Why are buyers basking in Brisbane?
We've delved into discussion about investment property in Brisbane before, noting how it was looking like a good 2015 for the Queensland capital. Now we're a few months into the year, and those predictions are already bearing fruit. New reports are showing that parts of Brisbane are very fertile ground for property purchasers, and if certain changes are made, it could be even easier to access the market.
Brisbane: The buyers' market
When you're buying Australian investment property, you want a buyers' market. It lets you secure property at a more affordable price, and if you get the right area with the help of a buyers' agent, that investment seed can blossom into huge capital gains.
The Commonwealth Bank-CoreLogic Home Buyers Index (HBI) for January this year has been released, and it highlights some fantastic results across Brisbane. On a scale of one to five, one being an extreme buyers market and five being the same for sellers, Queensland scored a two - bested only by Tasmania.
Brisbane. Hobart and Darwin are all neck and neck as the strongest capital city buyers' markets in the country, which means you have more power at the negotiating table. Of course, that isn't always enough. I recommend getting someone with expertise in buying real estate on your side to seal the deal, like a professional buyers' agent.
The perfect storm
The HBI indicated that inner Brisbane has improved since October last year, moving even further in favour of buyers. Nearby Ipswich and Logan were also highlighted as buyers markets as well, and most crucially, I think these areas still have a lot of growth left in them.
RP Data CoreLogic's Monthly Indices show that Brisbane house prices rose by 5.91 per cent over the 12 months to the end of February - second only to Sydney and Melbourne, which are identified by the HBI as sellers markets. Clearly supply, affordability and growth are coming together nicely for the Sunshine State's capital. It's the perfect storm of conditions for you to capitalise on and get some great investment property in Brisbane.
But just because the seas are smooth for sailing doesn't mean you're an expert navigator all of a sudden. To get the most out of a buyers' market you need to pick specific suburbs primed for growth, and get a property with the right rental yields to help you pay off a mortgage. It's in negotiating these details and getting your purchase just right that you will likely need a professional buyers' agent.