As property prices continue to rise in Sydney and Melbourne it seems that more and more investors are looking to spend their investment dollars interstate – many right here in Brisbane. And while investing interstate can certainly diversify your portfolio, especially if the property (like that here in Brisbane) presents a lower price point.

 However, going into an unfamiliar market requires a bit more research and planning to ensure it is done correctly. Before you start spending serious money in a different territory, here are some tips to help you get the most out of your interstate investment:

 1.      Have a clear goal

Like anything in life, if you want to be successful you need to have an end goal – and investing in property is no different! Principal of HS Brisbane Property, Hannah Schuhmann says that investors should start with a clear goal about what kind of property they want and which areas they want to target.

“Before you start the hunt for that perfect property it is crucial that you have a clear idea of what you are actually looking for - this will help save a lot of time in the long run!  After all, you do not want to spread yourself too thin across a city you do not understand,” says Schuhmann.

 2.      Build a rapport with local agents

Once you have that clear goal in mind, in other words you know what kind of property you want and where it will ideally be located, you then need to find the right asset. Aka property. To help with this, it is a really good idea to start building a strong rapport with local property agents who can help paint a picture on what you can expect to pay for a certain type of property in that area.

 3.      Do your research

When you buy an investment property (local or interstate) research is a given. However, when you are heading interstate research is even more important. It all comes back to knowing what is possible with your budget in an interstate market. For example, what kind of property can you afford to purchase and in which areas? These are questions you will be able to answer yourself with some thorough research. Fortunately we live in an era where (thanks to Google) there are so many tools (like realestate.com.au) readily available at our fingertips.

 4.      Target the right area

Once you know which interstate area you want to invest in, make sure you investigate it like the back of your hand. Hannah suggests taking careful consideration of local amenities and infrastructures such as schools, hospitals and roads.

“Jump on a plane and take the time to go through the area in person. Better still, you cannot go past enlisting the help of a local agent to give you a tour as they are the ones with solid knowledge and experience of that area.

 5.     Compare apples for apples

When it comes to how much you should pay for a certain interstate property, you should never compare the price of properties in an interstate market to the price of property in your city.

Hannah likens this to the age-old saying… “apples for apples and oranges for oranges; you simply cannot compare the cost of a two-bedroom apartment in Sydney to the cost of a two-bedroom apartment in Brisbane as the two are just simply not the same.”

For example, just because a property might be worth $2 million in Sydney and you can score it for half that in Brisbane does not necessarily make it a good purchase. 

So there you have it. Hopefully with a little help from Google, a few flights back and forth, some dozen look throughs and the right agent, you will be well on the way to successfully building your interstate property portfolio.

Thinking of expanding your portfolio into the Brisbane market? The HSBP team can help take the guess work out of buying property for interstate investors – and overseas investors too for that matter!

Here at HSBP we offer years of industry experience and a deep understanding of Brisbane’s Inner City property market. But for us, it is about much more than that; we believe in providing a first-class experience while sourcing the best deal for all parties involved.

We pride ourselves on providing a highly personalised, one-on-one service to ensure finding the right property is as stress free as possible. For more information or to book an appointment with one of our professional property consultants, call 0419 782 133.

Central. Convenient. Accessible. As a real estate agent when we ask our clients what they look for in a property… more often than not, these are the three words we hear back. Making it vastly apparent that in the twenty-first century, properties have become all about convenience. So, guess it should come as no surprise that the suburb currently dominating apartment sales in Queensland is the one that offers the greatest convenience of them all – the Brisbane CBD!

 According to the latest Real Estate Institute of Queensland (REIQ) data report, Queensland’s suburb with the highest number of apartment sales was Brisbane CBD. The CBD trumped the list with 108 transactions for the December quarter.

Here at HS Brisbane Property, we feel this is a sure sign of things to come for the Brisbane CBD property market…

Once upon a time it seemed that living the Australian dream consisted of having a detached home with a big yard… where a veranda and thousand square metre block was highly sought after. It was all about space!

Nowadays we are witnessing a shift in what people are looking for when it comes to their perfect home. Our ideals have changed. Sure it is still about space but nowadays that word carries a different meaning. Today, space has become more about proximity than size.

 We live in a society where compared to 30 years ago, more people per household are in the workforce, and we are working much longer hours. More work, less play means our personal time has become much more precious. People want to spend less time commuting to work or driving to the shops. They want to walk out their front door and have everything right there – from the local supermarket, stores, cafés and restaurants.

 REIQ chief executive Antonia Mercorella agrees with this notion, saying that the REIQ data revealed the apartment market was thriving in Brisbane and more generally that it reflected a demographic shift in Queensland.

“We are seeing Queenslanders embrace apartment living and we know they are now adopting a lifestyle that gives them proximity to work, transport and entertainment,” she said.

“Where the dream once was to live in a detached home… we are now seeing a modern shift towards a more convenient focused style of living, where homes are smaller… and shops, restaurants and public transport are within walking distance.”

At HSBP we are also finding that in addition to convenience, lifestyle is also high on the agenda. The size of a property needs to be manageable. Buyers don’t want to spend their downtime mowing the lawn or working on the upkeep of a massive block. Instead, they want to stroll through beautiful manicured gardens, relax with a cuppa in a bustling café or chill out on a balcony and enjoy a stunning view.

“Water views are always popular when purchasing property, and nine out of the 10 most valuable apartment suburbs all line the Brisbane River, so apartments purchased in these suburbs potentially offer stunning river views,” Mercorella agrees.

From verandas to balconies and lawns to parks… evidently we are witnessing a strong shift in what people are looking for in a home. Ease of living has become the new Australian dream. A lifestyle choice that means property is now more about downtime than upkeep.

This is understandably why Brisbane CBD is REIQ’s number one suburb for apartment sales. After all, the CBD offers everything that this new modern lifestyle demands - making it the perfect location for a new generation of buyers who want it all, and then some.

As our lifestyles become even more hectic, the push for convenience will expectedly continue to grow. Meaning apartments in the Brisbane CBD will always be considered highly sought after, and therefore a strong investment for both owner-occupiers and investors alike.

To source the most central, convenient and accessible CBD properties Brisbane has to offer, call the HSBP team on 0419 782 133 and schedule an appointment.

Every time a new budget is set, it does not matter who you are… Australian’s and industries all sit tight to see who will be most affected. The real estate market is no exception. However, from superannuation to infrastructure, it seems the latest budget announcement has proven rather positive for real estate buyers and property investors alike.

 We look at three of the main areas expected to have a large impact on the property market… for the better!

1.     Superannuation

First let us take a look at the imposed changes to superannuation. Federal Treasurer Scott Morrison said that the latest budget announcement is the biggest shake-up to Australia’s super system in 10 years. According to Switzer commentator Paul Rickard – he is absolutely correct!

 But it appears this so-called shake-up is just what the property market needs.

How so? The budget is set to reduce how much money Australian’s can put into their super. Such changes include slashing the concessional contributions cap to just $25,000, as well as setting a $500,000 life-time limit on non-concessional contributions – a change which is expected to have the greatest impact on those more well-off. In short, this means a reduction in tax benefits for any Australian who keeps money in a super fund.

 Not good news for super funds but fabulous news for the real estate industry!

 Consequently, according to Rickard, these changes will result in the money being injected into property instead. He puts it like this:

 "They (the well-off) simply won’t be able to get large sums into super, so they will look to invest and grow their wealth outside super, most directly into property.” 

 On Switzer Daily, Rickard goes on to further explain that due to the new super changes in the recently announced budget, middle-income Australians will now start looking to invest their money into the family home, investment property and farms – all funds that, in the past, would have typically made their way into the super system.

 "Now, super is really for middle-income earners. And whenever tax incentives or disincentives change, behaviours change.

 "The well-off or soon to be well-off will look at investments outside the super system, with property, including negatively geared property, an obvious beneficiary.”

 2.     Infrastructure

The budget also outlined nearly $3 billion in infrastructure spending across the states, with a major focus on roads. This package includes $594 million devoted to the inland rail between Brisbane and Melbourne. This is excellent news for Brisbane… and even better news for anyone who owns, or is considering purchasing, property in the Brisbane CBD.

 REA Group Chief Economist Nerida Conisbee says the impact of this infrastructure is long term.

 “The infrastructure spending is good, but the impacts on the property market will be more long term,” Conisbee says.

 The multimillion-dollar inland rail project foresees improved accessibility to Brisbane and is set to provide even more reason for tenants, property owners and investors to buy real estate in Brisbane. What is exciting for Brisbane, is this is just one of many new valuable long-term resources expected in the CBD over the coming years.

 3.     Negative Gearing

As expected, this budget saw no new changes to negative gearing, which can only be a good thing. According to the treasurer, the reason behind this decision is because the government didn’t want to “increase the tax burden on Australians who are just trying to invest”.

 “Those earning less than $80,000 a year in taxable income make up two thirds of those who use negative gearing,” Morrison says.

 “We do not consider that taxing these Australians more on their investments, including increasing their capital gains tax, and undermining the value of their own home and investment is a plan for jobs and growth.”

 Plus, we cannot forget The Reserve Bank of Australia’s cut in cash rate to 1.75 per cent – the lowest in modern history. This recent cut is most certainly expected to boost buyer sentiment and revive demand for property.

 In summary, thanks to the proposed super changes, middle-income and higher-income earners will soon will be compelled to start thinking outside the box for new ways to help build a strong retirement for them, and their family. For many, investing in property will provide the rock-solid investment solution they need. Suddenly we are looking at an entirely new breed of investors wanting to setup their first portfolio.

 Add to this… record low interest rates, new infrastructure and no changes to Negative Gearing (under a LNP Government), and it all spells good news ahead for the Brisbane property market as a whole – as well as those looking to make any movements towards property in the CBD, both now and in the long-term.

 Whether you are looking to buy or sell, here at HSBP we make it our mission to source the most lucrative properties in the Brisbane CBD. To find out more information or to schedule an appointment, please call our professional property consultants on 0419 782 133.

It seems that the RBA’s decision last week to cut the cash rate to 1.75 per cent (the lowest in history) has left many economists a little dazed and confused. The good news (for buyers and investors) is that many of the major lenders are tipped to drop their mortgage rates accordingly.

In a statement, here is what RBA Governor Glenn Stevens had to say about the cut, "In reaching (Tuesday’s) decision, the board took careful note of developments in the housing market, where indications are that the effects of supervisory measures are strengthening lending standards and that price pressures have tended to abate.

"At present, the potential risks of lower interest rates in this area are less than they were a year ago." 

While this may be so, you only have to ask around and property experts will tell you that record low interest rates historically equal exciting movement for the property market and in the past, have been the instigator to several property ‘booms'.  

The cuts are music to the ears of investors and buyers alike and fantastic news for the market in general.  While we do not think we are going to see the next big boom happen this month, things are definitely falling into place for some very exciting future times ahead and we are definitely in the midst of a ‘boost’ right now.  

Also adding to this boost will be Australia’s property consumers who are becoming increasingly more confident in our real estate market – which is great news in itself!

We expect the next affordability index will likely show a further improvement further reiterating this – further instilling even more confidence in our buyers, and investors alike.

But wait! It seems the RBA cuts are just the beginning. There is much more for property consumers to get excited about. On the same day as the cuts were announced, Federal Treasurer Scott Morrison also delivered his first budget, which strongly reiterated that negative gearing will likely not change, nor will investors be slugged more on capital gains tax – thus, revealing more good news for property consumers.

“We will not remove or limit negative gearing,” Morrison said in his Budget speech. “Those earning less than $80,000 make up two-thirds of those who use negative gearing. They are teachers, nurses, police officers, office workers and tradesmen. We do not consider that taxing them more on their investments is a plan for jobs and growth.”

 So there you go, another confidence ‘boost’ for buyers and investors.

 Adding to this, the recent release of price data for April has shown that the home value index has also risen in the past three months of the year in seven of the eight capital cities. With CoreLogic figures, showing that Brisbane was up 2.8 per cent – once again confirming our prediction of solid growth for the Brisbane CBD.

With low rates, positive pricing data and good news from the recent budget – things are definitely looking a little rosier!  To find the best apartments that Brisbane has to offer, contact the team at HSBP on 0419 782 133.

Here at HSBP we see it time and time again… elated investors who made the decision to start investing in apartments, right here in the Brisbane CBD. Question is why? What makes Brisbane better than say Sydney or Melbourne? We explore five reasons why more and more investors are heading to Brisbane…

 1. Great prices

While incomes are fairly similar along most of the east coast of Australia, the same cannot be said for property prices. In comparison to its southern counterparts, such as Melbourne and Sydney, the cost of a Brisbane apartment is close to half the price. Bargain!

 2. Healthy rental yields

Brisbane’s rental yields are also much healthier than those in Sydney and Melbourne. For example, the latest Domain Group figures report that Brisbane’s rental yields are 4.8 per cent for houses and 5.1 per cent for units, which is a substantial difference to Sydney’s rental yields which are currently at 4.1 per cent and 3.3 per cent respectively. 

Domain Group’s chief economist Dr Andrew Wilson says, “Because prices (up to now) have been a bit flat there, and vacancy rates low while rents are quite moderate, it means yields are higher than in Sydney and Melbourne.

3. People pressure

Current statistics show that Brisbane’s population is growing at a faster rate than Sydney and Melbourne. In fact, Brisbane’s population is set to reach 3.4 million over the next 20 years, which is a massive growth of 44 per cent. A number which tops that expected for both Sydney and Melbourne at 32 per cent and 40 per cent respectively.

4. High-end development projects

Another reason we are seeing many investors head to this part of the world is due to the new projects being built. But we are not talking just any old project, these new developments are setting a completely new standard here in Australia. We are seeing more and more high-end, resort-style developments; the kind that offer luxurious rooftop pools and terraces, fully equipped gyms, outdoor kitchens, Zen gardens – and much more! These structures are truly something very special – and becoming increasingly harder for cities like Sydney to replicate due to the cost of land and construction alone.

 5. What more reason do you need

Glorious scenery and beaches, amazing infrastructure, luxury shopping (thanks to brands like Tiffany and Prada), a $3 billion Queen's Wharf development, the coming Commonwealth Games, the light rail and link to heavy rail. There are so many reasons to invest in this glorious city. The good news is, with investment properties in Brisbane, now you have an excuse to head up to the sunshine state each year for business… and for pleasure.

 As you can see it truly makes sense to invest in Brisbane. Plus, throw in the RBA’s lately decision to cut the cash rate to 1.75 per cent (the lowest in history) and you have yourself all the makings of a great investment opportunity right there on your door step.

 For more information on the latest apartments and investment opportunities in the Brisbane CBD, call Hannah and the team on 0419 782 133.

 All statistics and figures are from www.domain.com.au