Being the third-largest city in Australia, Brisbane has established itself as a primary hub for business, education, and technology. However, the current key focus is its real estate market. Brisbane's real estate market has also recently grown exponentially. The river city offers a wide and diverse market for those planning to invest in real estate. With recent and upcoming property developments, improved infrastructure, and a great economy, Brisbane offers a prime opportunity to real estate investors to show interest in its ever-growing property market and yield higher returns.
If you contemplate investing in real estate and rental properties in Brisbane, then refer to this guide. We will share some key insights on Brisbane's recent investment performance, rental returns, and how to identify good and bad property investments in Brisbane.
Let's start with,
Property Investment Performance
Over the past few decades, Brisbane has experienced steadfast population growth and strong economic performance, driving positive returns for real estate investors. The continued and steady market growth has attracted interested property investors to invest in Brisbane's real estate. The river city has also achieved exceptional long-term capital growth and yielded higher returns for property investors.
The unique demand for detached houses and lifestyle areas in Brisbane, especially in the inner and middle-ring suburbs, has led to a 5.3% growth in property performance. Brisbane's houses and units have also achieved returns of 8.21% and 6.58% per annum, respectively.
Real estate rental in Brisbane is thriving! The property market has obtained higher rental yields, despite falling interest rates. Brisbane's investment property yields are tracked a percentage point higher than in other Australian cities, including Sydney and Melbourne.
Bad Investment Property in Brisbane
The lifestyle, market growth, upcoming development projects, and more are some great contributors to Brisbane's real estate investment. Buying the right type of land from a suitable location with a fair deal can yield higher returns. Whether you are looking for rental accommodation in Brisbane or planning to buy real estate, you might want to avoid making the following mistakes:
1. Buying Wrong Property Type
Before planning on investing in a property, understand the property market's current and future trends. Most investors are unaware of the best property type to invest in according to the current and future housing needs, resulting in affected future asset prices and limited rental growth.
2. Buying in The Wrong Area
Every area in Brisbane will differ from one another. A few suburbs in Brisbane experience an oversupply of the property relative to demand. Such demand may force investors to sell their properties at an inappropriate rate.
3. Paying Excessive Amount
The lack of knowledge of property investment and market conditions in Brisbane can result in buying the wrong property type in the wrong areas at a high price. Such mistakes can often affect future returns and price growth.
Good Investment Property in Brisbane
Investors need to invest their time researching the market condition, performance, and assessing the property before making any buying or investing decision. If you want to save your time go with the experts who provide valuation services in brisbane. They will get you through the process easily.
Otherwise, always look for a property near your office, offer transportation services, have great infrastructure, and have additional amenities. You might also want to check out the neighbourhood before investing or buying the property. A suitable property type should suit a wide range of buying and renting demographics. The property should also be suitable according to the located area. Also check whether the property is desirable to invest in or live in. If not, how much will it cost to fix the changes?
Once you understand the market performance and rental returns, consider the conditions, and analyse the real estate, it's time to invest in a property!