QLD Should we give up on Brisbane?

I've known 2 Sydneysiders in the both on similar coin who moved to Brisbane for this reason. Both were recently married to middle income wives and now have children. Rather than toil for a house in a horrible Sydney suburb, and sacrifice lifestyle in the process, they're now within a few kms of the Brisbane CBD. I can't see how this won't become more common as Sydney prices more out, particular with decently paid Aussie couples who don't want to raise children in apartments and expect a certain standard of living.

 

I live on 5 acres on the southside:

1. 20kms to CBD (25 mins non-peak)
2. 24 kms to Brisbane Airport (22 mins non-peak)
3. 90 kms to our apartment in Coolangatta (70 mins non-peak if one takes into account all the roadworks)

So we have all the advantages of city living, country living and coast living with none of the downsides of Sydney and Melbourne such as traffic hassles, cold weather, high priced property, ...

Please keep Brisbane a secret - we don’t want all of those Mexicans coming over the border and spoiling it for us locals.

I know a number of people who work in Sydney but FIFO from Brisbane and Coolangatta .

 

Sure...then brisbane will unlikely boom.
It's not getting a lot of foreign migration, and if it doesn't get workforce ready Mexicans, then what's currently the result will likely continue to be the case.

 

Being an old-fart B&H investor, I am happy with that .

Slow and steady is fine by me (a bit like me ).

 

Yeah sure..no worries.
The title of this thread implies if we should give up on brisbane at least in short and med terms.
My view is yes, we should in short and med terms as the opportunity costs of not investing elsewhere far outweighs that of putting money down in brisbane.
Only in the long term would it perform and return comparable to other markets, in my view. The low buy in price helps that case and it is on a growth path.
If people have the buy n hold mentality and patience for that (is estimate 20 year timeframe), then sure buy in brisbane.
If not then avoid.
Those loaded (almost all PC members ) might do both.

 

I am not going to put all my eggs into Brisbane market.
Leave some powder for other business venture.

 

Wise decision.

 

I would say even investing in bitcoin has a more favourable risk:reward ratio than brisbane in the next 10 years.

 

JDP1, I am surprised to hear this. I am very Sydney centric, and not a buyer in Brisbane, so no dog in this particular fight.

But what are your reasons for being so bearish on Brisbane?

 

Why so bearish? Many of the reasons I have outlined in previous posts .
Namely:
1. Not the right kind of population growth (economically speaking)
2.unreliable economy and unemployment markets
3. Absence of large diversified company operations and HQ.
4. Lack of strategic direction and activity to drive high value employment growth that can challenge Sydney and Mel for supremacy.

Many more reasons but the above 4 are the big ones.
These issues are not new. Long been an issue for brisbane and a key reason for its muted performance in the last 10 years.
And..it doesn't look like there is anything that will substantially change the above 4 reasons in the next 10 years, hence bearishness.

 

I agree and have long made these arguments myself to the Brisbane BA's.

The counter point is that everything has its cycle, and so will Brisbane. It has had to run off some excess supply and in fairness it came off the mining boom better than Perth. Any of the three Eastern Seaboard capital cities are investment worthy.

 

@JDP1 has done a complete 180! Used to sprinkle Brisbane hard!

 

Well..I can totally reverse direction and spruik the crap outta brisbane if anyone wants me to...I'm willing and able to do just that.
I thought I should tell the truth about brisbane hence my bearishness. a wise man did once say honesty is the best policy and all that...

 

He has always got his flip-flops on, that's for sure..

 

Most of them have million dollar under belt, they are cash cows, whereas new migrants come to Sydney to make money. It takes time for them to establish...

 

Agreed to the counter argument...
However...Brisbane is trying to chase 2 rabits...one being commodities and the other being corporate syd and Mel type jobs...it's gonna catch neither one and confusion will reign as it is currently doing.
Clarity is everything. Without it, uncertainty reigns and hence my above post about investing in bitcoin instead.

 

Sexy time Brisbane

 

Yes, China has also relaxed some outflow controls, so they are back on the hunt.
What will be interesting is the anti money laundering efforts of the big banks after the very recent Westpac case.
My personal opinion is that the big banks won't engage in such activity to the degree this round after Westpac, unless they get even more creative (which is possible).

 

This property was picked up wayyy below market value. We did a quick renovation and now it's worth at least 300k. True, Brisbane hasn't performed well in the last 10 or so years but there is a genuine 80k (minimum) equity in this property in just 4 weeks. Buying below market value then adding value in a flat market is still a great way to go. Not to mention 9% rental yield...!

What if the buyer is all cash or has a portfolio of high yielding properties paid off at retirement, not a bad cash flow then!

 

Totally agree with these points. I was on a investment spree in Brisbane with 3 properties in 2 years from 2016-17
Have to create major growth by renovation but have 5% growth in 3 years not bad but not like Sydney growth
Now back to Sydney for another property last month
Why not Brisbane again may be 3 properties enough not to put too many eggs in Brisbane plus land tax increase of 25% when growth is max 8% plus recent Qld rental reforms and can make growth in Sydney easily
But definitely Brisbane will shine till all or most of your concerns are addressed