In very recent times, Brisbane has finally started delivering on its long-anticipated price growth. The market is stronger than I can remember, with median house prices in many suburbs increasing by over $100,000. If you are holding an investment property in Brisbane, I know it has been frustrating over the past couple of years. Trust me, I am personally invested in Brisbane and so are many of my colleagues. We are now about to experience our biggest uplift in recent times.
Over recent months, we have seen inner Brisbane suburbs become less affordable. This has also played out in my portfolio. My apartment in Woolloongabba gave me a pleasant surprise when it was valued $40,000 higher than it was 12 months ago while I was applying to refinance. Demand is reaching record highs, resulting in some of the lowest rental vacancies in the past decade or so and climbing rental yields. Remember, however, that you bought with a long-term strategy. In most cases, this should be easily facilitated by your rental income outweighing expenses, resulting in positive cash flow. I’ll be sticking to this plan myself, as I believe the best is still yet to come for my Brisbane assets.
The availability of house and land packages in Brisbane has come up a lot lately. I am a huge fan of house and land in Brisbane, but like every other investment opportunity, it is important to be in the right area and equally important, the right estate. I have seen comparable packages in different estates within the same suburb vary up to $100,000 in price. Estates can also vary significantly in the proportion of owner-occupiers and investors, lot size, density, standard of construction and amenity. It is important to ask certain questions to uncover such differentiating factors. Are there sufficient facilities for tenants and families? What are the demographics of that suburb after? Are there schools? Transport? The list goes on, and it manifests in massive differences in demand right now.
Investing in house and land in Brisbane is becoming more appealing due to recent government grants and the huge hike in home prices elsewhere in the city. However, don’t limit your potential for future capital growth by buying the wrong estate or suburb. Many buyers are being tempted into inferior housing stock due to its availability while waiting lists get longer for more in-demand estates. If you’re finding it easy to buy into an estate as an investor in Brisbane right now, it might be helpful to ask yourself why.
I recently had a request from an owner-occupier looking at four suburbs in the northern corridor of Brisbane and outlined to me the actual estates they are looking into. After I reached out to the land developers and builders on our approved panel, they came back to me saying it would be impossible because the demand is so high, they are taking holding deposits from buyers for future releases without even knowing when the release will launch and commence construction.
If you, your friends, or clients have a Blue Wealth property in Brisbane, reassure them that the long wait for positivity is around the corner, not to panic, and enjoy the fact that they are holding an investment property in a desirable location at no cost.
