Australia’s #1 Place To Invest!
Investing is a lot about you and your ideals. You’re going to need to sort out your finances and determine what kind of properties to look into, but first and foremost you’re also going to have to choose a location to invest in.
In Australia, property investors are quick to jump at the big two markets: Sydney and Melbourne. It makes sense, that’s where most of the urban population live so demand is clearly there.
Sydney and Melbourne are global cities meaning they are overrun by people and struggle to keep up with infrastructure and change. They have no room to grow.
On the other hand, Australia is home to two excellent new world cities: Brisbane and Perth.
The foundation of these places compared to global cities, is that new world cities build their economy and then invite population growth.
However, out of the two, Brisbane is the one city in Australia which is really going through a period of renovating itself, and as such, I believe it is a critical place for property investors to own real estate.
A NEW WORLD CITY
New world cities are on their way to becoming global cities, but they have a better chance at getting it right. Unlike its bigger counterparts, Brisbane has so much opportunity to transform and attract new people because it is simply a smaller city.
There is so much physical space for Brisbane to grow, that it can map out future technology and infrastructure plans without having to factor in existing frameworks – and they can do it quickly.
From an urban change perspective, Brisbane has also created some magical ways to live, from connecting both sides of the river with easily accessible walkways to expanding lifestyle and cultural hubs in and around the CBD.
On top of that, it has become an extremely sophisticated city. People are investing in wellness and knowledge businesses, there are multinational companies getting into the market, and there are huge transport companies setting up shop in Brisbane.
As property investors what do we see when we look at an affordable, new world city with so much potential for growth? A global attraction magnet!
AN EVOLVING CITY
Brisbane has certainly evolved from the small country town it was known as back in the 80’s.
One of the things we need to understand about Brisbane is it is arguably the world’s longest city. It stretches from the Sunshine Coast to the New South Wales border in Tweed Heads and everything interlinks to create one big suburban and metropolis dynamic.
Of course, this makes it harder for property investors to understand because there is so much to it and a wealth of land available for future use.
Unlike its neighbours down in Sydney and Melbourne, where there is a shortage of everything, the population of Brisbane isn’t forced to condense and urbanise. People are happy to spread out amongst this long city knowing they will still be connected to both the CBD and the coast.
The result is that Brisbane becomes a ‘street by street’ marketplace. Every suburb has streets which are popular with the locals. Neighbourhoods have their own dress circle, which is where the best real estate is.
The most important thing you can do is really learn a suburb and understand specific places and areas that appeal the most.
A MILLENNIAL CITY
Two decades ago, the smart, young people growing up in Brisbane only ever dreamed of leaving to go to Sydney. However, today with the cost of real estate in Sydney that is no longer the case.
People in Brisbane are now growing up wanting to add value to the city, enhance the economy, improve the urbanity, change the streetscape and create business. Essentially, Brisbane is a millennial city.
You need to understand how important that is right now. Millennials are the largest group in society, and they can provide sustainability and longevity to the city.
Particularly for real estate, the increase of 30-somethings who are going through the wealth system and finally reaching desirable financial status means the market is going to be fantastic over the next decade.
This is all thanks to Brisbane growing in a way that retains their younger population, and creates a fun and dynamic city for them to enjoy.
BRISBANE IS A GROWTH CITY
Brisbane is well and truly on its way to becoming a capital growth marketplace, even after stalling for quite a few years now.
This is partly due to the concept of top-down capital growth. In other words, the best areas have been getting growth because they’re in demand and subsequently people have focussed more on fighting over them than looking elsewhere.
However, investors should know that Brisbane’s luck is about to shift. According to Bill Evans, Chief Economist of Westpac, for the first time in history Brisbane property values will rise 20 per cent by 2022. The momentum of the market is moving quicker now, and in three to four years, you may have missed the boat.
Brisbane is shooting for growth size like Sydney, so do you really want to miss out on that while you can still buy proximity and location at an affordable price?
A SMART INVESTMENT CHOICE
Brisbane is rapidly re-inventing its look and feel, so much so that I think if you go to visit circa 2023, you won’t even recognise the city. It’s already set up to be an absolute rockstar of urbanity, change, inspiration, food, culture and arts.
Overall, Brisbane is shaping up to be a very sophisticated place and is becoming an absolute people magnet driven by millennials. If you’ve been reading this thinking it’s time to crack the Brisbane property market – good! We can help get you started at our free real estate investing nights.
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By Sam Saggers