news

Brisbane houses favoured over units

By webmaster

Investors seeking capital growth in Brisbane should buy houses rather than units, according to a leading industry figure.

As the Brisbane market regains strength off the back of billion dollar mining projects in Queensland, investors should carefully consider the types of property they buy and consider supply levels, according to Results Mentoring director Simon Buckingham.

Speaking to Smart Property Investment, Mr Buckingham said that like Melbourne, there is a risk of Brisbane becoming oversupplied with inner city units.

“As an investor you want to be conscious of supply and demand and you want your property to be inherently scarce so that it outperforms other properties in the market, otherwise you just get what everyone else gets,” Mr Buckingham said.

“But you want it to do better than that, so you need to be looking at investing in properties that are more scare, and unfortunately apartments don’t fall into that category,” he said.

“I would be looking for houses with land around the Brisbane area for real performance.”

The choice of houses over units is also favoured by Where group director Todd Hunter, who says strata fees on inner city apartments will eat into investors’ rental yield and cash flow.

“Houses will always perform well in a percentage basis because the yields are a lot better than they with inner city apartments,” Mr Hunter said.

“One thing I have found with those inner city apartments in Brisbane is that strata fees are extremely high, even more so than in Sydney and Melbourne,” he said.

Brisbane units currently achieve an average gross rental yield of 5.06 per cent, while houses command average yields of 4.6 per cent.

Thank you.

Your enquiry has been sent to a local Aussie Mortgage Broker.

We will be in contact with you shortly.
Opps.

error occurred.
Unfortunately Aussie cannot attend to your home loan related enquiry at this stage as you must be a citizen or permanent resident.
Do you need help finding the right loan for your investment?
What Aussie do for you:
  • Give expert mortgage advice to help you find great investment loan deals
  • Help you maximise return by lowering financing costs
  • Save you time and effort by helping with the paperwork
First name
Last name
Location
Mobile Number
Are you an Australian Resident?
promoted stories

Top Suburbs

Highest annual price growth - click a suburb below to view full profile data:
1.
BLUE BAY 49.18%
2.
PAMBULA 43.5%
3.
BERKELEY VALE 42.74%
4.
POINT PIPER 40.52%
5.
NORTH TURRAMURRA 38.12%
Brisbane houses favoured over units
SPI logo