Key Criteria To Consider When Looking For An Investment Property

If you are currently considering investing in property, then it’s worth taking a close look at the Brisbane property market.

Brisbane is rapidly evolving into a very dynamic city and interstate migration is at an all-time high.
There are approximately $15B worth of major infrastructure projects underway, and the parallel runway is complete and ready to open up to the world.

Many traditionally conservative commentators are predicting double-digit growth per annum for the next 3 - 5 years. Brisbane is still very affordable, rental demand is high and yields are strong – particularly in comparison to Melbourne & Sydney.

What then, are the key criteria to evaluate a possible Brisbane property investment against?

Infrastructure is key

Consider the things that provide optimum quality of life.
Are there schools and shops and areas for recreation?
Can I commute easily to the CBD if required?
Is public transport readily available?
Asking these questions sounds obvious but they are fundamental things to consider when looking to invest in Brisbane as they are key to future capital growth potential and strong rental demand from high-quality tenants.

What is the average rental yield?

Before you commit to any property, ensure that your return on investment is going to be worthwhile. Examining what you will be paying to take the property on versus what you can make back each month in rent is crucial. Your bank or broker will obviously consider these factors too when assessing loan capacity.

New v existing.

There are pros and cons for both however, it is important to consider things like ongoing maintenance as the ideal investment is the one you don’t have to worry about. New builds provide many years of mandatory warranties from the builders and are highly appealing to prospective tenants. There are also significant advantages with depreciation benefits that will assist in reducing taxable income.

Is there potential for value growth?

Position, position, position has long been the mantra.

Buying in blue chips established in inner-city suburbs has provided the opportunity for tremendous capital growth for many years. When purchasing in middle or outer ring areas, look for opportunities where demand is high and land is in limited supply. Additionally, consider whether the property is in close proximity to transport and employment hubs etc. Considering the position of a potential Brisbane investment property will allow you as the prospective investor to deduce the best suburbs to invest in, in Brisbane. 

Purchasing an investment property with no room for capital growth is unwise as the return on investment you were likely hoping to achieve from the property will not be viable.

Keep these factors in mind, and you should find it easier to invest in an investment property in Brisbane.

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Why Choose Us

Brisbane property is currently enjoying the benefits of a perfect storm. Strong projections for capital growth and historically low interest rates combined with affordability and strong yields. In short, there has never been a better time to invest. We welcome the opportunity for potential investors to leverage off our knowledge and expertise.
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