Mount Warren Park, Beenleigh and Windaroo are top of the list for buyer interest on the north-west of Gold Coast, according to a recent Herron Todd White (HTW) residential report.
The report suggests while market activity and in some cases prices have come off a bit in recent months, it is still possible to find a value for money house or unit.
“There are options for those who want to buy and renovate for a profit or rental returns. Some positively geared options are also around,” the valuation firm said.
“The suburbs we have chosen are established older areas, not flooded with redevelopment, new estates or investors.”
A on-ground semi modern house in Mount Warren Park has been sold for $230,000 (pictured above).
The circa 1990 brick house at 14/9 Quinton Court comes with three-bedroom, one-bathroom, tiled roof and single-car garage.
The property includes renovated kitchen, bathroom and new carpets.
It rents for $310 per week with body corporate fees of $40 per week.
The property at 13 Mewing Court, Windaroo comprises a semi modern, on-ground, circa 1992, brick three-bedroom, two-bathroom dwelling with single-car garage and tiled roof.
It includes recent floor coverings and paint with original kitchen and bathrooms. Land area is 622 square metres. Property rents for $390 per week.
The compromises are that you are mainly looking at older properties which may require maintenance or updating soon, the report noted.
“When you look at nearby suburbs such as Bahrs Scrub or Holmview where you can buy a new dwelling, these properties are usually priced up to the dollar and can often take some years before you see a capital gain given the premium paid for being new,” it advised.
“We consider there to be a likelihood of prices falling somewhat for most of this year in these locations, then hopefully a resurgence in the market thereafter.
“However at present, the rental market in these locations is pretty strong providing a good holding income in the meantime.
“The property to buy as a home or an investment are regarded as the same property in these locations.”
Buyer’s agent shines light on Brisbane property market
Speaking to SPI, Melinda Jennison of Streamline Property Buyers explained why now is an exciting time for property investors in Brisbane.
“As the third largest capital city in Australia, Brisbane is the economic engine for Queensland as a whole,” Ms Jennison said.
“Over recent years we have experienced an apartment oversupply in the inner city ring suburbs which has definitely had an impact on investor returns in terms of capital growth and rental yield in that market. The run-off effect was that vacancy rates in inner ring suburbs started to increase which resulted in negative rental price growth.
“The middle ring and outer suburbs were less effected. But more recently construction commencements have slowed right down and we are now facing a period in the immediate future of potential undersupply which is likely to put upward pressure on prices.”
Further, Ms Jennison said the team is already seeing vacancy rates drop sharply. She noted that rental price growth has also been consistent for a few months.
“The immediate future looks very bright for investors considering we have population growth that is accelerating and a record volume of infrastructure projects underway which will help stabilise the local economy in the years ahead,” Ms Jennison said.
“That said, the housing market in Brisbane has been performing strongly in some suburbs – even in light of the fact that the median price growth for Brisbane houses over the last 12 months has shown a relatively flat market.
“We have been purchasing properties for clients in suburbs that have shown consistent year-on-year price growth upward of 5 per cent per annum for the last five years. It all comes down to local drivers of supply and demand and understanding, at a local level, what is happening in the Brisbane property market. “
According to Ms Jennison the Brisbane market is being taken advantage of by interstate investors, undoubtedly because of the affordability factor when compared to Sydney and Melbourne.
“Our investment yields are also a lot more attractive, which is another reason interstate buyers are heading north,” she added.
“Brisbane also has all of the fundamental drivers of solid price growth in place and there are many large research groups including QBE Housing Market Outlook and BIS Oxford Economics who are predicting very good capital growth – up to 20 per cent across the next three years – in Brisbane.”
Ms Jennison expects more interstate investor activity in the months ahead “as property investors start to see price rises in Brisbane (hopefully) and then, as often happens, a lot more people will move in once the upward price growth trend is established”.
“But more so than this, I think a lot of people have much better access to funding since the APRA changes came into effect and we have also seen two interest rate cuts (with more to come) so there is certainly more confidence in property markets as a whole,” she said.
Streamline Property Buyers was launched by Melinda and Scott Jennison just over 12 months ago.
During this time, Ms Jennison says one of the biggest obstacles they’ve seen clients face is maintaining a strategy when it comes to their property portfolio.
“We are finding that a lot of clients are quite confused when we speak to them about what property investment strategy is going to be right for them,” she explained.
“There is so much information and so much ‘noise’ about different investment strategies on offer today. Capital Growth, cash flow, flip, manufacture equity, development…. for the average investor a lot of this information can be overwhelming.
“Part of our service is that every client gets a one-on-one strategy session with a Qualified Property Investment Advisor (QPIA) so we can help clarify what type of strategy might be best suited to an individual investor’s personal circumstances.
“Because we are all different in terms of our goals, our risk appetite, our incomes and our lifestyles, it is important to understand what investment strategy might be best suited to the individual and not take a ‘one-size-fits-all’ approach.
“Also, for those looking for a more sophisticated strategy to manufacture equity or complete a development project, we have the team that can assist with the whole process from concept to completion. So our service is usually tailored to the needs of our clients. “
It is this service capability which was one of the reasons why the Jennison’s decided to roll out Streamline Property Buyers to the Brisbane market.
“Scott and I have been involved in Brisbane property for more than 20 years as investors, builders and property developers. We wanted to create a boutique service offering where we could guide buyers who may not have the same intricate knowledge of our local property markets,” Ms Jennison said.
“Brisbane property is very different to Sydney and Melbourne in terms of land constraints (eg flooding) and our architecture (largely tin and timber homes). Therefore it is important for property investors to understand how these differences can impact on the performance of an asset.
“While property investing is largely related to selecting the right location for the relevant investment strategy, our business was created on the foundation of helping others not only select investment grade locations in Brisbane based on the numbers and our local knowledge, but also to ensure people avoid costly mistakes and to provide complete transparency around the asset that they are looking to buy.”
Another reason was to fill a knowledge gap that a lot of people have during the home buying process.
“During a project where I was managing a small townhouse development for a client, I reached out to the adjoining property owner to discuss the dividing fence. During my discussions, she told me that they had just moved in to the property only weeks before we demolished the single house next door and started to construct three townhouses in its place. She was devastated and had no idea she would be living next door to three neighbours instead of just one,” Ms Jennison said.
“It made me realise that most people would not understand what land zoning means, how to find approved developments in an area, what areas will change due to development or planned infrastructure in the future – among other things.
“It was a light bulb moment where I realised the skills Scott and I had could really benefit property buyers throughout Brisbane.”
For Ms Jennison, Streamline Property Buyers primary goal is to “select the best possible property for our clients every time, one that we know will not cause headaches down the track but will deliver the desired results that a client is looking to achieve.”.
“We also want to enable our clients to become more confident property investors following their experience with us,” she added.
“We achieve this through our unique service offering. Every client gets access to every team member throughout their journey with us. We don’t just take over the process, we help people to understand the reasons why a property may or may not be a good investment for a particular strategy.
“When we achieve this, our clients become raving fans and this is how we build our brand and our business into the future.”
Chinese buyers in Australia: Here for holidays and here to buy property
Chinese buyers have Australian property set firmly in their sights again, with a new survey revealing nearly a third of Chinese tourists plan to shop for property while they’re on holiday.
Property portal Juwai’s new survey of Chinese consumers found that 27 per cent of mainland Chinese tourists planned to look at properties over the next year as part of their travels, and that Australia was their No.1 destination to go shopping.
In Juwai’s list of top Australian destinations by inquiry, Brisbane came in third and the Gold Coast fourth, after Melbourne and Sydney.
Juwai spokesperson Dave Platter said demand for Gold Coast real estate in particular was likely to increase as buyers continued to return to the Australian property market.
“On the Gold Coast in particular, in both of the past two quarters, Chinese buyer inquiries have gone up double digits,” he said.
“It’s got relatively inexpensive prices for what you get, and there so much infrastructure and investment going in,” Mr Platter said, noting that the new public transport connections held particular appeal. “And it’s easy to get to from China.”
Of the Chinese consumers surveyed, 49 per cent were looking to travel during the school holidays in July and August, 42 per cent were looking at National Day Golden Week in October, and 29 per cent during Chinese New Year Golden Week in February.
While the numbers of buyers coming from China had been falling since 2016, internal research showed that it had recently flattened out and was showing signs of increasing again.
Mr Platter added that for Queensland especially, demand was quite seasonal, with a lot of buyers shopping for properties while they were on holiday.
“They’re really looking, and they might come back to purchase,” he said. “But we hear all the time about buyers who show up and buy.”
“A lot of the agents will rent out a van and drive families around, and introduce them to the local highlights.”
Mr Platter said these tourist buyers were primarily looking at new developments, in part because of the Foreign Investment Review Board’s guidelines around non-residents buying resident property.
New builds were particularly appealing to Chinese buyers, he added, and many had already made good money from their investments in newly-built properties at home.
He said that as far as they could see, concerns about the build quality of off-the-plan purchases didn’t seem to be a big deterrent.
“It just reinforces the importance of buying from a good developer,” Mr Platter said.
Buyers preferred firms who had longer track record of development, and Mr Platter added that some of the biggest developers in Australia came from China, and so were already known to them.
He cited Australia’s quality of life, development and commercial ties with Asia as reasons it was a popular destination, as well as the power of education.
“Australia attracts a very large number of Chinese students,” he said. “Buying for a student who is going to be studying here is one of the most cited motivations among our buyers.”
Agent Val Parkin of Alex Phillis Real Estate in Paradise Point said he was getting quite a lot of inquiries from foreign buyers on his FIRB-approved apartment listings.
“I would say 50 per cent,” he said. “It has picked up for sure. We actually sold five already in the past month.”
He said the FIRB approval was big factor for foreign buyers and those properties currently offered a 10 per cent return, which made them appealing to investors.
“We advertise a lot on social media – through those channels,” he said.
Previous Juwai research had found an 50 per cent increase in the first half of 2019 – compared to the first half of 2018 – of inquiries from buyers looking for retirement properties, with the site now adding a specific retirement portal to their search engine.
Residential property near Brisbane’s Cross River Rail pinpointed as investor opportunity: John McGrath
The latest figures from the Australian Bureau of Statistics show the value of new loans to investors (excluding refinancing) across Australia jumped by 4.7% in July – the highest monthly gain since September 2016.
On the east side of the country, Canberra led the way with a 22% spike in the value of loans from June to July, followed by Queensland at 8.1%, Victoria at 5.7% and NSW at 2.0%.
John McGrath told Switzer readers, “My best piece of advice for property investors is to buy quality and focus on location and aspect.”
“Go for a quality property in a great street, in a desirable neighbourhood, with plenty of amenities such as cafes, shops and public transport. These properties might cost a bit more, but you’ll get better capital gains.”
“In terms of locations, I think a good strategy is buying close to new infrastructure. There is so much building going on and this is creating opportunities for investors to capitalise, especially in areas where prices have fallen during the downturn,” he added.
He analysed the impact and reasons that investing near the Brisbane Cross River Rail which is starting at the end of 2019, with the aim of opening 2024, may have potential.
IMPACT: Stretching from Dutton Park to Bowen Hills, the 10.2km line will provide a second river crossing so more trains can run. It will include four new stations and revitalised precincts at Boggo Road, Woolloongabba, Albert Street and Roma Street, with upgrades to existing stations at Dutton Park, Exhibition, Salisbury, Rocklea, Moorooka, Yeerongpilly, Yeronga and Fairfield.
OPPORTUNITY: We tend to see a lift in property values when projects are announced, commenced and completed. Using Woolloongabba as a case study, the median house price sat around $770,000 from 2015 to 2018 but is now starting to grow. It’s $822,000 today, up 7.9% over FY19. The median apartment price has been drifting down since 2015 from $526,500 to $405,000 today.
PREDICTION: CoreLogic-Moody’s Analytics predicts 1.2% growth in house prices and 9.1% growth for apartments over CY20 and CY21 in Brisbane-South, which incorporates Woolloongabba, Fairfield, Dutton Park and Yeronga.
He also looked at the latest Melbourne, Canberra and Sydney infrastructure developments and the impact they have had and will continue to have.
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