Brisbane will be one of Australia’s best-performing markets in Australia over the next two years, but investors should take care about what they buy and how much they pay.
Josh Atherton, CEO of PPI Advice, says Brisbane and South East Queensland now provide the strongest markets in Australia, with the best buying opportunities and prospects for future capital growth.
Atherton, guest presenter in a recent webinar hosted by Hotspotting founder Terry Ryder, says Brisbane is affordable relative to Sydney and Melbourne and there is a growing flurry of activity from all types of property buyers.
He says buyers can make the mistake of thinking anything they buy will appreciate in value – especially those who have experienced three years of strong growth right across the Sydney region.
“South East Queensland is a very broad region and investors need to pick their targets right,” Atherton says. “It’s important that buyers do their due diligence and seek good quality advice to avoid buying a lemon.”
He says buyers who rush in can end up paying more than they need to for properties. He cited two recent purchases of similar houses on similar sized blocks in the same Brisbane suburb, where one buyer paid $630,000 and the other paid $700,000.
“There’s a 10% variance there between similar properties only 1.5km apart,” he says.
“When you’re shopping for properties, patience is really key. We are seeing some silly activity in the Brisbane market that doesn’t need to occur. For some reason, there’s a mentality that you need to get in and act quickly.
“I think buyers need to be more calculated about their buying decisions. You can end up with a lemon that’s not going to perform as an investment, because you’ve purchased in the wrong market or haven’t done your due diligence.”
