There has been a lot of media reports of a slight fall in house prices. But we all know media can be biased to promote negative news rather than positive news. (News that is suspected to get a high reaction from viewers.) Despite this, Brisbane prices are in fact going higher.
Why?
Whilst Sydney is experiencing an anticipated correction, many people are selling in Sydney & using residual equity to buy in Brisbane & have no mortgage. Statistically, the average price of a home in Sydney is roughly double that of Brisbane. So, if you owed say $600k on a house in Sydney that you sold for $1.2m, you would have residual equity of $600k. This $600k will allow you to pay cash for an equivalent or better home in Brisbane.
Facts & figures
The front page of last Saturday’s Courier mail had a tiny article in the bottom left hand corner saying that demand for Brisbane homes has increased by 6.7% in the last 12 months. A more detailed report can be found on page 28 & 29.
Why the surge in demand for Brisbane?
People relocating from Sydney & Melbourne are doing so in order to take advantage of the price differentials & lifestyle. Not only that,
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those Australians currently living overseas and overseas buyers would see Brisbane as a bargain.
Brisbane recorded the biggest increase in offshore property buyers during the past year
Predominantly, many of these were from Expats. Otherwise known as Expatriates, we refer to the Australians currently working & living overseas, and returning to Australia to live in sunny Brisbane. Notably, offshore interest in Brisbane house prices has progressed dramatically as well. Demand from Chinese property seekers has jumped 35% in the 12 months to May this year.
How does this affect my investment?
If you were to invest in Brisbane, in the areas specific to the research by Steve Taylor, you can be assured that the position has great potential for locking in a great rent return. The steady flow of rental return is integral to helping you own that property sooner rather than later. This allows you to keep building your portfolio.
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At the helm of Steve Taylor & Partners, Steve has been delivering expert advice and product knowledge to clients for over 30 years. We provide individuals, couples and families with the right strategies to create wealth and change their lives with solid bricks and mortar.
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