Brisbane is one of Australia’s most desirable cities to live in. So, it’s no surprise that many people are looking to invest in a property here. With its strong rental yields and generally pleasing annual growth, the Brisbane property market is in fact a very attractive prospect for property investors across Australia, and overseas.
It has also experienced a flood of interstate migration and international migration in recent years, creating unprecedented demand for rental properties.
Do you have what it takes to create your own rental property investment success story in Brisbane’s hot rental property market?
Set Yourself up for Success in the Brisbane Property Market
How do you stand out? How do you ensure your rental investment properties are highly sought after, and rarely vacant? In our experience, it comes down to these simple principles…
Know What Makes a Successful Investment in Brisbane
Smart property investment always starts with setting up your property (or buying your property) so that it caters well for tenants. Therefore, when it comes to buying a good rental investment property in Brisbane, location is key. Location will determine the kind of tenants you attract and the rental income you can receive.
Economic growth affects property markets
Be sure to be aware of any major infrastructure projects being undertaken and the likely effect such projects might have on any particular property you’re considering. For example, the establishment of a major hospital precinct in the Sunshine Coast in South East Queensland creates demand for accommodation and likely population growth. This can then put pressure on housing prices and rental yield. Do your homework and be well informed.
Tap into Brisbane housing market insights – be informed
Purchasing well-located, quality property is always important, but is particularly so when it’s your first investment property. Be sure to factor in rising interest rates as well as upfront costs when you do your purchase plans.
Savvy property investors do this
Look for properties in areas with good infrastructure, amenities, and access to public transport such as a train station, as these can increase the desirability of your property. Investment properties that stack up well as a long term investment are nearly always a good idea.
Additionally, look for properties in areas with low vacancy rates, as this often indicates a good demand for rental properties.
Research The Rental And Median House Price Brisbane
Brisbane property prices have started to come down from their pandemic highs so they’re more affordable now than they were a year ago. So if you’re looking for more affordable property, it’s wise to not ‘follow the masses’, buying when the market is booming. Whatever a propert investors financial circumstances, it is well known that ‘you make your money when you buy.’
Median house prices
The current median house price in Brisbane is now under $700,000; and detached houses are a popular property type.
Median rent
Brisbane’s median rental yield of between 3 and 4% compares favourably with the national median rental yield of 3.9% for February 2023. It’s also quite attractive compared to other capital cities on the east coast.
Do your research
However, these figures can vary depending on the location and size of the property, so as a property investor do your research to ensure you are making the right investment.
Know How To Set Up Your Investment Property For Rentals
Before you invest in property in Brisbane, or property anywere else, know there is a real skill to setting up a property properly for rental. Although anyone can decide to rent a house out, not everyone can make a resounding success of it.
This is where you either need to familiarise yourself with what it takes to do so, or familiarise yourself with a good property manager! Like Position One Property…
Know a property’s intrinsic value
Do you know how to ensure your rental investment property meets all necessary safety and health standards? Are you prepared to keep it well maintained? We can help with this. Postion One Property have been in the business of real estate in South East Queensland for over 20 years. As a result, we know much of what there is to know about Brisbane suburbs as well as Brisbane houses.
Whether you’re looking at a riverside suburb, an inner city location or other lifestyle suburbs, investing in Brisbane property is a significant investment and must be approached skilfully.
Make The Right Property Investment Decision
Before you commit to buying your investment property however, consider all of your options. Be sure you are making the right decision.
- Consider the property’s potential as an attractive rental for tenants, the median house price, and the rental yield of the property.
- Think about the costs associated with owning an investment property, such as ongoing maintenance expenses and taxes.
- Take into account your investment property from the perspective of your tenants and their desired lifestyles. What would you be looking for in a property if you were going to live there? Here are a few pointers:
- Close to amenities. These include schools, public transport, medical facilities, shops etc
- Comfortable and well maintained. Going the extra few miles to ensure little details, like draft-proofing the house, putting in thermal quality curtains, providing a dishwasher, washing machine etc can make a big difference to your tenants
- Good security. Your tenants want to feel safe in their home
- Energy efficient. Energy efficient appliances, solar hot water system, solar panels, efficient insulation etc will help your tenants save on their energy bills
- Pet-friendly policy. Many people own, or would like to own, a pet even if they rent
- Outdoor space. Either a garden or access to one, or a good sized balcony so your tenants can enjoy time outdoors
- Ensure you have a trusted professional on your side to help you make informed decisions.
Thinking of Investing in Brisbane Property?
Ultimately, your investment success story will come down to investing in the best Brisbane suburbs and best property types for renting across the greater Brisbane area.
A healthy local property market
You don’t have to own property in Sydney and Melbourne to do well! But you do have to keep abreast of the Brisbane market. This is because rental prices can change as Brisbane’s economy is affected by world events and conditions.
Experts in the Brisbane housing market
This is where local knowledge can be very useful in predicting potential price movements and rental yields.
Good property management is essential for successful investment.
At Position One Property, we can help you build a formidable investment portfolio AND attract good tenants! Call us to get started.