Brisbane Apartment and Unit Investment Still Lackluster

In the midst of the Brisbane boom, where houses and townhouses are snapped up minutes after hitting the market, at record sale prices, apartments and unit sale remain sluggish. Even in the middle of a rental crisis, apartments and units continue to offer lacklustre returns compared to other dwellings.

A former saturated market

Not so long ago Brisbane was flooded with new apartments. Desperate for sales, agencies were waiving body corporate fees and offering ‘buy bonuses’ all of the place. While there’s less desperation now, the lack of comparative capital growth is obvious.

There are no guarantees and there are always going to be winners and losers.

Yes, investment properties in Brisbane are risky – in the same way that every decision is risky. However, there are significant moves you can make as a potential investor to mitigate that risk.

Working with the banks

As the market improves, banks are back at the table but they’re still ‘risk adverse’. Securing a loan for a 50m2 “bedsit” style apartment in a saturated area like South Brisbane remains a big ask. More spacious apartments in higher demand areas are showing better growth and are considered a safer investment.

Working with your support network

There will be people close to you – family, friends and colleagues – who will have experience with purchasing investment properties in Brisbane. If you’re a first home buyer or a first time investor, talking to those who have been there and done that can help make the confusion surrounding the process a lot clearer.

Doing your research on the area

Is the area you’re looking at buying into one that’s likely to see growth? Has it stagnated or reached peak development? Looking out over the Brisbane skyline you’ll see a dearth of cranes nodding their heads over construction sites. There are just SO many places to buy investment properties in Brisbane – you owe it to yourself to make sure you’re choosing the right place, style and size.

Check the quality of the build

Most importantly, if you’re pouring your money into someone else’s development in the hopes of making a return, you need to make sure that the foundations are solid. You’re trusting a company to do the right thing, but they may well be working against the clock and cutting corners. And you’re going to be taking their word for it that everything’s up to standard.

You need to ensure that, prior to signing ANYTHING, you secure a pre-purchase building inspection. This vital step in the process will ensure that, as an investor, you’re getting what you’re paying for.

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