Home appreciation rates - Brisbane

Hi all,
I'm moving to brisbane this year and running some numbers to see if it makes sense for me to buy or rent. Does anyone have an idea of the average home appreciation rates for both condos/apartment units and townhouses in Brisbane?

Thanks

 

sorry i forgot to say..inner ring for townhouse Paddington, Bardon, Taringa, Toowong
For a unit it would be in the CBD (SB, Kangaroo Point, West end etc.)

 

It almost always makes sense to buy if you get a good value deal in a good area which you can afford.

Edit* I'm referring specifically to homes in Brisbane.

 

Is Brisbane still well over supplied with units atm?

 

The rate of appreciation of units has been about 1-3% over the last 5 years but it is picking up as house in the inner ring has moved.

For example...you can still but a unit in Annerley for low 3s. The rent there would be 330pw. So oyu are paying about $17,160 in rent.

If you bought the same unit with the grant and got stamps for free. Lets say you have a 280k mortgage over 30 years. At rate at 2.89-3.1%. You will pay about 14k for P&I interest, strata on walk would be about 2k, water about 1100. ...rates another 1200. So you are paying about 18,300.

So the difference is only 20pw. I reckon rents are going to increase in Brissie so you should break even quickly and then its all cream!

The land value of units are higher in walk ups of 6-12 blocks. As inner city land goes up so do the units. Typically units should be city at 50-60% of the house median. For example in Annerley...if the median is 700k...units median should be at 350k to 420k. If you are buying good quality well under this then it is a good buy.

No any more in most areas over 4 klms. Stick to walk up units...not the expensive shiny ones.

 

Been to talking to a friend who is very much up-to-date with unit markets in Brisbane and he reckons supply is drying up, especially for smaller boutique walk up buildings. Personally, I would never buy a unit in Brisbane. Not even if it's a good deal. Would have to be amazingly spectacular for me to consider it.

 

@sash, did you miss the bit where the OP wants to live in prestige suburbs like Paddington, Bardon and Taringa.

 

@BillieJean maybe rent for six to twelve months until you get a better feel for what would suit you best.

 

A bit more....but it will pretty much cover costs also.

But then you can't have everything can you?

 

Is that 1-3% in the cbd?

 

You are forgetting the opportunity cost of the down payment. A 50k down payment would return about 4k a year held in a broad market ETF, which suggests owning would be at a premium of $4640 per annum, based on the numbers/scenario you provided.

Owning is usually always more expensive in most markets. Im thinking of buying for personal reasons I don't care to get into here.

 

Anyone else want to chime into appreciation rates for townhouses in inner suburbs?

 

I heard this morning that the BBC is looking to push through legislation limiting new multi story unit and townhouse developments in over 61 suburbs which are currently zoned low density to protect their existing character. Could potentially help with any over supply problems in the medium term.

 

Yep...but then you also have to look at the opportunity cost of rents in another 20 years?

I can't see the down payment being 50k...if you use the FHB grant with a 5% deposit and reduced or no stamps.

I looks like you need to do more homework on what you want to do.

 

Are you sure?
I am holding a place 7km North - LDR1 area and want to put a duplex no more than 10 years from now. I need to object this stupid legislation before it is too late.
Any link you can share?

 

I any heard about it this morning while driving but here it is:

https://www.brisbanetimes.com.au/na...lised-at-council-meeting-20200211-p53zlg.html

 

Hey there . You mention condos , are you from the states ? Do you understand the Brisbane market ? As sackie mentioned units/townhouses have a bit of a stigma here . If you are after capital growth you may want to consider a freestanding home ( in a small block of you don’t want too much maintenance ). What is your budget ? I am an expert in Toowong , Indooroopilly and Taringa do if you need any info on those areas let me know . Please see below for predicated growth over the next 2 years in Brisbane . You will note houses are forecast to outperform units in the near term .

Brisbane house prices to rise over 2020-21: Forecast to soar by up to 17 per cent

 

@BillieJean can I assume you prefer a unit or townhouse to live in as well, in that you wouldn't naturally compare a house and unit as different options available to you?