Brisbane properties are in the news recently for all the right reasons. Most common agreement today is that buying a Brisbane property is a good investment. Photo: Lachlan Fearnley
What is a good Property investment?
According to an article by the leading real estate blog Zillow, there are three characteristics of a good property investment.
- It Pays a Fair Return
- It Isn’t Too Risky an Investment
- It is easy to manage
A property investment in Brisbane mostly satisfies these three expectations. Brisbane properties make great investment sense no matter how you look at them. Typically, property investors have two distinct points of view:
- capital gains
- rental yield
Over the past few years, Brisbane properties have satisfied investors on both these counts.
Here are a few interesting performance indicators:
- As a first-time property buyer, the first thing you need to check is the Median Price of the property you are purchasing. Brisbane recorded a rise in the median house prices by practically 5% in just a year i.e. between 2013 and 2014. This indeed is very impressive.
- What’s more, the inner city areas have shown an even more striking performance by returning capital growth of anywhere between 5% and 8%.
- It makes sense to stay put in Brisbane property market according to industry pundits. They feel you should have Brisbane as a part of your long term property investment portfolio. Brisbane properties are expected to deliver great value for money as also stable returns over the next 10 to 15 years.
- As compared to all the other eastern Australian cities, Brisbane apartments delivered much higher yield at 5.27%.
- From a rental demand perspective, all the favourable factors seem to have conspired in favour of a Brisbane investment property. Especially, if you are considering areas near the CBD and suburbs like Fortitude Valley, you can’t go too wrong.
- It is a great time to enter since the median apartment prices in and around the CBD got slightly rationalised and came down to about $357,466 in the last quarter.
There is an overall growth in Brisbane property market
Smart property investors not only look at the present factors that seem lucrative, but also try to get as much data on the future developments in the areas you are considering.
There are major international developers and real estate investors making their presence felt in Brisbane.
What are the factors affecting Brisbane Property Market?
There are multiple factors that indicate that properties in Brisbane can only appreciate over the next 2-3 years. Some of the factors positively impacting Brisbane are:
- Australia today is one of the most stable economies in the world
- Australia has one of the lowest unemployment rates in the world
- Australia has a new Federal Government
- There is an undersupply of homes
- Australia’s home loan rates are at their lowest in 30 years
- Queensland’s population is expected to double over the next 40 years
- Pro-growth state government in Brisbane is making significant investment in infrastructure and healthcare.
- The Government approximates creation of 475,000 new jobs over the next two decades
- New roads are releasing locked value in suburban property markets while improved access to CBD is giving a boost to properties there
- More than $1.2 billion will be spent on new bus lines in Brisbane.
- A mass transit system is planned to connect West End, City and Fortitude Valley
- As per the Brisbane city council master-plan, building height limits will be done away with major public transport initiatives will be unleashed to ferry people into a more decongested and friendly CBD
The New Brisbane Airport Master-plan is Good News for property investors
Recently, the AUSTRALIAN Deputy Prime Minister Warren Truss announced the sanction of 2014 Master Plan of the Brisbane Airport. This plan sets in motion the airport’s strategic development over the next 20 years.
The new and improved Brisbane Airport will give a tremendous fillip to Queensland’s economy. We are expected to witness the creation of new jobs, fresh investment and a boost in tourism. The proposed infrastructure investments will bring rich dividends to all stakeholders and local, state, regional and national economies.
In a nutshell, there can’t be a more appropriate time to go in and make a sound investment in a Brisbane property. As an astute investor, this is the time to enter Brisbane Apartment Market and make quick profits as the market is expected to move northwards in the long term!
Despite Brisbane’s potential, only a long term investment approach would prove successful and one should diversify his/her to portfolio distribute the risk and enjoy all of Australia’s markets.
Investing in Properties in Australia requires wise investment strategies. At www.investinproperties.com.au we help you build wealth through property investment with little contribution.
Our team members are active investors and owners of several properties across Australian capital cities.