QLD Brisbane recorded 32 %clerance is that bad ?

Is this weeks result bad or is Brisbane not an Auction city

https://www.google.com.au/url?sa=t&...GBJoQFgg1MAE&usg=AOvVaw25wqkPbYPZopreI1BEhXKJ

I see alot of Hype about Brisbane from PC community members. Im not seeing the results.

I want to look at SEQ for our next ip. I have 4 months to finish a current ip project than on to aquasition.

Not sure where as SEQ although tempting seems to be week. Also YOY results are not special. What am i missing.

I dont want to.look.at Hobart.

Perth?

 

Its well understood Brisbane is not really an auction city. Also what is the point of an auction? Its to squeeze as much money out of buyers as possible. When does auctions work the best? In times when the market is booming so there are bidding wars.

SEQ is neither booming yet or a good time for auctions. IMHO these clearance rates mean zilch as its not a market for auctions as yet.

Wait until it starts to boom couple years from now and see how many auctions pop up and the clearance rate rise exponentially.

 

Thats because it's just hype. A few people thought because they are priced out of Sydney, Brisbane will magically go up. They went and bought there and then came here and posted every link they could find to justify their purchase .

Google how many builders have gone bankrupted in Brisbane recently. This is nothing, wait until interest rates go up and watch it then. The smaller lenders now have an additional criteria to lend you money anywhere outside of Melbourne and Sydney. These guys have far more resources researching risk. I wouldnt touch property anywhere outside of Melbourne and Sydney for now.

 

The guys that have started investing in Brisbane have probably only done so for the last 12 months - with me thats the case. All my investments previously were Sydney only.

Relax and give it some time. Sydney and Melb is still going up in some areas. Property prices in Brisbane will take time to move but when it does it will. I've been active in Brisbane now for 12 months. Within that 12 months I've made over $100k-$150k capital growth across my portfolio there.

I keep a constant eye on the Brisbane market and I can tell you its harder now to buy houses than it was 12 months ago. People offering stupid prices on some stuff. Even in the outer ring suburbs of Mango Hill in the north and surrounds and Logan suburbs also getting some crazy numbers.

Wait another 3-5 years. Its coming. Property investing is not a short term thing and if you are looking for short term gains go play some spec shares. I made $15k in 3 days buying CZN on the ASX between Oct 31 - Nov 2nd if you want easy and quick money - free tip for you right there.

Wait until next drilling results and thats another easy $30k if your willing to gamble a little.

 

I rang Pepper money for my newest purchase in Sydney. They said at a certain amount (I think 1.5 mil but I could be wrong) anywhere outside of Melbourne and Sydney they will require a minimum 30% deposit or they wont lend.

There were other criteria but because I wasn't purchasing outside of Sydney we didnt go into it.

 

That's not true for me as of Friday. My current approval with Pepper is with them for Brisbane. 80% LVR. $450k purchase

 

Not sure how long you been around here but they have been saying this about Brisbane at least from 2015 that I remember.

Look, I have nothing against Brisbane per say, I actually looked into buying there in 2014. I bought in Sydney instead and I made the right choice.

For property to go up, you need solid reasons, Brisbane doesnt have these. Apart from a bunch of tall tales, not much is happening there.

If you see medium sized builders go belly up over there you know there is a problem. It's not that they are not making money, its that they are actually going bankrupted. If thats not a sign then I dont know what would be.

I dont own anything over there but if I did the time to sell would be right now. Just saying.....

 

Which builders? And how do you know the entire story? Many reasons why builders go bankrupt that have no relation to the property market. Alot of assumptions going on here. I know a few mid size builders having cashflow issues in Sydney as well. Nothing to do with the market found out the owner has a big big gambling problem.

If your not comfortable buying in SEQ well don't - its quite simple. Even if the hype was from 2015 the guys that have bought back then made decent money already. Not like Sydney but hey a couple hundred thousand is nothing to laugh at and thats only 2 year timeframe. Try saving $200k purely from working - you would never able to do it in that time frame.

There are alot of fundamentals in SEQ that are aligning if you did your due diligence and research properly. Record amounts of money into Infra, lowest unemployment rates in a long time even in the outer suburbs, new shops, universities and community infra going in. Research a bit more over the next few weeks and if your still not comfortable well then go look at SA or WA or TAS (which in my eyes are all inferior at the current time than Brissy).

 

This guy tennex has a development under way in Sydney with his holding costs via Pepper increasing, prices dropping and stress increasing.

Prob doesn't have the time for proper due diligence before bagging SEQ.

 

I'm invested in SEQ and started buying late-2014 there. Thus far, my basket has been a mixed erm.. bag? Some have gone backwards in value/price since purchase, others have excelled. I chronicle this quarterly in my mega-spreadsheet, and whilst I don't fork out $$$ each quarter for paid valuations as it would get quite pricey to do 4 x per year across the holdings I have; I do infer this from an average of 4 x pricing data sources.

Sure, its a finger in the air, I know that.. but when you do it quarterly and chronicle it across multiple properties, there is definitely a ballpark consistency there, to the ebbs and flows of pricing.

Whilst CG has been a mixed bag, I am pleased overall with yield growth. Only one has gone backwards, the reat have eithee risen annually in line with the inflationary increase in council/water/strata that are thrown on to these properties; or rental increases have in fact out-paced inflation due to market conditions enabling such increases.

 

At least he is having a go....not dreaming.

 

Thought I'd share some numbers for my Logan holdings. The estimated valuations are from CBA desktop valuations

In summary

- 19.7% capital growth since 2014 across the portfolio
- Yield a touch over 7% on purchase price



During this time, my non-Logan properties have performed better, but still can't complain when they hold themselves and in the grand scheme of things, Brisbane hasn't moved like Sydney/Melbourne.

On the ground, things have started to pull back in the last 3-4 months. Lots of agents are saying less buyers, suspect APRA pressures and Logan being investor driven has been hit extra hard. On the bright side, more deals about - have started buying there again myself recently.

To answer the OP, Brisbane has never been an auction city. I wouldn't read too much into those stats. If anything should indicate to buy at auctions, one of the best ways to pick up a deal in Brisbane.

Hope this helps.

Cheers,
Michael

 

Michael...I am not surprised...I have said once the investors pull out Logan will sink...it has happened every cycle like it.

The demand in Brisbane is coming from locals...so they like areas within 10 klms of the city...and parts of North (includes parts Moreton Bay).

Having said that it is inevitable over the next few years.....Brisbane will growth albeit not at the same rate as Sydney/Brisbane.

If I was a betting man..I would put it on Geelong on the next 2 years...as well as Hobart and Canberra. Though there will be steady to good gains outside of Logan/Ipswich in Brissie. Mostly driven by people wanting properties to live in either from people moving from Sydney/ Melbourne or FHB in Brisbane.

 

I am honestly not fussed over which area. I will buy anywhere. Logan, Moreton Bay, Geelong & Adelaide and have one eye on Perth.

More so comes down to the deal.

If I can make money on the way in, have something that's neutral/positive, will buy and hold. Time will do it's thing.

Cheers,
Michael

 

Unfortunately...the fundamentals of lower socio Logan is poor...sure you will turn a profit....but what is the opportunity cost of this?

The other factor is land tax it can get up there quickly....

Unfortunately...a lot of people followed of lot of people into Logan..I get a lot of PMs asking whether they should sell in Logan...for this exact reason....

This is not isolate to Brisbane...Sydney has the same issue..with Land Tax....Victoria is very favorable ...to investors at this point in time....

 

@Michael_X - looking at your table Logan has been very very good to you mate. Increase of approx $640k in a period of 3 years give or take? And some $50k increases on each property in 1 year? WTF

That is damn good. Steady rises like this I'd be damn happy with. I dont have anywhere near as many investments in Logan as you but I would NOT be disappointed in those figures at all. All of them would be + geared, probably zero holding costs and your also benefiting greatly from depreciation each year.

If anyone is complaining with CG of $640k in 3 years or less is crazy. Thats not small money.

Maybe I'm going to up my anti on Logan now to catch up to you. At this rate your going it will be about 2 million capital gains in 9 years probably more. Adding to that the opportunity gains that will be coming in the next 5 years or so I'd bet your gain would be over $2.5 million over the next 10 years easily. You can pay off the houses and simply live off the rental of these EASILY!!! - that would give you a pretty damn good retirement just on your Logan property rentals.

You have done good mate congrats. Some ppl will always hate on Logan and the people who talk sh!7 usually dont have anything in Logan. Its good to see an investor who has big portfolio in Logan and can show some actual results which are reflective of Logan being a good area to invest.

P.S I'm not surprised at your success in Logan. I now know 4 investors other than yourself that have quite substantial portfolios in Logan and have made similar or more money than you. I'm feeling a little down now - I should have bought a few more myself there.

Keep it up

 

I would say geelong would be one best geared.

and this is not against logan - but I think a lot of the methods to have positive cashflow while keep acquiring methods is good and very successful during the Nathan Birch early run days and even as you saw he is was also reconsolidating with times and selling off assets to retune his strategy due to the APRA conditions etc. I know of people who have personally have got IPs there and are offloading now due to the many issues of maintenance, rental and poor development policies. 1000sqm to subdivide and 800sqm for corners while now 700sqm for granny flats while high build costs is something that is not very investor friendly. One just bought something in Melbourne for 400K that is likely to grow 20-30% easily within the year or so.

I think 600K is a great result no doubt but you're using 3 mil to get 600K when you could get that using 1.5mil in that time through other methods . Again great result nonetheless

 

Agree Melbournian....to many vested interests at work.

It also goes without saying...with what is happening with Sydney...they are not willing to accept that market has turned.

I believe this is the case with the Inner Melbourne market also.

By the way...my Officer place has hit 500k...it is not even fully complete...I settled on the land in March...bought for 144k...total build is about 175k.....