Is Brisbane A Good Place For Investment?
Property Investment in Brisbane is getting more popular as Brisbane enters into a new era of growth… following the most recent upswing as Australia’s third-largest city prepares to host 2032 Summer Olympics. If you are looking into property investment, Brisbane is changing its image with transformational projects and an influx of new residents and investors. Brisbane is Australia’s fastest growing capital city.
Landlords and tenants have been impacted by the noticeable shift in Brisbane’s rental market. The rising cost of living and interest rates continue to affect vacancy rates and demand for rental properties throughout Australia and other major cities worldwide. Based on recent trends, there is a gap between property pricing and the amount tenant are willing to spend on rent.
The growing demand for residential housing across major cities in Australia has fueled higher investment returns as investors and the Australian government plan to increase the supply and affordability of rental housing.
For investors to make long-term profits in the property market, they need to invest in the best investment suburbs in Brisbane that will increase cash flow over a long period of time. Brisbane rooming houses have concrete potential for long-run profits.
The shortage of quality rental housing has significantly affected vacancy rates. In February 2023, vacancy rates reached record lows of 0.8% throughout the country, causing rents to significantly increase by 14.6% over the past year across Australia.
According to the latest Census, more than 12 million bedrooms in Australia were used as spare bedrooms for office space, guest rooms, or storage; reflecting renter preferences during the Covid 19 pandemic. The preference for large houses, while still popular, is not sustainable amid the cost of living crisis and declining residential dwelling stock.
Why Brisbane As The Best Property Investment Choice?
In 2021, Brisbane was the fastest growing property market in Australia, with most markets experiencing a growth of more than 30% in house prices. Growth rate decreased across Australia in 2022, but Brisbane’s house prices remained stable in 2022 despite severe floods devastating a large part of Brisbane at the start of the year. This is among the best places to buy investment property in Australia.
Although the Australian real estate market as a whole experienced a slowdown in 2022, not all markets were affected equally. While this is not unusual, larger markets like Sydney and Melbourne dropped the most while Brisbane was more stable. According to CoreLogic, the Australian Home Value Index declined by 5.3% throughout the course of 2022. By comparison, Brisbane Home Value Index dropped by 4.7% while Sydney and Melbourne dropped by 13.8% and 9.3% respectively.
We are currently in the adjustment phase of the property cycle and overall property values have declined by 8% from the peak. Brisbane home values have dropped by 8.1% since June 2022, but remain 30.4% above pre-covid levels. This decline might be wrongfully interpreted as a property market crash, but it is a necessary property market correction following the effect of overvalued property across markets in Australia.
What is the best rental yield in Brisbane?
The average rental yield for existing dwellings in Brisbane is around 4.19% by the end of 2023. However, you can acquire Brisbane Rooming houses to have a rental yield of 8% or more, or a gross rental yield of $90,000 or more per annum.
When it comes to property investment, Brisbane continues to draw in investors for providing the high yield property investments. They have enjoyed strong, steady, capital growth over the past 30 years, and will continue to see great returns on investment well into the future. While tenants are still cautious about their expenses, investors are finding new strategies to provide value for affordable housing in order to attract tenants. Due to a short supply of quality homes and investment-grade properties, vacancy rates have been tight, representing a balanced rental market.
Brisbane and the 2032 Olympics
In recent years, there has been an influx of residents in Brisbane to take advantage of the job opportunities and high quality life. As Brisbane prepares for the 2032 Olympics, more people are expected to find residential housing in Brisbane. This will fuel the existing need for social and affordable housing for people in different age groups and this is why Brisbane is coming as the best places to buy investment property in Australia.
In 2009, we formed the future housing taskforce and studied smaller, smarter spaces which morphed into rooming houses where 5 to 55 tenants co-existed on one block of land, re-imagining traditional boarding houses. With an increase in demand for diverse housing options in a market where large houses with rarely used spaces are slowly becoming unfavorable, rooming houses in Brisbane continue to attract tenants and provide long-run profits for investors.
How Has The Pandemic Impacted Brisbane housing conditions?
Pandemic conditions increased the demand for residential building, but the current conditions of increased interest rates, inflation, and shortage of workers and material contribute to the constraints linked to residential construction. Shortage of land, inflexible planning laws, and high developer charges restrict the opportunities to meet the demand for quality housing on a large scale. On the flip side, investors can find other property investment options.
The housing construction pipeline experienced significant challenges during the Covid 19 pandemic, which caused materials delays and labor shortages. While developers continue to recover from the impact of these challenges, the average completion time for flats, units, or apartments still remains high (17 months and two weeks). As such, rooming houses are the most lucrative property investment option in Brisbane. They provide quality accommodation and an excellent cash flow for investors. One can construct and occupy them within a shorter period. Moreover they are in the same price bracket as a three bedroom or four bedroom house in the same area.
Detached houses have been performing better than apartments. And rooming houses in Brisbane are ideal to attract future asset prices and rental growth while providing current and future housing needs in Brisbane.
Brisbane Infrastructure Projects
The Australian property market is experiencing a significant shift in needs and demand. Recognizing the elements that produce demand is the key to successful property investment. Brisbane stays ahead in the Australian residential property market by utilizing valuable information to produce greater levels of capital growth.as such, the people of Brisbane, private stakeholders, and the government are working to ensure that Brisbane’s development will redefine its living and visiting experience.
Valuing the effect that infrastructure projects have on housing demands, the Brisbane City Plan 2014 details a Local Government Infrastructure Plan (LGIP) 2016-2026 which represents 1000 future projects worth $2 Billion for stormwater infrastructure, parks, transport, and land for community facilities until 2026.
Most of Brisbane’s areas are substantially developed, but in order to accommodate population growth and affordable housing, the city needs to address competing demands and pressures to facilitate the right mix of housing needed to maintain Brisbane’s valued lifestyle. As such, the government and the community work together to build strong infrastructure networks.
A great transport network
Brisbane has impressive transport networks like rail lines, busways, and major transport corridors leveraged to deliver residents to their homes and places of employment. The completion of the Council’s Brisbane Metro which will provide 21km service connecting 18 stations along dedicated busways to integrate the metro, bus, and train networks by 2024.
The Cross River Rail is expected to significantly improve future transport connections between the city and its suburbs, and residents of Brisbane are also expecting new green bridges along the Brisbane River to deliver connection between Kangaroo Point and Brisbane CBD. The Queensland Government is working on statewide infrastructure to upgrade transport. These projects include the Melbourne to Brisbane Inland Rail, the Commera-connector, the valley Metro renewal, and the new Brisbane Cruise Ship Terminal. Major roads and intersections in Rochedale, Pallara, and the Moggill Road Corridor at Indooroopilly will also be upgraded.
Green Space Network
In addition to improved transport networks, Brisbane will have a revitalized green space network, including Victoria Park/Barrambin. Victoria Park is one of the most iconic parks in Australia, providing 45 hectares of green sanctuary for residents and visitors. The park will have an activity lake, mountain bike trails, boardwalk and trails, an all-abilities high ropes course, children’s waterpark, a skate park, tennis courts, sports fields, cricket nets, golf fields, and a cultural hub.
Ahead of the Brisbane Olympics 2032, new stadiums are under construction including the 17,000-capacity inner-city Brisbane Arena, mooted in 2018, a new 10,000 capacity Chandler Indoor Sports Center which will replace Chandler Arena, a new 8000-capacity Redland Whitewater Center, and 7000-capacity Moreton Bay Indoor Sports Center. Over 30 venues will be guest-ready, making Brisbane one of the top tourist destinations even 10 years before the Olympics.
As Brisbane prepares for the 2032 Olympics, commercial and residential developments, hotels, transport networks, water supply, electricity, and other public amenities may revamp and improve significantly.
Impacts of Successful Council’s Neighborhood Planning Program
The successful Council’s neighborhood planning program has paved ways for suburban renewal precincts that will focus on detailed planning for smaller, underutilized, and strategically located suburban areas to provide opportunities for the people of Brisbane to comfortably live, work, and play. Areas picked for suburban renewal are strategically located and have the greatest potential for community benefit. Through the suburban renewal precincts program, the government will address issues like community culture, habitat protection, accessibility and connectivity, employment, education, and services.
The powerful combination of better and more affordable living spaces as well as improved infrastructure throughout the city will make Brisbane one of the world’s most livable and dynamic cities. These are the perfect conditions for property investment. Brisbane has proven value that will naturally increase as private investors capitalize on opportunities provided by the unique property conditions presented by Brisbane.
Brisbane is ideal for its close proximity to employment hubs, services, transport networks, and recreational amenities. These game-changing infrastructure projects, stable property prices, and property yields are all things you should seriously consider while investing in Brisbane’s property market.
Why Are Rooming Houses A Great Investment?
Property investment can be risky, which is why investors need to be considerate about their choices. Rooming houses are an excellent high yield property investment option which has strong growth potential in Brisbane due to current market conditions. Some Australian property economists believe that Australia is facing a decade-long housing supply crisis due to shortage of labor and construction materials caused by Covid lockdowns, as well as inflation and high cost of living, among other issues.
Due to changing housing needs, the High Yield Property Club focuses on building rooming houses in the already established suburbs of Brisbane City Council Region. Unlike any other property investment companies, we help our investors acquire wholesale rooming houses that will return 8% or more in rental yields
Brisbane rooming houses by High Yield property Club are all newly constructed and have a rental yield of more than $90,000 per annum. They have five lockable separate spaces per home that can you can rent out individually by a specialist property manager. The investor gets five separate rents for one block of land from the same dwelling. The Brisbane property market has a high demand for accommodation for working singles. This means that occupancy rates will be high and the investor can have a reliable source of passive income. Along with a guarantee that capital earnings will incur any expenses, from the property.
How Rooming Houses Are Highly Affordable?
Contrary to the myth that rooming houses attract tenants from a low socio-economic group, rooming houses are affordable living spaces for people who are willing to live in a 30-square-meter room and comply to the rules made by the property manager to ensure that everyone living in that space is happy. These people are mainly part of the 58.65 of the Queensland households that comprises of two people or less.
High Yield Property Club members do not have to worry about sourcing for land or liaising with the builder, we do all the hard work on their behalf and deliver a fully constructed and ready to rent rooming house. For investors who have other obligations, rooming houses offer high returns on investment without cutting into your time. We forecast that within 10 years, investors will have a solid capital growth alongside the immediate equity uplift.
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