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Are Inner Brisbane Apartments a Good Investment in 2011?

Updated on July 1, 2011

While we have seen Brisbane house and apartment price growth stall in 2011, this is a chance for you to take a breather and assess the best investment time, mode, and housing type to suit YOUR long-term wealth building. The outlook for investors is bright, according to noted researchers BIS Shrapnel.

The residential markets around Australia have been impacted by rising interest rates and the decline in first home buyers. But on the positive side, there is a good demand for modern apartments in inner city areas, there is low unemployment, and mining is keeping our economy strong.

After talking with real estate agents, it seems there is a two tier market operating in Brisbane wider area. There is one tier made up of depressed sales (deceased estates and foreclosures), where bargains for older places abound. In the middle and upper markets (Mcmansions) are really struggling to sell. But the second tier of demand is operating only in the CBD, with some strong interest from investors displayed in 2009, which will return again in 2012.

Brisbane Apartments Outlook to 2017

With urban renewal in Brisbane and riverfront parkland developments improving Newstead, and while there is a growing number of tenants wanting modern, space efficient living with close proximity to the CBD, parks and restaurants, anyone can understand that demand--and capital growth--is going to be catching up in the near future. (Newstead Riverpark will feature five hectares of new parks with connections to Civic Plaza and the riverfront Wharf Park.)

According the the latest BIS Shrapnel Outlook for Inner Brisbane Apartments 2010-2017:

"New apartment supply is expected to remain minimal at 600 completions over 2010–11."
The shortfall of apartments in inner Brisbane area has become tighter, even while the inner Brisbane rental market remains soft at present.

With a recovery in economic conditions and capital growth in 2009–10, buyer interest picked up and is expected to strengthen over the next few years. BIS believes this will translate into new apartment supply increasing to sustainable levels in 2011–12 / 2012–13, before surpassing 2,000 apartment completions in each of the following two years.

Rental growth is projected to be more solid over the two years to 2012–13, with the new apartment supply moderating the rental increases.

Emotions Play a Role in Property Investing

The masses are very pessimistic about real estate right now. When most people go against the crowd, others often call them "crazy". Funnily enough, there is an inner circle of wealthy investors and people who have worked their way up from nothing who REFUSE to let the media and the pessimism of the market dictate their actions.

According to Michael Yardney, who puts on a Wealth Retreat annually, there is a small proportion of people who have a true Property Investment business. They spend time learning about property, and they spend time building up their asset base and looking after it. They didn't spend time making excuses or squirrelling away a few percent of income, and wanting more cash flow just to help out temporarily. They also made sure they surrounded themselves with like-minded people, positive thinkers like themselves.

Is Timing Important?

"Some people do well in good times and even better in tough times, and some people don't do well in good times and even worse in tough times.. it's their mindset that makes the difference" - Michael Yardney, property author

So if you're still waiting for the property market to turn, to boom, and others to invest around you then you'll definitely be waiting too long. A long term mindset is important in successful investing - and a contrarian view.

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      Jeff Ball 

      7 years ago

      Have a look at my book, available on Amazon, "Investing in Brisbane Apartments."

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