BA taking a long time to find a house

Thanks a lot guys, really appreciate your thoughts.

I think you are right. Finding a great deal seems to be much harder than I originally thought. The BA said the process would take 2-6 weeks, so that disappointed me as well.

I think another factor is FOMO. I understand the best time to buy in Brisbane was in 2012, so in a way I feel like it might be too late already, especially with the BA who is taking more time than I expected.

Do you guys think it's not too late to invest in Brisbane?

 

Again, it depends on the area. There are markets within markets. Read up on Brisbane threads here on the forum. If you want to rely on a BA fully then the trust issue is critical.

 

Any buyers agents that you would warmly recommend?

 

I don't think it is too late.
Yes there has been growth over the last few years in the inner ring. But overall Brisbane is just still way to affordable in comparison to Sydney and Melbourne for that growth to stop. Brisbane houses with good fundamentals in the inner suburbs are continuing to move along well.
I believe it is likely we will continue to see Brisbane move relative to Sydney/Melb until it reaches the long run average relative price again.

 

Hmm - what would you say is the "long run average relative price"?

If we take a particular vendor's figures, and look at the current state:
- Sydney houses $1,137k avg.
- Melbourne houses $892k avg.
- Brisbane houses $551k avg.

So currently Brisbane avg house is 48% of Sydney avg house, and 62% of Melbourne avg house.

What would you say the "right" long term percentages should be - obviously higher than these...?

 

There are graphs on this plotting the relative averages, which unfortunately I do not have right now but they have been posted on PC before.
Based on the figures above (which seem too high for all of the cities) but based on those Brisbane should be at least $700k. From the graphs I have seen and from where I know things have been at in the last 10 years at least 700k seem right.
Bne will always be 3rd (although not that many years ago it actually overtook Melb briefly) but it should not sit at 62% of Melbourne. Should be at the very least 75% I think 80.
Lets wait and see.
The other factor is of course, yield. Whilst Brisbane offers great yield compared to other capitals, investors will continue to look here, having positive impact on prices.

 

The best time to buy Brisbane was not 2012... if you did that at the expense of Sydney you'd be kicking yourself.
Brisbane's gone up but it's taking its time, it's not like a property in Sydney that you could see consistently going up 1k a week or 10k each month for 2+ straight years.

 

Thanks guys, really happy to hear your perspectives.

What is your opinion on the Australian recession 2017, based on the 0.5% shrink in GDP?

Cheers