Brisbane Buyers Agent Guide Investing in Brisbane
Brisbane Buyers Agent Guide Investing in Brisbane
Brisbane Buyers Agent Guide Investing in Brisbane and the investment properties we promote are established properties or brand new homes built on in-fill blocks or small boutique estates located as close to the Brisbane CBD or Moreton Bay as possible. The purpose of this guide is to secure an investment property that is in the right location, at the right point of the property price cycle and appeals to a wide range of both tenants and when the time comes, buyers.
To achieve this we follow a number of of guideline rules when it comes to the location of the property as follows:
- Distance to Brisbane CBD
- Distance to Water i.e. Moreton Bay.
- Size of Development
- Fit Out
- Access to public transport
- Supply Versus Demand for the suburb
- Median House Price for the suburb
- Type of Property
Distance to CBD
Whenever you invest in anything then there is an element of Risk associated with that investment and our goal is to reduce that risk whilst maximising the return on the investment. For that reason, the first guideline we use when analysing an investment property opportunity is the properties distance from the Brisbane CBD. When a city is experiencing increases in price, that increase starts from the suburbs closet to the CBD and travels outwards. For that reason purchasing a property as close to the CBD as budget allows will ensure faster capital growth.
Distance to Water
There are cases where we will recommend a suburb and property location that is based on distance to water. In Brisbane, we are seeing a high number of people choosing to live in a location based on Lifestyle rather than distance to the CBD. In the explanation above we discussed the way properties increase in value in a wave from the CDB outwards. The same is true for properties located close to the water, in our case Moreton Bay. There must be adequate development of estates occurring further out from the measured point of water to ensure that there is an increase in demand for those seeking to position their property closer to the water rather than estates located further inland. This is evident and illustrated in our Investing in Victoria Point Strategy. We have 16 estates located inland and further South of Victoria Point so it makes sense to see that any property located close to the water is going to be in high demand in the future. Read Victoria Point Investment Strategy
Size of Development
The size of the development is very important when determining the location for an investment property. Our preference is for an in-fill block of land located as close to the CBD as possible or a small boutique estate. The reason being is competition if you choose an investment property in a larger estate you have competition in both the rental market and when the time comes, the sales market. By utilising an infill block you will be able to locate your property closer to the Brisbane CBD by taking advantage of a larger property that has been subdivided and the individual blocks of land put on the market for sale. An example of one such property is the investment home we have for sale right now in Moorooka, located 7 kilometres South of the Brisbane CBD. View Property
When constructing an investment property we have full control of the fit out of the new home. We prefer to provide stone bench tops throughout the house, including the bathrooms as stone bench tops are resilient to the wear and tear an investment property receives during its life and it is cheaper to install when the home is being constructed than repair or refurbish when it comes time to sell or rent out again. will still look new in 5 to 10 years.
Ceiling fans in every room is a basic requirement and air conditioning into the master bedroom at least, with an additional unit in the main living area.
Access to Public Transport
One of the Golden Rules to property Investing is Access to Public Transport. By adhering to this rule you open your property to a wider range of potential tenants and buyers. In Brisbane, we focus on the rail network as it is the fastest way to get into the city for workers and shoppers. We have a good rail network in Brisbane and we will always pace our properties as close to the public transport network as possible.
Supply Versus Demand for the Suburb
There is no point investing in a suburb that has an oversupply of real estate. You are going to be purchasing at the top of the price cycle and when you need to find tenants for your investment, you are going to be competing with many other homes. A simple test is to go onto Real Estate.com, under rentals and see how many homes are currently on the market for rent. Then repeat the process for the number of homes available for sale.
Median House Price for the Suburb
Each suburb has its own median house price and it is important to purchase a home in the middle or lower range of this amount. The reason again is based on tenants and potential buyers, if you purchase a property above the median house price then you will requiring a higher rental return for that property which is not supported by the average rental return. You are limiting the number of people that are possibly going to rent the property form you. The same goes for when it comes time to sell, you will be asking a very high price for the property when compared to the other homes for sale on the market which places limits of the number of potential buyers.
Type of Property
If we are constructing an investment property then we follow a standard format which has proven to work over the years, 4 Bedrooms, 2 bathrooms, double lockup garage, dual living areas, ceiling fans into all rooms air conditioning. This type of property will appeal to the highest number of potential tenants and give you the maximum return from your investment.
If we are purchasing a property through our Brisbane Buyers Agent area of the business then we apply a slightly different target property. Land size is first as it is the land that is where the value is, location is next and we want to target a suburb as close to the Brisbane CBD as we can and as big as we can, within budget. Further to this, we target a suburb where we can accurately predict that it is on the way up the property price cycle. Next comes the number of bedrooms, the more bedrooms, the higher the rental return and appeal to the rental market. The preferred construction is Brick and Tile due to lower maintenance.
Brisbane Buyers Agents Guide to Investing in Brisbane Real Estate
By basing our property recommendations using the above parameters, the risk that is associated with any type of investment is minimised. We are also choosing a property that will appeal to a wide range of tenants and therefore should be rented fast and for long periods. Any periods of vacancy mean that you are having to cover the cost of the investment finance so it is critical that we secure a home we can be confident in it be tenanted for as much of the year as possible.
Taking into account factors like the property price cycle, supply and demand and distance to the CBD or Water, we are ensuring our property in inline with receiving the highest rental return possible and more importantly the highest amount of capital growth we can achieve.
What we need to consider at the end of the day is to reduce the risk whilst maximising the return. If you want to follow a true-life case study of how we have achieved this then please read The Most Successful Property Investing System Explained.