5 Reasons To Buy An Investment Property In Brisbane
As I pretended to blow out the candles on my chocolate mud cake (they were actually sparklers) this year, I couldn’t help but think how quickly 2018 flew past.
My birthday is on one of the worst possible days it could be - New Year’s Eve, and every year that goes by, I can’t help but feel the older you get, the quicker it goes.
Now that we’re into the first week of Jan, I’m slowly getting my head back into the property scene, which has me thinking, what’s in store for 2019 in property? … and more specifically, property in Brisbane.
I get that real estate agents in Brisbane (and Buyer’s Agents for that matter) are always talking the market up. It’s our job isn’t it? But before you hit the X key on this article because you think it’s just more bias bulls*** from a swift talking estate agent, please know that I’m not writing this from a bias standpoint. I know you might think I am, but I’m really not.
I’m actually excited about what’s in store because I know what drives property markets and I can see Brisbane has shaped up to be in a strategically unique position for growth this year.
Whether you believe me, take my advice or even take any action is completely up to you, because let’s be honest, not even the guru of guru’s can really predict what will happen in a property market. Heaven forbid, I could be completely WRONG, but for what’s it worth, here’s my two cents on what will come of property in Brisbane this year.
So you know, I go by what I currently understand about the market and the drivers that impact it, the trends I’m seeing, the buyer enquiry I’m taking, the conversations I’m having with local real estate agents and of course, my gut feel on what I think will happen based on all these things together combined.
It’s a pretty simplistic way of seeing things I know, but after 20 years in property, I haven’t lost money on a house yet. I must be doing something right?
Here’s my take on why Brisbane should be on your hit list for an investment property this year.
In a nutshell, my belief is houses within the inner ring of Brisbane CBD will see growth this year. I don’t think this growth will be the kind that sets the world on fire, but nonetheless, I feel it’s a good time to get into the market now before the prices really hit their peak. No, I don’t believe we’ve hit our peak just yet.
Here’s some food for thought supporting my belief …
Our population is growing. It’s no statistical secret that Brisbane’s population is on the rise and has been consistently for the past few years. Our fair city of 2.2 million is becoming the city of choice for Australians and immigrants to set up nest. More people means more upward pressure on housing, especially in the inner ring where the majority of us work and play.
Sydney and Melbourne are tapped-out. For the past 12 months, I’ve been fielding calls from buyers who keep repeating the same story. “I’m buying an investment property in Brisbane because it’s still affordable there and I know the Sydney and Melbourne property markets have hit their peak.” Whether you believe this or not is another story, but the reality is, A LOT of investors are coming to the same conclusion about these markets.
Our infrastructure is in full swing. Giving people a solid reason to visit or move to a city goes a long way in ensuring the property market remains strong. Infrastructure projects create jobs, attract tourists, and make a city more liveable and attractive to residents. All you have to do is a google search to find out what projects are already underway for Brisbane. I believe these projects will sustain us for the long term.
Interest rates are low. Enough said. I can’t remember the last time I was paying less than 4% interest on an investment loan?!
Get in before negative gearing becomes non-existent. Labor’s plan to abolish negative gearing for establish properties and halve the capital gains tax discount will undoubtedly have a major impact for investors. This is why you need to buy BEFORE the election so you can take advantage before the rules change.
So if you do decide to buy in Brisbane this year, do me one favour, keep your purchase within the 15km radius of the CBD and stay away from units in oversupplied areas close to the city.
Statistically this is where the growth is likely to occur.