There are pending risks that may dramatically impact investment apartments in Queensland:
- higher interest rates
- risk of lower numbers of overseas students and tourists visiting Australia (including due to the higher Aussie Dollar)
- The review of the Australian Tax System, due within weeks, which will likely impact the treatment of capital gains for real estate, and probably recommend the removal of negatively gearing of losses from investment properties to offset income tax from income earned from other sources
- difficulties in obtaining investment loans, and the banks requiring a higher deposit for investment property loans
- increased school fees, which impacts the ability of many families wanting to invest in property
- increased body corporate fees and rates, making returns less
- poor performing vacation rentals and low vacation rental returns, often less than 2% net returns
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