Are you considering investing in the Brisbane property market?
This is Part 2 of a two-piece article I have written, you may wish to click back to Part 1 and understand the first 5 things you need to know about investing in Brisbane property.
In short, I talked about the need to understand where jobs are being created, looking for good school catchments and why public transport is a must.
I touched on demographics and how the way people are choosing to live is changing and then put a WARNING out there to ensure you understand flooding and stormwater problems.
Today we look at 5 more things you really need to understand.
As I mentioned yesterday, I have been investing for 20 years and specialising in Brisbane property for the last 15 years.
Now is a time to be trusting decades of experience, not rookies or people with a few years’ experience under their belt, nor people who buy from afar.
It still astounds me that people put (sometimes) millions of dollars in the hands of people that do not have the on-the-ground perspective and a far greater level of experience.
Hopefully, some of these points will help people realise just how complex and different the Brisbane market is.
6 to 10 Things Brisbane
1. Majority of new infrastructure projects are within 5km of the CBD
A couple of the more exciting infrastructure projects are ramping up in inner Brisbane.
The finishing touches are being put on the Kingsford Smith Drive update that leads from the CBD to the Airport precinct, our fastest growing area.
In the inner city, an exciting subway-style system is also in the early stages of development – the Cross-River Rail.
And the Brisbane Metro bus system will link the CBD to suburbs in Brisbane’s south-western suburbs.
Understanding the areas and locations that will benefit from these upgrades and improvements will be so important.
Again, there may be the odd new bus or train station here and there in the outer suburbs, but the bulk is occurring within that 5km ring.
2. We may buy in most suburbs, but not in all parts of a suburb
Sure, we buy within 10km of Brisbane but not in all suburbs or areas.
You should be seeking above average, wealth-producing levels of return.
To do this you will need to find the best performing suburbs and then narrow down to the best pockets and streets within that suburb.
Just like where you live, there will be areas that perform above average and other areas that perform below average.
I often see the FIFO Buyers Agent fly up and buy in a good suburb and crow about a deal $20,000 or $30,000 less than market value, only to discover it is a property we had already ruled out.
Market depth, knowledge and a level of perspective is critical.
3. Zoning is becoming critically important
There are a lot of changes recently to zoning that has seen a huge number of apartments being built.
The Brisbane City Council is proactive and bullish on further inner-city growth to cater to our rising population.
So again, it is important to understand zoning and likely implications moving forward.
It would not be ideal to buy what seems the perfect property, only to have a block of 50 or 100 apartments pop up as your new neighbour.
Like most home buyers, we prefer quiet, tree-lined streets away from major infrastructure and development.
Having someone at ground level with an understanding of zoning and future changes will prevent any future issues.
4. The Rich will get richer over the next decade
I must stress, this is not a judge of people.
Over the next decade, in an environment with low wages growth and low inflation, the vast majority of people’s incomes will not grow as fast as they have been.
It will be different for people with multiple streams of income.
They may be investors with additional income from property, shares, and dividends or executives that have a bonus and/or business income.
It is your job to find out where this demographic is based and invest your money there.
Not only will there be higher returns, but there will be far less risk as this demographic has the incomes and buffers to ride out the difficult times.
Understanding Weekly Incomes and Wages will be critical.
5. Brisbane is not Melbourne or Sydney – property outside 10km will not catch up
This is perhaps the biggest trap for interstate investors and out-of-town property “experts”.
You can get away with purchasing further out in a more mature market like Melbourne and Sydney, but not in Brisbane.
Yes, there may be suburbs 20km from Brisbane that has a new train line, a hospital, or a university under construction, but they lack other critical investment fundamentals.
Primarily they lack large-scale job growth and as a result, incomes barely keep up with the average.
People are not willing to and are generally unable to pay more for property or pay more to upgrade their property.
“But it will catch up…!” they tell me.
Yes, perhaps in another generation, but not over the next decade, meanwhile prices closer in have jumped even further.
If you are looking to invest in a certain market, it is imperative you understand the intricacies and dimensions that drive it.
Most people are lucky enough to buy 2-3 properties in their lifetime, you only get greater insights from professionals who do that most weekends.
Many people start with a superficial look at a state or suburb and then skip straight to “the property”.
Take the time to dig a little deeper to understand job growth, demographic shifts and what types of things are and will continue to be in high demand.
Never assume all markets are equal as even streets and houses within suburbs can differ.
Understand the need to get a greater level of perspective before you shift your focus to the property.
Brisbane itself, along with the economy and property market, will come of age over the next decade and if you can understand the specific locations that will benefit, you can too!
Now is the time to take advantage of the opportunities the current property markets are offering.
Sure the markets are moving on, but not all properties are going to increase in value. Now, more than ever, correct property selection will be critical.
You can trust the team at Metropole to provide you with direction, guidance, and results.
Whether you’re a beginner or an experienced investor, at times like we are currently experiencing you need an advisor who takes a holistic approach to your wealth creation and that's exactly what you get from the multi award-winning team at Metropole.
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 $4Billion 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.