Property Investment Market in Brisbane – What’s Happening Now?

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Brisbane has yet to match the big improvements happening in Sydney. In fact, there is a staggering difference between the two markets in terms of house prices despite the fact that both have growing populations to fuel housing demand, range of property types, and waterfront homes. A report from RP Data noted up to 60% price difference between the investment property markets of Brisbane and Sydney, with the former’s median only at $480,000 and the latter’s at $765,000. Despite this though, investors are hopeful that this slow growth is only temporary. Recent rises in the homes being sold and the number of auctions happening suggests that there is an increasing buyer’s interest. So, while property prices are still within reasonable range, make a property investment in Brisbane now!

 

Here’s an overview of what is happening in the city’s real estate market today.

 

Where are the best locations for investment?

 

All areas of Brisbane will do well from improved infrastructure, but some suburbs are expected to become a hotspot. The following are some of those potential hotspots and the infrastructural developments that will help drive Brisbane real estate prices up.

 

  • Brisbane City and Spring Hill, which will both benefit from the Underground Bus Loop.
  • Woolloongabba and Dutton Park where the proposed BaT Tunnel will be located.
  • Toowong, St. Lucia, and Indooroopilly, where the Legacy Way tunnel will pass through.

 

What types of houses are good for investment?

 

With the city’s ageing population, residences with well thought-out floor plan, have style and possess genuine character will be in demand in low-density locations. Townhouses with one to three bedrooms will also be popular. There’s also an expected demand for apartments as Australia’s household size is decreasing with many young professionals choosing to live alone.

 

For more market insight and investing advice, call us now! We offer property investing, business and consulting services for new and experienced investors alike.

10 Tips for Hunting Bargain Properties in Sydney

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Invest in Sydney

Sydney’s real estate market is exhibiting considerable growth and is showing no signs of slowing down. This growth comes with soaring high prices that make nabbing quality homes for a bargain a tad too difficult.

 

The good news is SOME SUBRUBS ARE STILL FLYING UNDER THE RADAR.  Yes, there are still many home bargains available; however, real estate agents in Sydney don’t advertise them—they are reserving their best deals for buyers who they will know will give them a quick sale.

 

Now, the question that begs asking is: How do you find investment property bargains and not ‘lemons’ in the current Sydney market?

 

Push a little further out

 

Homebuyers are scrambling for properties near the city centre or the harbour where access to amenities, such as public transport, is very convenient.

 

Rightfully so, but you are looking at about $800,000 now if you want a decent two-bedroom. The current market situation makes your $750,000 only capable of buying a small place. So why not push further out?

 

As mentioned, many Sydney suburbs are still flying under the radar. Consider Busby, Westmead and Wentworthville where you can still find a decent home at $450,000.

 

Be ready to buy when the time is right

 

Timing is everything when it comes to making property investment in Sydney. Experience tells us that the best time to buy is at the bottom of the real estate market cycle—that moment before prices start to rise again. So observe and study the market closely and make sure you are ready to buy when the time is right because NO ONE RINGS A BELL WHEN THE MARKET REACHES ITS BOTTOM.

 

Work the numbers

 

Finding a bargain means knowing the market. “When considering a purchase ensure that you look at what other properties have sold for in the local area and what price other properties are listed for,” RP Data Senior Analyst, Cameron Kusher, advised.

 

This entails assessing the local median sales price over time in your chosen suburb so as to get insight on what you can expect when buying in that area. You will need to collect the following information:

 

  • Capital growth history
  • Average vendor discount
  • Length of time to sell a property
  • Gross rental yield and median weekly rents

 

Getting the numbers may not be enough though. To get to the true story, you need to dig deeper by looking for suburbs with good level of amenity but have lower median price, and then compare it to nearby suburbs with similar characteristics.

 

Get yourself a motivated seller

 

Sellers who are looking for quick cash can give you the bargain you are looking for. So when hunting, pay particular attention to the reasons of the sale and the circumstances of the seller, and try to gauge how motivated the seller is. Knowing all these will give you an advantage during the negotiation.

 

Of course, to win the deal, make sure your finances are ready so you are prepared to buy any time.

 

Watch out for infrastructural development

 

New shopping centres, train lines, and other amenities can drive rental yields and capital growth up, helping many undervalued suburbs boom after increased infrastructural developments. So, don’t snub those under-the-radar locations that are scheduled for development or where councils are planning to rezone.

 

Finding a bargain property in Sydney is harder than anywhere else in the country, but that does not mean it is impossible. With a little help from BAP, you are sure to find the perfect home for you at a price you can afford.

 

4 Reasons to Put Your Money in an Investment Property in Melbourne

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Invest in Melbourne

When it comes to buying a house, location is everything. That’s why if you are looking to own your slice of the Australian dream, sink your money into Victoria’s capital, Melbourne. Here’s why:

1. The most liveable city. The Economist Intelligence Unit’s liveability survey, which compares 140 major cities from around the globe, gave the capital a score of 97.5 out of 100—ranking it on top of the list for the fourth year in a row. The survey takes into consideration culture, education, healthcare, environment and infrastructure. Premier Denis Napthine was delighted with the result, particularly with Melbourne getting a perfect 100 score in the areas of education, healthcare, infrastructure and sport.

2. Affordable residential real estate market. Property investment in Melbourne remains favourable in the midst of the rumoured Australian housing bubble, with property prices maintaining a healthy and moderate growth pace and with the state and federal government providing assistance packages to homebuyers.

3. Low urban density. It is one of the lowest-density cities in the world, boasting a vast land stretching more than 90 km from north to south and 100 km from east to west. Ironically, it is Victoria and Australia’s major economic contributors, accounting 27% of the former’s gross state product and the latter’s gross domestic product.

4. Positive capital growth. Investing in real estate in Melbourne today could mean 100% return on investment 10 years or less from now. As mentioned, property prices are on the move. Thanks to the strong population growth, shortfall in new home construction, low interest rate, and moderate income growth.

These are just some of the reasons why investing in the city’s property market today is a good idea. Take advantage of the favourable market condition now to maximise your investment.

Talk with one of our consultants here at Buy Australian Properties if you are ready to jump on the property bandwagon.

How to Tell It’s the Best Time to Make Property Investment

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Many investors missed out on a great opportunity because they are so obsessed with making the perfect timing that they forgot to take the plunge and purchase something. They are consumed with the idea of buying right at the “bottom” of the property cycle in order to secure the lowest price.

 

Patience is their highest virtue. They are willing to wait and watch, and when the buzz about a market slowdown or looming crash starts, they jump on their seat and think, “Now it’s my time to make a move! Or is it?”

 

You see, these investors have their eyes on only the “best deal” that they are never really quite sure if housing prices could go any lower, and so they wait a little bit longer. But by the time they made up their mind to make a move, the bargain they’re waiting for have already come and gone, and the property investment market is starting a new cycle and moving upward again.

 

With all their patience and determination, they are left empty handed in the end.

 

Timing is important, but playing the waiting game too much won’t get you anywhere. So, when exactly is the best time to make an investment in property? How can you tell it’s time to make a move?

 

In real estate circles, there’s a saying that goes: The best time to buy was 20 years ago. The second best time is TODAY.

 

IN OTHER WORDS, BUY WHEN YOU CAN AFFORD AND WHEN YOU ARE READY.

 

We have noticed that “affordability” is given much importance nowadays. Real estate investors in Australia in particular are warned not to buy property this spring as the current high demand–low supply market makes everything challenging for investors, with owners selling their properties at silly prices. But is this really the real scenario?

 

Hotspotting.com.au managing director, Terry Ryder, dispels the shortage and Australian property bubble myth, explaining that: “Prices have barely kept pace with inflation. Even with the most vivid imagination, it is impossible to construct a bubble from those facts.”

 

He said that Australian house prices have not risen by over 10%, and that growth at that rate has occurred only in Sydney, which the QBE Australian Housing Outlook 2014-2017 forecasted to reach +17% over the next three years.

 

Indeed, in many capitals, property growth remains below 10% with Perth expected to have a -2% price increase, Canberra with +1%, Darwin with +2%, and Melbourne with +5%.

 

So, if you have been dreaming to enter the real estate market in hope to build your wealth in property, we suggest that you take the plunge now, especially when an easing in housing undersupply and a possible amendment to the interest rate policy are expected to slow price growth down in most Australian cities from 2015-16.

 

If you need help, just contact us here at Buy Australian Properties where real estate investing is safe, uncomplicated, honest, transparent, un-pressured.