Are you considering making a property purchase soon? With Sydney seemingly out of reach, investors are increasingly looking toward more affordable markets, one of which is Brisbane. From a growing population to impressive infrastructure projects, the city is becoming one of Australia’s most attractive places to invest. Here are 10 reasons to buy in Brisbane.
1. Brisbane is Still Affordable
If you’ve been looking to invest in Sydney or even some parts of Melbourne, prices in Brisbane will seem refreshingly low. Still affordable for owner occupiers and investors alike, the Brisbane real estate market is attracting southern migrants in record numbers. In addition, you’d only need a fraction of the capital to jump into the market.
2. Interest Rates are Low
With the cash rate at a record low, it’s never been more affordable to own an investment property. Contact us to find out exactly what it’d cost you.
3. Brisbane is Growing
Brisbane is projected to add 662,000 residents by 2031 – It’s like adding the current population of the Gold Coast to the city. To accommodate that growth, an additional 280,000 dwellings are required.
4. Well Positioned for Growth
With the price gap between Sydney and Brisbane at close to a record high, increasing rates of internal migration and a growing economy, Brisbane is well positioned for growth in the near and medium term. Smart investors who enter a growing market can expedite equity uplift which facilitates portfolio building.
5. Infrastructure Investment
Over the next ten years, particularly in the five years to 2022, Brisbane will benefit from investment in excess of $18 billion. Major projects include: the Queen’s Wharf Precinct, a new International Cruise Terminal, redevelopment of the Brisbane Airport, revitalisation efforts in Northshore Hamilton and the Brisbane Live Entertainment Arena.
6. Diversification of Your Portfolio
Rental yields in Brisbane are 25% higher than the capital city average. As such, you’re more likely to be closer to cash flow neutral (after tax) than you are if you invest in other cities. Investing in Brisbane can complement an existing portfolio comprised of lower yielding investments.
7. You May Earn Some Tax Deductions
You may be able to earn some tax deductions by investing in property in Brisbane (or in other locations in Australia). Deductions offset your income so that you pay less tax. The result is the cost of owning an investment property reduces significantly.
8. Passive Income
With interest rates at record lows and rental yields above national figures, the cost of owning a property in Brisbane is significantly lower than in Sydney or Melbourne, increasing the likelihood of neutral or positive cashflow.
9. The Job Market is Improving
By 2031, Brisbane’s regional product is expected to grow to $250 billion, 67% higher than current levels. Deloitte Access Economics forecasts the Queensland economy will outperform the national average in the three years to June 2020. In the year end September 2017, Queensland added close to 100,000 jobs.
10. Supply is Decreasing
Between March 2015 and March 2017, quarterly apartment approvals in Brisbane declined by 75%. With demand increasing on account of migration and job growth and supply decreasing, Brisbane’s property market is well positioned for growth in the near and medium term.