Are you considering investing in the Brisbane property market?
I know many investors are looking to Brisbane, thanks to its relative affordability compared to our Sydney and Melbourne markets.
There is also a buzz in Brisbane with a host of new and exciting projects being undertaken.
Then there is the “it’s time” factor, but that is more emotional sentiment and you need to dig a little deeper to ensure there are some facts and data to support it.
To give you the edge, I am happy to share 10 things you need to know before investing in Brisbane.
This week I’ll share the first 5 and watch out for the second part of this 2 part series next week.
What makes me qualified to talk about the Brisbane market and what separates me from the other 25million property “experts” in Australia.
Well, firstly I have been assisting our clients to buy in Brisbane for over a decade now, as a Buyers Agent, Property Strategist and now as the Director of the Brisbane office.
While most people are lucky enough to buy 2 or 3 properties in their lifetime, we do that most weeks.
Even more importantly, I have personally been investing for around two decades myself and have an extensive property portfolio.
1 to 5 things Brisbane
- Where are the jobs being created?
If you follow the simple equation that jobs create demand for housing. All you will need to do is find out where the bulk of jobs are being created.
Naturally, people will want to live closer to their work for a shorter commute and having access to public transport.
Demand will be stronger, closer to major employment hubs and right now in Brisbane, there are 50,000 jobs being created between the CBD and the Airport.
So, in Brisbane, stick to the 10km ring to encompass the CBD, Hospitals and the Airport precincts.
- Suburbs within a school catchment will continue to attract a premium
Once people are settled in a job, as many will be young professional families and couples starting families, next on the list will be schools.
It will pay off handsomely if you understand the catchment and boundaries for the most in demand schools.
I will make two points – 1) not all schools are equal and 2) do not just assume buying in a suburb gives you access to that school.
Missing the catchment by a single house or street, could mean a difference of $50,000, so it pays to get it right!
So, paying slightly more to get into the right catchment will greatly benefit future growth.
- People are not wanting to move further out and away from the City
The tide has turned here.
I know when I was younger people wanted land, the big backyard and their own house.
The next generation are trading big backyards for balconies or small courtyards, likewise older generations.
Talk of a sea change or tree change has not eventuated and they are tending to stay put or downsize into smaller, low maintenance accommodation.
While accommodation is smaller, there needs to be more happening outdoors, think lifestyle and entertainment precincts, green space and convenience.
Walkscore can be an invaluable tool for this.
- Public Transport a MUST - Our roads will get busier
The only large scale infrastructure projects over the last decade have been our tunnels, they have taken some pressure of a busy transport network.
But recent studies suggest our tunnel benefits are over and we are back to where we were.
So, with half a million more cars expected on our roads over the next decade, public transport is a must!
There is probably an 80/20 rule here in Brisbane for public transport.
Inside the 10km ring there is an 80% chance of having some form of public transport, that drops to as low as 20% when you start getting out past the 15km to 20km ring.
Moving forward, identifying a location close to a bus, train or even ferry, will be critical as commute times balloon!
- Flooding and Stormwater is common
Big WARNING signs about Brisbane when it comes to flooding.
There have been several major floods over the last century and while they generally only come along every 20 – 30 years, it still must be on your radar.
Even more common though are Brisbane’s storms and stormwater runoff – overland flow.
This is probably something that we are even more aware of for our clients and this is also a form of flooding.
Keep away from lower lying areas or heavily sloping blocks where water can sit and cause problems.
Many experts will mention river and creek flooding, but stormwater runoff can be just as damaging, so do your checks.
If you are considering your next investment in Brisbane, it is important to take a strategic approach.
Firstly, define Brisbane and the areas you will target.
For me, the most important thing is to understand supply and demand.
Find out where the most jobs are being created (demand) and combine it with a location where there is almost no available land (supply).
Then things like school catchments and public transport then become key components.
With all types of investments there will be risk, so there is a need to understand the way people are living and demographic trends.
Once you have narrowed your search, be sure to understand flooding and stormwater issues and you will be one step closer to finding the most important aspect to your investment – the location.
Perhaps creating wealth or investing is one of those things, but maybe you don’t know where to start?
Why not get the independent team of property strategists and buyers' agents at Metropole to help level the playing field for you?
We help our clients grow, protect and pass on their wealth through a range of services including:
- Strategic property advice. - Allow us to build a Strategic Property Plan for you and your family. Planning is bringing the future into the present so you can do something about it now! Click here to learn more
- Buyer's agency - As Australia's most trusted buyers’ agents we've been involved in over $3Billion worth of transactions creating wealth for our clients and we can do the same for you. Our on the ground teams in Melbourne, Sydney and Brisbane bring you years of experience and perspective - that's something money just can't buy. We'll help you find your next home or an investment grade property. Click here to learn how we can help you.
- Wealth Advisory - We can provide you with strategic tailored financial planning and wealth advice. Click here to learn more about we can help you.
- Property Management - Our stress free property management services help you maximise your property returns. Click here to find out why our clients enjoy a vacancy rate considerably below the market average, our tenants stay an average of 3 years and our properties lease 10 days faster than the market average.
Watch out for the second part of this 2 part series next week.
Brett Warren is a director of Metropole Properties in Brisbane and uses his 18 plus years property investment experience and economics education to advise clients how to build their portfolios.
He is a regular commentator for Michael Yardney's Property Update.
Disclaimer: while due care is taken, the viewpoints expressed by contributors do not necessarily reflect the opinions of Your Investment Property.