For commercial property investors, a place for Viable commercial property is in Queensland. There are various business advantages that a business can benefit from when operating in Queensland.
A stable Economy
Queensland offers investors a stable, resilient and pro-business environment that is safe for long-term investment.
Specifically, investors who relocate to Queensland may benefit from the following:
- A diverse economy that is growing.
- Solid population growth.
- A competitive tax environment
In an aim to generate jobs, build wealth, and promote economic development, Queensland Government has established strategic land areas for infrastructure corridors, industry and other major public works. So, a commercial property investor can benefit from the repercussions of projects when investments are made in this state.
Lows operating costs
The cost of operating a business specifically set up and running overheads is usually low in Queensland to favor business investments.
The state is a strong destination for investment and business as there are low;
- Office rental costs.
- Worker’s compensation premiums.
- utility costs
- business taxes
- Economical industrial and commercial costs.
Low payroll tax
In Australia, you can find the companies that pay the lowest payroll tax rate in Queensland. Even more encouraging is that a company will only pay the tax when its yearly total salaries and wages surpass $1.1 million.
Alongside the payroll tax exemption, the state allows for a rebate on payroll tax on eligible trainees and apprenticeship’s wages as a way to spur employment opportunities for the younger Queenslanders.
As the government of Queensland continuous to upgrade the hard infrastructure, like energy networks and roads, it also boosts soft infrastructure development, such as innovation, research, and development.
Investments in Queensland
As a wise investor willing to invest in Queensland real estate, you will need to carry out enough research as some areas experience growth while others are still stagnant.
The perspective of the property market
Gold coast is likely to outperform Brisbane and Sunshine Coast this year. When the new dwelling construction rises, the Gold coast is expected to realize an 8% growth in price until around June 2019. The potential of the property market will further dwindle after the Commonwealth Games to a growth rate of lower than 5%.
The coast is promising as it is relatively affordable compared to other cities like Sydney, Brisbane, and Melbourne. An interstate migration surge is contributing an undersupply in low dwelling constructions. The price growth rate is also progressively slow.
The mining sector whims in Townsville market are sensitive due to a 10.8 percent rise in unemployment. Therefore, until economic conditions in the local environment improve, Townsville median prices will continue to decrease.
Due to tourism impact, the property market is sensitive to the Australian dollar fluctuations. The stronger tourism together with the growth in migration has contributed to the improvement in the local economy. Even though the house prices are expected to remain flat for the next 2 financial year, the long low construction activity period brought about a tight vacancy rate of around 1.8% and a shortage in stock in mid-June 2017.
Affordability of property
When compared to other capitals like Melbourne, Sydney, and Brisbane, the real estate in Queensland is relatively affordable. The interstate migration is one of those factors that is making this possible. For instance, the loan repayment rate on the basis of the monthly disposal income percentage is around +20.6% for the sunshine state’s capital compared to Melbourne and Sydney at -36.2 percent and -39.7 percent respectively.
What is crucial when making commercial investments in Queensland?
Queensland is a large state that has plenty of investment opportunities but also other parts that seem to struggle. Therefore, do your homework and thoroughly research so as to identify the suburbs that can optimally meet the investment goals. The high barriers to entry are capable of eating the profits like ongoing costs and stamp duty charges. Therefore when venturing into the property investment through understanding the tax implications, positive and negative gearing.
Financial planners, tax advisor, and accountant are usually around to give you the appropriate advice on property investment. Real-estate agents in various areas of Queensland are also knowledgeable enough to advise you.