Hidden Brisbane property gem revealed

21 February, 2020

Cameron Micallef discusses with the ASPIRE Property Advisor Network on a hidden Brisbane gem.

by Cameron Micallef | SMART Property Investment | REB | February 19, 2020

An under-the-radar suburb in a heating up Brisbane market has been tipped to be the next hotspot for real estate investors, according to industry experts.

Analysis by ASPIRE property advisory network reveals Bridgeman Downs, 13 kilometres north of the CBD, has evolved from home buyer hub of rural residential to a solid investor option.

Founding and managing director of ASPIRE Richard Crabb believes it follows all the fundamentals, which should see prices rise.

“Increasing rents, falling vacancies, rising population and affordable property options are the gold standard when it comes to selecting promising investment locations, and Bridgeman Downs ticks all those boxes,” Mr Crabb explained.

According to SQM Research, Bridgeman Downs rental vacancy rate has progressively dropped from its peak figure of 4.5 per cent in November 2016 to 3.2 per cent in November 2019. 

In addition, the research showed that asking rents are up by 4.0 per cent for units.

“A combination of rising rents and tightening vacancies is a key indicator of investment income growth potential,” Mr Crabb said.

Mr Crabb said the population of Bridgeman Downs had grown around 13.4 per cent over the past five years and is set to continue.

“The suburb’s family lifestyle, combined with excellent access to services, facilities, schooling and transport routes are driving demand,” he said.

“In addition, much of the suburb’s developable land has been exhausted, so supply is tightening,” Mr Crabb continued.

Mr Crabb said price rises had already begun, with Domain data revealing Bridgeman Downs was among Brisbane’s top 10 suburbs for median house price growth reflecting 7.2 per cent to December 2019.

Mr Crabb said the numbers show Bridgeman Downs is on the up; however, the fundamental of investment success continued to be asset selection.

“The key to profiting is avoiding cookie-cutter projects with unremarkable accommodation that is geared specifically at short-term tenants,” he said.

“Boutique complexes with points of difference are better for both rental and value growth potential.

“Look for projects with plenty of room – both in terms of townhouse floor areas and common space in the complex,” Mr Crabb continued.

Mr Crabb said investors should seek high-spec properties that would appeal equally to both home buyers and tenants.

“The other tip is to buy below the suburb’s median price, which gives the property plenty of upside potential over the long term,” Mr Crabb concluded.

READ THE ARTICLE HERE ON SMART PROPERTY INVESTMENT

READ THE ARTICLE ON REB

About the author of this article

Cameron Micallef

Cameron is a journalist for Momentum Media’s nest egg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

Related Articles

Dealing with a low bank valuation

Dealing with a low bank valuation

I came across an incredible story recently while talking to one of our advisors. He’d helped a client put an excellent new-build investment under contract and had just received the bank valuation back from the financier. It had come in $70,000 below the contract price...

read more
The psychological security of bricks and mortar

The psychological security of bricks and mortar

The world feels uncomfortably uncertain right now. We’ve been delivered blow after blow of upending news leaving many people psychologically punch drunk and staggering. The troubles have been relentless – not just the pandemic but political upheaval, international...

read more
Will interest rates kill the market?

Will interest rates kill the market?

Australians are an interesting lot. When it comes to important issues deliberated around the kitchen table, there are some tried and true discussion starters. It could be about the effectiveness of our political leaders, or which sporting franchise is up the...

read more