QLD 2020 is the year for Brisbane!

Here is another fact...the median in Holland Park is around 700k. So when you put a product out there for say 1.2m...it better be something special...and that also means much harder to sell. That also represents 70% over median. On newer stuff try to keep it a little but over median. Valuers will have a hard time to get comparables if it is too unique!

When one develops..places one has to understand this...when I develop a product way under the median plus 10-30%...this premium is for new product and will allow a valuer to establish values fairly. But when you develop a product for 70-100% over median...well what can I say...it will run into val issues and people will struggle to finance it? A rule of thumb any developer worth their salt knows...but hey lots of talkers and amateurs out there.

 

Median means "in the middle". When valuers value stock, they look at comparable stock. They have a detailed checklist and then make sure they comparing apples with apples as much as possible. They go right down to the level of finishes vs poorer finishes on other homes. Plus a whole host of other factors they compare.

Just because a suburb may have a median price of $800,000 does not mean that a new home priced at 1.3 million is expensive. Median price is a poor indicator to go off when comparing individual properties. I have never met a valuer who operates that way as it makes no sense at all.

 

I was open to units/ townhouses however seems to not be a great option for capital growth especially in Brisbane so probably leaning towards houses, and don't mind a small reno.

Have looked at Toowoong as well as Auchenflower etc which are nice suburbs however seems not many available even under 800, have looked at Enoggera/ Everton park also which is a bit cheaper but would it be worth paying extra to be within a couple of kms of the city such as Auchenflower?

 

Agree, redhill is very undervalued right now and would be a solid pick. I’d go as far as saying even though Brisbane isn’t much of a townhouse market, this type of product would work in Paddington/redhill.

 

Tarragindi is another example where hillside properties with decent views sell for well above median. Moorooka is another with even more significant difference between the median and high-end properties. Markets within markets

 

Absolutely, it's very common. Median price was never intended to be a benchmark for what every home should base their value off. It's common sense really mate.

 

Auchenflower is much more expensive now than Toowong etc . You will find places at taringa / indro under $800k

 

Yet :0

 

Can you post the details/? Tia

 

What do you want to know?

 

Not only the hill-side as the vacant land on any block that can see the city is now starting to go way above the normal price trends..
Moorooka vs Tarragindi, the properties that link with the hill sections are sometimes in the same range as Tarragindi,but you have to be very careful with Moorooka as less then 2 klm's it backs onto factories and there is a smell that lingers all through that area from one factory..
There are the three ''P'' on the high level ,the few that span that level can see the CBD-the bay islands and the gateway bridge --and as far as the eye can see into the Brisbane Valley..
Pring--Pope--Prior,are the ones ,Pring links with Moorooka ..imho..
86 Fingal Street, Tarragindi, Qld 4121

128 Monash Road, Tarragindi, Qld 4121

 

Think your giving valuers too much cred here mate. Most don’t have a clue on what constitutes quality finishings.

If you have two identical sized houses on same sized land and one is built with standard finishings and one with high end finishings I think you will find Very little difference in price.

High grade carpet, quality skirts and arch’s, tile selection, benches (once in stone), tapware .etc mean little on Val’s.

A funny story I got a Val done in my house and it’s hard to get better finishings. I have pure marble tiles worth over $350sq retail, best Cesar on the market, high end provincial tapware (my shower mixer is probably worth more than an entire metricon bathroom haha) and heaps more.
Anyway on the reports comparables it showed some generic metricon townhouses and had them listed as superior finishings. I nearly laughed myself to death.

Point being is they are valuers, not builders or tradies. Most of them have no idea about build quality.

 

Don’t get me wrong, I don’t think you will lose investing in Brisbane, I just can’t see it comparing with the big boys for long term growth.

Melbourne’s projects pipeline is impressive but not like Brisbane. It’s aimed at opening up access to the CBD which really is key because that’s going to generate big business and in teen increased population and that’s what drives growth.
Think about Melbourne’s pipeline:
1 - The new rail network is a monster. FINALLY a connection to St.Kilda Rds business district. This cannot be understated how much this changes things for business.
2 - Westgate Fwy tunnel cutting significant travel times into the CBD.
3 - Airport Rail will start soon finally connecting Melbourne’s Airport to CBD.
4 - Geelong to Melbourne fast rail. Once completed this will take the travel time from geelong to Melbourne in 30 minutes. This opens up huge opportunities for business in Geelong but also ease to make a sea change but still have quick CBD access.

And these are just some of the projects which don’t even take into consideration the fundamentals of Melbourne. No state has a better economy with more migration.

 

Yep spot on... it just shows how amateur people are.

I have challenged 3 valuations and have managed to win so far. Some the valuers are so bad they have no clue even on basics of values in areas.

A lot of them are international students who have been in country for a couple of years. They have no idea of values.

 

These are fundamentals ...infrastructure which is making Melbourne/Geelong my preferred investment spot. And you still get product just under 500k.

 

I agree that many would not know subtle differences in build finishes but that's not the only criteria they look at.

. Here are a few more.




And most importantly, they look for comparable sales in the area. Which goes to my earlier and main point I was making, which is, they do not go off median values as a benchmark to value properties in the area as another poster was saying. That doesn't make sense. Where developers can run into a challenge is if there are no comparable sales to compare to, then it can get a little tricky. Regardless, the notion that the median price is any sort of benchmark to go off when looking at individual properties is ridiculous. There are suburbs around Australia where the median price would be 2mil and yet homes sell for 4mil plus. Does that mean the valuer will look at a 4mil home and benchmark it against the 2 mil median? Or does that mean that a person looking for a 4mil home would have finance issues because the median price is 2mil? This is what the other poster was suggesting and its nonsense.

 

There is a lot of money to be made at the top end of whatever market you are in - it is a bit more of a niche but a very profitable one.

Those on here that operate on the cheaper sides of things don't really get it - for them it is about how many properties. There are some esteem issues when they see others getting the same end result (or better) with a quarter of the properties.

 

Completely understand and agree.

That's why I understand my niche well and I don't go around telling others how to operate within whatever area they are working in. To your point re achieveing results with less properties, I was having that very conversation with a friend yesterday and we agree it makes sense for us to operate this way. But really whatever works for the individual and their goals. Some just don't have the maturity to understand that while they may think they know everything about everything, they actually really don't.

 

My observation of the " Typical Market " is the nice places move first for 3-4 years , then as the cycle continues and moves through the middle and outer rings they play catch up , often moving at a faster rate percentage wise as they play catch up .

Cliff

 

Over the years, I have known quite a few people with MIBTY (Mine Is Bigger Than Yours) .

The two numbers that impress me the most are:

1. Net Worth.
2. After-Tax Passive Income.

For this old fart, the rest is hot air and noise .