One word: Gentrification Taking what I learned from the rapidly gentrifying Marrickville, NSW, I went hunting for the same fundamentals in Brisbane. In early 2013 I began investigating Moorooka and have kept an eye on it since. Friends and clients have been quietly buying in Moorooka so I haven’t been as vocal on the areas as I would have otherwise, but the time has come. Arise Moorooka, the new Marrickville. The early stages of gentrification are in full swing and the suburb has reached a tipping point. There’s no turning back. Below, I share some of my thoughts and observations. First, a rundown on Marrickville. I’ll put this in a quote to save space. Moorooka Fundamentals: < 10km to brisbane CBD Overlaps Toohey forest Well serviced by transport Good amenities Pro-active council What it was: Rough, grungy, “third choice” suburb Lower entry price than surrounding suburbs (e.g. Tarragindi, Annerley) High immigrant population, particularly Sudanese Great cuisine; foodie sites raving about hidden gems Pockets of housing commission Swatches of industrial/commercial (Ipswich Rd and flanked to the south by Salisbury) Tired shops on main drag What's happening: Nearby suburbs are getting too pricey for their own good People are looking for something similar, for less (even in the last 6-9 months the people turning up at opens homes has transformed) In they’re coming - hipsters and the like Significant upgrade to Woolworths Renovations left, right and centre BCC 2014 City Plan rezoned a bunch of Moorooka to LMR Investors/developers started snapping up blocks to become units/townhouses/subdivisions Council encourages development activity and is flexible with their “rules” Foodie websites rave even more There’s a shift toward selling at auction (esp. the $650k+ segment) My investment strategy isn't very exciting: Buy in gentrifying areas, with good transport and amenities, near major CBDs. Moorooka ticks all the boxes. I bought a 658sqm LMR corner block near the school in 2015. I believe Moorooka represents excellent value today and will evolve dramatically over the next decade, and beyond. What to look for: Big (ideally LMR-zoned) blocks East of Beaudesert Rd Not too far south (close to Salisbury) Buying: It’s the quick or the dead - pounce on opportunities and don’t let your offer sit on the table for long At this stage, the majority of your competition is first home buyers but investors are moving in Everything around the median (without major issues) is under contract the first week it’s listed Some of the agents in the area are still asleep - it’s possible to buy well under value if you know the market. Look for agents who don’t list in the area often/ever... Always check council maps - half the LMR stuff being sold has no mention of the magic letters and check for flood, bushfire, air quality, noise, character etc etc. “Clifton Hill” is the fancy part - you'll pay a premium Anyone own or looking in Moorooka? Disclaimer: This is not investment or financial advice. Do your own research, seek professional advice and act in line with your means, risk profile and goals.