There’s no denying it – Brisbane is booming! There are currently billions of dollars of Major Brisbane Infrastructure Projects either underway or well into the planning stages. These infrastructure projects are not only providing vital employment, now and in the future, but are also changing the face of Brisbane.
Our city is currently experiencing what has been described by some as a “once in a generation” infrastructure boom. Whilst in the short term there will be disruptions for residents, once these projects are complete they will improve our transportation options, lifestyle options, employment opportunities and tourism offerings.
The Major Brisbane infrastructure projects include the Cross River Rail, Brisbane Metro, Queen’s Wharf, Brisbane Live, Victoria Park, Waterfront Precinct, Herston Quarter, International Cruise Terminal, West Village. There are so many projects which are also discussed on the Brisbane Property Podcast. You can listen here.
Already completed major projects are the new Brisbane airport runway and the redevelopment of Howard Smith Wharves. The new runway officially opened mid-July after 8 years of construction. This $1.1b project aims to bring the most efficient runway system in Australia to Brisbane. Once air travel is back up and running this will enable Brisbane to be the hub to the Asia Pacific.
Located under the Story Bridge Howard Smith Wharves has given Brisbane locals and tourists another picturesque riverside destination for picnics, restaurants, bars and functions. “Weekends on the lawn” are popular and relaxed family friendly events.
Now, let’s have a look at what the current infrastructure projects are and which suburbs in Brisbane are going to benefit from them.
Brisbane Infrastructure Projects
Cross River Rail
“Cross River Rail is a new 10.2 kilometre rail line from Dutton Park to Bowen Hills, which includes 5.9 kilometres of twin tunnels under the Brisbane River and the CBD.”
As our population increases we are experiencing more strain on our public transport system. We need faster access for suburban residents to access major employment hubs including the CBD. Currently Brisbane only has one river crossing for trains and only 4 stations in the CBD. This creates a bottleneck and impedes the number of trains that can run and cross the city at any one time.
The Cross River Rail will bring 4 new stations at Albert St, Boggo Rd, Wooloongabba, and Roma St plus upgrades to rail stations that already exist including Exhibition Station in Herston. You can read more information on these stations here. As well as benefiting Brisbane residents and visitors, the Cross River Rail will shorten travel time to and from the Gold Coast enhancing the connectivity between the tourist and employment hubs.
On Brisbane’s south-side 6 stations will benefit from significant upgrades and therefore the greater communities of these areas. They are:
You can keep up to date with current progress on the Cross River Rail Facebook Page.
The Brisbane Metro was originally proposed to be a high-frequency subway but has now progressed to an electric busway system. The buses will be 24 metres long and split into three carriages. Services in peak hours will be fast with a bus every 3 mins and outside of these hours there will be 5 minute services. This will be a drastic improvement to the current public transport services available.
There will be two different lines for the Brisbane Metro. Line 1 will run from Eight Mile Plains to Roma Street. Line 2 will run from the Royal Brisbane and Women’s Hospital in Herston to the University of QLD in St Lucia.
There are plans to extend to Chermside and Carindale in the future. All of these suburbs will benefit greatly from the completion of this infrastructure.
Although separate to the state governments’ Cross River Rail project they will share interchanges at Boggo Road and Roma St stations. The Brisbane Metro is expected to start services by the end of 2023. Suburbs that will benefit directly from the metro are below and their neighbouring suburbs will also benefit.
Eight Mile Plains
Upper Mt Gravatt
Holland Park West
In alignment with the Cross River Rail Project and building the new underground station at Roma Street, a new entertainment arena complex will be constructed in place of the old transit centre.
This $2 billion redevelopment will revitalise this part of the city with the arena and retail shops and “unlock under-utilised land in the heart of the city”. The multi-purpose arena complex with proposed 17,000-18,000 seat capacity has been designed in the New York Madison Square Garden style and will allow greater accessibility to big sporting, music and arts events in Brisbane.
There will be retail spaces on the Roma Street side as well as a “Sky Lounge” that can operate as a function area when there are no events taking place.
This project will benefit all Brisbane residents who like to attend events and will no longer have to travel to the Boondall Entertainment Centre north of Brisbane. You can access updates on Brisbane Development’s project page here.
The old non-heritage buildings have been demolished and development of the $3.6 billion dollar Queen’s Wharf integrated resort development is underway. Covering more than 26 hectares across land and the river, the development will merge contemporary architecture with restored heritage buildings. There will be four integrated resort towers with luxury hotels, residence apartments, restaurants, cafes, bars, retail shops, a casino and a Sky Deck.
A new pedestrian bridge – the Neville Bonner Pedestrian Bridge – will be built to link this revitalised area of the city to South Bank. This will be a major drawcard for tourists to come to Brisbane and also provide a new area for all locals to explore and shop.
Already redeveloped and opened as part of the Queen’s Wharf project are Mangrove Walk and the first section of the bicentennial bikeway opening up a 500 metre stretch of land underneath the Riverside Expressway.
Maritime work at The Landing has already started in the Brisbane River for the construction of the piled suspended concrete slab that will provide 6,500m2 of new public space. The scheduled completion date for the Queen’s Wharf Development is 2022. You can keep up to date with construction progress on their Facebook page or here.
The current 18-hole Victoria Park golf course will be closing in June 2021 to make way for Brisbane’s biggest new park in 50 years. The Victoria Park Vision will create 45 hectares of public parkland space which is more than double the size of the Brisbane City Botanical Gardens. The current putt putt course, driving range and function centre will remain. Plans are yet to be finalised but you can have a look at the visual representation of the draft vision here.
Feedback has been gathered after a 6 month consultation period and final plans will be released at the end of this year.
Victoria Park will become a natural retreat, an urban park for adventure, discovery and reconnection.
A Cultural Hub will celebrate Brisbane’s heritage and natural environment. The park will feature native bushland pockets and waterholes where visitors can enjoy kayaking and swimming lagoons.
Architecture will mimic the landscape with suspended canopy walks and a tree house so visitors can connect with nature, day and night.
This prime inner-city location will include a community garden, giving visitors more to see and do.
It will be culturally authentic, celebrating the many layers of human contact with the landscape and the site’s significance to Aboriginal people.
Waterfront Brisbane will deliver on quite a few key items from the City Reach Waterfront Master Plan (Brisbane City Council’s plan to revitalise the waterfront from the City Botanic Gardens through to Howard Smith Wharves).
The $2.1billion dollar project will redevlop Eagle Street Pier and open up 7,900m2 of space, increase the size of the current Riverwalk (including extending the width to 6 metres) to a 1.2km waterfront promenade for pedestrians and cyclists.
The old Eagle Street Pier building will be demolished and in its place there will be two new towers which allow better access to the river and its views. There will be improved linkages from the city to the river for pedestrians and cyclists.
The plan also details space for a proposed public riverside lap pool, relocation of the current city cat terminal and integration with the proposed Kangaroo Point green bridge.
This is another key project to deliver on the City Reach Waterfront Master Plan. The proposed green bridge, connecting City Reach to the Kangaroo Point peninsula, will dramatically improve access to and along the waterfront and fundamentally re-shape City Reach’s profile.
Connecting to the City Botanic Gardens Riverwalk and River Access Hub, this bridge will be for pedestrians and cyclists only. To have a look at the proposed design click here.
In alignment with the new station being built at Wooloongabba for the Cross River Rail project, there is an area set aside for redevelopment above the underground station including the GABBA stadium. The renewal plan can be accessed here. Below is the video of the concept.
International Cruise Terminal
The Port Of Brisbane has a brand new international cruise terminal in development worth $177 million. It has been designed to cater for the biggest cruise ships in the world which although aren’t currently running will increase Brisbane and Queensland’s tourism capacity once COVID-19 is under control. For information and videos on construction updates click through to the Port of Brisbane’s website here.
Other projects to link in with existing or planned Brisbane infrastructure projects are:
Herston Quarter – in March 2017 the $1.1b redevelopment of the 5 hectare site began. This is located within the Herston Health Precinct and is proposed to be a mixed-use community which will cater for health, residential, commercial and retail development. For more information click here.
West Village – stage 1 and 2 are already complete of the new West Village. This project is rejuvenating an industrial area in West End bringing more public green space and retail opportunities to the community and restoring heritage buildings.
Lamington Markets Lutwyche – a large integrated mixed-use transit development is proposed for a vacant site in Lutwyche. The proposal includes a large fresh food market hall, boutique cinema complex, retail stores and residential apartments. You can read more about this and see artists impressions of the Lamington Markets Lutwyche here.
Howard Smith wharves ferry terminal – The Howard Smith Wharves ferry terminal will provide new access for residents and visitors to Howard Smith Wharves and further enhance the existing ferry network. It will also provide connection to the New Farm Riverwalk and surrounding areas as well as proposed to link to North Stradbroke Island.
South Bank Ferry Terminal upgrade – for information click here.
There are many more Brisbane Infrastructure Projects planned for the city. For access to information and updates on these projects go the the Brisbane Development website.
QPAC Arts Theatre upgrade at the Playhouse Green – for details click here.
So as you can see there are billions of dollars worth of Brisbane infrastructure projects either underway or in planning. These projects will have a direct positive impact on the suburbs mentioned above, increasing their livability and their growth potential.
To make an informed decision about choosing the best suburb to invest or buy your home in, you can cross check the suburbs that benefit from these projects against those that are affected by adverse risk factors. Our blog on noise from the runway and flight paths can be readhere. You can also read about 9 Due Diligence Checks to take into consideration before buying.
We hope this has helped you understand the suburbs that are going to benefit from the current and planned Brisbane infrastructure projects. Please get in touch if you would like further help with your property search.
A Buyers agent is a fully licensed property professional that has a strong network in the industry and is able to help you to find and buy property that is listed on the market, or that is off market, whether that be a home or an investment property.
Having a Buyers Agent to represent you can instil confidence in your decision-making and help you see where the value lies in a property.
It can be daunting trying to find the right home for you and your family. It can also be overwhelming to try and find an investment property, especially when you don’t know where to start. And because the selling agent works exclusively for the seller, you can never be confident that the information they are sharing with you is for your benefit.
The major role of a Buyers Agent is to help Clients purchase the right property for the right price. They work for you as the buyer!
Now that you know what a Buyers agent is, let us get into some of the things you should consider so that you work with the best.
1. Buyers Agents should have a lot of local knowledge and strong industry experience.
Most Buyers Agents offer a complimentary consultation. It is wise to use this time to get to know what expertise the Buyers Agent has to offer. They will be sharing with you their experience and knowledge so make sure to ask questions about their time in the industry.
Look for Buyers Agencies that can offer a wide range of expert knowledge. This may be a Qualified Property Investment Advisor to assist with strategy, a licensed Builder to inspect a property initially and then check over building and pest inspections in detail, a home buyer or investment specialist who understands your needs and maybe someone with extensive experience in property management.
2. The Best Buyers Agents in Brisbane will be Qualified.
Every agent must be licensed to act on behalf of clients however real estate is still an industry that is not regulated in regards to what type of advice they can give. Until the industry changes, you need to complete your own due diligence as there are qualifications buyers agents can obtain to ensure they are giving you accredited advice for your personal circumstances.
QPIA: Qualified property investment adviser is a three-year accreditation course that property and finance professionals can take through the Property Investment Professionals of Australia. This course ensures they are informed and qualified to give unbiased, professional and proven advice to help you achieve your property goals. Click HEREto see a list of Qualified Property Investment Advisors in your area.
REBAA: The Real Estate Buyers Agents Association of Australia is a membership program for professional Buyers Agents. They conduct extensive research on the agency which involves disclosure of all processes and procedures. This ensures that the buyers agency adheres to a professional code of conduct. If the Buyer’s Agent is a member of REBAA then they are dedicated to do the right thing by the industry and for you. ClickHEREfor a list of REBAA members. If you Buyers Agent is a member of REBAA, it provides you with peace of mind because it is another layer of protection for the consumer.
QBCC: The Queensland Building and Construction Commission holds the licences for builders and building contractors. If you are relying on your Buyers Agent to provide advice around building, development or renovation, please check their licence class to ensure they are qualified to give that advice. ClickHEREto search or check license details in Queensland. Other States in Australia will have their own building regulatory authority through which a licence check can also take place.
3. Look for a Buyers Agent with strong Google Reviews.
Google reviews are independent and not controlled by the Buyers Agency business themselves. If the buyer’s agent is directing you to their testimonial page on their website, or another page which manages reviews on their behalf, then this is an area that they can control so some poor or negative reviews may be filtered. Google reviews are a great way for clients to rate their honest feedback.
It is important to read other clients’ experience as no one can tell it better than the clients themselves.
Check for lengthy and detailed reviews to get the best understanding of the full experience. Below is an example of a strong google review and clickHEREfor further examples.
Even better – ask the Buyers Agent if they will put you in touch with previous Clients of theirs so that you can ask the questions that you want directly!
4. The Best Buyers Agent in Brisbane will not have a Sales Pitch to “Make you Millions fast”.
If you are looking into a Buyer’s Agent for the purpose of creating wealth or securing your future I am sure you would have seen a number of Facebook ads on young, rich Buyers Agents saying you can make millions in under 5 years…
Its easy right?…
This is not how property works. “Property spruikers” (it’s what we call them) hurt their clients time and time again. They are in the business to make themselves money and when the time comes to evaluate the performance of the asset purchased they have moved on, closed the business and started again. The buyer is left with an under performing asset and no way out.
If you are talking to a Buyer’s Agent who does not charge you anything for their service – it is likely that you are dealing with a property spruiker! They will be getting paid by the developer or the builder to offload new stock.
5. Buyers Agents should put your needs first.
Of course, ‘your needs’ are completely client dependent as every consumer has a different reason for engaging a particular service.
Does the Buyer’s Agency fit with what you are looking for in your journey and can they help you achieve your goals? If you are looking at sites that have development potential, do they have specialists within their team to provide expert knowledge or a builder who can understand, educate and assist throughout the process?
If you are looking to rent the property, looking for a Buyers Agent that has experience in property management is very helpful as well! Otherwise they should have strong relationships with Property Managers in the local area. No matter what your goal is in buying property, a buyers agent should always put your needs first and customise a strategy to help you achieve your goals.
If you are looking for a family home, make sure the buyers agent that you choose knows the area themselves. They should have intimate knowledge about your preferred suburbs in Brisbane and not only be able to provide advice on property alone, but also help with information relevant to selecting the right location for your family such as ensuring you are in the right school catchment zone, or close to transport.
6. Buyers Agents should not take commissions from others.
Even if the Buyer’s Agent is offering an attractive discounted fee to you, chances are they are only able to do that as others are paying them in referral fees. You want the Buyers Agent to refer you to others in the industry purely based on great service and not because they are giving the Agent commission.
If there is an incentive involved check to see if the Agent is keeping it for themselves or passing on the incentive to you as their client. A common way Buyers Agents can get paid is through developers.
The developer will pay a substantial amount of money to agents to try and sell properties in their estate as oversupply can make it difficult for them to do this naturally through the display homes. This type of property may not be the right one for you but because the Buyer’s Agent is aligned with the developer they may try to push you towards that purchase. Be very aware of not making this mistake. As stated above, the Buyers Agent should always have your best interest at heart.
In terms of fees, a Buyers Agent in Brisbane may charge either a fixed fee, or a commission based on the purchase price. Commissions range from 2-3% of the purchase price, depending on the Buyers Agent you select. Fixed fees are either set, or negotiated up front before the search commences. Either way, buyers agent fees are payable by a buyer who is engaging the service.
We hope these tips have helped you understand how to choose the Best Buyers Agent in Brisbane! If you need help and would like to explore using a qualified buyers agent in Brisbane to help you streamline the process please reach outHERE.
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Would you like to understand more about working with a Buyers Agent in Brisbane?
Do you know what it means and how it can benefit you in your property search?
How can a Buyers Agent help you secure off market properties?
What are off market properties?
Off market properties are properties that are for sale without being advertised to the general public. They are not listed on the usual real estate website portals, they don’t have shiny brochures and they don’t have regular “open for inspections”. All of this means that they are available to a limited number of buyers which can reduce the competition for that property. This can be advantageous for you, the buyer!
If you’ve been searching online for a while you may have seen new properties pop up and already have “under offer” or “sold” on them. This is usually because the property has sold off market, and the selling agent wants to use it as a marketing tool for themselves. The best way for them to get new clients is to show their sales results!
Here’s a quick video explaining off market properties.
Why are there off market properties?
Why would owners want to sell their home or investment property off market when it means they may not get the maximum sales price possible? There are a variety of reasons:
They want to keep the sale private.
Usually from the neighbourhood or their local community who aren’t close friends. This could be due to a break-up, illness, change in working location or financial circumstances. Some people are simply private people.
To save on marketing costs.
Listing on real estate websites can cost thousands of dollars so selling off market saves money. The owners may not want professional photography or styling either so this saves on that as well.
To avoid open home inspections.
It takes a lot of work to clean and present a home for open inspections every Saturday for few weeks at a minimum. Some agents like to open for inspection mid-week too depending on the target market. Then there’s the after inspection clean up! On top of this is the lack of privacy you have with people traipsing through your home and looking at your personal possessions.
Selling your property off market can avoid this which is appealing for families with children, busy professionals or public figures in the community.
To reduce the stress of selling the home.
Selling your home can be quite a stressful process. If the owners are already in a stressful situation adding the public sale of their home can be a bit much to take. Keeping the sale off market and available to only a limited number of buyers reduces this stress. Owners can direct the sales agent to only bring qualified, genuine buyers through the property.
How can you find off market properties?
If you have the time then call every agent who sells in the areas you’re looking to buy into and ask them what they have available. Make sure you’re checking in with them every 1-2 weeks and that they have your details in their system to send you their email updates.
Go to all of their open house inspections even if that property is not right for you. The more that the agents see you the better. Talk to them and ask them questions.
Follow agents on social media. More agents are ‘announcing’ their up-coming listings on Instagram and Facebook.
You need to be top of mind when they speak to and sign up a new client. This is imperative for you to have access to the whole range of properties for sale whether on market or off market.
Help for buyers
If you’re time poor and frustrated with the search, a Brisbane Buyers Agent can help you.
Buyers Agents should already have a developed network of agents. Because they specialise in searching for clients, they have regular contact with selling agents in all different areas of Brisbane. A Buyers Agent contacts sales agents and provides them their clients’ needs and wants in a new home or investment property. The Real Estate Buyers Agents Association of Australia (REBAA) defines the role here.
A Buyers Agent will conduct basic due diligence of a property before even presenting it to their clients to make sure there are no major issues with the house and/or land. To save their clients time, Buyers Agents arrange and conduct the initial inspection of the property and take a detailed video to show their client. Our blog goes more in depth into how a Buyers Agent can help you.
Depending of the circumstances of the seller, time can be of critical importance in securing an off market property. This is especially true if the seller does want to take the property to market, i.e. have professional photos and advertise online through the real estate portals such as realestate.com.au and domain.com.au. This can also be known as a pre-market opportunity.
These are still off market properties, but the owners are motivated to sell and prepared to list their property publicly. However, if they do receive a good enough offer before they go to the open market they are prepared to sell to save on the marketing costs and remove the inconvenience of open for inspections.
If you can offer a good price to buy the property, then even if it’s a bit under what the selling agent could achieve with competition, the owner can decide to sell off market. The benefits of reducing the stress and costs as outlined above can outweigh the loss of a few thousand dollars. It’s important in this situation that you have a good understanding of what the value of the property is so that you don’t overpay! Research is critical for successful negotiation of both on market and off market properties. Take your time and make sure you understand the current market!
We hope this has helped you understand off market properties in Brisbane. Please get in touch if you would like further help with your property search.
This article will show you everything you need to know now that Brisbane’s second runway has opened. This has resulted in some changes to the flight paths and plane noise impact for many residents around our city.
On July 12 2020 the official opening of Brisbane’s much anticipated second runway went ahead as scheduled, despite the impacts of Covid-19. project took more than 15 years of planning and construction. With passenger numbers expected to increase to 50 million by 2035, this project was essential to keep up the growing demand as well as connect Queensland to the rest of the world for business and leisure.
Understanding the noise impact from the Brisbane Flight Paths.
It is no secret that doubling the capacity of an airport will bring double the traffic, and this is exactly the plan for Brisbane’s Airport. Flight paths are the highways of the sky and just like the motorways here on the ground, they do carry noise.
You might want to know who is responsible for determining the flight paths and this is done by Air Services Australia. Flight pathways are based on so many factors including weather, direction of the wind, airport capacity, direction of travel as well as many more.
To help you understand the level of noise impact please see the below diagram comparing the decibels to places around Brisbane. A noise level of 70 decibels is likely to interfere with people speaking indoors (with the windows open) as per Australian standards.
The next diagram may also provide some perspective in relation to flight path noise. When comparing the Brisbane Flight Paths to different airports throughout Australia, you will notice there are vast differences. The Brisbane Airport is 6km away from residential housing, whilst in some other states it is only 600m away from residential housing.
The top 10 suburbs to be affected by the Brisbane flight paths.
No. Flights above 70db (two Runways)
No. Flights above 70db (one runway)
20 to 49 Flights
20 to 49 Flights
10 to 19 Flights
3. Cannon Hill
20 to 49 Flights
50 or more Flights
20 to 49 Flights
50 or more flights
10 to 19 Flights
10 to 19 Flights
2 to 4 Flights
7. Seven Hills
10 to 19 Flights
10 to 19 Flights
5 to 9 Flights
5 to 9 Flights
5 to 9 Flights
10. New Farm
2 to 4 Flights
There are a few new suburbs added to the mix now that the second runway is operational, that were not previously affected by Brisbane flight path noise. There are also some suburbs that have had a reduced impact due the spread of flights over both runways. This also takes the pressure off one runway and its heavy use.
Below are the suburbs in Brisbane which have experienced an increase in plane traffic and noise. Balmoral is the most heavily impacted suburb, going from 0 flights that are above 70 decibels to 20 – 49 flights at the same noise level. This is a significant increase!
As Brisbane grows the impact of plain noise is expected to increase. As the airports get busier, more flights are needed to accommodate the flight demand.
How does Brisbane Flight Paths affect the Property Market?
According to a study lead by the Queensland University of Technology there has been no reported impact historically from plane noise in terms of the capital growth potential or the demand for a location in Brisbane. This study provided a comprehensive report on the impact of Aircraft noise on Brisbane residential sectors. Historically, suburbs with strong aircraft noise impacts have performed just as well as those that did not.
We do not yet know if this same trend will continue given the capacity of the Brisbane airport has effectively doubled with the opening on the second runway. Time will tell.
What this study did show was that price growth appeared to be driven more so by location in terms of distance from the CBD which is a trend also reported throughout other Capital cities in Australia.
Although there is no published evidence of plane noise impacting the long term capital growth in Brisbane suburbs, there may be some shifts in demand in the future once the new impacts become more apparent. Perhaps in locations where air traffic noise is likely to increase the most (for example, Ascot, Hamilton & Balmoral), some home buyers may prefer to consider other comparable locations that have no such impact.
How to check Brisbane Flight Paths
There will always be noise impact in some way from planes. As the wind, time, day and seasons change so will the paths the planes take. Please click HERE to check if your property is affected by the second runway.
This resource provides a great interactive tool so that you can assess the flight noise impact for any address across the city. It is recommended that this forms part of your property buying due diligence checklist now and into the future.
When comparing capital cities it is evident that some other airports are significantly closer to their residential properties than here in Brisbane. Our city has an airport set further away from the surrounding residential neighbourhoods, which provides an increased distance for the initial take off.
If you are thinking of purchasing a property in Brisbane we hope these tools are useful. They will help you to determine the most affected locations resulting from the opening of the second runway in Brisbane. It can be overwhelming to get everything right when selecing your ideal property, but that is why we are here to help. If you need assistance in securing your next home or investment property please get in touch with Streamline Property Buyers.
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Would you like to understand more about working with a Buyers Agent in Brisbane?
Purchasing a development site in Brisbane requires a unique set of skills to uncover all layers that must be considered during the site acquisition process for a successful and profitable development project. As Brisbane Buyers Agents we want to help you learn the things to look out for when buying a potential site.
Zoning and Overlays
Things such as flood overlays, character overlays, land zoning and site dimensions … to name a few … all need to be considered BEFORE entering a contract to purchase a potential development site. This is what you need to look for when conducting due diligence on properties.
Finding a development site
Our Brisbane Buyers Agents team are constantly searching for these opportunities. To capture the full range of sites available we assess a lot of opportunities off market, or pre-market, but we also review properties that do come to market.
In those that are listed onrealestate.com.auordomain.com.au, we always look out for these 4 letters …. STCA. When anyone is trolling through real estate listings it so important to BE AWARE of these letters which stand for “Subject To Council Approval.”
In our experience, we have seen many sales agents who suggest, in their listing, that a property that is for sale may have upside development potential.
Some agents may even go as far as suggesting how a property may be developed by indicating that a property can be subdivided or may be converted into units or townhouses. But there’s always a disclaimer on their listing …. STCA. So, you must look out for these letters in a listing when purchasing a development site in Brisbane and tread with caution in relation to properties when they exist.
When an agent suggests a property has development potential, but the listing is tagged “STCA”, what this really means is that there is no guarantee of the development potential for the property and it is really up to you, as the purchaser, to do your own due diligence.
As Brisbane buyers agentswe have heard of many instances, where a contract for the purchase of a property has gone unconditional or even settled and only after there is no option to withdraw, the purchaser discovers that there is in fact no development upside. This is usually because there are limitations, or there are constraints impacting the site, that of course were not identified in the real estate listing, but were also not discovered during a comprehensive site due diligence process.
Of course sales agents are never going to tell you the negative aspects of a property in their listing, so it is up to you to do your own due diligence – especially when purchasing a development site in Brisbane.
Help for You
Thankfully, local Brisbane Buyers Agents can help you with that process so that you can understand what it is that you are purchasing. We can uncover the true upside potential of a property and evaluate the development limitations that may exist.
Working with a good Town Planner is also essential with these types of sites. You can learn more about this on the Brisbane Property Podcast – Episode 6. You can listen here. And you can learn more about Steffan Town Planning on their website here.
I hope this information has been helpful on your quest to buy your next development site in Brisbane. If you need further help to secure a site with the necessary due diligence we can help. Please reach out by booking a discovery call through the link below to your Brisbane Buyers Agents.
Would you like to understand more about working with a Buyers Agent in Brisbane?
Have you shopped around to get an idea of costs from a few buyers agents and found the price varies between agencies?
Have you been shocked at some of the costs associated with engaging a Buyers Agent to help you purchase your home or investment property in Brisbane?
I hear you! I plan to share why choosing the cheapest Buyers Agent in Brisbane may not necessarily be the best idea.
A Buyers Agent is a property professional that can guide you through the purchase process of buying a home or an investment property.
We all know sales agents work for the seller to get the highest price possible. Having a Buyers Agent in your corner, to ensure you are selecting a quality asset and not paying too much for it so you do not make a mistake, is crucial.
Buying property in Brisbane is one of the biggest and most expensive decisions you may make in your lifetime. It is important to do it right from the beginning to ensure you are not making mistakes. Let’s now look into why you shouldn’t use the cheapest Buyer’s Agent in Brisbane.
1. Assess Value NOT Price
When purchasing property there is a lot of work that goes into each site of interest. The level of local knowledge, past experience, process of due diligence and the scope of local agent networks will all add up to extra value for you as a property buyer.
If you are searching for the cheapest Buyers Agent in Brisbane and shopping purely on price alone, you may not assess the differences in value that you actually receive as part of the service.
Low fees might mean that you don’t receive extensive due diligence and research reports about properties that you are looking to purchase. Perhaps if it is an investment you are seeking, low fees might exclude tailored property investment advice and full property investment projection reports, to ensure the property is right for you.
The cheapest Buyers Agents in Brisbane might be new to the industry, and therefore they would lack extensive and well established networks with Sales Agents through the city. This might limit the number of off-market properties that you get to consider as a property buyer.
I have heard horror stories where Buyers Agents have not physically inspected the properties on behalf of their Clients. Some even rely on sales agents to video an inspection on their behalf. This obviously reduces the cost to a property buyer, but is dramatically increases the risk because a sales agent will not highlight any issues that a buyers agent should pick up during a physical inspection themselves.
2. Check for additional Qualifications
The property investment industry is not regulated when it comes to providing property investment advice. Yes, this may be shocking to hear because every day Australians are putting hundreds of thousands of dollars into property purchases, but they may be receiving advice from someone who has no qualifications to provide such advice.
When mistakes are made with property buying and property investing, they can cost you a lot of money as a property owner.
Thankfully, there are ways that Buyers Agents can set themselves apart to provide some level of confidence for consumers.
Below I have provided a list of professional bodies that govern the buyers agency and property investment industries in Australia. Participating Agencies are required to adhere to a strict code of conduct, giving property buyers the peace of mind that they are selecting the right Agent for their needs.
REBAA: Real Estate Buyers Agents Association of Australia aim to raise the profile of the industry and to establish guidelines for professional conduct of real estate buyers agents nationally. Members of REBAA are committed to following the highest professional and ethical standards in the industry. Click HERE to see which QLD Buyers Agents are members of REBAA.
PIPA: Property Investment Professionals of Australia aims to raise the professional standards of all operators servicing consumers in property investment. Members adhere to a strict code of conduct and are required to obtain professional standards of accreditation through education and a commitment to excellence.
QPIA: Qualified Property Investment Advisors are members of PIPA who have completed an extensive accreditation course to become experts in providing advice surrounding property and investments. It is common that the cheapest buyers agents in Brisbane won’t have any qualifications and mask that by drawing in people with lower fees. Click HERE to search for Qualified Property Investment Advisors in your area.
3. The Cheapest Buyers Agent in Brisbane might focus more on Volume rather than providing a Quality Service
When a Buyer’s Agent charges low fees to their clients, they often have a lot of spaces to fill and can take on many clients at one time. This sometimes means less attention is focused on your property search and you may find personal communication and a high quality of service is lacking. It is important to look for an agency that prioritize quality over quantity.
The best way to do this is to request some details of previous Clients. Property buyers who have used a Buyers Agent previously are usually happy to speak to others about their experiences.
4. The Cheapest Buyers Agent in Brisbane will provide what you pay for.
In the property industry, like many others, it is definitely a case of “you get what you pay for” when you are searching based on price.
If you are looking for buyers agent who charges a bargain price, there will be some compromises that you must be willing to accept.
Some of these compromises may be more limited connections with agents, so fewer off market opportunities, lack of experience, lack of professional affiliations or simply a lack of in depth property knowledge. They may also be located interstate, so would not be experts on the local area or “on the ground” when it comes to inspecting properties.
However, some Buyers Agents will (and do) charge a premium for their services. In some instances up to 3% + GST – even at the highest price points. One thing to point out here is that the “most expensive” is not always the Best in this industry. So again … check what value they provide and don’t just assume that the most expensive is always the best!
5. The Cheapest Buyers Agent in Brisbane may actually be FREE
Yes that’s right, some Buyers Agents might advertise that their service is FREE.
What? No-one works for free!!!
It is absolutely true that no-one works for free, but some Buyers Agents get paid a fee from developers or builders to sell on their stock.
It is gut wrenching to witness, however, there are many Buyers Agents that have strong relationships with developers and they are paid high commissions by the developers to bring buyers in to absorb their stock. This is usually stock that does not provide strong growth opportunities for investors and are typically new estates a fair distance from the CBD or apartment high-rise unit developments. Because they are being paid in other ways during the purchase process, the fees to clients using their services can be FREE.
Property buyers must investigate whether using the cheapest buyers agent is Brisbane is right for them. I urge consumers to take the above points into consideration. You want to ensure that the person or company representing you as a property buyer will deliver the results you are after and help you by way of compliance with a professional standard.
A high quality buyers agent in Brisbane will save you the most money in the long run.
With the continuing threat of the Coronavirus outbreak causing panic in countries throughout the world, it is important to consider what is the likely impact of coronavirus on Brisbane Property Values. We have had a number of people contact us asking what our thoughts are on this topic.
We first published our response to this question on March 12 2020, and at that time it was too uncertain to assess the impact that was likely to occur in the months that followed. Since then we know that the response in Queensland has been exceptional. Let’s look at what has unfolded and where we might be heading.
The presence of coronavirus in Australia, and around the world, is causing a significant slow down in the economy.
However, in Australia, the combined effect of monetary and fiscal policy has helped all of us navigate this difficult period.
Impact of Coronavirus on Brisbane Property Values
In terms of the impact of coronavirus on Brisbane property, it is important to note that the fundamentals for Brisbane real estate have not changed at all.
We still have a huge supply shortage, driven by lower listing volumes as well as a reduction in construction completions.
In fact disruption to consumer confidence caused by the presence of coronavirus has resulted in some new attached dwelling projects to be delayed in Brisbane. This will result in a further reduction in the supply of new dwellings in the coming months and years.
Remember, before Brisbane Covid-19 concerns became a part of our every day lives, the rate of interstate migration was accelerating. More and more people were relocating to the Great South East which was supporting the strong population growth that our region was experiencing.
With border closures, this trend has paused.
But it is expected that with normal movement recommencing between states, that more and more people will look to migrate to our City, driven by affordability, sunshine and other lifestyle drivers.
Demand for property is still stronger than ever. On the ground we have seen no slow down in terms of the number of people at open homes, the number of registered bidders at auctions or the number of offers on properties listed for sale by private treaty. Across the board we are still seeing extremely high demand for quality properties in well located pockets within Brisbane.
Additionally, Australia is not one property market. There are markets within Markets and the Brisbane Property Market is actually quite different right now to the other major cities of Sydney and Melbourne.
According to Corelogic Data, the median house prices at the end of July 2020 for the largest capital cities in Australia are listed below:
Brisbane = $502,000
Sydney = $866,000
Melbourne = $678,000
Sydney is 72% higher than Brisbane and Melbourne’s median value is 35% higher than Brisbane.
The average income in Brisbane is $2,231 per week compared with $2,867 in Sydney (28% higher) and $2,413 in Melbourne (8% higher) (ABS).
The proportion of household debt to incomes is therefore a lot greater in Sydney and Melbourne, than it is in Brisbane which provides strong support for our local market during the economic downturn as homeowners are in a much stronger position to be able to afford to meet the repayments on their loans.
The economy is, however, being supported through interest rate cuts and the federal government’s $17.6 billion economic stimulus package. Due to Australia’s prudent economic management in recent years, we are now in a very strong position to support the economy with the necessary stimulus to help us through the months ahead.
With the Federal Government’s ongoing intention to support jobs, incomes, small business and investment, our national economy should be OK in this time of uncertainty. We will come out the other side!
These factors can work to ensure the demand for property remains strong and robust. Lower interest rates provide more disposable income to the household sector that can be used for spending to boost the overall economic benefits.
They also increase the borrowing capacity of buyers providing a further stimulus for people looking to enter the market. Remember there are many people who have NOT been impacted by the pandemic. These people have access to finance that has NEVER been cheaper. It is these people that are underpinning the Brisbane Property Market.
The property market, especially residential property, is quite different to other markets (such as the sharemarket) because it is not dominated by investors.
It makes up approximately $6.2 Trillion worth of Australia’s Wealth being the largest asset class in our country behind Australian Superannuation at $2.7 Trillion and Australian Listed Stocks at $1.8 Trillion.
Approximately 65-70% of all residential property is occupied by home owners and we as Australian’s will cut out spending in a lot of other areas before we make the decision to sell our much-loved family homes.
Of course, the main purpose of residential property is to provide shelter, and this is a human necessity. Because of the high transaction costs, we do not buy and sell property quickly (like shares) and therefore as an asset class it is less likely to experience price fluctuations in short periods of time.
Whilst this is a serious matter, it is important to remember that illnesses like influenza cause 3,500 deaths, about 18,000 hospitalizations and 300,000 GP consultations every year .
In relation to Coronavirus, according to the Australian Government Department of Health, as at 18th August 2020 Australia has 23,559 confirmed cases including 421 deaths .
Remember the effect of the virus will come to an end at some point.
Just like SARS (2002-3) and swine flu (2009-10), it is expected that the Coronovirus will come and go within a relatively short period of time.
According to the RBA deputy governor Guy Debelle, “Once we get beyond the effect of the virus, Australia’s economy would be supported by the low level of interest rates, the pick up in mining investment, infrastructure spending and an anticipated recovery in residential construction.” So there is no need to panic, instead taking a common sense long term approach seems like a more logical approach.
The Brisbane market has been strong up until March when coronavirus started to impact our lives. The fundamentals have not changed, so it is important to keep this all in context. We got through the Global Financial Crisis – the biggest economic downturn in modern history – so we can get through this.
Many property investors fail to understand the value that a Tax Depreciation Schedule can add to an investment strategy. This article will explore why property investors should consider if a tax depreciation schedule will be of benefit to them and what advantages a tax depreciation schedule can bring.
A tax depreciation schedule, for those who don’t already know, is a comprehensive report which identifies depreciation allowances for an investment property. It is a document that tells your accountant how much depreciation to claim for several parts of a property, which is basically the amount you can be compensated for wear and tear over a period of up to 40 years.
Benefits of a Tax Depreciation Schedule
The benefits of a tax depreciation schedule can be far reaching. Depreciation deductions can significantly reduce your taxable income and help your property return a positive cash flow sooner. Basing your purchasing decision purely on tax depreciation benefits, however, is a mistake because it fails to consider the long term goals as to why an individual is investing in the property market. A more holistic approach needs to be considered.
How to Complete a Tax Depreciation Schedule
In order to complete a tax depreciation report for a specific property, an investor would need to engage a Quantity Surveyor. They will arrange a physical inspection of the property to determine what tax depreciation’s are applicable.
Tax Depreciation Schedule Analysis
MCG Quantity Surveyors recently completed an analysis of the data that they collect, as a result of completing these tax depreciation reports for property investors. This report is available for download HERE.
The results demonstrated that the trend in buying behaviour since 2016 indicates investors are increasingly moving towards new/off-the-plan units and townhouses and new house-and-land package holdings rather than investing in existing homes. The four year increase in the percentage of investors buying new property was 107.53% according to this report. I caution investors to review a previous Blog Post of ours HERE before considering a brand new investment property purchase.
Of interest, this report also showed that townhouses have provided the most tax effective investment type, with the highest total deductions as compared to detached houses and units.
The most alarming figure in this report was the fact that Australian investors who’ve delayed ordering a tax depreciation schedule have potentially missed out on $2.9 billion in deductions! On average this equals approximately $20,537 in depreciable benefits for an individual investor. These missed tax deductions due to inaction are at epidemic proportions!
In closing, it is evident that property investors are becoming more aware of the benefits of obtaining a tax depreciation schedule. This type of report allows investors to minimize their tax and ensure investors can keep more of their gains, therefore bringing the dream of retirement a little closer than otherwise might be the case.
The Brisbane Property podcast hosts an episode with Mike Mortlock who is the Managing Director or MCG Quantity Surveyors. They highlight what is depreciation, why it needs to be considered and what benefits are available to property investors through depreciation when they complete their annual tax return.
Mike shares some valuable guidance on the types of renovation work that delivers maximum depreciation benefits – especially in Queenslander style properties that are so typical in Brisbane. you can watch the episode below.
Our Buyers Agent services include recommendations for property investors when a Tax Depreciation Schedule is needed. For more information about arranging a tax depreciation schedule for a property please visit MCG Quantity Surveyors.
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A lot of the news headlines around Australia in relation to what is happening in the property market during the coronavirus pandemic tend to focus on the larger cities of Sydney and Melbourne, so the purpose of this article is to provide a summary of what we are seeing at this time in Brisbane property during the coronavirus pandemic..
As we often say, Australia is not “One Property Market” and therefore references made in relation to what might happen to “the property market” can sometimes be misleading when considering local drivers of supply and demand at a city, or even at a suburb level.
Sales Agents across Brisbane have consistently reported a significant decline in the number of buyers in the market at the moment, which is not a surprise to us. During the first 2 ½ months of 2020 we saw record buyer depth in Brisbane with quality properties almost always selling with high numbers of registered bidders at auction or with a high number of written offers under a multiple offer scenario for a property for sale by private treaty.
More recently, since the Coronavirus changed the way in which we live and work, and impacted so many industries resulting to the closure of many business operations, the uncertainty around rising unemployment and the longer term economic impacts have caused many buyers to simply pause their property search. Most of these buyers are taking a wait and see approach. Tammy Dale from Place at Bulimba in Brisbane’s inner East stated simply that “some buyers are sitting on their hands.” This has coincided with the drop in consumer confidence.
The majority of property investors who were looking to capitalize on the long-term opportunity that Brisbane may offer have backed off. Driven by fear and uncertainty, they have taken the safest option to wait.
But the market to date is still being strongly supported by Owner Occupiers, and this is something that has been a consistent theme across the city according to many Sales Agents. Furthermore, the quality of the buyers who are inspecting properties has increased and according to David Lazzarini of Ray White Lutwyche in Brisbane’s Inner North, “the ratio of buyers who inspect a property to those who subsequently make an offer has increased – indicating there is a strong core of quality buyers still actively searching for property right now.”
Another consistent theme across the board is that buyers initially went into shock and buyer activity immediately slowed down, but according to Craig Loudon from Tobin Real Estate in the Brisbane Eastern suburb of Carina “I’m seeing and I’m hearing reports from colleagues around me in my local area, that there has been a bit of an uplift over the last week or bit over a week of buyer activity. It’s much like people have decided that everything is settling down from a pandemic point of view. Let’s go out and start looking again.” This is consistent with reports from realestate.com whereby week on week searches in the Buy site section are up 10% in Queensland as at 23 April 2020 and searches in the Rent site section are up 12% week on week.
The other obvious trend right now across Brisbane is that sales volumes are falling rapidly. Craig Lea from McGrath in the Inner Northern suburb of Wilston has said “We are still selling properties, but the volume is not what it used to be. But the number of conversations we are having in order to list properties is about the same, so people are still wanting to talk to Agents to get a feel for what’s going on, which I feel is quite encouraging.”
New listing volumes have already plummeted according to Corelogic as nervous sellers hold off listing their properties for sale until the uncertainty passes. Speaking to Veronica Royal who runs and online platform called Airlisting which connects buyers and sellers directly without Sales Agents, “For existing properties, we are seeing less sellers, selling without a real estate agent at the moment and from the people I’ve been speaking to, the reason they’re delaying selling is because they have a financial buffer there, so they’re able to hold off and they’re going to wait until the uncertainty is gone.”
And the question most people want to understand the answer to right now is “What’s happening to property prices?” Whilst Tammy Dale commented that “For some properties we are seeing a 5-10% softening in price, but other properties are staying fairly consistent,” other Agents have not experienced any noticeable price softening to date. Across the board, most Agents we are communicating with have confirmed that prices remain relatively unchanged at this point in time. Craig Loudon said “Prices are remaining stable.” We also spoke to Von Barnes of Pinnacle Properties who stated “when properties are presented well, priced appropriately and look great – they are still selling above expectations.”And finally, David Lazzarini summed it up nicely when he said “The gap has widened between buyers and sellers whereby some buyers are making offers based on where they ‘think’ the market might be headed. But with good information both buyers and sellers are able to make a better decision.”
From a rental perspective, we obtained some great insights from Jonathan Bell, managing director of Bell Estate Agents who are a boutique Property Management firm operating across many parts of Greater Brisbane. Jonathan said “From a Property Management perspective we’ve been pleasantly surprised as we were expecting a much greater impact than what we’ve seen. Whilst we have seen a reduction in the inquiry levels on a property, the people who are inquiring are definitely interested and they are ready to move. But in saying that we are having to be more aggressive with our pricing and if properties are priced well, they are definitely renting, and they are renting quickly.”
In terms of vacancy risk, it seems the location of properties has the greatest impact. According to Jonathan “Every day, if you are looking online, the market in the City (CBD) has been flooded with apartments for rent. I know that the short term letting Agents are not offering rental guarantees at the moment and those investors are definitely getting hit at the moment.” Whereas properties that we purchased for Clients 30 to 60 days ago, that have been settling throughout the peak of the Covid-19 crisis, have all secured quality tenants in a short space of time.
And what about the risk of tenant defaults? According to Jonathan “There’s been so much noise about this and ultimately if you look at the hard facts in our rent roll we’ve only had 2% of our rent roll say they are in hardship and only 1% are actually in arrears. It is very minimal and the tenants are being reasonable, only asking for some small reductions for a short period of time.”
So most buyers who have been looking to buy in Brisbane recently have not actually left the market. There is definitely going to be some pent up demand as the pandemic outcome becomes more certain and this will be fueled by record low interest rates, strong gross yields that are achievable in Brisbane as well as huge government stimulus to get the economy moving again. The weeks and months ahead will uncover exactly where we are heading, but for now, based on our “on-the-ground” research the property market in Brisbane seems to be relatively stable.
If you are a property owner or a property investor in Queensland, it is important to know if there may be a Priority Development Area (PDAs) nearby, so that you can determine what impact, if any, these areas may have on your property values.
A Priority Development Area (PDAs) is a parcel of land within Queensland that have been identified for development to deliver significant benefits to the community. The Minister for Economic Development Queensland (MEDQ) declares an area as a PDA under the Economic Development Act 2012. At the time of writing, there are currently 32 declared PDAs in Queensland. The focus of this review is to summarise those that exist in Brisbane.
Albert Street Cross River Rail
This priority development area facilitates the development associated with the Cross River Rail which is a 10.2 kilometre rail line being constructed from Dutton Park through to Bowen Hills, with a 5.9 kilometre tunnel under the Brisbane River and Brisbane City Centre. This PDA was declared in December 2018 and there is currently an Interim Land Use Plan in place which provides a planning framework for development within this PDA until a development scheme is approved.
2. Bowen Hills
The Bowen Hills priority development area facilitates the development of a regionally significant mixed use precinct that is well connected to public transport and the Brisbane CBD. It incorporates 108 hectares of land in the inner norther suburb of Bowen Hills in Brisbane. This PDA was declared in March 2008, and there has already been some significant transformations in this region in and around the landmark places including the Brisbane Showgrounds and the Old Museum.
Other areas that are included within this PDA are Perry Park, Bowen Park, the Exhibition Railway Station and the Bowen Hills Railway Station. The development of this area is being controlled by the Bowen Hills PDA Development Scheme which came into effect in July 2009, but has had two subsequent amendments in April 2010 and more recently in June 2019. The latest update has resulted in new building heights and increased communal space which provides for the long-term growth of around 23,000 new homes (mainly high density) and one million square metres of commercial, retail and industrial floor space.
This priority development area has been developed into a residential community that includes significant bushland area and open space and covers 295 hectares in the northern suburbs of Fitzgibbon, Carseldine, Bald Hills, Taigum and Deagon. It has been in place since July 2008 with significant changes around the Carseldine Train Station including an Urban Village area as well as smaller lot housing in the nearby residential areas in Fitzgibbon.
4. Herston Quarter
The Herston Quarter priority development area was declared in November 2016 and this area is currently being redeveloped into a mixed-use, health related precinct. The PDA covers approximately 6 hectares in the inner northern suburb of Herston, and the redevelopment includes a public heal facility, private hospital, aged care and retirement living, residential accommodation, childcare facilities, retail and restaurants. It also includes state-listed heritage sites including the Lady Lamington Nurses Home, Edith Cavell and Lady Norman Buildings which will be preserve and re-used. The development is being controlled by the Hertson Quarter PDA Development Scheme which came into effect in December 2017.
5. Northshore Hamilton
This priority development area covers 304 hectares of land and has over 3 kilometres of river frontage in Hamilton, just six kilometres from the Brisbane CBD. It was formerly a wharf and port area, which is being transformed into a large urban renewal area. The precinct is very close to the Brisbane airport and the Australian Trade Coast precinct which is the second largest employment region in Brisbane, outside of the CBD. The Northshore Hamilton PDA Development Scheme came into effect in July 2009 and already there has been significant advancements in the transformation in this region since.
The Oxley priority development area aims to deliver new homes and community facilities while retaining vegetation and open space. It came into effect in August 2018 and covers approximately 19 hectares of land in Oxley, about 11 kilometres south-west of the Brisbane CBD. The site is proposed to include a new residentail community within a bushland setting, retirement or ‘ageing-in-place’ accommodation, community facilities and the relocated C&K Yuingi Child Care Centre from flood-prone land. The Oxley PDA Development Scheme came into effect in August 2019.
7. Queens Wharf
The Queens Wharf priority development area incorporates land between the Brisbane River and George Street and between Alice Street and Queen Streets, with a riverfront connection to the Goodwill Bridge. With construction already underway, the PDA is facilitating the development of an integrated resort area and associated infrastructure. The PDA was declared in November 2014 and is being controlled by the Queens Wharf Brisbane PDA Development Scheme which commenced in January 2016.
8. The Mill at Moreton Bay
This Priority development area, located in and around Petrie in Moreton Bay, incorporates the existing Petrie Town Centre and land near the Kallangur and Lawnton train stations. It is facilitating the development of the University of the Sunshine Coast campus as well as new health, retail, commercial and residential developments and community infrastructure. Stage One of the university will be delivering courses from Semester 1 in 2020. The area, previously the site of the former paper mill, was declared as a PDA in September 2016 and is being controlled by The Mill at Moreton Bay development scheme which commenced in August 2017.
The Wooloongabba Priority development area is located in the suburb of Wooloongabba, just 2km south of the Brisbane CBD. It consists of a 10 hectare site between Vulture Street to the north, Stanley Street to the south, Allen Street to the west and Main Street to the east. The PDA was declared in April 2010 and is facilitating the redevelopment of mixed use zones (high density development fo 20-30 stories) as well as civic and open space areas and incorporating a major public transport interchange consisting of the Cross River Rail station as well as an integrated Bus exchange.
The Priority development area in Yeronga consists of approximately 3 hectares of land and includes a proposal to construct a new community centre, diverse residential options, small scale retail and improved active transport. This is a new PDA, declared in August 2018 and the Yeronga Priority Development Area Development Scheme came into effect in August 2019.
You will see that each Priority Development Area is in place for a different reason and some are to increase the supply of residential properties, others are likely to increase the supply of commercial or industrial properties and then there are those that will create jobs in the local community. Not all PDAs will deliver jobs so it is important to understand how each of these areas will change in the future.
If you own property, or are looking to purchase property, in and around these regions, please get in touch to discuss how these priority development areas may impact on property values in each of these areas and what that means for you as a home owner or a property investor.
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AS PUBLISHED IN AUSTRALIAN PROPERTY INVESTOR MAGAZINE (CLICK HERE)
This is a question I recently had to consider, when inspecting a property on behalf of an interstate property investor.
In considering if a buyer would consider a house where someone was murdered, I was faced with some confusion and uncertainty. Maybe it would be discounted, but there is a high stigma attached. So what is that worth?
When I arrived at the home I was inspecting for a client, a lovely 4 bedroom, recently renovated family home adjoining parkland in a premium inner-city location, I was confronted with the information that the agent was obliged to disclose. He simply stated … “I need to make you aware that there was a significant incident that occurred in this property in 2015. A little girl was murdered by her father inside.”
Now, this definitely caused me to stop right there, before entering the property, simply to think. I felt like I needed to draw in a few deep breaths. Normally I don’t have an emotional response when inspecting or buying property. Perhaps it was the mother in me, I’m not sure. After all, when looking at a property for others, as a Buyer’s Agent, I have learnt how to keep my emotions out of it.
I had already reviewed the property from my desktop. It ticked a lot of boxes for my Client. But with this new information I had to reconsider if this property was going to suit my buyer. Despite my immediate reservations, I entered the home and continued with the inspection, taking photos and video footage as I normally would.
But something “felt” terribly uncomfortable in that moment. As I walked through the home, thoughts flooded though my head. I was asking myself so many questions …
“Who would want to live here, potentially raise a family here knowing such a horrible crime took place within the home?”
“Who would want to rent this property, when there are so many other properties a family could rent that don’t share this terrible history?”
“Who would actually want to buy this property – a house where someone was murdered?”
But, of course, the logic in me started to see the situation from a different perspective. I understood that the property’s history did not increase anyone else’s chance of being murdered inside. Unlike other issues that can impact a property like flood or bushfire risk, just because a terrible event like this has happened before, it does not mean it will ever happen again. Right?
But the crime has resulted in the property being categorized as a “stigmatized property,” which is a term used to describe homes with an unfortunate history that could affect their market value. Death by murder or suicide, tends to make people uncomfortable. Buyers or Renters looking for a home don’t like to feel uncomfortable and many people are scared away by any stigma that is associated with a property.
Evidence has shown that stigmatized properties nearly always sell for less than they would have sold for without the stigma. And this is exactly what attracts some buyers to go for them.
This was a question I had to consider … “At what discounted price, would it be acceptable to buy the property, understanding the fact that someone, a little girl, had been murdered in this home?”
I thought perhaps there is value in the land itself and I explored the opportunity to demolish the property and rebuild something new. But I soon found that the home was protected from demolition, like many character homes that were built prior to the second world war here in Brisbane. That was simply not an option.
So, for my buyer, it was a definite no. Too much risk that the rental return would also be compromised. The crime was too recent to be forgotten and Google still tells the story when you search the address.
But the truth is, for another buyer, the lower potential resale value may present as an opportunity. To the existing owner (who happens to be an investor as the property was tenanted at the time of the incident) it’s pretty unfair that this recent history is now a factor in the asking price. But human nature is what it is, and as a result there may be the potential to save money up front because of what was undoubtably a tragedy, but may have no impact on the lives of the new buyers.
It is an uncomfortable truth to ponder … you can probably get a discount on a house if someone has been murdered in it. But would you do it? Would you buy a house where someone was murdered? I came to the conclusion that I couldn’t.
AS PUBLISHED IN AUSTRALIAN PROPERTY INVESTOR MAGAZINE (CLICK HERE)
It was her family that ultimately got Melinda Jennison started on her journey from first home buyer to investor and finally property professional. Like many young couples in Australia, Melinda and her husband wanted to get started by owning their own home from day one and were prepared to jump straight into the market as property owners instead of tenants.
“I bought my first home at a young age because my dad was a property investor and he always said to me that rent is ‘dead money’.
So, I had this thing in my head that I shouldn’t rent. Instead, when I decided to move out of home, and that was at the same time I met my now husband, we bought our first property together. I was 18 years old at that time.”
When buying her first property, Melinda was never really thinking about the capital growth that she could achieve from the property. But after a few years, she quickly saw the power that property investing could deliver.
“We sold our first home about six years later, having done a little bit of renovation work on the property, and made a huge profit. We were able to upgrade our home and obviously that set us up for the future. That first property purchase was probably the best move that I ever made.”
Melinda’s husband, Scott, has been a builder for many years and subsequently, when the couple upgraded into their next home, they renovated it to generate additional equity. They then used that equity to start building a property portfolio in inner city blue-chip locations.
Having the ability to add value through building and renovation has been a cornerstone of Melinda’s investment strategy as she went on to look at different opportunities.
“We bought an old run-down Queenslander in a good suburb, then did a full structural renovation on that property. Upon completion, we were able to rent the property for a very good price and we also had the benefit of high depreciation as well. It made it a very affordable hold and the capital growth has been very good because the location is desirable for homeowners as well as premium tenants and it sits within a great school catchment area.”
“We also purchased a holiday unit up at Noosa and we added value to that as well through renovation. But we soon realised that not all property performs the same. And through our own mistake, we realised that the Noosa property really wasn’t appreciating at the same rate as the premium properties that we owned in Brisbane. So, we decided to sell that and let our money work harder for us in properties with better capital growth potential”
“Given that we were commercial and industrial builders, we also retained one of the industrial warehouses that we built, and we still own that property today which is delivering a fantastic yield. So, we are experienced investors in many different types of properties.”
“More recently we’ve expanded into small residential property development projects. We purchase sites with development potential and add value by knocking down old homes, putting development approvals in place, and then constructing units.”
“We did a project with a boutique block of seven units in Brisbane and sold all of those back into the market. We have another site at the moment, which is two homes side-by-side with a Development Approval in place for more boutique units. This is located in an inner-city suburb close to public transport and lifestyle amenity.”
While overall her property investment journey has been a highly successful one, she has also had some challenges. The current lending environment is making it difficult for many people involved in property development. She has also had some misses, with her holiday investment property in Noosa, which didn’t appreciate as quickly as she would have liked, and the subsequent opportunity cost taught her some valuable lessons.
In recent years, Melinda has transferred her many years of experience, buying, building and developing properties for herself, into a career as a buyer’s agent, where she is able to help others achieve the same kind of success she’s had.
She has also completed the accreditation course through Property Investment Professionals of Australia (PIPA) so that any Clients looking for Property Investment advice, can be sure that they are receiving a property investment plan that is specific to their goals and personal circumstances.
“I already had the skills to locate great performing assets and to locate properties that had development potential, which gives people an alternative exit strategy when it comes to property investing. So, it seemed logical that I could help others to understand what makes a property a great performer. Now Scott and I are working together, combining our skill sets and not only finding properties on behalf of other buyers, but also identifying ways that they can add value to those properties through renovation, refurbishment or development and then placing them strategically in those opportunities.”
There are some key benefits to working with a buyer’s agent and Melinda is very big on not just locating good properties, but having an all-encompassing investment strategy that gives you multiple exit options and ways to generate additional equity.
“It’s really important to understand what a buyer’s long-term investment goals are so that we can match a strategy to their goals, because with property investment it should never be a one-size-fits-all approach.”
For new investors, Melinda suggests that they get educated on the factors that drive property prices and get started as soon as they can by buying the best property they can afford right now.
“It’s important to remember that the property location does a lot of the heavy lifting. So, for a lot of people, even if they’re buying a home, they need to consider how that property can potentially set them up for a comfortable future. The best thing about property is that once you buy in the right location, you can change the property through renovation, refurbishment or through a complete rebuild to get the perfect home in the perfect location.”
In her hometown of Brisbane, Melinda believes there are still some excellent buying opportunities for savvy property investors.
“Within Brisbane, according to the latest Corelogic Data, we have four of the top ten performing sub-regions for capital cities across Australia in relation to capital growth. We happen to be buying in a couple of those sub-regions for our clients. They are areas that have great opportunities for future employment.”
“The Queensland Government has declared priority development areas that have been identified for accelerated development with a focus on economic growth. We have been buying in one of these areas. The price of properties in this location is still generally sub-$500,000 for investor clients and the holding yields are upward of 4.5%. There’s also a lot of unrealised potential in the land because some pockets have recently been rezoned for higher-density development and a lot of people don’t understand the value that lies in the land itself.”
“The opportunity is huge. The area is serviced by a train line with direct access to the Brisbane CBD. There is also the potential to add value by manufacturing some additional equity in the existing homes, just cosmetic renovation to hold long-term if that’s what the investor desires. Then when it is time to sell, you have a greater number of potential exit strategies. Sell to a home owner, sell to another investor or sell to a developer”