Brisbane’s Next Property Hot Spot
Brisbane’s Next Property Hot Spot is NOT the suburb popular with investors right now, it’s the suburb that is going to be popular in the next 2 to 5 years. Brisbane property prices are driven by local market pressure and if you purchase in a suburb that is currently experiencing high demand then it is only natural that property prices will increase and anyone buying a home in these areas will be purchasing in a suburb whos medium house value is on the way up the property price cycle.
Purchasing any property who’s suburb is on the way up the property price cycle will result in lower levels of capital growth as the property will be near its peak value for that cycle period and reduced returns as you now have a much higher level of market competition when it comes time to rent your property out.
Keep in mind that if the property is for you to live in and that’s the suburb where you want to live in, then fine. These rules are not so critical, however, if you have purchased a property for investment then you are going to have to wait a longer period of time to see any significant growth in value.
No Listen to the Media
Brisbane’s next hot spot is not the one the media is saying is a good suburb to purchase in. Don’t listen to the media, everyone else is and when you turn up to an open home in the stated Brisbane Hot Spot, everyone else is there too which means increased demand which drives the prices up and the short term capital growth and returns down.
Brisbane’s next hot spot is the one no one else knows about.
The Secret to identifying Brisbane’s Next Property Hot Spot is to not go where everyone else is and don’t listen to the media. Identify conditions within the market that are going to lead increased demand in the coming future, say 2 to 5 years. By following this strategy you can purchase a property that is low down on the property price cycle yet you can clearly see for yourself driving forces within the market place that will come into effect in the near future.
This is one of Alistair Kelsall’s key skills, identifying Future Brisbane Property Hot Spots and showing my clients in plain english the reasoning behind it. I can show you all the reports in the world that will indicate a suburb shows promise of performing in the future but in my experience over the years, if we all based our investment property purchases on these reports we would all have investment properties in mining towns and we would all be broke because we can’t sell them and there are that many investment properties in the town, we can’t even rent them out or the rent return is so low it doesn’t cover the costs of the loan. This is a true fact and I know many investors who jump at the chance to purchase a high performing mining town property based on what was happening there right then.
Look to the Future
Working in the property and finance industries for 19 years, it is easy to remember a time when we would write home loans of around $100,000 or less. Imagine how rich we would all be if we knew then what we know today.
To be successful in property investing in the Brisbane Property Market you need to have a crystal ball and be able to look ahead in time 2 to 5 years. If you can see activity in a market and then predict what the future effect of that activity will be on another suburb within Brisbane then your on your way to finding Brisnbane’s Next Hot Spot.
Right now there are suburbs in Brisbane that are being developed and have a high number of estates and new homes for sale. This suburb is 20 kilometres from the Brisbane CBD and the average new home is a 4 bedroom 2 bathroom property on a block of land around 300 m2. That is becoming the new normal new property close to Brisbane. The average price of these new h0mes is around $450 to $480K plus.
There is a suburb slightly closer to Brisbane (18 Kilometers) and within this suburb, there are a few areas where new homes were built 10 to 123 years ago. They are all bigger homes than the newer ones and all are on at least 500 m2 of land. These properties sell for an average of around $480K.
Now, let’s look ahead into the future, a person wanting to buy or rent a property in this area is going to be comparing those newly built homes on tiny blocks of land for around the same price as a slightly older home with a decent block of land and a back yard and a double car garage where they can fully open the car doors to those smaller homes. Keep in mind it is the land size and distance to the capital city that determines the value of a property.
It is only natural that in 2 to 5 years that the slightly older properties on bigger blocks of land become popular properties which will increase demand which will then increase their values and you will see strong capital growth and rental returns.
Identifying Brisbane’s Next Property Hot Spot
This is where the skills of a real Brisbane Buyers Agent come in and one of my greatest skills is identifying these future Brisbane Hot Spots. I can then show you in plain English without the jargon and fancy reports the factors that will create these future Hot Spots and as I always say to my clients, “If you can see what I am saying for yourself, and it makes sense to you, then it’s probably right”.