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Brisbane and Gold Coast Property Market

There are many reasons why South East Queensland is the "Go-To" spot for property investment.

 

The first is property prices. With South East Queensland property prices often around half of what you would pay for a house or unit in Sydney, the initial capital required is significantly less, and hence the risk is considerably reduced.

Brisbane and Gold Coast investment Apartments

The second is investment returns. The Domain Group points out that yields on the Gold Coast and in Brisbane are higher than in Sydney or Melbourne. For example, rental yields in Sydney are around 4.1% for houses while for the Gold Coast they are around 4.4% and in Brisbane around 4.8%; for units, the rental yield is around 3.3% in Sydney while on the Gold Coast it is around 5.3% and Brisbane is around 5.1%. 

Think about that for a moment. By investing in units on the Gold Coast or Brisbane, rather than Sydney, your investment yield is up by 50 to 60%!

Then of course there is the rental income.  For houses, income rental has risen in Sydney by only 1.9%, while the Gold Coast has seen a 2.2% increase and Brisbane a 2.5% increase.  Unit rental income increases tell a slightly different story. On the Gold Coast, unit rentals have shot up by 5.4% compared to only 4% in Sydney, but rental rates in Brisbane have only risen by 2.7%.

There is also a non-financial advantage in investing on the Gold Coast or in Brisbane. You have two choices of rental. The first is to lock in a long-term tenant. This gives you the security of long-term income and less paperwork. The second option is to go for holiday rentals. While this does involve more paperwork, you can obviously rent for a higher income figure, and also enjoy the occasional holiday for yourself and your family on the Gold Coast or in Brisbane at no cost (other than the lost rental income). This lifestyle advantage may well be attractive to inner-city investors in Sydney and Melbourne.

Attractiveness is also a factor. The cost of land and building labour in Brisbane and the Gold Coast, compared to Sydney, is relatively low. This has enabled some stunning developments to be built in South East Queensland, often with resort style developments that include pools and gyms. This attractiveness adds to ease of resale and the potential for good capital gains. This resort type development is also attractive to baby boomers who are downsizing, particularly given the better weather in Queensland and the holiday environment.

Population growth is also a factor, with some analysts expecting Brisbane to experience 44% growth, as opposed to 32% in Sydney and 40% in Melbourne, over the next 20 years.

In addition to the advantages offered in South East Queensland, there is of course the nationwide advantages with regard to current interest rates. A degree of stability has been put in place, with 5-year investor loans now hovering around the 4% interest mark. Add to that the weaker Australian dollar fuelling overseas investors interest and you have a booming market.

 

Of course, to make the most of this attractive cocktail of investment opportunity, you do need a local property investment agent to advise you if you live outside South East Queensland.  Call us now for a free consultation.

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Have a question or want to get started?

Call Khalid Nayab on 0437 399 927