Why investors think Brisbane property market has the most potential

brisbane property market

The Brisbane property market has been identified as the capital city location with the best investment prospects according to new research.

About 44 per cent respondents in the 2019 PIPA Annual Investor Sentiment Survey indicated that Brisbane property market was their preferred metro location for investment for the next year.

The thing is savvy investors have been buying in the Sunshine State capital for a few years now.

Some of the reasons why include its affordability compared to Sydney and Melbourne, superior yields as well as a multibillion-dollar major infrastructure program.

It certainly appears that the Brisbane property market is primed for growth with strong interstate migration also one of the reasons why.

In fact, according to the Australian Bureau of Statistics, Queensland had a net interstate migration of nearly 25,000 people in the year ending June last year.

I wouldn’t be at all surprised if that figure was higher still when the next round of migration data is released next year.

Sustainable growth

The Brisbane property market has a history of sustainable growth – often stimulated by strong interstate migration.

Over the past decade, house prices have increased but not in a dramatic way like in southern capitals.

Today, Greater Brisbane’s median house price is about $525,000 – far more affordable than Sydney or Melbourne and with plenty of gas left in the tank in my opinion.

If we look back 10 years, the Brisbane market had just finished a period of price growth courtesy of the state’s strong resources sector.

However, with the onset of the GFC, its market performance was mostly benign for the second decade of the 21st Century.

Since that time, its economy has improved significantly, and the State Government has moved forward with a game-changing major infrastructure program that has created jobs as well as positivity.

In fact, more than $17 billion worth of infrastructure is expected to be delivered in Brisbane by 2026.

Affordability equation

While a decade ago Brisbane was also more affordable than Sydney and Melbourne, the difference today is interest rates.

In 2009, for example, the Reserve Bank started the year dropping the cash rate and finished it by increasing it to 3.75 per cent.

On average, variable interest rates were probably around the seven per cent mark at the time.

So, if you bought a $500,000 house with a 20 per cent deposit in Greater Brisbane in 2009, you would likely have been paying about $2,300 per month in interest.

Today, though, if you did the same, your monthly interest bill would be around $1,000!

Brisbane has always had solid yields given its sound rental market.

Back in 2009, even though that interest repayment component seems high today, most investors managed to make ends meet but they probably didn’t have much cash flow left over each month.

Today, with the median rent for a three-bedroom house in Brisbane about $450, there would be plenty of cash still available after meeting interest-only repayment commitments each month.

On top of that, there is scope for a price upswing over the medium-term because of all of the elements I’ve listed above.

Many investors, including myself, were quietly buying in Greater Brisbane while Sydney and Melbourne were over-cooking.

And we’ll keep doing the same because I believe the Sunshine State capital is poised for its moment in the property sun sooner rather than later.

High-Performance Property Investment in
5 Simple Steps

In this free guide, you will learn how to Implement the same strategies that led me to build a $3.5 million dollar portfolio in less than six years. – Daniel Walsh

Related Post

PRIVACY POLICY

Respecting your Privacy

Your Property Your Wealth Pty Ltd (YPYW) is committed to supporting the Australian Privacy Principles for all fair handling of Personal Information which set clear standards for the collection, use, disclosure, storage of and access to Personal Information collected during the course of business operations and compliance with the Privacy Act 1988 (Commonwealth) and its amendments (the Act), and the Australian Privacy Principles (APPs) set out in that Act. You can see the full text of the APPs online at the Office of the Australian Information Commissioner’s website at:

http://www.oaic.gov.au/privacy/privacy-act/the-privacy-act

Personal Information means your name, mailing or residential address, telephone number, email address and other transaction and registration details including the company you work for and your role and financial information, including credit card information and information collected from credit reporting agencies.

Our respect for your rights to the privacy of your personal information is paramount.  We have policies and procedures in place to ensure that all personal information, no matter how or where it is obtained, is handled sensitively, securely and in accordance with the APPs.

This Privacy Policy sets out:

  • What sort of personal information is collected and stored;
  • How information is collected and used;
  • What happens if you choose not to provide the required information; and
  • How you can request access to the personal information we hold about you.

From time to time it may be necessary for YPYW to review and revise this Privacy Policy. We reserve the right to change our policy at any time. Amendments or replacements of the Privacy Policy will be posted on our website.

Collection of Your Personal Information

We only collect personal information relevant to our business relationship with you so that we can provide our services and products. We may collect your personal information:

  • directly from you including via telephone, email or facsimile;
  • when your register on our website;
  • when you place an order or service request with us;
  • where you access and interact with our website;
  • from other sources including a third party such as credit reporting; and
  • any correspondence we receive from you.

Is your personal information secure

Where you submit personal information, we manage it by using up-to-date techniques and processes that meet current industry standards to ensure that your personal information is kept secure and confidential. We also take measures to destroy or permanently de-identify personal information if it is no longer required.

Use and Disclosure of Personal Information

You acknowledge and consent that by providing your personal information to us that we may use and disclose your personal information for the purpose for which it was collected or for a related or ancillary purpose such as:

  • supply of our services and products to you in accordance with our Terms and Conditions and any agreement entered into with you, to facilitate, process, carry out and respond to your request;
  • to our third party service providers to assist us in providing and improving our services and products to you and developing, improving and marketing our services and products to you;
  • for regulatory reporting and compliance with our legal obligations, to various regulatory bodies and law enforcement officials and agencies to protect against fraud and for related security purposes;
  • to the seller or supplier of any products to you for the purpose of ascertaining and obtaining any information required to perform our services for you;
  • to identify you and conduct appropriate checks, including credit checks;
  • set up, administer and manage our services and products and systems, including the management and administration of an account;
  • to train and develop our staff to better provide services to you;
  • to contact you; and
  • to our successors and/or assigns

What happens if you do not want to disclose personal information?

You have no obligation to provide any personal information requested by us, but if you choose to withhold personal information, we may not be able to provide you with the products and services that depend on the collection of that information.

Removing your personal information

You may contact us at any time in writing and request that we remove and delete your stored personal information.

Providing Personal Information About Another Person

You represent to us that where you provide personal information to us about another person, you are authorised to provide that information to us, and that you will inform that person who we are, how we use and disclose their information, and that they can gain access to that information.

Linked Sites

YPYW’s website may contain links to websites which are owned or operated by other parties. You should make enquiries as to the privacy policies of these parties. We are not responsible for information, or the privacy practices of such websites.

How can you access your personal information?

You may in writing request access to personal information that we hold about you. We will provide you with access to personal information in accordance with the Act and APPs and we may not grant you access to the personal information that we hold where the APPs allow us to do so. If you are refused access to information, we will provide you with reasons for the refusal in writing.

How to contact us

If you have any questions in relation to privacy, please contact us on 0490 912 045 or email Daniel Walsh – admin@ypyw.com.au. For more information about privacy law please visit http://www.oaic.gov.au/privacy.

High-Performance Property Investment in 5 Simple Steps

In this free guide, you will learn how to Implement the same strategies that led me to build a $3.5 million dollar portfolio in less than six years. – Daniel Walsh