For as long as I can remember, there seemed to be a mindset amongst most property investors that blue-chip was always best.
The problem with this thinking was that many property investors simply could not afford to buy into these expensive areas, even in lower priced locations such as the Queensland capital.
But we’ve always known that the middle-ring of Brisbane included a number of areas that were prime for strategic property investment because they were gentrifying under the radar.
That’s why we have been buying for clients there for many years.
Of course, over time, we have pivoted to different areas before they are obvious choices for many property investors or other buyers’ agents, including over the past year or so.
Superior capital growth
Over that time we have been active in a certain part of Brisbane where prices have firmed strongly, and we’ve been able to cherry pick the very best properties because most other people are looking elsewhere.
And some of the results that we’ve achieved for clients over the period have been nothing short of spectacular.
One client has seen the value of a house we helped them purchase on a subdividable corner block increase by a staggering 45 per cent over the past 8 months.
Another client has seen a significant value uplift of about 28 per cent since the start of this year alone after completing a cosmetic renovation on it!
Plus, both of these properties was originally purchased for an affordable price in the $400,000s range.
This part of Brisbane is firmly within the city’s middle-ring catchment, but price growth has been outpacing more blue-chip locations closer to the city.
For example, in an inner-city area like West End, the median asking price for houses has risen by about seven per cent over the past year, according to SQM Research.
However, in the area of Brisbane where we have been purchasing for clients, the median asking price has risen between 10 per cent and 16 per cent depending on the suburb over the same period.
However, even with that price uplift, there remains a solid supply of sound investment property opportunities for between $500,000 and $700,000 – if you know where to look and who to speak with!
Indeed, we are continuing to buy houses off-market in this area for clients, which can result in a more reasonable purchase price as well solid yields.
Savvy property investment has always involved buying counter-cyclically, including into locations long before other people have cottoned on to their charms and the solid potential for future capital growth.
That is what we always do, it’s just that we can’t tell you where it is right now, because then everyone would else know –