Why should you invest in Brisbane?
For the most experienced investors among us, there tends to be some fairly serious consideration that goes into making the next move up the property ladder.
Property is likely to be the most expensive purchase you ever make, short of buying an island or a fleet of custom Rolls-Royces. Well, depending on the type of property you're buying of course.
That's why it often pays to look for a real bargain in the market. There might be the odd house that appears in a city such as Sydney that blows you away, but waiting for that opportunity could cost you a large amount of time. Cast your gaze away from Australia's biggest city, and Brisbane is right there for the taking! There is a way to stay ahead of the curve and keep building your portfolio, as a Cohen Handler buyer's agent has the local market knowledge to know exactly where to look for the perfect property that adds to your existing real estate. There is also off-market purchasing available, and that truly opens up the possibilities available to investors.
Brisbane is growing at an impressive rate, and the shrewd investors have already started their campaigns in the city. Could you be the next mogul that gets into the city's expanding real estate?
What does Brisbane offer to investors?
For a start, Brisbane is an expanding market. It has shown consistent growth for the last few years now.
CoreLogic RP Data states that the median house value in Brisbane is $548,540 – a figure that has grown by 5.16 per cent over the past 12 months. By contrast, Melbourne has grown by over 10 per cent and Sydney 7.47 per cent, but these two cities have significantly higher median value. Melbourne not only offers great house value, but units are accessible too. The median unit value in Brisbane, including the ever-popular Gold Coast, is $398,680 – even more affordable than a house. This figure has grown by 2.85 per cent over 2015, while Melbourne's unit market has only increased 2.51 per cent.
Expertise in particular fields and regions means that knowledge is specialised.
Both houses and units have been great options for investors in the past. Houses are brilliant for families and those that want more space for their lifestyle, and units are perfect for short-term tenants or students after affordable and functional accommodation while they study. Targeting whichever audience your property portfolio favours is completely up to you, but a buyer's agent from Cohen Handler will help to take your choice to the next level.
Taking into consideration all of your requirements, a buyer's agent in Brisbane understands and studies the market. Expertise in particular fields and regions means that knowledge is specialised, and you can rest assured knowing the recommendations made will be in your best interest – after all, it is a legal requirement, and a moral one!
Who should invest in Brisbane?
If you're taking information from CoreLogic RP Data's Pain and Gain Report from December 2015, there isn't a better time to buy property in the Sunshine State capital than right now.
A pained property is one that sells for a lower price than it was bought for, while the opposite category (gain) makes capital gains for the title holder. In Brisbane, 5.3 per cent of properties favoured the buyers in 2015 – this shows more affordable options are available here than in Sydney or Melbourne, where only 2 and 2.5 per cent of houses fell into the pain category respectively. When you look at the unit equivalents, a whopping 15.6 per cent of units were snapped up by buyers for a bargain price, while in Australia's two next strongest markets, the figure was dramatically down. Melbourne with only 8 per cent and Sydney with a miniscule 1.7 per cent.
The classic seven-year property cycle of affordability will show dramatic changes to the landscape in the near future.
While Sydney is showing great strength in the selling arena, that's not typically great news for investors right now. The classic seven-year property cycle of affordability will show dramatic changes to the landscape in the near future, so investors should instead be looking to take advantage of capital gains down the track.
Of the 5.3 per cent of properties that made a loss in Brisbane's inner-ring suburbs, the average period for a held title was, coincidentally, 5.4 years. The median loss amount was $28,000 – that's not exactly a confidence booster for your investment strategy. At the other end of the spectrum, homes that saw capital gains had a median increase amount of $168,000 and were held by one owner for 10.4 years. Keeping a Brisbane property for just five years longer could result in a $200,000 swing for your return, and that's the goal for investors, after all.
There's also the important fact that the apartment market in Brisbane is booming – and growing consistently.
A report from Jones Lang LaSalle states that there were 4,671 apartments sold in 2015. Between now and 2020, there are 15,937 new apartments under construction, with a further 12,684 approved plans and 6,636 other submissions.
In the next four years, there will be a significant increase in the number of new available apartments around beautiful Brisbane, and that is essentially an open invitation to anyone with a bit of money to spend on property.
Whether it's a house or apartment you're after, you'll be able to find a seriously impressive option out there for you. A buyer's agent from Cohen Handler is on hand to make the buying process even easier.
Will you buy at auction?
Confidence is something that investors thrive on, so a region that offers a strong market is going to instil just that in the buyers.
At the moment, the growth of the market might well be attributed to the fact that buyers are flooding into the region in a bid to take advantage of the current conditions. Clearly, there is a widespread belief that the region is offering great returns. The above data should well be enough to convince you about buying in Brisbane, but the fact that a buyer's agent can make the whole situation even easier is the most attractive thing.
Someone with a sound strategy giving you a helping hand in the auction room can help to potentially shave thousands off the total price you eventually pay. They can even attend an auction in your place with all of your requirements in mind. This can be a great advantage because of how emotionally attached some buyers become when the property they've fallen in love with goes under the hammer. According to St George Bank, 62.1 per cent of Australian buyers don't have a strategy in place when at auction, and that can lead to a failed purchase, or paying more than the property is worth.
The most difficult part of the whole purchasing experience ended up being the bidding, which 46.3 per cent of people said they had trouble with.
A buyer's agent can offer much more than just help with market research and buying at auction. To find out more about the services we offer here at Cohen Handler, get in touch with the team and discuss how we can help you. Buying property in Brisbane might be as easy as making your next phone call the right one.