – it’s not about being better or worse.

Women are great listeners, for example. And they’re more open to seeking advice from professionals like financial planners and mortgage brokers. Men, on the other hand, can sometimes blunder their way through with an “I’ll do it my way” attitude.

This is not an ideal approach for anyone. The more questions you ask and the more informed you are, the better the position you’ll be in to make sound financial decisions.

I find that men and women offer different perspectives, but both are relevant. One person might be good with figures, for instance, while the other may be more organised with paperwork. Generally, the property investment process goes more smoothly when everyone is involved and on the same page.

What’s really encouraging, though, is that more women are now taking an interest in building their wealth and even becoming property investors, regardless of whether they’re in a relationship or not.

With statistics revealing that 30 per cent of females retire with no personal income and that women retire with only half the super that men do, it’s easy to see why it is so important for women – and men – to plan for their financial future.

For more information, contact Jason Dwyer from Dwyer Property Investments on 1800 088 437.

*The information contained in this article is intended to be of a general nature only. It has been prepared without taking into account any person’s objectives, financial situation or needs. ​Dwyer Property Investments recommends that you seek independent legal, financial and taxation advice before acting on any information in this article.