Brisbane Property Selection System

Selection System Overview

Brisbane Property Selection System has been developed over the past 10 years. It is highly successful and is designed to firstly identify suburbs within the Brisbane region that are either below or equal to the mid way point of the property price cycle. The suburb must then have clear evidence of future market drivers that are going create an increase demand on the suburb which therefore will increase the property values. Time frame is 2 to 5 years. 

The second part of the selection process is designed to identify properties within the target suburb that are priced close to or below the median house price for the suburb and appeal to a wide range of potential tenants and in the future buyers. 

Selection System Overview
Budget & Property

Budget & Property

The first major selection criteria for this process is to establish your budget. This will determine the suburbs we can consider and the types of property we will target.

The budget will indicate how far from the CBD we’ll be looking at, your property requirements will then help me determine the best type of property to search for.

The second part of this process is to identify your property requirements. The general rule I apply here is land size first (largest possible), house construction (brick and tile for reduced maintenance), number of bedrooms (more bedrooms, higher return), location to local infrastructure (access to public transport, shops, schools ect.), property appeal (a property must appeal to a wide range of potential tenants and when the time comes, buyers).

Price Cycle

From the list of suburbs that match your budget I then identify those suburbs who’s median house price is showing clear signs of potential growth within the next 2 to 5 years due to conditions within the market that are clearly evident and can be pointed out to you easily.

There is no point buying in a suburb that is at the top of its price cycle. But if you look for suburbs where market drives  will come into play in the near future that will create an increase in pressure within a suburb, then you can ensure capital growth.

An example of this would be the very tip or peninsular of Victoria Point. As it is a peninsular, this creates a natural limit to the amount of land available. In the future as more people seek to purchase land or properties on the actual penisular then market pressure will increase which results in higher property values and returns. 

 

Price Cycle
Location Demographics

Location Demographics

It’s important to understand the demographics of a suburb for these are going to be your neighbours or tenants.

When we have completed the second part of my area assessment, the next area is too look at the demographics and understand the breakup of the population. What I am looking for is an area with a high percentage of families, specifically established and young families.

From there we examine the employment statistics and then the number of rental properties in the area.

Local Infrastructure

When the first 3 parts of the selection process have been met, we then need to look at the next, most important criteria. Infrastructure and accessibility.

We need to be able to access public transport so firstly we look at the distance to the closest railway station and to bus stops.

From there, we look at access to major hubs that people will travel to such as the city, airport, schools, shopping centres, hospitals and recreational areas.

Location Infrastructure
Median House Price

Median House Price

When we look at purchasing in a suburb, it’s very important to buy as close to the median house price as possible – preferably we purchase below the median price.

If you purchase in the top price range for a suburb, firstly you’ll limit the capital growth potential but more importantly, you’ll limit the number of tenants due to the high rent you’ll be seeking as well as reducing the number of potential buyers when it comes time to sell.

This formula reduces risk.

Rental Return

We now consider the rental return of a property and the vacancy rate for that suburb. What we are looking for is a return as close to 5% as possible and very low vacancy rate. There is no point having a rental property in an area that has a high amount of vacancies already, this is the biggest indicator of either oversupply or population decrease. The demographic research has usually led us to a suburb where these factors are not a concern. The focus is now on property that can achieve the returns we need.

Rental Return
Tax Effective

Tax Effective

This is one of the final parts of the process and comes down to your requirements. Firstly a brand new home is going to have far more tax benefits than an established by way of additional items we can claim for and depreciation. If you are in a position where you need more tax deductions then that determines the type of property we look at for the returns. Generally, I will look for a neutral solution where the rent covers or just about covers the ongoing property costs.

Your Input

Once the previous steps have been completed, we will be shortlisting properties to inspect. We will send them to you via email and you will let me know what you think.

Our role is to be analytical in the selection process, your role involves your feelings. Features that appeal to me may not to you and this is very important because if you feel that way, future tenants and potential buyers may also feel the same way.

By receiving your input at this time will lead us to the perfect property for you.

Your Input
Result

The Result

The final result will be a property that is located in a suburb that is predicted to grow in value in the near future, appeals to a wide range of tenants and is low maintenance.

A property we can all be proud of.

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