With nearly two decades of experience in the real estate industry, I’ve had a front-row seat to the ever-evolving landscape of property investment, witnessing firsthand the myriad of changes and challenges that shape our market. And amidst these shifts, Brisbane emerges as a beacon of opportunity for investors in 2024. As the capital of the Sunshine State, Brisbane boasts all the right fundamentals to captivate property investors, offering a blend of affordability, growth potential, and resilience that sets it apart from it’s metropolitan counterparts.
Despite the headwinds posed by economic factors such as inflation and rising living costs, Brisbane’s property market has defied expectations, charting an impressive surge of 15.2% since 2023, as revealed by the CoreLogic Daily Home Value Index. This surge not only underscores the city’s robust growth trajectory but also highlights its resilience in the face of external challenges. Moreover, with a rental vacancy rate hovering around 1%, Brisbane presents a favourable environment for investors seeking stable returns and capital appreciation.
One of Brisbane’s key strengths lies in this relative affordability compared to larger markets like Sydney and Melbourne. For prospective investors looking to enter the property market, Brisbane offers an attractive entry point with promising prospects for long-term growth. The city’s affordability, couple with it’s strategic location and robust economic fundamentals, positions it as a prime destination for property investment, drawing interest from both local and international investors alike.
Looking ahead, Brisbane’s property market is poised for further growth, buoyed by long-term drivers such as the upcoming 2032 Olympic Games. The city’s selection as the host for this global event has spared a flurry of infrastructure projects and urban development initiatives, further blostering its appeal and riving property values upwards. Moreover, with investor confidence rebounding following what appears to be the final interest rate rise in the current cycle, Brisbane’s property market is primed for continued growth and expansion.
However, navigating the complexities of property investment requires a keen understanding of legislative requirements and effective property management strategies. When considering purchasing an investment property, it is important to consider who would be managing your investment to ensure you are adhering to these requirements ensuring that you are maximising your return as much as possible.
The current voted in State Government has thrown a lot of changes in rental reforms over the past 2 years. The first major change was implementing Minimum Housing Standards and changing the legislation so that rental increases were limited to 1 rental increase per 12 months for each tenancy.
Stage 2 rental reforms have just been announced with the below quick overview:
- Banning all forms of Rent Bidding
- Requiring Bond Claims to be supported by evidence
- Protecting renters’ privacy by requiring a minimum 48 hours Entry Notice
- Setting up a prescribed form to be used to apply for a rental home, with any information collected to be handled securely.
- Giving renters a fee-free option to pay rent and choice about how they apply for a rental property
- The Bill will establish a head of power to establish a rental sector code of conduct
- Establishing a framework for parties to agree on installing modification in rental properties
- Adopting a portable bond scheme.
Along with the rental increase being limited to the rental property and not the tenancy, our suggestion to Landlords will not change! It has always been our advice to find the right balance between market rent and keep a good tenancy in place for multiple years, which most often can be a better investment than chasing the top market rent and turning over tenancies.
