The Mackay property market is set to boom once again. Queensland’s Whitsunday, Mackay and Toowoomba local government areas lead the country in a top-10 ranking of regional areas that offer affordable homes and have an economy and investment pipeline that mean prices will rise in years to come.
Mackay has 59 properties available for rent and 94 properties for sale. Median property prices over the last year range from $330,000 for houses to $260,000 for units. If you are looking for an investment property, consider houses in Mackay rent out for $370 PW with an annual rental yield of 5.8% and units rent for $330 PW with a rental yield of 6.6%. Based on five years of sales, the Mackay Property Market has seen a compound growth rate of 5.7% for houses and -1.0% for units.
The Mackay Property Market has had cycles over the past decade and for those investors looking to make a bold move, there is no better place than Mackay and the Whitsundays.
Why not speak with a local and get a guide to real estate investing in Mackay. Mackay offers easy access to an amazing variety of natural attractions that will surprise and delight even the most seasoned traveller. The natural wonders that lay on Mackay’s very doorstep are awe-inspiring and beckon the nature lover like some beautiful siren song.
If investing in the Mackay property market, you’ll be close to, to name a few:
So here is our guide to real estate investing in Queensland. Queensland property investment can be a lucrative way of building equity and wealth for the future, but it comes with significant responsibilities. As it will act as a source of income and (ideally) profit in the long term, you need to consider a lot more than whether it is the right home for you. Here is our set of resources to get you started on the path to property investment in Queensland.
Because Queensland investment property is about getting the right financial returns, you need to be certain that you’re selecting real estate to suit your strategy. Whether it’s ongoing positive cashflow or negative gearing with a view to long term capital gains, the home you buy must fit this direction.
This refers to when the rental income you’re making from the investment property is higher than the costs of running it, which includes your home loan and maintenance costs. The property will be running at a profit, with a strong rental yield (simply put, the income converted to a percentage of the property’s full value).
Once values rise, however, rental yields contract. This makes it a little more difficult to establish positive cashflow via investment property in Queensland.
This term has precisely the opposite meaning of positive cashflow. Your property will be running at a loss, because interest on the home loan is higher than that of the rental income. Such a situation, though, carries benefits in the form of tax deductions. This makes it a popular choice among investors hoping to make the most of capital gains. That’s because it allows them to manage an investment property that may well run at a short-term loss, but this negative is mitigated by the tax breaks. Eventually, it will produce long-term gains.
Buying your first investment property continues to be one of Australia’s favourite ways to create wealth. An investment property should be about wealth creation and securing your financial freedom. There is however, a common misconception that buying your first investment property always delivers negative results. That’s not the case at all. You need to keep in mind that how effectively you manage your investment will determine whether or not the investment helps you reach your financial goals. With a rental return and tax offsets, buying your first investment property can actually be a good thing.