A buyer’s agent’s tips to investing in Queensland
If you want to enter the property market in Queensland, Stephen McGee from National Property Buyers has a strategy that some investors might balk at but, he claims, is a great way to get in.
When investors are looking into the Queensland market, they would typically be looking in the areas that they can hunt down a bargain. For Stephen McGee, however, investors should forget all of that and instead look at high-growth pockets within suburbs where owner-occupiers are living, in regions like Brisbane, the Sunshine Coast and Gold Coast.
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When you’re buying property, “you’ve got to follow the wealth”, and typically the wealth is in areas that owner-occupiers are residing in, Mr McGee told Smart Property Investment.
Typically, investors look for areas where they can spend the minimum amount of money and the least amount on maintenance, whereas owner-occupiers are generally the opposite.
The state manager said: “For owner-occupiers to get a foothold in the suburb and pocket of their choice, if they can’t find their ideal property, they are the first ones that will buy the old house in the worst street and knock it down and build a new one. This continual renewal of the suburb increases the raw value of the surrounding land. Whereas, your traditional investor won’t do that.
“I think if you throw all of the property transactions in a basket in Australia, the latest stats are... between 30 and 35 per cent are investors, and the remaining 65 to 70 per cent are owner-occupied, so why would you want to put your money in a smaller basket with 35 per cent?
“Put your money where the owner-occupiers are living, so you’ve got a greater opportunity of your property value increasing without you actually doing anything.”
For Mr McGee, staying with the “typical investor” mindset and following the herd mentality is one of the biggest mistakes an investor can do.
“They listen to all the market news, the developer’s hype, and they fall in love with what is prescribed as the great Australian dream: the house and land package, and more often than not, this doesn’t work for them,” the state manager said. “If you stick to the established suburbs where you’ve got that owner-occupier share of the market, then… the integrity behind the purchase is protected.”
Mr McGee also notes that if an interstate investor wants to invest in Queensland property, they should really be looking for an expert in their local property market.
“Let’s face it, if you sold your property in Melbourne or Sydney, you wouldn’t use a Queensland selling agent. So, why would anyone consider using an interstate buyer’s agent who only flies in and out to purchase for you in Queensland?
“By all means, [investors] can do it themselves if they know what to look for, but myself as a buyer’s agent, I come across a lot of transactions that have happened with interstate buyer’s agents that don’t know the little intricacies of the local markets that they’re buying in.
“More often than not, they’ve overpaid, so the biggest message for me for any investor considering buying in a state that they’re not living in, is to engage a local buyer’s agent who resides in that state. Or at the very least, research themselves and get to know that market intimately and then go and buy themselves. Or better still, engage someone then who is fully immersed in that market so they can actually see the property themselves and report on all of the existing and potential issues, not just the glossy bits.”
Stephen is the director of National Property Buyers Brisbane and has over 20 years of experience in residential property. During his many years as a property buyer’s agent, Stephen has assisted clients to grow their property portfolio with premium investment-grade properties and profitable developments. If you’d like to ask Stephen a question in relation to your situation, he can be contacted on 0488 501 170 or you can visit his company website here, and you can also download their special Queensland e-book here for free.
