Why Hasn't Brisbane BOOMED

Did you actually buy any property in Brisbane since the last downturn?

 

Yes, in annerley..rented out.

 

Only one!

 

That's the ip .
The ppor bought about 5 years prior is also in south-east Brisbane.
Plus , overseas property (which I like .emerging markets property, have done well). A bit risky though those emerging markets...

 

Indeed greater risk tolerances needed for this but it can be well worth it. We have invested in Asia for both residential and commercial and we haven't looked back. The gains are phenomenal.

 

Good opportunity in small lot developments if you choose carefully. I have done some feasibility’s recently and there are some good profits to be made.

 

hush you. No money to be made. Move along folks.

 

So guys...... why has Brissy not boomed?

Its obvious

 

MTR,
I agree with the herd mentality, but it really depends on time and experience and one's strategy.
Some may choose to be passive some more active, but this forum made me act again so opposite to lazy....
Some of us learn with B&H for long term, may become more selective if we never plan to sell (buy closer to CBDs, with larger or corner blocks for future development potentials...), depends on timeframes.
Perhaps some of us derive better income elsewhere, you see property is just one aspect side in my life, not the main thing.
What I am trying to do as we age, be more selective and like in Monopoly convert some houses to hotels.
Also I think there comes a point in life where it is no longer mainly about chasing money, if you are comfortable enough, perhaps more about making the deals, setting family up, or other priorities take over, since we too CHANGE in the process or overtime, if we progress to grow as people.

 

No money in Brissy to be made. Trust me.

 

Out of interest how do you go about this? I had never even given it any thought.

 

Very broad question and no single answer. Assuming it fits within your risk profile and falls within your sphere of competence/knowledge, often (not always) you will also need to have a family member/connections etc from that country. Helps a lot.

 

The economy. When mining picks up things will move more

 

False actually, Melbourne & Sydney's economies are going okay yet property markets are down. There is a relation, it just isn't as strong as people think.

 

there is a strong correlation, just that both markets have overshot and now going through a correction. If wasn't for apra and royalcomission, it might still keep going a little while.

 

another thing was nsw had a severe under supply going into the boom too.

 

So a more important factor is supply, it has greater effect than the economy. Now that Brisbane rental vacancy rate has been trending downward from all time high. It is now the same as Sydney setting at 2.8%. If the trend continues, we will certainly see price to be forced upward as rental yields improve which will provide a stronger case more investors to invest there. There will also be stronger case for renters to become owners as renting makes less economical sense.

 

What people are not understanding is that APRA worked..... investors don't meet servicing ? more stock comes to market?? On top of this banks now want investors to revert from IO to interest and Principal…. this is huge?? Could be as much as 40% on each loan.

Yet investors seems to ignore this

 

Sydney is at 15 year high at 2.8%
Brisbane has just come down to 2.8%

I think Sydney will probably go higher as so many completions are yet to hit market.

 

Previously when Brisbane has done well, the economy has been going well. If the economy is not the major factor then what is? A boom requires residents to pay more for properties not just interstate investors.