With two rail stations, and direct, non-stop access to Brisbane airport, Greater Springfield’s vision is to become a world-class regional city and services hub by 2030. By the time development is complete, an expected $85 billion will have been spent on infrastructure and commercial and residential construction.

Greater Springfield has been carefully designed around three key pillars – Education, Health and Technology – ensuring that sufficient infrastructure and employment opportunities are available to support the rapidly growing population – tipped to reach 138,000 by 2030.

In our latest Spotlight series, we take a look at each pillar, and provide some compelling reasons as to why you should consider this region as part of your investment portfolio.

Pillar 1: Education

As one of the three key pillars of Greater Springfield, Education remains a key focal point, with significant investment in facilities spanning early learning through to tertiary education.

Education City is an 18 hectare central precinct which incorporates educational facilities with meeting places, park areas, and student and staff accommodation. The area is interconnected with Springfield Central CBD and Orion Springfield Central 7 shopping centre.

Education fast facts

• 10 private and public schools, with five offering education from Prep to Year 12
• A major University of Southern Queensland campus and TAFE Queensland South West
• Professional training institutions such as The Studio of Performing Arts Springfield and Union Institute of Language
• 15 childcare centres
• More than 14,000 students in total.

Greater Springfield investment opportunities

With apartment development at unprecedented levels in the Brisbane CBD, we’re looking to the west for its exciting investment potential.

Greater Springfield’s focus on the key pillars of Education, Health and Technology means that population growth is well supported by significant investment in infrastructure and employment.

Housing is currently affordable, with good capital growth prospects and no signs of slowing down in the near future.

We have a variety of off-market investment properties in Greater Springfield that are only available through CPS Property.

Please contact us today to learn more about Greater Springfield, or to arrange your free property investment consultation.

Information and images sourced from Greater Springfield.

We take a retrospective look at median dwelling values across the suburbs of Australia to show the deterioration of more affordable housing across the capital cities.

A retrospective look at median dwelling values across the suburbs of Australia shows the bracket creep that has occurred over the current growth cycle, highlighting the deterioration of more affordable housing across the capital cities over the past five years.

At the end of 2016, 7.6% of suburbs nationally had a median house value under $200,000 and 5.9% of suburbs had a median unit value below $200,000.  To put these figures into some perspective, 11.4% of suburbs had a median house value of at least $1 million and 3.0% of suburbs had a median unit value of at least $1 million.

Over the five years to the end of 2016, there has been a substantial decline in the proportion of suburbs with a median value below $400,000.  At the end of 2011, 53.5% of suburbs had a median house value of less than $400,000 and 69.8% of suburbs had a median unit value of less than $400,000.  By the end of 2016, the proportion of suburbs with a median value of less than $400,000 had fallen to 41.0% for houses and 55.3% for units.

Suburb median values by value range,

National, December of each year

A five year retrospective look at the individual capital cities highlights the significant shift in the proportion of suburbs with a median value under $400,000, particularly in Sydney and Melbourne.

In 2011, the proportion of total suburbs with a median house value below $400,000 across each capital city was: 21.2% in Sydney, 28.9% in Melbourne, 40.9% in Brisbane, 40.5% in Adelaide, 31.1% in Perth, 69.2% in Hobart, 2.1% in Darwin and 1.1% in Canberra.  Units offer a more affordable option highlighted by the proportions of suburbs values below $400,000 at: 38.8% in Sydney, 48.2% in Melbourne, 81.7% in Brisbane, 94.3% in Adelaide, 59.8% in Perth, 92.7% in Hobart, 53.3% in Darwin and 44.6% in Canberra.

Suburb median values by value range,

Capital cities, December 2011

By 2015, the proportion of suburbs with a median house value below $400,000 had shifted to: 1.2% in Sydney, 12.2% for Melbourne, 31.4% in Brisbane, 29.5% in Adelaide, 15.5% in Perth, 55.7% in Hobart and 0.0% in both Darwin and Canberra.  For units, the proportion of suburbs with a median value of less than $400,000 in December 2015 were recorded at: 10.9% in Sydney, 34.9% in Melbourne, 64.4% in Brisbane, 87.7% in Adelaide, 37.2% in Perth, 88.4% in Hobart, 51.4% in Darwin and 50.5% in Canberra.

Suburb median values by value range,

Capital cities, December 2015

The proportion of suburbs with a median house value of less than $400,000 at the end of 2016 was recorded at: 0.1% in Sydney, 6.3% in Melbourne, 29.2% in Brisbane, 28.0% in Adelaide, 18.9% in Perth, 52.1% in Hobart and 0.0% in Darwin and Canberra.  For units the proportions were recorded at: 6.5% in Sydney, 31.8% in Melbourne, 62.7% in Brisbane, 85.1% in Adelaide, 46.4% in Perth, 88.4% in Hobart, 57.6% in Darwin and 45.8% in Canberra.

Suburb median values by value range,

Capital cities, December 2016

Five years ago every capital city except for Darwin and Canberra had at least 20% of suburbs with a median house value of less than $400,000.  At the end of last year, it was virtually impossible to find houses for less than $400,000 in Sydney, Darwin and Canberra while less than 7% of suburbs had a median house value below $400,000 in Melbourne.  Across each city there has been a substantial decline in more affordable housing over the past year despite the fact that outside of Sydney and Melbourne there has been only moderate value growth over the period.

Even units have recorded a fairly substantial decline in the proportion of suburbs with a median value of less than $400,000 over the past five years.

At the end of 2016, looking at both houses and units, 20.5% of Sydney suburbs had a median value of less than $600,000 compared to 38.5% of suburbs having a median value of at least $1 million.  To further highlight deteriorating housing affordability in Sydney, 34.6% of suburbs had a median unit value of less than $600,000 at the end of 2016.  In each other capital city, a higher proportion of suburbs had a median house value of less than $600,000 than the proportion of suburbs with a median unit value of less than $600,000.

If you’re interested in starting or growing your property portfolio, contact CPS Property today.

So, what’s the difference between positive and negative gearing?

Positive gearing

Positive gearing simply means that your investment property earns more income than it costs to have it, so you are receiving more rental income from your tenants than what you pay for things like the loan repayments, interest, maintenance of the property, rates and other fees. Usually this happens when rents are high due to a strong demand, or when interest rates are low.

For example, if your investment property earns $500 per week in rental income and your loan repayments and other associated costs are $450 per week, then you are positively gearing that property and you don’t have to pay anything out of your own pocket each week to continue your investment. The property effectively pays for itself.

That said, it’s not always the investment strategy of choice for many investors. Let’s look at some of the pros and cons of positive gearing:

Pros

• The risk isn’t as high – because the property pays for itself, the risk isn’t as high if your circumstances were to change such as a job loss.
• More money in your pocket – on a week by week basis you have no out of pocket expenses, and you might even be making enough from the property to make extra loan repayments or save for your next investment.
• Future lending – the status of your investment portfolio can look good, which may mean you are appealing to lenders for your next loan. 

Cons

• Changing markets – depending on where you buy, you could experience a dip in demand for the property which would mean less, or no, income from the property.
• Income is taxable – just like any other income, the income you earn on a positively geared property is taxable.

Negative gearing

Negative gearing with property is when your expenses, such as loan repayments and rates, are higher than the rental income you receive from tenants. This means that you are out of pocket as you will have to contribute to the loan repayments yourself as well.

While it sounds like an odd thing to do in the short term, the goal with negatively gearing an investment property is that you will eventually make more money through an increase in its value than what you pay out, or lose, through expenses.

Let’s look at the pros and cons for negative gearing:

Pros

• Tax breaks – a lot of investors choose negative gearing because it allows you to claim tax deductions relating to expenses you incur. Investment losses reduce your taxable income which in turn reduces the amount of tax you pay.
• Appealing to tenants – often properties that are negatively geared have slightly lower rent, which is appealing and more affordable to potential tenants.
• Capital gains – if the property continues to increase in value, the capital gains from it will eventually be high enough to cover borrowing and associated costs, meaning the investor can earn more when selling.

Cons

• Higher risk – if your income suddenly changes, you may not be able to cover your costs for the property.
• Budgeting – you need to be able to budget way ahead of time, for things like maintenance, increases in interest, or if the property sells for a profit you will need to pay tax on the capital gain.
• A long game – negatively investing in property is a longer term strategy to create financial freedom, so you need to be prepared for that and not expect passive income yet.

So, at the end of the day, neither investment strategy is better than the other. The both have their advantages and disadvantages, and the benefit of either will depend on the investor and their ideal strategy.

If you’d like to discuss which option bests suits your needs, contact us today!

Beneficial for buyers and investors, gentrified neighbourhoods offer affordability and a strong potential for significant capital growth. Redfern, Paddington and Woolloomooloo are great examples of areas which have undergone substantial facelifts in recent decades – each with a booming property market.

Flatmates.com.au chief executive Thomas Clement has recognised significant shifts in Sydney’s up-and-coming suburbs, saying “As areas become gentrified, rental prices tend to go up considerably. Mr Clement identified more interest in the inner east, just north of the airport, concluding that “beach suburbs… have seen an increase in those looking for a new place,” he said. (Source: News.com.au, 2016)

We’ve exclusively identified Sydney’s next boom suburb as the strongest investment opportunity of 2017 due to the following 8 reasons:

1. Lifestyle amenities, including shopping, restaurants and education facilities
2. Affordability for buyers and renters
3. Significant reduction in social housing
4. New transport infrastructure, including the Light Rail and Metro line
5. New neighbourhood developments
6. Tight supply with vacancy rates sitting at three per cent for over a decade
7. Local household income increases
8. Central location for future population and jobs growth

This suburb is a desirable location for buyers wanting to have it all – proximity to coast, location close to CBD, perfect for families or SINKS and DINKs, as well a full suite of leisurely amenities. We believe it is a wonderful opportunity for buyers and investors looking to increase their capital wealth.

Contact CPS Finance today to find out more about Sydney’s next boom suburb and receive our free market deep dive report.