QLD Should we give up on Brisbane?

That M1 is painful at times I agree, I think anywhere is subject to choking up at peak times though, heading into the city from pretty much any 2 lane road gets stuck at peak times, the difference is Brisbane clears out rather quickly and is fine for the entire day until peak head home time again. It seems the other cities can be a nightmare at random parts of the day

 

Likely true.
The growth potential is there but only in the long term (20 years is a lot better than 10).
If you can buy n hold with patience for those timeframes, brisbane will deliver and deliver slowly and steadily with minimal risk.
For short term gains, Sydney and Mel are the go. Perth and Hobart are dark horses...risky and may may not.

 

Short term gains because Syd/Melb has most recently boomed, people have short memories and recency bias. over the last 27yrs Brisbane actually sat at around 8.6% compounded compered to Melbourne at around 8.9% compounded. I’m sure the people that bought in 02 and had 160% growth in Brisbane over 6yrs would have a different recollection of Brisbane delivering slowly haha - we are so caught up on Brisbane not breaking records this last decade without factoring in its previous crazy booms

 

Wouldn't it be valuation - Paid Price devided by years held to give you a dollar value each year. You could then put the total growth over total paid times 100 to give you a percentage.

Divide that percentage by years to have percent growth per year.

Disclaimer: my rough guess. I did fail maths.


That's on average i guess.

 

Not smart enough for that
Compound interest calculator | ASIC's MoneySmart

I use this, put your purchase price in as the base deposit, X amount of years, and then play around with the compound % a couple of times until you roughly get it

 

EV is the valuation and BV is the initial buy price.

Need to use compounded annual growth rate.
It is more meaningful to calculate %growth this way as you can then compare to investment in other assets like a stock with x%div a year reinvested.

For example if house price doubled in 10 years, CAGR is 7.18% whereas linear method of 100%/10 = 10% per year would make it look pretty good.

Of course for property u have to factor in fees/stampduty into the purchase price and then add all the maintaneance costs and rental returns to the valuation price.

Over the long term its been shown stocks or property have had roughly the same compounded gains. Its just property allows higher leverage.

 

Even in school we used calculators for log functions.

Here online calculator just plug in the two numbers and number of years and u good to go...
Compound Annual Growth Rate Calculator | Investopedia

$200k cost base
Valuation 21 years later $980k
CAGR 7.86% -> not too shabby at all!

 

You don't have to look far to see why Brisbane is not booming...they're all moving to the Goldcoast instead!

Hi, I'm thinking of moving from outer northern suburbs of Melbourne to the Gold Coast. After advice

 

Yep I would always pick living on the Gold Coast over Brisbane. Who wants to sit in traffic jam on weekends to leave Brisbane and get to beach. It’s always jammed heading to Gold Coast or Sunshine Coast. I can also confirm central Gold Coast walk to beach is all selling very quick at moment.

 

Let’s see. The Start of the decline in Sydney and Melbourne caused many discussions re buying in Brisbane or Qld generally. Tempted but didn’t make a purchase at all. I think there was a lot of optimism in Qld market but as a non-developer, I believe there’s gotta to be pressure in order to cause price growth. Sydneysiders complain about traffic blah blah blah but they still rock up to work. Perhaps work real hard here and retire elsewhere. I haven’t heard the reverse. Job opportunities are the major draw card in Sydney.

 

Simply, the migrants coming to Sydney and Melbourne are at a different stage of their economic lives. The inter state migrants to QLD are often older retirees. So not all population growth is created equal when it comes to the real estate markets.

 

At the same time I will add, I don't believe brisbanites would want a huge influx of people with out infustructure catching up. Sydney and Melbourne can have that. I personally love the laid back, easy to drive everywhere, ability to live close to the city lifestyle Brisbane offers without breaking the bank. I visit Melbourne and Sydney for work often and quite often cant wait to get home, id take stable 5-7% growth long term with this lifestyle than have the boom and busts and lower quality of life.

I've actually got a good example to compare as my colleague in the exact same role (paid $10k higher) lives in Sydney -
Global company
Both approx. 6yrs in the company
$110k vs $120k
Age 29 vs 34
I own a few IPs and live inner city <5km, he's 40km+ with 1x H&L package
I eat out 3x a week, events in the city, beach and good lifestyle on weekends as everything is so close or within 20min
He chooses to stay home a lot more due to the cost and a 1hr drive everywhere. It sounds miserable and he is someone on $120k and struggling to get ahead. I know its anecdotal only, but it seems like chalk and cheese when it comes to lifestyle if your on an average salary, and we are above average.

 

Great point.

 

Brisbane is pretty nice to live if you actually live within 5km. Still have the burbs feels to it but as soon as you go to town, you are right in the cbd with all the things you ever want.
10 mins drive to the fortitude valley, 15 mins drive / train to CBD, Airport in 15 mins, to the Racecourse in 15 mins. Yes I live on the north side.
I can't really fault it for what it is compare to Sydney which I travel very often.
Only grudge I have is the summer humidity... just need to plan out.
There are definitely more people coming to Brisbane to work and family.

 

Id say if the only grudge you have is the heat, which is easily negated with air conditioning then its good I also have lived northside inside 10km for a couple years and loved it, as you mention so close to everything and has such a leafy burbs feel. Some of the streets are tree lined on both sides with many high set family homes, its hard to go past an easy commute pulling into a visually appealing street