We may not have hit the era of hoverboards and flying cars as yet…. but when it comes to property, the future is most definitely here!  Last month a construction company in China made history with the completion of a new residential apartment building that was not built, but was in fact ‘printed’.

Cue the twilight zone music.  The five-storey apartment building was entirely printed using a huge 3D printer specifically made for this purpose.  Though we have heard talk of 3D printers pop up quite a bit over the past few years, the fact that it has found its way into our industry, and for a project on such a large scale, is mind blowing.

The impact this could have on the future of property is very real and the technology is bound to appear in Australia in the not too distance future. 

This is not the first foray into 3D printed real estate for the construction firm in question.  Last year they created 10 homes in just one day using a custom made, six-foot high 3D printer.  The printers ‘ink substitute’ was a material made from a mix of industrial waste, quick-drying cement and a special hardening agent.

The key benefits of this ‘3D printing process’ come down to three areas:

 1. Cost

The genius minds behind this project say their methods can reduce the cost of residential real estate builds by up to 70%.  This in turn could mean huge reductions for consumers when it comes to purchasing real estate and essentially could see the pricing of our entire industry change in the future.

2. Production

We all know the old anecdote time is money and in today’s society that has never been more true.  It is being claimed that this new way of building could reduce production time by over 50% vs. traditional building methods.

 3. The Eco Factor

In our environmentally conscious world, big ideas that can have big effects when it come to reducing harm to our environment are general big winners.  The fact that recycling materials can be used in this method could see it getting a very green tick of approval!

“It is not something I ever dreamed we would be seeing in our lifetime…. A printed building!   I love the idea and the cost and time benefits are really interesting,” said Hannah Schuhmann, Principal of HS Brisbane Property.

“I can not wait to see where this takes us into the future and for this technology to makes it’s way to Brisbane so we can learn more” she said.

What do you think of this technology?  Comment below with your thoughts on what this could mean for the future or call us for a chat on 07 3254 0888.

There are a number of terms thrown around in the world of investment real estate and some can be a little intimidating and hard to grasp. Today we look at four of the tricky terms and explain their meanings and how they could apply when it comes to purchasing your next investment property.

Debt recycling

For those interested in finding new tax breaks, debt recycling could be a term to look into.  Essentially, debt recycling is when you work with your lender to take your home loan (which generally isn’t deductible) and convert the debt into a tax-deductible investment loan.

For those looking to lower their taxable income it can be a useful, and dare we say, exciting exercise.  For those who have an existing mortgage but are interested in investing in another property or shares for example, it could be worth having a chat to your broker or bank.

Negatively geared

Negative gearing is where the incomings are less than your outgoings after all tax deductions have been claimed for your property. For example, if you receive a rental income on your investment property of $800 a month, however your mortgage repayments are $1,200 a month.  This means you have a shortfall of $400, which you may be able to claim as a loss when doing your tax return.  Many people on high incomes use negative gearing as a way to lower their taxable income.

Positively geared

The opposite of negative gearing, positive gearing occurs when the investment income exceeds the expenses on your property. For example, the rent you receive may be $1,200 a month, but the monthly repayments are only $900.  This can result in additional tax needing to be paid on the income you make from the property.

It is a good idea to run through these scenarios with your financial advisor before buying your investment property to see where you should sit in the scale of purchase price to debt ratio.

Annual Percentage Rate

The annual percentage rate (APR) refers to the effective interest rates charged annually and determines the total cost of credit for the consumer as a percentage of the total loan amount.  It takes into account one off expenses such as opening fees or regular account servicing charges.

It was developed to make loan comparisons easier for the average consumer. In Australia, financial institutions are required to advertise the APR to let consumers know the true interest rates they will be paying for the entire year.

We suggest you speak with your financial advisor to find out how these terms relate to your circumstances and what is right for you.

Call Hannah today to discuss the fantastic investment opportunities in Brisbane City today on 07 3254 0888.

The information provided on this blog is provided for general information only and it is not intended to be legal or financial advice nor is it a substitute for legal or financial advice.  The use of the information is the sole responsibility of the reader who must assess its suitability for their purpose. It is recommended that advice from a financial advisor be obtained before acting on the information provided. HS Brisbane Property endeavours to ensure that the information is accurate and up-to-date and does not assume responsibility for any errors or omissions in the published material.

This week Core Logic RP Data released their results from their home value index up to the end of February.  Included in the report is a look at where the current average yield is sitting for each of our eight capital cities. 

This gives us a great opportunity to identify how each city is performing and who is leading the pack when it comes to providing a good solid return on investment properties.

We are specifically looking at units in this instance:

Yields:  UNIT SALES THROUGH TO FEBRUARY

• Darwin - 5.8%
• Brisbane - 5.5%
• Hobart - 5.3%
• Canberra - 4.9%
• Adelaide - 4.8%
• Perth - 4.7%
• Sydney - 4.4%
• Melbourne - 4.2%

We were of course delighted to see Brisbane leading the way with Darwin at the top of the list, though perhaps not surprised - as we scored the same #2 position in the last report issued in November. 

This is very reassuring news for investors, as though we are constantly updated with information on the capital growth rates of our city, seeing blanketed average yields across each city gives us a great chance to identity the true potential income on local investments pitted against the rest of the country.

“We love seeing these reports and being able to pin point how our city is performing.  An average yield of 5.5% across unit sales is a fantastic number and the announcement is sure to sway even more interested investors to consider Brisbane when it comes to purchasing their next investment property” said Hannah Schuhmann, Principal of HS Brisbane Property.

If you would like to discuss these findings in further detail and how you can benefit from the fantastic investment opportunities currently available in the Brisbane CBD contact Hannah today on 07 3254 0888.

Though it has been some 58 days since we celebrated the ringing in of our new year, our friends over in China are now in party mode as they welcomed 2015 in with a glorious bang at Chinese New Year celebrations held throughout the world over the past week.

This year is the Chinese Year of the Goat, the eighth symbol of the Chinese zodiac.  The goat is a timeless symbol of good fortune in most parts of the orient, but does it coincide with a time of good fortune for the Brisbane real estate industry? 

Chinese New Year actually has a very real impact on many industries in Australia, not just real estate.  Each year in February, when the celebration occurs, we see a huge influx of tourists coming to Australia from Asia to celebrate the holiday with their family here.

Hotel group, Accor, reported up to 95 per cent capacity in its CBD hotels on Thursday, February 19, the first day of the Chinese New Year.

"The spike in occupancy levels in the past 14 days is due to high numbers of outbound Chinese travellers visiting Australia for the Chinese New Year period," Regional Vice-President of another hotel group, Starwood Hotels and Resorts, Sean Hunt, told SMH.com.au

With the struggling Australian Dollar falling below 80 cents, it means the visitors here enjoying their New Years holiday are also likely to have a renewed interest in property purchases.

Reports have already come in from Domain.com.au that throughout last weekend, a huge jump in Auction clearance rates was recorded, coinciding with the new year celebration.

“We have definitely seen an increase in enquiries from overseas buyers of late.  There are investors looking right now for their next opportunity in the Brisbane CBD and it is a very exciting time”, said Hannah Schuhmann, Principal of HS Brisbane Property.

Australia has always been high on the list when it comes to Chinese investors purchasing in other countries.  We were listed in the top 10 most desired locations by Chinese purchasers in the 2014 Huran Report.

The report also found that one in every three wealthy Chinese families has properties overseas, the majority of which are in the residential arena.

As the domestic Chinese property market continues to decline, we are likely to see more and more interest from these investors.

Taking everything into account, we think the 2015 Year of the Goat has some pretty exciting things in store for Brisbane and we can not wait to watch it unfold!

Source: Huran Report.

Using a self-managed super fund (SMSF) to invest in local CBD property is becoming increasingly more and more popular these days. However, using a SMSF for investment purposes is a totally different kettle of fish to simply buying property in your own name. There are so many additional things you need to consider… compliance with special laws, lending requirements, legal costs and what kind of CBD investment property you’re after, etc. As such, purchasing a SMSF property investment means you need to do your homework.

To help you, here are five tips for SMSF property investors:

Location. Location. Location.

When it comes to reliable rental return and meeting loan requirements, it’s all about the location! It’s important to carefully consider what areas are best to invest in; keep in mind that locations with multiple industries fuelling the economy are ideal – which is why investing in our local Brisbane CBD is perfect! A common mistake we see time and time again comes from investors putting all their eggs into one basket by trying to capitalise on purchasing property in areas that are heavily reliant on one industry for future growth, e.g. mining towns. This is always going to be a dangerous move because if that industry collapses, so too does your prospective tenant pool, which could severely impact your loan repayments and potentially mean selling the property at a loss.

Make sure the property is insured correctly

It’s imperative that your SMSF property has the right insurance measures in place otherwise the implications can be extremely detrimental to your future retirement plans. Insurance policies to think about are replacement insurance in case of a fire; public liability insurance is equally important to avoid any nasty damages actions as a result from a tenant, or one of their guests, injuring themselves in an accident on the property and lastly; life insurance is also something each SMSF member should consider as this pays off any property debt should that member die before the loan is paid out.

There is no Enduring Power of Attorney for each member

What... no Enduring Power of Attorney? That’s right! Under superannuation law, every SMSF member must also be a trustee of the fund or a director of the corporate trustee of the fund. However, should a member lose their mental capacity they can no longer be a trustee or director, which means your SMSF becomes non-compliant.

Consider the impact of a death or divorce within the SMSF

A SMSF is entitled to have up to four members. This may comprise of mum, dad, their adult child and partner. Alternatively, it could be two couples who know each other and/or operate a business together. Regardless of who makes up a multiple member SMSF, it is important that every member is aware of the direct impact a divorce or death would have on the fund.

For example, should two SMSF members get divorced, superannuation benefits are considered assets and can be split under Family Law Act property proceedings. Thus, should a SMSF-owned investment property or business premises comprise majority of the super fund then it’s more than likely the property will need to be sold. What if a member dies unexpectedly?  If this were to happen then the death benefit (for their share of the property) will be paid out to their selected beneficiaries. Again, possibly meaning the property will need to be sold.

Set up the correct legal structures

As you can see, while buying an inner city property through your SMSF is a great investment opportunity, it’s also an extremely complex one. There are lots of things to consider so you can ensure your CBD investment is, exactly that; an investment. Thus, in order to gain optimum results from your investment property, it must be set up correctly and in compliance with the law. If you’re unfamiliar with the correct legal structure, it is crucial that you set up a meeting and speak with qualified professionals to ensure you meet all legal aspects of the investment. Taking the time to do this and set up your SMSF investment property early on will save your time and money in the future. 

Speaking of industry professionals, the team at HS Brisbane Property have years of experience in the local real estate market, especially when it comes to purchasing inner-city units for investment purposes. So if you’re considering investing in Brisbane CBD property, with or without the help of your SMSF, call Hannah Schuhmann on 0419 782 133 to set up a meeting.