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A Must-Read for Property Investors Chasing Rental Yield

By Sales IBA

Purchasing property has historically been considered one of the best ways to invest your money, with few other strategies out there that offer as lucrative of a return. In recent months Brisbane has seen a surge in local and interstate investors capitalising on the advantageous conditions that we are currently experiencing in our property market. The boosted interest in our River City can be attributed to factors including lifestyle, affordability, and employment opportunities, producing attractive rental yields for investors.

While there has been a shift in the market for Queensland as a whole, the level of results being achieved in the Brisbane inner-city apartment market have not yet been replicated by the likes of the Sunshine Coast, Gold Coast or regional areas. Suburbs within a 5-10km radius of the City have long been recognised as offering the best price-to-income ratio based on accessibility to public transport, schools and places of work. As with any capital city, there are more desirable pockets within these regions, so if you are unfamiliar with the area it can be helpful to seek the advice of suburb property experts.

Over the past decade it has been well documented that the Brisbane inner-city apartment market has underperformed in contrast to the likes of Sydney and Melbourne. Predictions by property experts based on comparable population density and geographical size indicate that if you purchase in the right areas of Brisbane now, it could be the equivalent of buying in inner-city Sydney or Melbourne up to 10 years ago. The recommendation to buy at the bottom of the market and sell at the top is inarguably the best property investment strategy and Brisbane is currently presenting the opportunity to do just this.

Increased employment opportunities, population growth and major infrastructure projects including the Cross River Rail, Brisbane Metro and Queens Wharf Precinct are among the reasons why Brisbane is the stand-out choice for budding investors. Average rental yields in Brisbane are currently sitting at 4.3%, compared to a 2.8% average in Sydney and Melbourne, while Brisbane vacancy rates sat at 1.4% in February of this year, considerably lower rate than Melbourne’s 4.7% and Sydney’s 2.8%.

The average price of a Brisbane apartment will afford you a property within 10km of the CBD, while in Sydney and Melbourne the average property price will allow you to purchase 30-40km from the City centre. Off the back of projected population growth, we anticipate an even further undersupply of rental properties, securing Brisbane’s position as the best option for acquiring your next investment.

The last decade has held reasonably steady for Brisbane property investors, but based on historical indicators and property trends, the coming decade is looking prosperous. Employment levels, lifestyle factors and the opportunity to enter a market primed to experience high levels of capital growth will continue to see Brisbane grow as the number one choice for interstate migration and investment. If you are considering investing in Brisbane, reach out to the agency that has the knowledge and experience in the inner-city property market to help you secure a successful investment property.

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