Over the next few weeks we will endeavour to answer your questions relating to the property market in Brisbane. We'll cover Brisbane house prices, negative gearing, rental income and why you should buy in Brisbane now. The media has been filled lately with doom and gloom for home owners and investors. But at Position One Property we would like to point out that most of this is purely media noise. Some of it is scare tactics generated by politicians. We encourage you to stay tuned and keep an eye on our website and Facebook page. Here, we'll bring you more great articles and more reasons why you should buy in Brisbane now.
Part 1 - House prices are falling around the country?
While house prices may be falling in some Australian States, this is best known as a “market correction”. It's NOT a market catastrophe. House and unit prices around Australia, especially in Perth, Sydney and Melbourne, have been accelerating at unprecedented rates. This acceleration can be attributed to various factors.
Factors such as:
- the mining boom,
- foreign investment,
- low interest rates,
- (and the list goes on)
all play a part in over-inflating prices.
While Brisbane house prices have increased over this time, they have maintained a sustainable growth. In Southern States, however, prices are falling rapidly. However, all the while Brisbane house prices are stable. This and other factors, such a strong rental market, is why you may consider to buy in Brisbane now.
Position One Property know this correction as the property cycle, with outside influences affecting the property market. This is not an uncommon occurrence. And, like we say to all of our buyers and investors, if you are in property for the long-haul it will pay off. Property is like the stock market and fluctuates with market forces. Position One have addressed how to get a return on your investment property in previous articles.
Market predictions supporting reasons to buy in Brisbane now
BIS Oxford’s 3 year forecast to 2021 suggests that Brisbane will see the strongest growth of any property market over the next three years, jumping 13 per cent.
This is at the expense of our Southern neighbours. Price increases south of the border have forced renters and home owners to move. And they're moving to beautiful and sunny Queensland seeking housing affordability. Across the board, Brisbane is still performing well with Queensland as a whole up 5.9% in 2019. SQM Research are predicting an acceleration in rents of between 7% and 12% over the period 2020 to 2022. This is based on an increase in demand due to several factors. These factors include population growth, foreign and interstate migration and international students. All valid reasons for considering now as a time to buy in Brisbane.
Many current owner occupiers and landlords are also concerned about proposed changes to tax laws. They are worried that the proposed changes to negative gearing and capital gains tax will also affect property values over time. At present, in Australia, around 70% of property purchases are made by owner occupiers. The proposed changes won’t affect them.
So what should you take from this?
From our perspective now is the time to buy . This applies whether you are an owner occupier or investor, as prices have stabilised. Buying a property is a big decision and there are always many factors to take into consideration. We encourage you to chat with our experienced property management and sales team before investing and buying.
#Image source credit: Corelogic