Wed 26 Dec, 2018
The Best Suburbs to Invest in Brisbane Australia
With many property investors being priced out of cities like Sydney and Melbourne, investors are starting to head north to Brisbane for more opportunities. Luckily, the city’s balmier weather and proximity to beaches make the area a hot spot for new renters. However, knowing which suburbs to invest in Brisbane can be difficult and overwhelming, especially in the height of the summer months.
Fortunately, our Squirrels are here to help! In this month’s instalment, we’ll discuss some of the most promising suburbs to invest in Brisbane.
Remember, this article is not personal financial advice, nor is it to be interpreted as personal advice on where to invest in property. The purpose of this article is to give a general overview of which areas in Brisbane are experiencing growth and infrastructure developments, and what makes an area an attractive place to invest. It is important to conduct your own research when considering a property investment, paying particular attention to the benefits and risks involved.
The Up-And-Coming Suburbs to Invest in Brisbane
If you’re an investor with an appetite for risk, you may like to play a game of cat and mouse with the supply and demand in the market. As you can imagine, it’s important to watch for signals of a pending boom to find the right suburb to invest in Brisbane at the right time.
Luckily, we’ve done some of the preliminary work for you! Based on our search of the property market, these are the potential up-and-coming suburbs to invest in Brisbane this summer:
Just 7km from Brisbane CBD, Graceville has earned a spot on a number of investors’ hot spot lists. Despite its country town feel, the suburb’s proximity to the CBD has caused the demand to consistently overtake the supply. Additionally, Graceville has a fantastic selection of public and private schools, neighbourhood community and public transport access. This has made the suburb popular for both families and young professionals. While median house prices are soaring above $900k, demand for apartments and units in the suburb are also on the rise. As a result, you could expect rental yields of 3% for houses and 5.5% for units.
Also located only 7km from the CBD, Indooroopilly enjoys easy access to the city while having its own local amenities. The suburb is nestled along a long expanse of the river, resulting in an abundance of lush green scenery for its tenants to enjoy. Median house prices are sitting at $905k, while units are sitting at $475k. As a result, investors with both deep and shallow pockets can look to get in on this Brisbane suburb. Investors may enjoy rental yields of between 3.2-4.4%, with demand tipped to soar in 2019.
Thanks to the new rail line to the Redcliffe Peninsula, this Brisbane suburb has seen a huge rise in demand. Despite its 27km distance from the CBD, Kippa-Ring’s proximity to beaches offers significant lifestyle appeal for many tenants. Properties in this Brisbane suburb sit at a median price of $430k, meaning investors could enjoy an impressive rental yield of 4.6-5.9%.
Suburbs to Invest in Brisbane with the Best Rental Yields
Investors looking to make money thorough a cash flow strategy need to keep an eye on Brisbane suburbs with high rental prices. While up-and-coming suburbs may yield high rental prices in the future, a property with the best chance of a steady cash flow may be the safest bet. Based on our research, these are the suburbs with the potentially highest rental prices in Brisbane this summer:
Holland Park, Brisbane
Less than 15 minutes from the CBD, Holland Park is popular among young commuters. With Carindale and Mount Gravatt shopping centres close by, Holland Park is often dubbed ‘the best of both worlds’. Luckily, it also offers rental yields of up to 6.5%, according to year-end data from CoreLogic. Its amenities play in its favour for tasty capital gains, too, so Holland Park could be the ‘best of both worlds’ for investors as well.
Also scoring a rental yield of 6.5%, Kuraby has a different story. Sitting 16km south-east of the city, this quiet suburb often keeps to itself. While Kuraby doesn’t necessarily stand out from other Brisbane suburbs, its high rental yield could be an investment goldmine. That said, negative annual growth can jeopardise the capital gains potential for this suburb. However, investors looking for long-term cash flow-focused strategies, properties in Kuraby remain to be worthwhile considerations.
Coopers Plains, Brisbane
Located 11km south-west of the CBD, Coopers Plains has a lot more to it than just its proximity to Brisbane. The suburb also has a major university near by: Griffith University’s Nathan Campus. As a restful, Coopers Plains is a popular suburb for students year-round. Thanks to the constant demand for housing from university students, this Brisbane suburb sees a rental yield of around 6% in units.
How to Finance your Brisbane Property Investment
If you’ve discovered the right suburb to invest in Brisbane for you, then the next step to consider is how to finance your property investment. While there are many ways you can finance an investment property, there is one that is often overlooked: your super! By setting up a self-managed super fund, you can use a portion of your super to purchase an investment property and grow your wealth portfolio.