Property Investment Brisbane
Brisbane remains one of Australia’s biggest property investment markets. Data shows that in the last 12 months, the median gross yield stood at 5.6%, higher than the national median house price of 4.24%. The same data shows that properties within Brisbane are selling at a median house price of $509,000.
Putting your money in a Brisbane property market is, therefore, a no-brainer. However, to be successful, you need a few insights about the region, its market, do’s and don’ts, and understand why working with a buyer’s agent such as Amassed to build your Brisbane property investment portfolio is the wisest decision you can make.
Let’s break these down.
How Property Investment Brisbane Has Been Looking Like
Property investment in Brisbane has been looking promising in 2021 and the larger part of 2022. In 2021, Brisbane was one of the strongest Australian property markets, with several locations experiencing a Brisbane house price growth of over 30% by the end of the year.
During the first half of 2022, the market maintained this tempo, despite devastating floods striking the region and scaring a few oncoming property investors. This, in itself, was a true testament to the resilience of Brisbane property market.
After the floods, there were slight dips in property value, with unit prices falling about 0.3% to 5.2% from their peak earlier in the year. House sales have also slowed down by 19% compared to the same period last year.
However, Brisbane hasn’t lost its lucrative position in the Australian property market.
Despite property sale prices dipping, rents have risen rapidly, despite the rate of rental growth easing from a 1.5% monthly change in July 2022 to 1.0% in September 2022. The rental yields are increasing due to lower housing values versus higher rental rates.
What Makes Investment Property Brisbane a National Magnet?
Brisbane remains a national investment property magnet due to the region’s high demand and little real estate supply. There’s a small volume of properties on sale with a lower volume of new building completions, limiting the number of choices available to property buyers.
As a result, supply is constrained throughout the city.
With recent hikes in interest rates by the Reserve Bank of Australia, housing demand has cooled off in most parts of the country. However, Brisbane still retains a healthy and profitable balance between supply and demand, making it a great location to invest in property.
Job growth has also been outstanding in the last 12 months, giving Brisbane one of the lowest unemployment rates with significant wage increases among the population. The greater Queensland region experienced a massive improvement in employment rates despite the risk of a new COVID-19 variant, Omicron.
With new job opportunities springing up, there’s been a hiked rate in interstate migration, bringing new renters and home buyers into Brisbane and Queensland. That has brought new demand bound to make investors renting their property in Brisbane happy.
The city-wide vacancy rates hit a new 16-year-low of 0.6%. With a short supply of rental property, rental prices in Brisbane have slightly hiked to adjust to the increased demand.
What Makes a Good Property for Sale Brisbane?
Four key factors make an investment property in Brisbane a good purchase. These are the same factors that a shrewd buyer’s agent such as Amassed will use to help you determine where best and when you should buy your Brisbane property investment per your needs and budget.
These factors include:
Location
Not every corner of Brisbane will bring you the highest yields or capital growth from your property. Prime properties are located near jobs, offices, amenities, essential services, and infrastructure. The area should also be very secure.
Property Type
A high-yielding property in Brisbane should feature a flexible configuration that makes it suitable for a wide range of renting and buying demographics.
Therefore, you can adjust for the market needs and demand at the time to get the highest yield from your property, whether more people are buying or renting property.
The property type should also suit its location.
Design
The property you buy should be desirable to live in. If not, then fixing the damages and renovation should be at a reasonable price.
This is one of the crucial things a buyer’s agent, such as one from Amassed, will look at before purchasing a property for you. They’ll evaluate it, recommend inspections, and use a checklist to ensure the property fits the characteristics of a rare investment.
Price
Ideally, you want to purchase property valued below its intrinsic value. Your goal during the negotiation stage is to get as much discount as possible, increasing your yield from the investment.
A buyer’s agent from an experienced firm such as Amassed will put you in a better position to spot and negotiate a great price for an investment property with healthy discounts.
Considering these four factors, the precise location you’ll choose to buy property in Brisbane, and the type will depend on your wealth creation strategy and financial situation.
Tips for Buying Investment Property in Brisbane
Every Australian city carries its fair share of challenges that complicate navigating property investment in the region. Before launching into the market and negotiating deals, it is wise to research and contact an expert such as Amassed for advice on how to approach property investment in the region.
Typically, you’ll want to consider the following tips to ensure you’re buying on the profitable side of the Brisbane property market.
Focus on Areas with Owner-Occupier Demand
Several Brisbane suburbs have very high and consistent owner-occupier demand for properties. That means the suburb will have a higher owner-occupier-to-renter ratio.
With this information at hand, go for properties that owner-occupiers would want. These include detached houses, big apartments in remote locations, and well-designed townhouses.
These properties grow in value faster with less volatile price movements.
Stay Within Brisbane's Median Price
The median house or unit price tells how much most people in a real estate market are willing to pay for a property. Your goal is to stick within this price to ensure you can quickly sell it off later at a better price.
Otherwise, you risk buying an expensive property that few people in the market will be interested in.
Steer Clear of High-Rise Apartments, New Development Areas, and Big Townhouse Complexes
When you sit down with a buyer’s agent from Amassed, they’ll inform you that their target for your property investment portfolio is properties classified as “rare investments.” These properties will give you the highest yield and capital growth possible in a short span.
High-rise apartments, big townhouse complexes, and new development areas suffer from an investor oversupply leading to poor capital growth and yields.
What to Consider When Investing in Brisbane
You must consider five key considerations when investing in the Brisbane property market. These are:
Flood Zones
Brisbane is prone to flooding. Two of the biggest floods occurred in 1974 and 2011. During these floods, most houses get submerged, leading to significant losses.
Therefore, before buying into a suburb, check the Brisbane City Council’s flood map and ensure the property you’re eyeing is not at risk.
The Type of Lifestyle in Brisbane
Brisbane typically has a distinct and laid-back lifestyle. You must familiarise yourself with the locals’ wants and quirks, especially if you’re investing out-of-state. For instance, locals in Brisbane can live with a carport, unlike Sydney and Melbourne residents who prefer a secure garage.
Proximity to the River and City
Most of the best suburbs in Brisbane lie to the west of the river. Residents care less about their proximity to the river, unlike amenities and major roads that lead to Sunshine Coast or Gold Coast.
The Hills
Residents in the northern part of Brisbane love being close to the hills. That’s mainly because of its breeze and better climate that removes some of the harsh heat. There are also amazing views and lifestyles in these regions.
The One Big City Council
Unlike Perth, Sydney, and Melbourne, which have multiple city councils running different suburbs, the greater Brisbane region is under one city council. Therefore, rules and policies are typically the same everywhere, making it easier to comply with local regulations.
Three Key Property Investment Advice Brisbane
If you want to protect your money and property investment in Brisbane, you must keep three crucial things in mind.
• Avoid the wrong property type – Investors can easily fail to understand what kind of property suits Brisbane’s current and future Brisbane housing market needs. Therefore, they’ll invest in the wrong property type at the wrong location leading to poor rental growth and asset price.
• Avoid oversupplied locations – Some Brisbane suburbs suffer from property oversupply relative to the demand. Investors in this area often sell at a loss.
• Know the fair price – Companies and sellers will use a buyer’s naivety to drain the most money out of their coffers. Work with a shrewd negotiator from a buyer’s agency such as Amassed to avoid overpaying for a property.
Use a Buyer's Agent to Buy Property in Brisbane
The Brisbane property market is only moving from strength to strength. Despite shake-ups in the Brisbane market factoring in the recent flood and interest rate hikes, investors are still flocking to the region, trying to get a profitable sale that will yield greatly in the future.
As you join them in your wealth creation journey, take the smart step and work with a buyer’s agent. They will search, research, and purchase the property on your behalf, ensuring you’re getting the best deal in the suburb and greater Brisbane regions. Contact Amassed today and make a sound investment decision.
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