Real Estate Everybody’s Talking
If you prefer bricks and mortar over stocks and bonds then boy, what a time to be alive! The housing market has taken off like a rocket and investing in property, for long-term players has paid dividends. John Caruso finds out the latest with a local specialist.
There is no doubt that the property market is the hot topic around the Sunday BBQ at the moment so I thought I’d ask a local for the lowdown on what’s happening.
Think Investment Realty was created about fifteen years ago by Jack Childs after thirty-six years in the building industry.
“He was the general manager of one of the largest home improvement companies in the country, responsible for about 200 tradesmen and 45 sales staff and has invested in property since he was eighteen,” said Troy Sussman, General Manager at Think Investment Realty and First Home Buyer Specialist at Your First Home Co.
“He’d built himself a decent property portfolio over the years and learned to always do the research himself, targeting the best areas for future growth and so Think Investment Realty was launched.”
According to Troy, performing their own research was a key point of difference for Think Investment Realty.
“We don’t pay outside sources to research for us, we do it all in-house and then locate the best areas at the right time for our investors,” he said.
“Our focus is on residential investment, brand new or off-the-plan; house and land packages, townhouses, units and we look after first home buyers with Your First Home Co.”
Although the feelers go out Australia-wide, when it comes to locating investment opportunities and properties there is a strong Queensland focus.
“Our research allows us to try and stay ahead of the property market,” Troy said. “We aim to get investors and first home buyers into the market before the prices rise. We focus on Queensland because there’s more protection from the Queensland Building Construction Commission, the QBCC. They’re a governing regulatory body that oversees all construction and we’re the only state or territory in the country that has this extra protection. So, if there’s an issue with the construction then we have the QBCC to call on,” explains Troy.
Not putting all your eggs in the one basket has always been sage advice for investors and that rule of thumb applies to those that choose to invest in bricks and mortar too.
“There’s no preference of a stand-alone house over a unit or townhouse, our belief is that investors should have a mixed portfolio when it comes to residential investment properties and there should be diversification in locations as well,” says Troy.
“We have a team of specialists that assist our clients with mortgage brokering, accounting and financial planning to maximise individual taxation positions when investing however, individuals should always seek out their own financial advice beforehand.”
A Sunday afternoon around the BBQ with a few mates wouldn’t be complete without a conversation about how badly the Broncos have performed and where the next property boom might occur.
“Everybody is talking about the Sunshine Coast being a ‘hot’ property market, however within the two local government areas of Noosa and the Sunshine Coast there’s probably about fourteen to fifteen areas that are at different stages with their timing,” Troy said. “So, when we research an area, we’re really trying to work out where it sits in the cycle which means we’re looking at the right time to purchase and we’re also looking for a window for when that property will mature.
“It’s our research into the timing cycle that I believe sets us apart from other real estate outlets,” Troy says.
What about return on investment or yield, compared to capital growth? Which is more important?
“Both are vital,” Troy said. “If you want to retire on property, the return on investment on needs to be between 4.5% and 5.5%. To build a property portfolio, capital growth is also needed to provide the equity to buy more property.”
“For us at Think Investment Realty, we think both capital growth and yield are equally important and when a property is well researched, you can accelerate your wealth.”
So, I guess the only decision left is what kind of salad you will bring to the next BBQ and how soon you can see the team at Think Investment Realty.