Brisbane is starting to see its population growth pick up, as expected, according to a recent article by best-selling author and blogger, Pete Wargent, published on propertyobserver.com.au.

According to the ABS, Brisbane’s unemployment rate is also proving to be consistently one of the lowest per capital city across Australia.

That is two giant thumbs up for Brisbane’s economy. Then you add into the mix, the increase in major infrastructure projects happening in and around the CBD, and it would appear that Brisbane is truly on the up and up.

Think big projects like the Queen’s Wharf development which has been tipped to inject 3,000 jobs during development and another 8,000 employment opportunities upon completion. With projects like this underway, it is no wonder that Brisbane’s population growth is on the rise.

With more jobs being created in the CBD (thanks to the likes of infrastructure projects like the Queen’s Wharf - among many others), it means more people need to move to the city to be closer to work. When you think about it, it is not surprising that the population of Brisbane is growing.

The best part is, we anticipate that the expected population growth and increase of jobs will have a solid impact on inner city apartment sales.

In fact, investors are becoming increasingly excited with the Brisbane CBD property prospects. After all, a growing population means more tenants in the marketplace and increased competition – which is only going to make for a stronger economy and a win-win for all property investors here in Brisbane.

Growing population. More jobs. Greater opportunities. Stronger economy. Seems the experts might be right when they say all current signs of a strong investment strategy currently point to Brisbane.

If you are looking to sell or purchase property in the Brisbane CBD, why not contact our team on 0419 782 133 to set up an appointment with one of our property specialists

Everyone has a credit score. It’s that magic number that determines a lot about your borrowing capacity. What is more, a credit score is very important when it comes to building a strong property portfolio. The question is, how much do you know about yours? Throughout this article, we explore five questions that will ultimately give you a better understanding of credit scores and what you can do to improve them. 

A credit score is essentially a rating that determines your perceived ability to repay debt based on your past credit performance. Oddly enough, few people actually know what their number is. The best way to find out your credit score is to go straight to the source and speak to the people who determine these ratings and what it means for you.

1. Who decides your credit score?

Credit scores are determined by agencies who are chosen with the requisite authority by the Australian government. Ultimately, credit scores (and the agencies that regulate them) aim to protect credit providers and reduce the instance of bankruptcies in Australia. There are many credit reporting agencies in Australia, one of the most well-known in the industry being Equifax (Previously Veda).

2. How do credit agencies determine your score?

There are three basic components that agencies apply to determine a credit score. We will use Equifax as an example:

• Veda calculates a VedaScore (aka credit score) by summarising credit report information.
• Based on this data they rank your credit on a scale of 1 to 1200 against other Australians – the result is your credit score.
• Lenders use this number to assess your credit application – i.e. home loan, personal loan.

A basic credit rating can be ordered from the Equifax website for free here.

3. What information do agencies collect?

Credit reporting agencies collect the following information to help determine your credit score:

• Personal details (name, date of birth, driving licence number and address, etc.).
• Information pertaining to your credit history.
• Past loan applications details (approved or not, overdue payments, credit infringements).
• Loan repayment due dates (i.e. whether due dates were met)
• Debt agreements (including court judgements and orders, insolvency agreements).
• How long do agencies store this information for?
• Credit reporting agencies store the previously mentioned information for up to seven years – so you can see how easily the past can really affect your current borrowing capacity.

4. How can I improve my credit score?

• To strengthen your credit score, and financial history, as well as establish yourself as a ‘good customer’ for future lenders, there are three key financial practices you need to put in place:
• Pay off all bills on time 
• Shut down unnecessary accounts
• Save consistently

At the end of the day, the best way to improve your credit score is through diligent credit management. In other words, live within your means and pay your bills on time.

Once improved, your credit score can be maintained by always having a comprehensive understanding of your personal credit file (including knowing your actual credit score) and sound ongoing credit management.

Here at HSBP we work with many reputable financial firms who can help with managing your finances for greater long-term wealth – especially when it comes to property investment.

For more information or to arrange an appointment with one of our property specialists, contact our team on 0419 782 133.

Brisbane’s property market appears to be getting hotter and hotter – just ask the experts. Many are saying that it comes down to several factors, including Brisbane’s affordable property prices and strong yields. Two convincing influences for any buyer or investor, especially when compared to its south-eastern capitals – Melbourne and Sydney!

Principal of HS Brisbane Property, Hannah Schuhmann says that she has noticed a strong positive shift in the local Brisbane market. She feels this shift is coming from a combination of factors – but the most convincing would have to be the current price of property in Brisbane.

 “When you look at how affordable Brisbane property and the current opportunities available, it is no wonder we are seeing an increase of buyers coming from all over – including locally as well as from interstate and overseas,” says Schuhmann.

“Investors from the southern states have begun migrating up north, attracted to Brisbane’s affordable prices and stronger yields.”

Mitch Koper, media manager at CoreLogic believes that people can’t find affordable properties with the yield that they’re looking for in other cities; the returns are simply not there.

“In Brisbane, you can buy a house for [$600,000] and get a return of 7 or 8% in some cases.

It’s a very reasonably priced market,” said Koper.

But it is not just buyers moving up from other Australian cities. According to the Real Estate Institute of Queensland (REIQ), demand for Brisbane homes is also particularly strong among several overseas buyers including those from China, United States, New Zealand, and the United Kingdom – just to name a few!

Seems the Queensland state government is also very aware of the attraction from overseas buyers.  In June 2016, in an effort to avoid the market from overheating, they imposed a 3% surcharge on foreign purchases of houses and apartments.

Schuhmann says that buyers, particularly investors who are in it for the long haul, are on the hunt for property that offers value for money. In other words, they are looking for a CBD apartment that is affordable (for them and their tenants) and offers a strong return on their investment dollar.

“Smart buyers and investors will do their homework and purchase property which presents solid growth potential,” said Schuhmann.

“The price of property here in Brisbane means they can have their cake and eat it too – and that offer is very appealing to many homeowners and investors these days!”

Adding to this appeal is Brisbane’s current state of economic growth – from massive infrastructural developments to increasing employment opportunities - it is no wonder that buyers are starting to realise the potential that lies here in Brisbane.

Here at HSBP, we live and breathe Brisbane property. So if you are after more information on the lucrative opportunities at hand in this growing city, that just keeps getting hotter and hotter, contact our team on 0419 782 133.

Australian Bureau of Statistics (ABS) has predicted that Australia’s population will be 40 million in the next 40 years. That is more than DOUBLE what it was just a decade ago! And guess which Australian state is expected to have one of the largest growths? Queensland. With this surge in population growth comes the inevitable increase to household wealth and housing demand - great news if you are an owner or investor of property here in the heart of Brisbane.

Okay, so back to the part where we said Queensland will be one of the Australian regions expected to have the biggest population increase over the next 40 years. If we are talking actual figures, the ABS projects that Queensland will grow by a massive 85 per cent; taking the state’s population to 8.9 million by 2057.

Here are how the projected population figures looked across the rest of the country over the next four decades (listed with highest percentage of growth starting at number one):

1.  Western Australia – 135% growth to 6.1 million (More than double the current 2.6 million!)
2. Queensland – 85% growth to 8.9 million
3. Australian Capital Territory – 80% growth to 711,000
4.  Northern Territory – 77% growth to 434,000
5. Victoria – 64% growth to 10 million
6.  New South Wales – 45%  growth to 11.2 million
7.  South Australia – 35% growth to 2.3 million
8.  Tasmania – 9% growth to 567,000

As you can see, Queensland is sitting right up there thanks to this massive growth expectancy of 85%. As one would anticipate, this surge is set to impact all other facets of the economy, including household wealth, lifestyle and property prices - just ask social researcher, Mark McCrindle.

McCrindle says Australia’s population is driven by a combination of things, including:

1.  Migrants
2.  Birth
3.  Longevity

“It’s big numbers. The 1.4% per annum current increase sounds modest in percentage terms, but is one new Darwin every 20 weeks and a new Tasmania every 18 months,” he said. (Darwin’s current population is about 145,000.)

Mr McCrindle said the growth would lift household wealth as demand for housing increased property prices, but this would vary between cities.

“People with property will gain from that. Those without property are not really sharing in the wealth that the growth brings,” he said.

Principal of HS Brisbane Property, Hannah Schuhmann says she is not at all surprised by the ABS projections for Queensland.

“When you look at how affordable Brisbane property is and how much infrastructural development Brisbane has going on, it is no wonder the ABS is expecting our population to grow by 85%,” Schuhmann said.

“We live in a day and age where people want value for money and this extends to when buying a house, even if it means moving interstate or even overseas to a state that offers great appeal, such as Brisbane.”

For any buyers or investors that would like a share in the suggested wealth that this forecasted growth will bring, then you need to start making a move before it is too late.

For more information or to speak to the experts in property purchasing and sales right here in Brisbane, contact the HSBP team on 0419 782 133.

This week we reference one of Australia’s leading business and financial commentators, Peter Switzer. In his recent article (Housing hysteria is ridiculous but it just might work), Switzer pointed out that the current housing hysteria (as he puts it) may only be relevant to Melbourne and Sydney markets.

Switzer seems concerned that such recent jawboning is creating widespread fear across the country. Even though the fear being instilled is really only relevant to a handful of states that are responsible for an overpriced property market.

We understand that the fear could pose a problem if the government decides to fix the overpriced market with a widespread solution. Think rate rise. However, in the meantime Brisbane stands a lot to gain. Let us explain.

Principal of HS Brisbane Property, Hannah Schuhmann says that Brisbane’s property market presents affordable house prices for buyers and feels that these fear attempts are not directed towards states such as Brisbane.

“The Brisbane market presents legitimately priced property and in many cases the housing value exceeds the cost,” said Schuhmann.

She says that interstate and overseas buyers are always so overwhelmed when they see what they get for their money in Brisbane.

“The media’s latest attempt to scare property buyers is likely to drive concerned purchasers out of those overpriced markets and into areas that offer great value, such as Brisbane!”

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Switzer writes that Reserve Bank boss Phil Lowe recently tried to scare the pants off silly people overbidding on Sydney and Melbourne houses. He then goes on to say how he feels that Labor was right to argue for a more aggressive attack on housing, given that Sydney house prices were up 18.9% for the year, while Melbourne prices were 15.9% higher!

Many economists have been expecting that house price growth would start to slow because house prices over the past two years have been crazy. Yet all the while, the ridiculous prices people pay are still being paid – especially in Melbourne and Sydney!  

Switzer points out that in the good old pre-GFC days, they would have just aggressively raised interest rates in order to cool down a real estate market that was too hot. However, the problem is (as he puts it) while the economy is doing okay, it is not strong enough to deal with a rate spike just to fix all of the Sydney and Melbourne madness.

And it is madness. But let us remember that this madness is predominantly in just these two cities. Which then begs the question, if we raise rates just to cool down the fire in Melbourne and Sydney, what will happen to Brisbane?

Switzer says that a blanket rate rise would be injudicious. We agree.

Sure, some fear may be needed in Australian markets where property is overpriced, however, in Brisbane we offer some of the best comparable property prices in Australia.

This is where Switzer is concerned that such media hype could potentially batter consumer confidence across the board Australia-wide, which will do nothing to help retail spending and the economy as a whole. Could Switzer’s ‘think outside the box’ idea be the answer?  

“A negative gearing ban on future purchases only in Sydney and Melbourne for one or two years.

“It’s an odd, tailor-made idea but it might make more sense if you don’t want to burn the economy, while hosing down the ‘on fire’ property markets in the country’s largest capitals.

Switzer says that we can’t afford to kill the economy to simply stop idiots overpaying for property, as our economy is on the mend.

Schuhmann agrees with Switzer and while she says she would not like to see a one-size-fits-all solution put in place, she is thankful that Brisbane is not one of the states where people are overpaying for property.

“In my experience, buyers are certainly not overpaying for property here in Brisbane. In fact, the value for money that buyers get with their property would suggest quite the opposite.”

She also says that with more and more negative attention being drawn upon certain Australian states, buyers and investors are quickly starting to looking elsewhere to spend their hard-earned investment dollars – Brisbane continues to present the perfect opportunity for them.

“Brisbane offers great value for money in terms of property and with so much developmental scope on the horizon, we can expect a lot of economic growth to come from this New World City.

This just proves once again why Brisbane is the state to watch. And with all this media fear being circulated, it just goes to show that buyers and investors really need to do their homework more than ever before. If you are interested in buying or selling property in the Brisbane CBD, contact the industry experts at HSBP on 0419 782 133.