Buying an Investment Property in Brisbane

Brisbane

Brisbane is Australia’s third largest city and it is constantly growing, and as a major metropolis, it offers an excellent investment opportunity.

Brisbane is Australia’s third largest city, sitting behind Sydney and Melbourne. Historically the capital has enjoyed strong population growth and economic prosperity with a large and diverse property market, ripe for investment.

Over the past few decades, Brisbane has seen an increase in interest from investors, driven by affordability, good rental yields and, overall, great potential for long-term capital growth.

Compared to the other east coast capital cities, Sydney and Melbourne, Brisbane presents more affordable opportunities for similar properties. The median housing price in the Queensland capital shows a much lower base than Sydney or Melbourne, which presents an excellent entry point for the first time investor, or for those looking to diversify their portfolio.

Brisbane also boasts strong rental yields, which typically sit at a higher percentage point than the city’s east coast counterparts. Of course, many factors influence total returns, so this figure should be taken as rule of thumb, albeit a very encouraging one.

What Makes a Good Investment Property in Brisbane?

Investing in property is all to do with gearing yourself towards long-term capital growth, so doing your research and investigating the locations in Brisbane with the most potential is crucial.

This is where you will work closely with your property strategist, who will be able to present the best handpicked opportunities in the city.

There are three main factors that influence the potential of properties in Brisbane.

The Location – Location is a crucial factor influencing a property’s value. This includes proximity to schools, public transport, parks, libraries, hospitals, shops, cafes and universities. In Brisbane, this means buying property close the CBD where there will always be high demand. Acquiring property based on location requires a degree of insight and foresight. For example, scoping out growing populations and development of infrastructure, not basing your choices on volatile industries and being aware of proximity to cultural or financial hubs.

The Property – Of course, the property itself another major factor. A good investment is choosing a property that will always be in demand. This may be influenced by something like the age demographic of an area, as property becomes relatively more expensive floorspace can be one of the first things a builder may compromise on, so looking for strong floor plans, or buildings which offer strong tenant facilities such as private dining rooms, private pool cabanas or well-equipped gyms and pools can help to set your property apart.

The Market – Researching the market is a crucial part of choosing the right investment property. This includes exploring data on current and historical sales and discovering trends and patterns in the market. Historically, Brisbane has a strong property market with median house prices rising 5.16% between 2015 and 2016.

How Do I Research The Property Market in Brisbane?

When researching potential investment opportunities, your property strategist will be your eyes and ears. Researching the property market in Brisbane will involve investigating historical data and current sales trends, demographics and Census data, and market analysis’.

There are plenty of online tools for identifying the best suburbs to invest in, with a wealth of information at your fingertips. Some of these include:

Real Estate Institute of QLD – Each state in Australia has its own real estate institute which provides market com

Residex – Residex is an award-winning property data resource for banking and finance industries, property professionals, investors and homeowners providing market and suburb reports,

predictions, rent reports and much more.mentary as well as median sale prices and other market data.

PropertyDATA.com.au – PropertyDATA provides analytical data collected by the real estate institutes and is widely trusted by banks, real estate agents, valuers and investors alike; an excellent research tool.

Realestate.com.au – Here there is a a great ‘Invest‘ tab that can provides lots of valuable data on the top performing suburbs in Australia.

Census – Census data is a great resource for looking into how suburbs and their population are changing and growing. Take note of the type of people living there, their incomes, their age and professions and how this might influence your choice. The “QuickStats” page is great for fast information.

Australian Bureau of Statistics – The ABS has loads of useful data on population trends including migration, regional data, births, deaths and demographics.

Have a look at our guide to finding the best investment opportunities in Australia for more information on researching the market.

A Diverse Property Portfolio

To maximise the potential for long-term capital growth, your investment strategy should be based around building a healthy property portfolio featuring a diverse range of properties from around the country.

Here at Optimal Property Group, we always suggest a geographically diverse portfolio of property. A strategic spread of properties will mean that you will be in a better position to weather any financial fluctuations from changes in the markets across different capital cities.

Whether you’re buying your first investment property and are interested in the affordability that Brisbane can offer, or are looking looking to diversify your portfolio and expand to new cities, we can help you achieve your goals. Feel free to get in touch today, we’d be more than happy to help.

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