New Golden Triangle in Queensland!
Despite being a true blue Queenslander ( is that a contradiction in terms?) I have always sung the praises of New South Wales investment property. The reason? Well NSW was the first state to make it legal to rent out granny flats to anyone not just your relatives. When the law was changed a few years ago a couple of enterprising builders saw the potential straight away and began building houses (primary dwelling) with a granny flat (secondary dwelling) already attached.
They looked great, just like a duplex but the best thing was the rents! Suddenly you could get two lots of rent for the one block of land. Instead of $370 per week you could now get $620 per week. Instead of a 3.5% gross yield we now routinely get 6.5%! When you are borrowing at 4.5% , you are making 2% on the banks money! How good is that? Most of my clients are between $150–$200 pw cash positive after paying all expenses including income tax. Imagine buying an investment property AND having an extra $750 per month to pay off your own owner occupied mortgage.
Well it gets even better. Many local councils in South East QLD now allow the construction of secondary dwellings which results in the same great results that we get in NSW. In addition, Queensland is coming off the bottom of a property cycle. This long awaited upturn is finally here with land prices rising sharply. It is definitely the right time to buy QLD property.
I have a great dual occupancy property in Logan priced at $498k and returning $630 pw in rent. Gross yield is 6.6% and only 30 minutes to Brisbane CBD.
The Queensland golden triangle goes from Coolangatta to Noosa to Toowoomba. This area, like the NSW golden triangle, contains the bulk of the state’s population.