BRISBANE

Our Suburb

Due-Diligence

In this section, we take a closer look at the two regions of Brisbane that we really like for houses - they are, Brisbane North and Brisbane North East. We digest the data that matters and take a look at the lifestyle elements that make these regions what they are. Below, we also take a look from a macro level, the key data and economics for Brisbane as a city.

STATE GOVERNMENT

The current Premier of Queensland is Annastacia Palaszczuk, the head of the Queensland Labor party. Anastasia became premier of the state in 2015 and was re-elected in the last election (December 2017). Anastacia's top priorities are job creation and employment growth. Both would bring about population growth and a greater demand for housing.  

Brisbane North

Due-Diligence

The Numbers

 

Population

49,815

Increasing/Decreasing Population

The population has increased since 2011 by 4%

<Stats below based
on the suburb of Mitchelton>

 

Vacancy Rates

1.9% of properties in the region

are unoccupied. We prefer this to be below 2%. Brisbane as a whole is 2.7%

 

The vacancy rates in the region

are declining

Average Days on Market 

35 days on average to sell a home

Auction Clearance Rates

This is not an auction market

 

Ratio of Renters to Owner Occupied

37% are renters / 63% are owner-occupied. We prefer renters to be under 35%. More owner occupiers generally mean properties are better looked after in the area and greater demand for tenants if for an investment

 

Supply vs. Demand

DSR (Demand Supply Ratio) score of 69. The DSR is a number out of 100 that gauges the demand relative to supply for a residential property market. We look for this to be always over 50. 60 is great, 70 is excellent

 

Housing Affordability

(Asset to Income)

31.95%. This is the percentage of the household income that goes towards paying a mortgage. We like this to be under 40%

Monthly Household Income

$8,008

Established Capital Benchmark

The highest sale price in the suburb was $3.1M. We always want to ensure our max. budget is at least 75% of the highest sale. Our max. budget is sitting well under at 19.35%.

For Sale Now (Online) 

Houses - 49

 

Median House Price

$660,000

 

Median Rent & Gross Rental Yield 

$465 / 3.66%

Last 12 Month Capital Growth

3.13% 

 

Renovation Potential

Yes. Opportunity to add value in two common ways; 1. Cosmetic, 2.Extension with an additional bedroom

 

Public Transport

Train to CBD - 21 mins

Car to CBD - 26 mins

Minimum Purchase Price

Maximum Purchase Price

Property Type

Property Style

Value Add Potential

Renovation Allowance

Tenant Type

Rental Return

Assumed Capital Growth

Rental

Yield

Total

Outlay

Monthly (Deficit)/
Surplus

The North West Brisbane Region

 

We are targetting suburbs between 8-15km to the north-west of the Brisbane CBD. The suburbs in this region that we like and would target are Mitchelton, Keperra, McDowall, Arana Hills, Ferny Grove and Ferny Hills. However, we would not limit our search to these suburbs specifically.

 

The region includes Chermside Westfield, Gallipoli Barracks, Brookside Shopping Centre,
Keperra Country Golf Club, Prince Charles Hospital, Westfield Chermside and North West Private Hospital.

 
This region boasts great access by public transport into the CBD and has a really nice suburban feel to it. The suburbs are nestled in amongst great private schools and major shopping centres. From a micro point of view, both are developing and showing great signs of gentrification with new cafes, wine bars and amenities attracting young professionals into the area.
 
Housing in the region is quite simply - amazing Queenslanders. The majority of properties in this region are smartly renovated, which gives you a fair indication that the streets, houses and the general area are well looked after and always looking great.
 
What we like to do:
 
Quite simply, we are chasing Queenslanders that present amazing character. The property would provide an amazing owner-occupier appeal in its current condition, however, have the land content to offer future opportunities to add value. As part of your property plan, this purchase needs to have the ability to add value via a structural renovation. So, we will be looking for a property that can be leased in its current condition. We have set the renovation timeline to 2025, so we will need to ensure no major works will be required between now and then. There will of course be minor maintenance items needing attention during the initial ownership phase.

PROPERTY STYLES

LIFESTYLE

North East Brisbane

Due-Diligence

The Numbers

 

Population

26,180

 

Increasing/Decreasing Population

The population has increased since 2011 by 7.7%

<Stats below based
on the suburb of Banyo>

 

Vacancy Rates

1.8% of properties in the region

are unoccupied. We prefer this to be below 2%. Brisbane as a whole is 2.7%

 

The vacancy rates in the region

are declining

Average Days on Market 

42 days on average to sell a home

 

Auction Clearance Rates

This is not an auction market

 

Ratio of Renters to Owner Occupied

31% are renters / 69% are owner-occupied. We prefer renters to be under 35%. More owner occupiers generally mean properties are better looked after in the area and greater demand for tenants if for an investment

 

Supply vs. Demand

DSR (Demand Supply Ratio) score of 74. The DSR is a number out of 100 that gauges the demand relative to supply for a residential property market. We look for this to be always over 50. 60 is great, 70 is excellent

 

Housing Affordability

(Asset to Income)

28%. This is the percentage of the household income that goes towards paying a mortgage. We like this to be under 40%

 

Monthly Household Income

$7,206

 

Established Capital Benchmark

The highest sale price in the suburb was $1.240M. We always want to ensure our max. budget is at least 48% of the highest sale. Our max. budget is sitting well under at 61%.

For Sale Now (Online) 

Houses - 27

 

Median House Price 

$545,000

 

Median Rent & Gross Rental Yield 

$460 / 4.4%

 

Last 12 Month Capital Growth

1.87% 

 

Renovation Potential

Yes. Opportunity to add value in two common ways;

1. Cosmetic, 

2.Extension with an additional bedroom

 

Public Transport

Train to CBD - 30 mins

Car to CBD - 26 mins

The North Brisbane Region

 

We are targetting suburbs between 8-15km to the north-east of the Brisbane CBD. The suburbs specifically in this region that we like and would target are Nudgee, Banyo, Geebung, Zillmere and Boondall. However, we would not limit our search to these suburbs specifically.

 
The region includes Chermside Westfield, St Josephs Nudgee College, Australian Catholic University, Virginia Golf Club and Nudgee Golf Club.
 
Both the Shorncliffe line and North Coast train lines run through this region.
 
Housing in the region is a mix of double brick and Queenslanders. There is an even mix of
unrenovated and renovated properties in the region providing the opportunity for capital improvements. On the ground, there is an extremely high demand for smartly renovated properties, aiding in capital growth.
What we like to do and the strategy:
 
Quite simply, we are chasing Queenslanders that present amazing character. The property would provide an amazing owner-occupier appeal in its current condition, however, have the land content to offer future opportunities to add value. As part of your property plan, this purchase needs to have the ability to add value via a structural renovation. So, we will be looking for a property that can be leased in its current condition. We have set the renovation timeline to 2025, so we will need to ensure no major works will be required between now and then. There will, of course, be minor maintenance items needing attention during the initial ownership phase.

PROPERTY STYLES

LIFESTYLE