QLD Brisbane looks good

yes, I agree with this. looks like this will have to happen market driven and not with any state govt assistance. Already seeing reasonable growth, but just reasonable and steady growth driven by market forces. If the state govt was to implement policies or assist in jobs creation/improve economy, demand drivers etc, then you will get much more than reasonable growth. Does not look like that will happen though, unfortunately.

 

One thing that plays a big part in the sudden increase is that Southerners will have such an expanded mind on price, properties in Brisbane appear cheap because the markets they've been in are so expensive. True of mortgage brokers or even worse bank staff. I Remember getting a loan for a 1.5mill on a Bris property and bank staff being amazed, you wouldn't buy much in Sydney for less!!! At some point this mentality moves to the locals and BOOM. If only I was a little more cashed up.

 

yes, it might take a while for that to happen though. Brisbane needs more jobs, and more higher paying jobs like Sydney for that to happen. Employers can get away with a bit lower salaries because real estate is so significantly cheaper...

 

It is a lot more settled now too. Some people from done south were making cash unconditional offers on the morning a property went online, now you have time to research and negotiate

 

In theory, yes most likely.
There are many possitives for Brisbane that the OP has said in the opening post.
Its held back by difficulties the non-mining economy has faced , and also the state govt who has done little to stimulate growth.

 

that's right...
1.5 mil is a very very large sum in Brisbane...whereas folks from Sydney p*ss on that sum before the weekend is up...

 

Yeah, way too much competition at the moment. I prefer buying near the bottom not the top.

 

Not necessarily . A decreasing population and the worst economy in the county didn't stop Hobart booming along with the rest of Australia in the early 2000's

Cliff

 

I'd be curious to know on what basis you're claiming that Brisbane is near the top . Could you give us an example of which suburbs are " at the top " .

Maybe you just looking in the wrong places

My perception is that many places have only just started moving .

Cliff

 

It's interesting. I guess it would drive up prices eventually. Some of the stories of rent softening in the other forums would have me a little concerned.

 

I prefer to buy when things are moving up. As the old saying goes you'll never pick the top or bottom

JDP do you think the real economy has that big an effect on property prices. In my experience the main drivers are the sentiment of purchasers and Aussies have been saving and paying down debt since 2007 so now it's spending time!

 

We have rented out 2 in Logan over the last 6 weeks, multiple applications every open, hardly slow

 

as you said, yes Brisbane and logan is is definitely rising, but nowhere near the top yet.
ofcourse the economy has a huge impact on property prices. At the end of the day, the property market is just like any other free market, driven by the forces of supply and demand. Sentiment, as you refer to it, is also a factor of the economy and jobs. For instance, in Sydney and melbourne, consumer confidence is high- punters think that they can get salary increases in their jobs or if they cant, there are so many of them that they can jump ship and get another job that pays more.Thus, confidence is higher and they feel that that they can spend on property.
Not as much in Brisbane CBD and surrounds, although its changing and getting better- its a clear number 3 behind the CBD's of the southern capitals.

 

They are good points that you make headsonbeds. We can also throw in the extra equity that inverstors now have from any ip's or ppor's that they may have made from Sydney or Melbourne that can go towards ip's in Brisbane.

 

I'm following properties in Waterford West and Waterford for potential buys. According to SQM, vacancy rates for postcode 4133 (which also includes Logan Reserve and Chambers Flat) are on the rise and currently at 3.4%. Is it that different parts of Logan perform differently in terms of finding tenants?

 

Never say never. I've gotten pretty close before. Could be dumb luck of course

 

It seemed to me last time that there was a similar flow of cash towards Brisbane for several years before it finally boomed. I kept thinking I'd missed the boat - and then I did! To be honest, if I had the time and money, I'd buy something as nice as I could find up there.

 

Forget the graphs and follow how long rental stock on rea.com is sitting
You also need a good pm and you start early with this, they can advise market conditions in real time, tenant preferences to rental stock, streets to avoid, all prior to purchasing.
Send them a link to any houses you are considering purchasing, prior to offers and get their 2 cents.
Watch other areas and time how fast stock rents.
It has been my experience in Logan that properties situated closer to the M1 are preferred, however I'm not very familiar with Waterford

 

Do you disregard data that indicates higher vacancy rates when researching an area?

 

Purchased a property in Waterford in August last year and lease is up again in September so will be interesting to see if PM suggests a rent increase or not.

Rents are pretty stable when you look at SQM figures below although has softened in the last qtr.

Buy what the tenants are after and you will find a tenant in these areas imo.

http://www.sqmresearch.com.au/graph_median_rent_weeks.php?postcode=4133&t=1