QLD Why Brisbane?

The vacancy rate is trending down in Brisbane which is an early indicator of a rising market.

 

Oh boy did Brisbane show those whirlpool folks.

Mother of all booms occurs not long after! Gotta love it!

 

Have to say Brisbane have been very good investment for me as almost all my IP here have double in value since purchase.

 

Show off!

 

Ditto - most IPs doubled in value, couple of properties grew even more thanks to rezoning.

Rents around 40% up from when purchased 6-7 years ago.

Yields are super crazy at original purchase price. Around 6-7% gross rental yield ($1300 rent today for $1m invested 7 years ago). Capital growth around 11%.

Land tax is going to dent some of the yields but it was factored in and planned from day one.

Better than Sydney growth and MUCH MUCH better than Sydney yields .. I would have hit the borrowing limits much sooner in Sydney.

 

Couldn't be happier and smiling too.
Since initial investments from year 2000, so much CG more than doubled, will pay lots of land tax too.
I think the last two years during covid surpassed expectations.
LVR lowered to around 16% now, had to check figures as we are refinancing some, pulling out titles, increasing rents too.
In hindsight wished we bought more
Motto was always to swim against the tide, what others are saying, concentrating on BIG picture rather than all the noise! Plus never to sell helps, seems history likes to repeat.....what many forget?

 

I'm ecstatic just how many people's lives we have changed by purchasing quality investment properties for them throughout Brisbane. Based on past performance, and also what we have been observing across the city over the last couple of months, I'm also confident that some areas will continue to go well in terms of growth.
Rents are growing ridiculously fast and as others have pointed out, this is helping with serviceability.
Of course there will be a cap on affordability in some locations in terms of future rental price growth and also capital growth. Brisbane is certainly not once single property market. As interest rates increase we will see our market diverge and location and property selection will become a LOT more important as the rising tide will no longer lift all ships (so to speak).

 

This ^

If OP had bought at the time of posting, easily doubled their money whilst having great yields. Otherwise, that Whirlpool thread cost them a lot of opportunity...yikes.

 

It takes a certain developed mindset to be able to do that, especially when times seem uncertain and the noise.... the unending noise....the incessant rubbish being flogged by so many....it's easy for a lot of people to get distracted by it and then fear takes over.

That's why Jim's wisdom is so simple yet powerful:

"A major challenge in life is for each person to learn the art of standing guard at the doorway of their mind. Carefully examine the credentials and authority of those seeking to enter within that place where your attitudes are formed."

 

Couldn't agree more. I think I read somewhere that FEAR and GREED is what makes most people lose in financial wealth. Yes it's not easy to act against the herd mentality, but JR was a very wise man!
Perhaps having our strategy from the start, which was always to acquire when we could afford regardless what the economy or other noises were saying helped. This served us well as we are no experts at picking troughs and peaks or having a crystal ball into the future.

 

Been my strategy from day 1 too. Buy when I see value, buy add value and end of story.

Ignore all the noise.

 

Well auction clearance rates for Brisbane jumped massively this weekend.

I think the election + 3 long weekends + horrible rain over the last month has contributed to the lack of activity.

Today domain reporting 70% and RE reporting 64% which are both massive increases from the weeks before.

 

Brisbane now cracked top 10 cities globally for biggest growth.

Brisbane breaks into global top 10 for fastest growing home prices - realestate.com.au

Even with all these interest rate rises - I still think Brisbane will perform superbly in FY22 and FY23

 

Not that we wanted to sell one of our houses but we bought much bigger house a few streets away. Inner ring location- house sold for 400k more than we bought it 14 months prior (in saying that we did spend close to 80k making improvements, all which we benefited from). Agents reporting less snoopers and time wasters but still very keen buyers out there. Would have loved to have kept it as an IP but just not the right time in our lives. Still think there’s great value out there, for those who know the locations well I am sure you will benefit

 

All the growth in the inner and middle ring is now making its was to the outer ring .

One thing to remember is that while there are periods of strong growth , any longer boom has pauses , periods of ( in share tech analysis terms) “ periods of consolidation”

This is driven by seller realising what they can get for their properties and selling to take advantage of the prices . Local agents tell people who they’ve talked to in the last couple of years that now is a “ good time to sell “ so more houses come on the market and that supply takes a while to work throudh the market before it dries up .

I’m seeing that happen in a couple of suburbs I’m watching in the last couple of weeks . One suburb usually has 15-20 houses for sale but dropped down to 0-3 in the last few months . Prices have probably gone up over 50 % since late last year , but now there’s a small group of houses that have hit the market .

It may well be that these sellers had been holding off since the election was announced so it just represents “ 2 months of listing” coming on in one week , but it probably includes people who have had a longer term to sell and think now is a good time given the recent increases .

I still think that the move to the north has a way to move and the reality is that there’s not to many places in Australia , in a capital city where you can get an entry level house for under 400k.

The publicity around interest rates obviously has some impact , but they’re taking about peak rates of 2 % which is still very low in historical term .

what most people may not be aware of is during a period of rising rates around the start of the recession we had to have , people rushed to buy so they could lock in their rate before they went up further . That will certainly be a factor for some people .

cliff

 

Real estate is a business. There is always money to be made in business. Just need to find the right opportunity, have a good mindset, and execute.

 

100% mate. You summed it up perfectly.

Imho, the most difficult element for most people to sort out is to get the mindset right. And that impacts absolutely everything else. In my 20 years of investing in RE, non RE business and in the last few years the stockmarket, the psychological factor to get right is by far the most difficult and has the biggest impact on long term results.

 

Brissy pretty strong rates today and rising for 5 weeks straight.

Domain reporting 64% and RE reporting 65%.

Up every single week for 5 weeks now.

 

Buy for the right price with townhouses you will do well.

Doolandella. Got in at $240k in 2019 and rents for $370 pw. Originally purchased in 2011 for $340k by the seller. Probably get $370k for it now. This is 3 bed 2 bath 1 car garage.

Richlands. Got in for $270k in 2020 and rents for $390 pw. Originally purchased in 2011 for $365k by the seller. Probably get $420k. This is 3 bed 2 bath and 2 car garage.

I think I am renting them cheap.