G’day. My name’s Ben Everingham, and in today’s short video I’m going to talk about the top eight reasons to buy a property, or investment property, in Brisbane in 2018. To give you a high level overview of what we’re going to talk about today, we’re going to be chatting about the history, population growth, the past and what’s been happening at the moment, some infrastructure in both Brisbane and Southeast Queensland. We’re going to be talking about the mass migration that’s occurring at the moment from New South Wales and Victoria back into Southeast Queensland. Going to be talking about what some of the top analysts in Australia are saying, as well as some of the suburbs that are performing right now so that you can really understand the marketplace.
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The first of the eight reasons of why I really like Brisbane for 2018 is really the history. If we look back at the last 46 years of property data, Brisbane has actually grown by 9.7% per annum compounded over that period of time. To put that in perspective, that is insane. That is a huge amount of money that people have made from just holding in this market long-term.
If you look at the last 10 years, Brisbane has actually still grown by 4.5% per annum, which is pretty average when you compare it to Sydney and Melbourne that have grown by 7.8% at least compounded over the last 10 years as well. But if we take a bit of a longer snapshot and look at Brisbane in the last 20 years, it’s actually still growing by 8.7% per annum. That’s the major reason I like Brisbane, because historically it’s been the third strongest performing capital growth market in Australia, or as good as Sydney and Melbourne at least over the last 46 years. I think because of the strength of the population in Brisbane, it’s 2.3 million people at the moment, projected go to the three million people over the next 10 to 15 years, it is a strong city which is receiving immigration and migration from Australian residents as well as international residents. We’ve still got to remember that is the third largest city in Australia.
The second thing I wanted to talk about was some information that I heard from the Australian Bureau of Statistics in the last week, which is Brisbane is now growing, as of 2017, and we’re in the final end, this is shot in November, by over 1,000 people per week. We haven’t that sort of population growth since about 2007-2008 in Brisbane, which was the last time we actually got any really meaningful double digit price growth. Whatever people are saying about Brisbane, population is one thing that drives demand and supply, and I like that about Brisbane moving forward.
The third thing is that in the last nine years we actually haven’t had a really meaningful year in Brisbane as a whole. We haven’t had a double digit year. We’ve had a bunch of flat years. We’ve had some okay years. We’ve also had some backwards years. I think the fact that it’s been sitting flat for nine years is a good thing. If I look at the data over the last 46 years, there was a period of time in Brisbane where there was 11 flat years in the past, so this is completely normal. If we look at Sydney before this crazy boom that’s occurred in the last six years down there, it was actually flat for a nine-year period as well. I’m not saying just because Sydney did well, Brisbane’s going to do well. There’s so many more complicated things at play here. But the fact that it sat flat and it’s relatively affordable with good rental returns is something that I like at the moment.
The fourth thing that I wanted to talk about is infrastructure, which the Queensland state budget was released recently in the last couple of months, and there’s some really cool projects, including a project underneath the city for some rail, as well as a light rail project throughout the city. If you were to drive through the Brisbane at the moment, for those of you that haven’t been here before or haven’t been up here in a while, definitely feels like a city under construction. There’s plenty of infrastructure going in. If you look at I think it’s the M3 or the M1 coming out of Brisbane to the north and out of Brisbane to the south, there’s a plan to increase it from three lanes each way to six lanes each way. That’s a really positive piece of infrastructure to resolve some of the congestion issues that Brisbane is starting to have that Sydney and Melbourne definitely have right now.
If you look at the 15 … Southeast Queensland has three of the top five fastest growing regional markets in Australia right now, and Brisbane is the third fastest growing capital city in Australia from a population perspective. In fact, in the next 15 years, Brisbane’s population growth rate is actually expected, as a percentage of the total growth, to outperform any other marketplace in Australia. In Southeast Queensland, the Gold Coast, North Brisbane, and Sunshine Coast are three of the five fastest growing regions in Australia, with a lot of people looking at them for different reasons at the moment.
The sixth thing that I wanted to talk about … and I’m really getting through this video quickly today just so that you can just get a snapshot of what’s going down at the moment up here … has really got to do with something that I heard from the Macquarie Bank on the ABC Radio the other day. That was that they estimate 140,000 people or homeowners are going to sell their properties in the next two and a half years and move over the border into Southeast Queensland just due to purely affordability reasons. As Michael Matusik says, people being pushed out of one market and having to migrate to another isn’t as nice as people being naturally pulled into a market for job growth, but whether there’s 140,000 people ending up on our door step because they’re being forced out from price or because they’re deciding to come here, it’s still going to have an effect on supply and demand, and ultimately prices. Because a lot of those people have done well in the last 10 years in Sydney and Melbourne and will be cashing out and bringing that money across the boarder, which is great.
The seventh thing that I wanted to talk about is just what some of the people that I follow are saying about Brisbane. You’ve got people like Karen Todd White saying that Brisbane is in the start of the recovery phase. You’ve got people like John McGrath on Sky News over the weekend saying that his top picks are Southeast Queensland for the next three years in Australia. He named some suburbs that he really likes that are going to perform well. A lot of those suburbs were in Brisbane, North Brisbane, and the Sunshine Coast. You’ve also got RP Data in their monthly updates consistently suggesting that Brisbane looks affordable and that it’s also got strong rental returns in comparison to a lot of Australia’s other leading cities.
The fact that a lot of these guys are on board is powerful. I love Residex reports because they look at the top suburbs that are predicted to do well, and I’ve been purchasing those reports now for seven or eight years. In Brisbane there’s some suburbs that they predict are going to grow by between 5 and 9% per annum for the next five years. If you know where to look, there’s actually some really good value in Brisbane right now.
The eighth thing … I’m just trying to get my extra finger up there. The eighth thing I wanted to talk about is just in the last 12 months my team and I bought about 70 or $80 million worth of property in Brisbane for our clients. Some of the suburbs we’re buying in are really starting to do well. We’ve got some suburbs in Brisbane that we’ve been buying in that have grown by 4% in the last 12 months. You’ve got to remember that the growth rate in Brisbane in the last 12 months as a whole was only 2.2%.
We’ve also been buying some suburbs that have been growing by between 10 and 17% in the last 12 months. A little pockets of high quality areas close to the water or close to the city, or the right times that properties have been really, really increasing well in value. There’s some of my updates. They’re probably the top eight. I’ve just had an idea for a ninth as we’re going through this, or as I’m going through it now, and that’s really around some of the opportunities in Brisbane. I personally like North Brisbane. I love the CBD and I like the waterfront suburbs in Brisbane. There’s a good range there from 350,000 up to a million dollars depending on where you’re at. Some of the suburbs have really strong projected capital growth with good rental returns. Others have fantastic rental returns with moderate capital growth predictions. But I think whether you’re looking to buy and hold an existing home, buy a good piece of land and build a home or a dual income property, or buy a house and chuck a granny flat on it, Brisbane represents all types of interesting opportunities for savvy investors right now.
If you’re interested in buying in Brisbane in 2018, love to offer a one on one strategy session with me or my brother Simon where we can talk about where you are right now and where you’re looking to go in the future. We can fully educate you on the Brisbane market in a lot more detail than today. If you want to do it on your own, it’s a complementary call. You can go off and do that and take what you’ve learnt from us onboard. If you’d like a hand buying in Brisbane, then we take on seven new clients per month. I’d love the opportunity to talk about how we might be able to help you get the outcome that you’re looking for from a capital growth, cashflow and manufactured growth perspective up here now.
Thanks for your time and attention. Please subscribe to the video if you haven’t already done it. I can’t wait to hear from you in the future. I’m excited about where Brisbane’s going in the next seven years. Thanks for your time.