CategoriesEventsLocation ReportsMedia releasesNational market updatesPersonal advisersPIPA AdviserPIPA Annual Investor Sentiment SurveysPIPA Member ProfilesPIPA video updatesPIPA webinarsPodcastsProperty advisersProperty news
The top spots for ‘mum and dad’ property investors in Queensland have been revealed, with the potential for buyers to double their money by 2031 if they act now.
A property investment expert has identified 11 suburbs where he predicts land prices will double by the time Brisbane hosts the Olympic Games, with Ripley, Burpengary East, and Coomera among the locations set to boom.
The median land prices in the selected suburbs range from an affordable $275,000 to $520,000, with the potential to generate rental returns of more than four per cent per year.
Custodian managing director James Fitzgerald said it was “impossible” for home prices to not continue to grow in these suburbs, which were also still cheap enough for the average buyer to invest in.
“It’s a mistake to think house prices will go down,” Mr Fitzgerald said. “I can’t see a version of the future where house prices are cheaper than they are today.”
Mr Fitzgerald said many people wrongly thought property investors were rich and that the average person could not afford to invest in property.
But he said that, in reality, only 10 per cent of Australians owned one or more investment properties and of that number, nine per cent owned just one or two properties.
“You don’t have to be rich to invest in property,” he said. “You just need to have your finances organised and do your research.
“There are still plenty of locations where ‘mum and dad’ investors can buy something within their budget, which will deliver solid returns.
“I know there was a lot of demand in southeast Queensland during Covid, which drove prices up a bit, but there are still plenty of affordable options, particularly north of Brisbane and to the west of the CBD.”
Ripley, in Queensland’s fast-growing western growth corridor, is Mr Fitzgerald’s top pick.
“Its population is tipped to grow substantially in the next decade and there is plenty of infrastructure being built there,” he said.
“It is a State Government Priority Development Area, with the state government announcing in August it would commit $21 million to help unlock more land in the area, by providing money for road infrastructure.”
Burpengary East is also an area which has been identified for future development.
“It already has good public transport and is close to the University of the Sunshine Coast Campus at Petrie which expects to have 10,000 students by 2023,” Mr Fitzgerald said.
“Both Ripley and Burpengary East, have affordable median house prices and are offer good rental returns for investors.”
On the Gold Coast, Mr Fitzgerald said Coomera was the only area where there was available land left and room for population growth, and therefore, infrastructure growth.
Mr Fitzgerald said the key to choosing the right location for investment was to find areas with
growing populations, employment, and infrastructure.
“Those are the usually going to be locations which are close to big employers, so something close to hospitals, universities, industry areas, that type of thing,” he said.
“Our view is that the top 10 projected population growth areas are the best investment opportunities in each city.”
Ray White AKG principal Avi Khan, whose area covers two of the suburbs on the list — Flagstone and Logan Reserve — said he had noticed many ‘mum and dad’ investors switching their focus to renovation projects after being priced out of the market by larger builders and developers.
“Australia’s love affair with renovations is on full show in our suburbs,” Mr Khan said.
“When we market homes such as the one at 19 Billabong Drive, Crestmead, demand and inquiry is on average about 60 per cent higher than a standard home we market.”
The dilapidated house at 19 Billabong Drive attracted a record 161 registered bidders when it recently sold at auction for $494,700 to Sydney-based investor, Suliman Karim.
Property Investment Professionals of Australia (PIPA) chair Nicola McDougall said investor purchases had fallen significantly over the past 18 months, while many thousands of investors were also selling off their assets.
According to the latest ABS Lending Indicators, the number of new investor loan commitments have fallen more than 27 per cent since interest rates started rising in May last year.
“It’s clear that the normal flow of investment activity — both inbound and outbound — has been off-kilter for some time, so, until that changes, vacancy rates will remain at record lows and rents will climb ever higher,” Ms McDougall said.
“While governments talk about offering incentives to the big end of town for such supply strategies as build-to-rent, not a red cent has been offered to private investors who supply more than four in every five rental properties in this nation.”
Ms McDougall said property prices in most locations had posted solid growth over the past two quarters given stronger market metrics.
“Of course, the low supply of listings was part of the reason why, as well as strong rental market conditions and record overseas migration,” she said.
Inspire Realty CEO Colin Lee said Brisbane’s record low rental vacancy was helping to steer people away from renting and into home ownership — putting more pressure on the housing market.
“As we approach 2024, buyers should prepare for intense competition and swift decision-making, as sought-after properties are once again selling rapidly.” Mr Lee said.
“For buyers, this may be an opportune time to buy and invest in property and secure something before the end of the year and the surge in 2024.”
Originally Published: Elizabeth Tilley | The Daily Telegraph | 11 November 2023
“Licensed by Copyright Agency. You must not copy this work without permission.”