When considering an investment property purchase, people often consider Brisbane. And why not? It’s the third largest city in Australia
and is the jumping-off point for the stunning Gold and Sunshine Coasts. But before you dive in, there are a few factors to consider when investing in Brisbane so it’s important that potential purchasers do their research on the Sunshine State.
Firstly, it’s important to understand the differences in the market between Brisbane and the Southern States, Sydney and Melbourne. Brisbane is much smaller in size, therefore, buyers should concentrate on purchasing within the 20km ring from the CBD, or closer if the budget allows it.
Another important factor to consider is the risk of flooding in Brisbane. Due to the inclement weather patterns which include severe storms and an abundance of rainfall, Brisbane experiences a lot of rainfall (991.3mm to date this year, recorded December 2016). Combine this with a very hilly city and the result can be devastating. In the December 2010 – January 2011 flood event in Brisbane, 11,900 homes and 2,500 businesses were completely flooded while 14,700 homes and 2,500 were partially flooded. 2.1 million people were affected and the clean-up bill hit 440 million.
Next, we turn to termites; a very common and very real threat to Brisbane homes if not taken seriously. Termites are responsible for millions of dollars of damage to property in Australia, with approximately one in five homes being subject to termite attacks. Purchasers should be aware of the risk of termites when purchasing Brisbane property and take adequate precautions to stay termite-free.
Now we can’t talk about investing without mentioning value, and this is where interstaters can trip up.
Purchasers that do not have access to relevant property sales data and someone to interpret that data can easily be fooled into paying too much for a property. As a Brisbane Buyer’s Agent, I see it all too many times where buyers believe they are getting a good deal, but they just don’t have the local knowledge to make a discerning purchase. This is where a local Brisbane Buyer’s Agent’s knowledge is paramount. Their local experience ensures that interstaters who are used to higher prices do not get caught in the trap of being pushed up in price by real estate agents.
So when making the consideration to invest in Brisbane, it is important to highlight these four factors as some of the risks associated with purchasing in another State. Any one of these considerations can affect investment, and ultimately your retirement plan, so it is important to know your market. If you don’t have the time and the inclination, you may want to hire the services of a local buyer’s agent. They will hit the ground running with years of experience that will see you in your new investment in no time.
For more information on buying property in Brisbane, contact us.
