QLD Should we give up on Brisbane?

Brissy chuggs and has great entry prices in quality OO areas, which means its a quality place to start projects in good markets selling to emotional buyers. You don’t even have to get mates rates on trades, some good choices and/or town planning wins will get great returns cash on cash. 4030/4031/4012 postcodes is my favourite strip. Nothing to see here.

 

When did you purchase?

No doubt Brisbane as a whole hasn't done anything spectacular these last 10yrs. I put that down to Floods and huge growth from the 02 - 08 cycle. grew from $160k to $420k... in 6 years. Anyone buying in the last decade is really paying for some of that growth and cant expect a huge run up.

Nothing wrong with Brisbane's growth, but there's a lot wrong with people's timing and short timeline.

 

How's the sale going Daniel? I've got one around the corner in Aspley, hopefully there's plenty of interest.

 

Meh. People buy IPs in weird places. Chermside, Woolloongabba. Grim places no professional family would want to live. The poster who bought in Camp Hill and Seven Hills doing well. Why? Desirable places to live. Basic econ - demand.

 

I have been excited by Brisbane for the last 38+ years

 

Totally agree.

We tried to sell a property in Brisbane at auction September last year (63 x parties attended OFIs, 6 x registered bidders).

We didn’t like the highest bid (below reserve) so we pulled the listing.

We re-listed the property in June this year (after LNP won the Federal Election).

We have an Offer which is 50% above last year’s highest bid and 10+% above our reserve.

Imagine what we would have gotten if Brisbane was booming .

I don’t want to post any more details as the Offer is not yet unconditional .

 

Wish you all the best with it mate. Fingers crossed.

 

Since your a long time B&H in Brisbane, do you recall what it was like from 02 - 08? my chart shows massive growth.. as above from $160k to $420k. Obviously that's a median, must have been a nice time to be In property

 

I'm pretty sure 2002-2009 were his Playboy days. The only boom @kierank paid attention to then would have been the badabing badaboom, there's plenty of room.

 

TBH, I can’t remember. We are long, long, long term B&H investors. Our IPs are mainly owned in Trusts and our aim is to create a CGT problem for our grandchildren (currently 5, 2 and 1) when the Trusts vests in about 60 years time (I will be 123 if I am still kicking).

I do remember we bought a 4/2/2 house for $307,000 (Runcorn) in 2003 and another in 2004 (Wynnum West) for $317,000. Both were bought in a buyer’s market and both were bought below listing price.

In 2008, we bought a block of units for cashflow reasons. This was supposed to be our last purchase and end our accumulation phase.

Unfortunately, I can’t help myself and bought around $3.5M since 2008.

The wife is threatening divorce me if I buy anymore . I secretly keep looking but haven’t been game as yet to “pull the trigger”. One day maybe .

 

Hey, what do you mean “WERE”!!!

Still young enough to enjoy a bunny or two on a regular basis .

 

I actually do remember those times as we just started to buy in BRI 3 IPs in year 2000, all were brand new and to be built too, and advised by our very good BRI friends who relocated to SYD not to buy in BRI. Nothing was happening for about 8 years prior in BRI or so and not much happening as you mentioned, then following 2 years a lot changed.
Still own them too (Carina for $246K, Ferny Grove (FG) fro $250K and Wynnum West for $186K). I think within 2000-2008 we actually ended up buying around 8 IPs, just because they grew in value, the rents were coming in and we thought we must buy another one to minimize tax plus we had saved another 25% deposits for each (we were very passive and naive investors then).
However looking retrospectively no one or not many were buying prior in year 2000 hence now looking back it was great timing, not because we knew so much what we were doing, rather we had a strategy that if we can afford we will continue to buy to accumulate.
Like @kierank said our strategy was to never sell so long term investors too and similarly went on buying spree afterwards.
Also @Codie what you forget is that land was much larger too, many of our houses are now on over 1000sqm blocks which could be redeveloped. The pain is the land tax now but I suppose a nice pain to have?

 

You will have done bloody well out of those.. do you know current values today? Surely 3x? I Guess it points to why its so important to focus on land in Brisbane Ie 600sqm-800sqm+. As we become more dense and spread out even 600sqm blocks will be split and all ready are in some suburbs within 10km.

 

Previous Sydney Cycle 2003 to 2017 - 14 years

Brisbane usually follows Sydney .

Previous Brisbane peak 2009 , Add 14 years gives 2023 .

I'm happy to hold what we have .

Cliff

 

Brisbane will have her day. Those who jump in and out and miss this next major growth spurt will be kicking themselves for another 15 years after it ends.

 

What do you think about North Lakes @RaoulDuke66

 

Spoke to my local agent today who’s listed this in Everton park. Out of interest as I have a place that’s superior to this one. She’s mentioned she hasn’t seen the market this hot for about 4yrs in Brisbane, listing and selling 1 a week in the area with multiple offers. All young family’s. She did say there’s a lack of stock around so we really need a full selling season to get the full picture but by Q1-Q2 next year we could see it clearly in the data

https://www.realestate.com.au/property-house-qld-everton+park-132028398

 

Apparently the over-supply of units has been largely absorbed as well. Lack of stock plus not alot in the pipeline should mean some upswing in prices while interest rates continue to fall. At one stage there was 137 cranes... not so much now. With 95% of the apartments also being bought by overseas investors, they may be forced to look into similar price ranges but as house and land in outer suburbs.

 

Your right it has all ready been absorbed or disregarded, there is certainly a lot of that “investor” style stock around but it doesn’t move well, think Newstead & Hamilton, No one wants it so it just gets rented long term. No need to fire sell in times like these. Yes it drags the data down but I don’t believe it has a huge effect on quality, all the more reason to buy quality in the first place, by quality obviously meaning in tight locations with land value, scarcity, and owner Occupier appeal.

 

Over the last 25 years, Brisbane has been the worst performer out of all the capitals including Perth.