Think about all of the hassles that you have to deal with whenever you buy a property.
If you go the traditional route, you have to search out suitable properties. This involves research and speaking to a bunch of seller’s agents. But that’s not the end of it. Every other buyer does the same thing, which means you have to figure out how to beat them to the property.
Auctions are even more stressful. You still face a high level of competition. But now you face it directly. Bidding wars can escalate to the point where you end up paying much more than you intended for a property.
Competition isn’t the only issue either. Buying property via auction or in the traditional manner isn’t something you can do privately.
If only there were a way for you to acquire property without having to deal with all of these issues. Well, now you can!
Although the following properties are only shown to a select few Buyers, many of these homes are purchased within 2-4 weeks. Become a Universal Client for access to the below properties + more.
CURRENT BRISBANE OFF-MARKET PROPERTIES
Brand new Hamptons on 440 square metre block 5 Bedrooms 3 bathrooms 2 car accommodation with 3-metre ceilings
Fully renovated two-level home on 546 square metre block 5 Bedrooms 3 bathrooms 2 car accommodation
Brand new Hamptons on 534 square metre block 4 Bedrooms2 bathrooms 2 car accommodation
Like new modern contemp on 506m2 block 4 Bedrooms 2 bathrooms 2 car accommodation + pool
Queenslander style property on 642m2 3 Bed 1 bath 2 Car – LMR zoning
Queenslander style property on 640m2 3 Bed 2 Bath 1 Car
Architecturally designed house on approx. 450m2 4 Bed2 bath 2 Car
Modern contemporary style. Nothing to do but move in. 5 Bed 4 bath 4 Car
Contact our team today. Become a full-service client to get access to all of these properties + more. We have access to off-market property right across Brisbane, Gold Coast & Sunshine Coast. CALL 1300 117 561 NOW!
6 of the Best Techniques for Successful Auction Bidding
Buying your dream home in certain high-demand areas might only be possible via a bidding auction. Property owners in Australia often choose to sell by auction as the method offers multiple benefits, including the possibility that competition during the bidding drives the price up.
Auctions provide a way around the much lengthier buying procedure through a private treaty sale. Do the bidding right and you can even grab a bargain and secure your dream property at a price well below your limit.
Bidding at auctions, however, is a skill you want to spend some thought on before your first time. Auctions can be fast-paced and stressful. If you succumb to the pressures, you may end up paying much more than what the property’s worth.
Although the price will mainly depend on the property’s real market value, knowing how to take control at an auction and navigate the bidding process skillfully can affect the final price.
Having your bidding success in mind, we discuss several strategies to help you land a deal on the property you want.
Start the Bidding Prepared
Buying a property through the ‘offer and acceptance’ method allows you to do your research after the acceptance of your offer and before the signing of the property transaction contract. This is not the case for auction purchases. You need to gather all the information before you enter the auction.
Never run late for an auction. There’re many examples out there when buyers arrived late at an auction only to find out that not only is their preferred property already sold, but it had even gone at a price way below the one they’d been prepared to pay.
Arrive at the auction site early to register and position yourself smartly in the room or outdoor area. Make sure you scan the other bidders and determine their number. This is going to influence the decision about your opening bid later.
Set your Limit Beforehand
Most state regulations allow for a ‘cooling-off’ period for property purchases made via the ‘offer and acceptance’ method, but this usually doesn’t cover auction buys. The auctioneer formally declares a sale over “at the fall of the hammer” and the successful bidder is committed to it from that point on.
If no one has offered a better price and you were the one placing the last bid, you’ll need to pay a deposit on the spot, usually 10% of the sale price. You should, therefore, always bid within an amount that you can commit to.
Considering all this, it’s crucial to come to the auction knowing what your budget is. This helps you refrain from exceeding it and prevents you from getting caught up in a bidding war with another person that can leave you at a loss if you end up winning the bid.
A good trick is to set the maximum amount you can spend on a property somewhat above a round number amount. If you decided at first that $900,000 is your upper limit, think whether you can spare some more and set it at $904,000 for instance. This could help you win over bidders who have the same as your initial upper limit. You should decide on this beforehand though.
Also, bear in mind that auctions start at a guide price, but won’t sell below a reserve price – the least amount the seller will agree to sell for. The reserve price remains hidden from bidders but can be even 10% more than the guide price. Take this into account when setting your budget.
Stay in Control of the Bidding Pace
As a buyer, you have certain bidding strategies at your disposal to help you stay in control during the auction.
You have no reason to hurry. In fact, going slow initially can only work in the buyer’s favour. For instance, a slow-paced bidding process that proceeds in smaller increments can put pressure on the seller to doubt their original reserve price and adjust it downwards.
You should bid early on. Don’t wait until later to place your first bid and starting early can even give you the leeway to set the pace. If your first bid is 695,000 instead of 700,000, you may psychologically influence other bidders to continue in $5,000 increments, instead of $10,000, which is the average bidding increment at real estate auctions.
Your opening bid should also depend on the number of buyers. If there are more bidders you may want to start off with a large increment that’s above most bidders’ maximum price to filter out the competition early in the process.
Another way you can push for slowing down the pace is to give the auctioneers a hard time adding up the amounts before calling out for the next bid. Instead of bidding in round numbers, give your bids in odd numbers that will take some seconds more to add up.
Towards the end of the auction, it’s important to increase your increments to knock out the competition. As you’re approaching round numbers such as $900,000 from $890,000, increase your increment to $12,000 to get first to what’s likely to be the other’s limit.
Even if your personal limit is at $912,000, it’s good to be able to place a bid at your maximum pre-set amount since who places it first can often be decisive when the other gives up.
Beware of Auctioneer’s Tricks
Auctions are complex processes involving intricate legal details. Good auctioneers have superior skill and knowledge of the process so they can navigate it in favour of a better deal for the seller.
To ensure that buyers keep driving the price up, auctioneers apply various subtle techniques. Understanding these beforehand will help you resist the pressure at auction day and outsmart the rest in the room.
Auctioneers’ main goal is to generate a sense of urgency among the bidders. They want to make you feel anxious that you’re going to miss out on your preferred buy. Moving quickly and maintaining a fast pace is the basic rule for auctioneers. This allows bidders close to no time for deliberation on the price.
Another way is via speech intonation and body language. For instance, swiftly grabbing the hammer suggests bidders that the sale is about to close soon and this pushes them into more competitive bids.
Attend as many real estate auctions before your first one as a bidder to learn firsthand about how the process works.
Master Your Body Language
Most of the time, inexperienced bidders easily show when they’re approaching their limit. The keen eye of a skilled auctioneer won’t miss even the subtlest of body language tell-tale signs.
Be extra careful if you’re bidding together with another person in the room. When bidders bring their partners or parents at the auction, the tandem behaviour can usually reveal the bidders’ intentions much easier. One example is if you’re discussing the developments with each other during the auction. Sometimes even making eye contact can reveal an approaching limit.
If the other partner is absent, bidders sometimes make the mistake of calling to consult them. This all gives valuable information to the other bidders and the auctioneer that you want to withhold.
Most of this can be eliminated if you’ve done the thinking and talking before the auction starts. If you and your partner know your limit, it makes it easier not to get caught up in the emotions.
Additionally, be ready to walk away and give up. There’s always the chance that you stumble upon wealthy bidders that won’t care about buying at a fair market price.
Coming psychologically prepared this way will give you confidence and stability that will show via body language during the bidding and, ultimately, play in your favour.
Equally important, stay observant of other bidders’ body language signs. If you notice that your competition is reaching their limit, act quickly and increase your increments to knock them out. If they deliberate their bid longer than before, it’s usually a sure sign that it’s one of their last-hope bids. Place your next bid swiftly to discourage them and send them the message they should give up.
Hire Someone if you Can’t Handle it Yourself
You know yourself best. If you’re a first-time bidder and feel like you can’t handle the auction on your own, or can’t handle it altogether, consider investing in a buyers agent.
You can hire an experienced buyers agent to accompany you at the auction or even to bid in your absence. Having an expert bid on your behalf increases your chances of success since they would know how auctions work and won’t invest any emotions in the whole business.
If you would like to know more about our Action Bidding Service, Call us today on 1300 117 561
All you need to know about Off-Market Property
Have you ever wondered what off-market property entails? If not, then you may be missing out on valuable information regarding off-market opportunities.
First things first, off-market properties provide a good platform for property buyers and sellers to acquire or dispose of their properties without involving public advertising or the usual marketing strategies used in promoting sales.
Unlike the traditional ways of buying property, off-market property has a completely different approach. Sadly a good percentage of buyers and sellers are not even aware of this option. Instead, they choose the traditional ways without realizing that the ideal property may not be out there on the market. As a newcomer in the game, you could be asking yourself how to access off market property. Here is all you need to know about this option.
What does Off Market Stand for?
In simpler terms, you can say that off market properties are those that are ready for sale but not listed. In other words, you will not find any information, whether online or advertised, to show you where the property in question is located. In this case, the sellers ensure that the sales of such properties are not disclosed to the public, and that is why they don’t advertise them.
To some people, off-market property listings may seem like a bad idea especially for sellers. This is due to the fact that property listings are likely to generate competition in a bid to push the market value for properties.
Meanwhile, different sellers have different reasons that compel them to choose those options that work in their favor. While others may opt for off-market properties, others may decide otherwise as a way of remaining anonymous across the transactions. This is important especially when the transactions are involving high-profile properties, thus the need for privacy.
As a matter of fact, quite a number of homeowners are not always aware of their urge to sell their properties until potential buyers show up with an offer. This shows that buying off-market property is not as simple as some people would like you to think. And that is the main reason finding such properties poses a challenge to many home buyers.
Off-Market Property Approach
Supposing you are living in a street, suburb or building where a high-priced sale had taken place recently or there are chances of higher interests from home buyers, real estate agents are likely to approach you directly with the aim of offering you another option. This option is actually the off-market property sale.
In such a case, a property agent may have potential buyers in their list who may not have been successful in getting some property to buy on the previous sale. Therefore, the buyers’ desperation motivates the agents to find the ideal property in the same area on their behalf. As such, you can take advantage of the buyers’ interest and proceed to seal the deal without necessarily advertising or listing your properties for sale.
How Does Off-Market Property Sales Work?
Anyone looking to sell their property off the market, it is prudent that they look for the well-experienced real estate agent to take up the task. This should be good news to you because the whole transaction process will be carried out by the agent of your choice.
The process will include paperwork for the off-market property sale, which is actually the same as the rest of other processes involved in the sale of the property. This means you will have to sign an agreement between you and your new real estate agent.
The agreement bears details about the property you want to sell, the duration of your agreement, the estimated selling price of the agent, your proposed selling price, advertised price, mode of sale, the nature of the agreement (whether exclusive or non-exclusive), the duration of the settlement, and agent’s fees including commission. But before you sign the agreement, it is wise to consult with a solicitor for further guidance.
Immediately after signing the agreement, the agent will arrange for the viewing of your property by the potential buyers. Even though it is not a form of a house inspection, it is upon you to ensure that the buyers are impressed with the state of your property. Just do some tidying up or clearing the clutter and everything else will fall in place for you. Keep in mind that all the transactions should be done in writing just in case of any dispute in the future.
What are the Advantages and Disadvantages of Off-Market Property Sale?
Selling off-market is increasingly becoming a new trend, particularly for high-end properties where homeowners value their privacy in the course of the transaction. And just like any other process, off-market real estate comes with its highs and lows as highlighted below:
Advantages of buying off-market properties
There is less competition when buying property off-market.
Off-market property listings are safe from speculation. Meaning that if no one knows about the transaction that is yet to take place, nobody will be able to talk about it. This is important especially to those who want all their transactions done discreetly.
Off-market, property sale gives enough time for the entire transaction process.
There are better negotiations which give you more leeway especially when purchasing off market property.
Disadvantages of buying an off-market property
Off market properties can be frustrating for buyers. This is the case because when you buy off-market, you need to be fully aware of the seller withdrawals.
Even if buying off-market property can work for you, on the other hand, it may work against you because sellers can choose to take their time during the transaction process.
While off-market sales promote sellers privacy, as a buyer you will find it difficult to uphold such high levels of privacy in the course of negotiations.
Buying your property off market is extremely difficult given that such properties are not found so easily. Remember these types of properties are not advertised, therefore you will need to do a lot more legwork to find them. A buyers agent can help you with this.
Buying off-market properties work perfectly well for all types of listings whose owners don’t want to go public. The fact that they come with their share of tribulations, off-market property sales can also have some risks. The big upside is getting through the door and having access to a property that no one else does.
If you would like to know more about Off Market Property, Call us today on 1300 117 561
Why you should use a Property Buyers Agent.
When it comes to purchasing property in Brisbane, there’s no harm in getting as much help and advice as you can. With all the paperwork and legal technicalities involved, navigating the complicated waters of the real estate market can be overwhelming. This can lead you to make common mistakes or to rush into a deal that you have not adequately considered. Working with a buyers agent who understands your specific needs and financial situation can help you make the transaction easier, faster and more convenient.
Thinking about going it alone? Think again. A buyers agent can help you buy your new home within the shortest time possible, for the best price and with the least hassle. With a buyers agent on your side, all the available information will get processed by someone who has your best interests at heart.
Just like real estate agents who are there to help you sell a home, a property buying agent is a professional who works on your behalf and for you to search, assess and negotiate a home purchase. They help to ensure you are well informed and that you pay the lowest price possible. Their aim is to help you purchase the right property for your specific needs, at the best price, and on the best terms possible.
Still not convinced? Here are some reasons people decide to use a buyer’s agent when buying a property to live in or invest in:
1. Save You Time
A buyers agent can help you save a lot of time in your property journey. They spend a lot of time researching and searching for the right type of property for you. Now you don’t have to spend a lot of your valuable time researching online in the hopes of discovering a diamond because you have an expert to do it all for you!
Having a professional do the hard work for you is a far much better use of your time. When you have other important things to focus on, the last thing you want is to be coordinating schedules or mulling over the paperwork, knowing that a late email or a missed appointment can cost you the home you have set your heart on.
Working with a buyers advocate implies that you have a trusted expert working for you. They have the knowledge and experience needed to get you the property you deserve.
2. Wide Network Increases Your Options
You have probably heard the saying, and it’s not what you know, it’s who you know’. This is especially true when it comes to the property industry.
Enlisting the services of a property buying agent can give you access to a wider variety of properties for sale, some of which might not even be advertised anywhere. This gives you a clear advantage since you now have access to properties unavailable to other buyers.
If you are looking to purchase an investment property, having more options can be very profitable since your buyer’s agent can seize upon properties before other buyers join in and force the prices to go up.
3. Save You Money
With their extensive research, you will be able to save money. Buyers agents know what exactly is going on in the real estate market. In any case, that’s what they do all day long.
Even if you have found your dream property, the experience can be quite intimidating, and you might not be able to negotiate the right terms. A buyers agent works on your behalf and therefore, will be able to get the right terms on that property for you.
They have more knowledge of what the right price entails in relation to the current property market. With a buyers agent on your side, you will be able to save money when buying a property. The truth is that a property buying agent can help you save much more money than you would imagine. Buyers agents are experts when it comes to deals and negotiation. As such, they can help you get the best price for the type of property you desire.
4. Help You Choose the Right Property
The additional expertise and advice provided by a property buying agent will also help you get the right property for you. Buyers agents know the local area inside out. They know where the organizations are and what locations are most appropriate for each client.
Don’t just be enticed by the bells and whistles of an outwardly perfect property. While a property might look good on the outside, a licensed buyers agent knows exactly what to watch out for to ensure there are no hidden issues. Your agent will also make sure the property you choose is properly aligned with your investment strategies and wealth creation goals.
5. Help You Avoid Making Common Mistakes
Buying a house can be a risky affair, and there are many common mistakes that a potential home buyer might make.
A buyer’s agent can help you avoid making any of those mistakes since they can spot any red flags before they become a major problem. Having someone with the know-how and experience to successfully negotiate for you can save you a lot of frustration in the end.
Protect Your Interests with Universal Buyers Agents
In addition to the benefits discussed above, Universal Buyers Agents can walk you through the whole home buying process and help make it a whole lot easier and less stressful. In the end, you can save a lot of time, money and avoid massive frustrations.
Working with a buyer’s agent means working with an expert who has the knowledge and experience to speed up the process and deliver the best results for you in the shortest time possible. When you hire a property buying agent, you’re hiring an expert to take care of your best interests when you are making one of the biggest investments of your life.
Would you like to know about our property market? Get in touch with us today on 1300 117 561.
What does the Coalition Election win mean for our Property Market?
Prime Minister Scott Morrison who led the Liberal-National Coalition to a win in the 2019 Australia federal elections, said he believes in miracles. And this win was nothing short of that. This win was also a much-needed miracle for the Australian property market. We can now confidently expect the property market to continue to pick up and return to its former thriving glory. Our expectations are also not baseless. In this article, we have thoroughly outlined the reasons the Australian property market is now set to soar.
However, if you are not familiar with the current state of the Australian property market and do not understand why the coalition win is such a big deal, here is the back-story.
The Back Story To the Australian Property Market Woes
In late 2017, the Australian Liberal Property Market hit an all-time low, with property prices falling ridiculously below the market rates. This slump made it very difficult for investors in the property market to make profits and thrive. The situation was made worse last year, thanks to the new stricter lending criteria. The new criteria made it problematic for property investors to secure financing for their investments. This eventually resulted in most investors stopping to buy properties.
The suffering Australian property market was further depressed due to homebuyers choosing not to buy properties. The forecasting of an impending property doom made most home buyers fearful of making any investments. Nobody was willing to take a risk with property values being expected to fall, mainly in the likes of Sydney.
Sellers, on the other hand, chose to withhold selling their properties. The offers they were receiving for the properties were much lower than what they would have got before late 2017. As for the prices they wanted to sell the properties at, there were no buyers available. The property market became stagnated with sellers, only selling a property when they really needed to and when presented with no other option.
The result of all these occurrences was an Australian property market that was not favourable to investors, sellers and home buyers. This situation would have taken a turn for the worst if the Labor party had won the Federal election. The Labor Party had expressed their plans to make changes to negative gearing and Capital Gains Tax, which would have reduced the value of Australians’ Coalition Property Market and discouraged investors from the Australian Property market. Hence, why we were waiting for the election results with bated breath.
But the Liberal National Coalition won the elections, and we have reasons to celebrate. This win led by Prime Minister Scott Morrison is the beginning and hope for the rise of our Property Market.
The Expected Liberal Coalition Property Market
The winning of the federal elections by the Coalition Party creates a positive and thriving future for the property market because of these three main reasons:
No More Uncertainty in the Property Market
The biggest gain for the property market from the liberal coalition election is the eradication of the uncertainty that was looming in the market. The unpredictable future of the Australian property market made it very difficult for investors to believe in the viability of our property.
However, with the Liberal government back in power, there are no expected changes in negative gearing and Capital Gains Tax policies. With this, the confidence in Australian property is expected to return and rise quickly.
Incentive Packages For First Home Buyers
The coalition government is expected to deliver on its promise of assisting first home buyers. This assistance is in terms of the $500 million pledged by the coalition government towards the first home buyer’s deposit scheme.
If delivered, this would mean that for first home buyers, the government will cater to the difference between a 5% deposit and the normal 20% required for eligibility to purchase a home. Therefore, first home buyers will be able to secure a loan to purchase their home without having to take out a lender’s mortgage insurance.
For the property market, these incentives are expected to revive the current low and stagnant presence of home buyers. This will, in turn, balance the excess supply of property currently being experienced. Sooner rather than later, the Australian Liberal Property Market is expected to return to its healthy state.
Tax Cuts for Australians With Income Of Up To $126,000
One of the most articulated election policies of the Liberal Coalition party was the legislation of tax cuts that would benefit low and middle-income households. The promised tax reforms will see Australians earning up to $126,000 receive tax relief of about $1,080 every year. The expected tax relief is a representation of about 0.5% of Australia’s GDP. So, what does this mean for the property market?
These tax cuts mean that many more households will have more money to spare for their consumption. The presence of extra money to spare means more household will be eligible and willing to make investments in buying homes and properties. Coupled up with the promise of first home buyers’ incentives, the expected result is a return of the favourable and competitive Australian property market.
By the end of the year, the Liberal property market is expected to have made a 360 degree turn from the 2017 slump and be headed for prosperity. Already, a positive change is being experienced as buyers are returning steadily to the property market and the rate of decline in property prices slowing down. We are seeing buyers jump straight into the market now the election is said and done.
The Australian property market is definitely heading towards good times, and we can not be more thrilled. Now is the perfect time for developers, investors as well as owner-occupiers to get interested in the Australian property market.
Would you like to know about our property market? Get in touch with us today on 1300 117 561.
How the Brisbane property market is looking in 2019
Is the Brisbane property market ready for a period of high growth? Should property investors move into this sunshine state after a slowdown in Sydney and Melbourne property markets?
Following the slowdown of Sydney and Melbourne property markets, many parts of the country are witnessing a fall in property values. However, the Brisbane property market seems to be the prime beneficiary of a slowdown in the country’s two important cities. It’s gaining pace!
Now, lots of families and downsizers are moving from the southern cities to South East Queensland. No wonder, Queensland has emerged as Australia’s most preferred destination for internal migration.
As the economic scenario improves and more jobs are being created in the wake of massive infrastructure spending, a growing number of investors are now on the lookout for opportunities in Brisbane. And there are good reasons for that. The properties are more affordable and the market outlook is positive. Plus, rental yields are relatively higher. BIS Oxford Economics predicts Brisbane to lead the capitals in property prices, with a whopping 13% growth by 2021.
Brisbane is a fabulous city and livability, affordability, and economic prospects are any criteria, Brisbane is definitely a market where you can invest.
True, over the next few years, Brisbane is going to be Australia’s best- performing property market. There are some locations in the city that have stronger growth potential and they may prove good long-term investments. However, certain submarkets should be completely avoided.
Information is the key here. Your investment decisions should be based on reliable facts and objective analysis. In this blog, we will try to examine the Brisbane Property Market in all its dimensions so that you can make an informed and sound investment decision.
If you look closely, Brisbane isn’t one homogenous property market. It is divided into multiple markets characterized by geographical locations, property types, and price points.
Getting to know the Brisbane Property Market in 2019
Brisbane Property Market Prices
Brisbane properties are all set for their turn in the sun and those who stand to benefit the most are freed standing, well-located houses, and townhouses.
Over the last year, the Brisbane property market reported flat figures. However, the market is highly fragmented and the sales figures may not truly represent the entire market.
As per CoreLogic, house prices increased 0.1 percent over the last year while apartment prices dropped 0.5 percent in Brisbane. However, freestanding houses close to CBD or in school catchment zones have reported strong growth in value. Many of the properties have in fact reported double-digit growth in value over the past year. This is how a typical property market behaves — some properties underperform while others do exceedingly well.
However, the apartment market remains oversupplied and it can take a while before it picks up. In saying this, the apartment market is going through a correction now and is presenting great buying opportunity, if you know what to look for.
Brisbane’s economy is expected to get a major boost from projects like HS Wharf, Queen’s Wharf, Cross River Rail, TradeCoast and the second airport runway. Job creation is set to skyrocket off the back of these large infrastructure projects.
Meanwhile, there are a number of factors such as affordability, interstate migration, the return of investors that indicate that the Brisbane property market will see stronger rental yields and capital growth in 2019.
The apartment market has been more sluggish in the face of excessive supply levels. However, unit values have started to pick up recently, perhaps hinting that the rough patch for the Brisbane apartment market is likely over now.
Since the unit construction peaked back in 2016, supply concerns are not a pressing point now.
Premium properties close to CBD or the river in the inner ring areas are much sought after by local upgraders and southern migrants.
This has set off an above average growth in some desirable neighborhoods:
The median house price has gone up significantly in these localities. For example:
Median House Price – figures are approx
Hamilton up 38.5% Paddington up 15% Bulimba up 11.3% Auchenflower up 9.5%
Brisbane’s Property Market Trends?
The Brisbane property market is performing well and belies the prevalent gloom in the real estate sector. This is good news in the backdrop of falling listings and cooling southern markets.
The Brisbane housing market has put up admirable resilience in the face of the current slowdown in the property values in major markets across the country. This has been possible because of strong economic fundamentals and a steady population growth that drives demand.
Last year, while some areas under-performed, 68 suburbs repotted growth far higher than the average level of growth. And about a dozen of the properties had double-digit growth in price over the last year.
Brisbane’s Rental Yields
As per the SQM data, the rental yield in Queensland is slowly looking up, and that’s good news for property investors. The gross rental yield for Brisbane houses was around 4% and for units closer to 5% last year.
Brisbane Capital Growth
For the moment, Brisbane properties are more affordable than those in other two east coast capitals. However, according to CoreLogic forecasts, within two years Brisbane will see one of 10 houses sold fetching over $1 million.
The growth rate for the Brisbane property market is likely to be in the range of 3% to 5% this year. In a 3-year forecast to 2021, BIS Oxford suggests that the Brisbane property market will see the strongest growth across all property markets in the country over the next three years, likely to record a 13% jump in median prices to $620,000.
With its far lower median house prices compared to Sydney and Melbourne and higher rental yields, Brisbane has become an attractive market for interstate property investors.
The lifestyle advantages and local affordability factors have been responsible for driving a strong interstate migration, which grew 50.5% over the previous year. Queensland accounts for 12.7% of the overseas migrants and the interest of foreign investors in the Brisbane property market is growing significantly.
Properties in the city’s suburbs that fall in the inner and middle rings offer the most exciting capital growth opportunities in the long term.
The population of Greater Brisbane which includes Brisbane, Ipswich, Logan, Redcliffe and Moreton Bay is 2.2 million, which is less than half the population of Sydney or Melbourne.
The population of Queensland is expected to cross seven million while the population of Australia is likely to double by 2055.
The region is famous for its sub-tropical climate, laidback lifestyle, and great weather.
According to the FY19 Budget, the economic growth rate in Queensland is projected to be 3% in the Financial Year 2019, compared to 2.5% the previous year.
There are many big-ticket projects currently going on around Brisbane, which have started creating jobs besides giving the economy some momentum.
One of such projects is the second runway coming up at Brisbane Airport at a cost of $1.3billion. The project, which is scheduled to be completed by 2020, has already created employment for hundreds of people. By 2035, it is going to create 8,000 new jobs and contribute $5billion to the Brisbane economy.
This airport expansion project will put Brisbane at the center of aviation activities. Its capacity to handle flight movements per hour would increase dramatically. It can become a new gateway for other parts of the country, especially for traffic from Asia. Targeting at opportunities stemming from the Asian Century, there are projects worth $30 billion scattered all around Queensland’s coastline.
Many local experts believe that the Brisbane property prices would not grow anywhere near Sydney or Melbourne unless there is a strong local economy. Brisbane is Queensland’s economic engine and with a strong history of infrastructure investment and economic performance.
According to available data, Greater Brisbane’s economy expanded rapidly to $135 billion, which is 47.1% of Queensland’s total economic output in 2012-13.
Brisbane’s Population Growth
According to a report, the population of Greater Brisbane is likely to register a strong growth for the next 10 years during which an average of 62,410 new people will make Greater Brisbane their home.
In 2018, the population growth rate was projected to be 2.3%, which is expected to drop to 2.1% in 2026 and remain steady.
As the new population moves into the city, it will drive up demand for residential properties. Family households, as well as lone person households, are likely to witness the largest increase in demand. Their average annual increase is likely to be 1.8% and 2.5% respectively.
Group households will see the weakest growth rate among all categories of residential properties at 1.4% per year.
Brisbane has a sub-tropical climate and is famous for its outdoor lifestyle. Its popular culture is characterized by the amazing range of dining options in residential and restaurant zones along the Brisbane River. Brisbane also has a vibrant calendar of cultural events and festivals. The city boasts comprehensive infrastructure for art and culture related events and functions. Exclusive exhibitions, inspiring theatre, local performances, outdoor cinema, street art, art galleries and performance spaces around the city.
Where Should You Start Looking?
Like anywhere else in Australia, the property market in Brisbane will be guided by demographics. People’s preferences about the location and the price that they want to pay can determine which property market is going to gain traction.
That’s why it is sometimes better to invest in areas where the local income level is higher than the average national income.
In these locations, the local population will have a higher disposable income and they will pay a premium more readily to live in these locations.
Many of such locations are in the inner and middle ring suburbs and they offer great investment opportunities in houses and townhouses.
These suburbs have been outperforming for a longer time and they are likely to at least perform well, while if things are really favorable, they can be star performers as well.
Consider School Zones
It is true that property prices are influenced by the proximity to education catchment zones. In general, these areas have outperformed the market and are expected to continue with their good performance.
Education is a long-term commitment whether you have children already enrolled at the school or you are looking for a school for your children. From the investors’ point of view, the investment made in school catchment zones increases the possibility of finding long-term quality tenants.
Inner & Middle Ring Suburbs
Over the long term, suburbs closer to the city center tend to do better than all others.
In general, properties in the vicinity of CBD and the river seem to increase their value faster than those far away from them.
One of the defining changes that have taken place in Australian cities in the last 50 years is gentrification. It has sharply increased the value of suburban properties in the inner- and middle rings.
The gentrification has not been part of any government planning but has resulted from the evolving demographics.
The inner suburb saw gentrification with the exodus of industries, migrants, and workers. Initially, house rent and prices were cheaper here than many other suburbs.
Suburbs on Your Radar
Of course, leading economists are claiming that Brisbane is going to lead the nation in capital growth on properties. However, it is recommended that you do your research well.
Various research agencies predict an 11% to 13% growth for Brisbane until 2021. This is clear from these predictions that the Brisbane property market is going to experience a phase of high growth in the short term while the rest of the nation is witnessing a slowdown.
Brisbane houses have averaged 5% annual growth in the last five years whereas some of the suburbs have outperformed and are expected to continue with their above average performance.
Entry Level Suburbs
Budgets starting $530,000 – $600,000
A majority of the houses are occupied by the owner.
Weekly income has remained above the national average and is further moving up
Healthcare and social are the two most common occupations here. According to Brisbane Government, these two are the fastest growing sectors in Brisbane’s economy. As the number of aging population is growing, there is always going to enough work.
A higher level of income and job security means that people will have a more disposable income to spend on their homes, and they will be more comfortable in doing so.
Keperra has a train station and according to a research suburbs close to a railway station witnessed 40% more price appreciation over the last decade.
In the last five years, Keperra has averaged 30% while Brisbane averaged 25%.
Chermside West has similar demographics as Keperra. Here owners occupy almost 80% of the homes. Income level is as high as in Keperra and occupation is also similar.
This suburb is really gentrifying as retirees and social housing is moving out. Younger professionals attracted by Craigslea State School catchment are fast replacing them.
The suburb also has also two hospitals that maintain a steady flow of healthcare professionals in the area. With a steady pace of development, this suburb has every chance to become a satellite city. While Chermside attracts many investors, we would recommend Chermside West. It has superior school zones, favourable demographics, and higher owner occupier percentage.
Other Noteworthy Entry Level Suburbs
Budgets starting from $650,000+
Let’s start to get closer and there are some good suburbs that sit around 7 km from Brisbane CBD.
Weekly incomes have soared dramatically in the last couple of decades in Cannon Hill and we expect this to continue.
Again, it has a higher level of owner-occupier percentage.
Cannon Hill also has good schools in its proximity. It has green spaces, a bus & train line, and easy access to employment hubs.
The trend of low maintenance living is catching up and land is at a premium now.
While Cannon Hill is closer to CBD, this is also going to benefit from Brisbane airport expansion as its closet southern suburb.
The average growth rate in this suburb has been 30% over the last five years.
Other Middle Ring Suburbs
Budgets starting from $800,000+
Ashgrove is one of those few suburbs that lie within the 5 km ring of CBD yet the property prices here do not compete with Sydney or Melbourne as may be the case with other suburbs within this periphery.
Ashgrove lies at a distance of around 4 km from Brisbane CBD and is a popular family suburb.
The income level here is twice the national average and the demographics are also very strong with a higher concentration of working professionals.
The suburb has some of Brisbane’s best schools along its streets.
The area is well laid out and is characterized by walking paths, green spaces, larger character homes, and a leafy, green feel about the place.
It has easy access to lifestyle precincts and shops with a higher level of walkability. In the last five years, it has witnessed an average growth of 36%. This suburb is likely to continue in high demand.
Other Inner Ring Suburbs
Various studies have identified Brisbane as the property market that will lead the nation in capital growth in the shorter term.
While there are enough options available for all kinds of budgets, it will help to study the complete picture of the suburb, including the intricacies.
Even in seemingly good suburbs, some streets or pockets may have issues that you may not know unless you dig deeper.
The ground knowledge coupled with research about the location may throw up some facts that may be better to know before you make the investment.
Alternatively, if your location turns out to be good, you can expect above average capital growth and can set yourself for the next stage of the property cycle.
Brisbane Property Market Oversupply
In recent years, off the plan units were built in large numbers in Brisbane. The supply of apartments in CBD and inner ring outstripped demand. Another 15,000 apartments are expected to enter the market next year. In view of the oversupply, Brisbane’s apartment market offers little prospect of rental growth or capital growth in the very short term.
According to industry sources, the inner city precincts have as many as 19,800 new apartments on offer. It is not surprising that investors putting in their money in some off the plan units may have to wait for a decade for any appreciable capital growth.
Buy below Intrinsic Value
Generally speaking, off-the-plan and new properties come with a premium price tag. You should try to identify the right property and at a good price, not a cheap property that you can find in secondary locations.
Such properties may have a queer appearance or something not so great about it. But they may have a superior location and a strong built.
Properties in middle-ring suburbs often have strong structures and they are built on a land size of up to 600 square meters.
Manufacture Capital Growth
A great investment option is one that gives you the freedom to add value to the property by renovation, refurbishment, and redevelopment. This way, the capital growth on the property can be manufactured and enhanced. Try to identify a property where there is some scope of manufacturing capital growth.
So where do we go from here?
The picture looks perfectly clear.
The Brisbane property market looks set for a period of high growth. It is more affordable, the economy is improving, new infrastructures are coming up pretty fast, and the increasing population is likely to keep the demand in a growth trajectory.
Your most serious challenge could be to find the right property. We hope this blog has made the picture a litter clearer to you.
However, you can contact us and have a chat with us. With our expertise in the Brisbane property market, we would be able to help you throughout your home buying process.