What Your Money Can Buy You in Brisbane Right Now? Brisbane Property Prices

Brisbane is a very different market from Sydney and Melbourne in terms of housing affordability. So in this episode we want to talk about some examples of what you can get from your money in the Brisbane property market.

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0:00 – Introduction
1:02 – It’s cheaper to buy in Brisbane now than in 2008
1:46 – Pricing in Northern and Eastern Brisbane
3:32 – The cheapest options in North Brisbane around $370,000-$450,000
5:24 – Options around $290,000-$310,000
7:04 – 10-13km from the CBD around $550,000-$700,000 for quality properties
9:26 – Single income properties in Brisbane City Council 6-9km from the CBD around $600,000-$2mil
11:31 – Super close to the CBD $800,000 up to whatever…..22 million+
12:58 – Average incomes are higher than Melbourne

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Brisbane Property Market Update

Transcription:

Ryan 0:00
brisbane is a very different market to sydney and melbourne in terms of the pricing of properties in the area so in today’s episode we want to talk about some examples of what your money can get you in brisbane so hi i’m ryan from onproperty helping you achieve financial freedom and i’m joined today by ben everingham buyer’s agent from pumped on property who helps a lot of investors invest in the brisbane market and so he knows a lot about okay what are people paying for houses what are people paying for investments and you’ll see throughout this episode how different that is from sydney or melbourne

Ben 0:35
yeah and you just got to remember that it was only 15 to 20 years ago where you could buy a home in the right area of sydney for 400k like it was 10 years ago where you could buy a unit on the beach for 400 grand and chronometer or bonda it’s it wasn’t that long ago that ship was affordable and and there’ll be another time when it becomes affordable again maybe maybe not maybe it just be like a london or new york it’s just like expensive and it’s a rental city but brizzy is super well priced according to core logic it’s cheaper to buy now than it was in 2008 but we know in the last 20 years it’s done an average of 6% a year and the longer term it’s at an average of 9% a year

Ryan 1:14
so so brisbane didn’t have the run up that sydney and melbourne had back in 2015 2016 2017 so as ben was saying cheaper to buy in brisbane now than back in 2008 that’s because inflation has gone up faster than prices in brisbane

Ben 1:30
yeah i think certain average of 1.9% a year or something for 10 years which is epic and that’s the reason we’re talking about it today so let’s talk about starting from the bottom now here let’s go from the bottom of the market to the top now obviously i like north prince fan it’s no secret i also like eastern brisbane now the reason i like that is because i don’t have a crystal ball but what i do have is 50 years worth of sydney and melbourne data and we know that the quality pockets of sydney which is northern beaches eastern beaches say bay de and southern beaches now although southern beaches used to be a shithole you know it’s become a lot better now than it was and that’s the same in melbourne we know that you know melbourne city east and melbourne are kind of the pockets that you want to hone in so we know that those quality pockets where the more affluent people live now where the families are being raised now are going to be the better pockets long term and that’s really brisbane save a day that’s north brisbane and that’s east in brisbane now there’s still plenty of good buying in south and west brisbane but it’s kind of like that’s going to be affordable for a lot longer than some of these other areas are and it’s going to exponentially change in terms of the long term potential for growth

Ryan 2:45
yeah and so that’s the desirability of the southern suburbs and the western suburbs they just don’t have as much going for them in terms of lifestyle compared to you know living in the cbd or on the north end having the beaches around there and the desirability factor of being near the water being in the ocean

Ben 3:03
so imagine you know you’re buying in sydney or melbourne 20 years ago and you could have bought coronella beach or northern beaches or eastern beaches and same in melbourne you could have bought eastern beaches in melbourne knowing what you now know versus buying like north or west melbourne or you know western sydney and it’s kind of like that’s the decision you have to make in brisbane right now like go for quality spend a little bit more and then long term you know we’ll all be wealthy because of that decision so in terms of the cheapest option in north brisbane right now you can kind of get within that 25k radius of the city for around about 370k up to about 450 grand and that gets you like either a renovator at the bottom or a bit further away from the city or like a really really penthouse on a nice big block that you don’t have to think about for 10 years so

Ryan 3:54
this is just to be clear we’re talking about houses here only houses not units and so um what are these houses two bedrooms three bedrooms four bedrooms three to four bedroom homes

Ben 4:04
you know we really want to be looking at 600 square metre blocks of land minimum with a nice three to four bedroom home one to two bathroom

Ryan 4:12
and these brick homes vibro homes

Ben 4:14
so at the bottom of the market each kind of looking at fibro homes generally double storey queenslander style which there’s nothing wrong with that like those homes have been standing up in brisbane for 150 years like they’re actually built a lot better than most weekends but there’s a little bit of extra maintenance with painting them once every 10 years so you know we’re talking about that but if you’re spending a bit more like that for 50 then it’s probably more like a slab on ground brick and tall more what used to saying in sydney melbourne perth etc

Ryan 4:43
yeah so you’re looking around that 370 to 450 range being you know 25 k’s from the city but being quite close to the beach you’re talking one to two k’s to the water for a lot of these properties

Ben 4:55
yeah so you know that’s that’s sort of like your first option you could be like around Nice.

Ryan 5:01
You can buy a house in Sydney, one to two K’s from the water 25 K’s from the city gallery, can you even buy a unit for that price?

I don’t think so it’s

Ben 5:12
like sell you one bedroom unit in Blacktown. And behind that what is Leach. But you know, that’s kind of like your bottom option if that’s where you’re starting from now there’s some suburbs in South Brisbane a bit further from the city and there’s suburbs in North Brisbane further from the city, if you can’t afford 400k, then there is the option to go a bit further away. And you know, you’re going to lose a bit of long term growth. But we can buy houses out there, nice big blogs for three to four bedroom homes, you know, you might be 35 to 40k in the city. But we can buy homes out there right now for 290,000 to 310,000. And it’s it’s quality long term stuff, it’s just not going to get you that growth.

Ryan 5:54
Yeah. And so that’s bottom in the market in terms of housing.

Ben 5:58
Well now like visit super cheap man. Like there’s areas in Brazil, you can buy a house for less than 200k.

Ryan 6:03
But not necessarily there you would want to invest in now like,

Ben 6:06
for me, I follow the rules. And the rules say that if you can buy within 20 days of the city or close to the beach, then you’re going to get performance. So if you can, you know, try and get yourself to 400k, you have a better chance of buying quality. But if you can’t, I’m just I just want people to know that there are good options. So there’s good

Ryan 6:26
options for people around the $300,000 mark, but not as good as the options around the 400,000. But they’re still decent options,

Ben 6:33
you know, point in case, right? I could have bought a home in you know, like Sutherland in the south side of Sydney for 400k 20 years ago. Now that home is worth 1.1 mil. I could have bought a home for 350k, the same time in Blacktown. And now that home is worth 700 grand. So it’s only a 50 grand difference 20 years ago, but now it’s exponentially increased because quality is looks like this. You know what I mean?

Ryan 7:02
Yeah. And so what about people who want to buy closer to the city? So I’m guessing I guess in this episode, we’ll work from you know, those Northern Beaches, working our way towards the city to eventually being on, you know, the eastern end or close to the CBD. What about that kind of 10 to 15k range.

Ben 7:18
So there’s probably something like this, those beachside suburbs and value there goes from, you know, $370,000, up to 600k. Like, there’s a whole range there. In fact, one home was just sold on the beaches for 12 million bucks. So there’s like, big, like, there’s a big range there, then you’ve got the suburbs like that it’s sort of closer to the city, but it’s still, you know, 20 to 25 Ks, but they’re inland. And those suburbs are more affordable, like 350k, three to 450k gets you there. Then we get closer to the city. And you know, you’ve got some really, really good quality options between sort of 10 and 12 or 10 and 13. Ks and you know, you’re starting at about 550k for an okay home, paying up to about 700 grand there for quality. Yeah. Which I think you know, again, 550 to 600k range really gets you in a sweet spot there right now, again, they’re the closest suburbs to the city where you can legally build a granny flat as well. Yeah. So if you’re looking for that cash flow and growth strategy, and you still want that benefit of being really close to the CBD, that’s exactly what we recently saw a client purchase

Ryan 8:27
a property with views of the CBD. Yeah, it was a high set sort of block

Ben 8:32
that that was an outlier. That was a freaking good deal.

Ryan 8:35
Yeah, a really good deal. Yeah. So he

Ben 8:38
bought that for 470. And, you know, if you’re gonna buy for under 500k, that close to the city, then like that property that we picked up for George, you’ve got to really know that there’s going to be some work required, like that’s a full fixer upper. Right. Yeah, that’s the knock down long term.

Ryan 8:54
Yeah. And I think you know, it has some work to do to fix it up to make it get the rent that it should get for that property, but the long term potential of that you can stand there on that block. And you can see the long term potential, I’ll be looking at it you have views of the city, if you’re thinking and this is what the client is saying is that you know, to buy this in Melbourne it’s so expensive. Yeah, to have something like that. And so the opportunity and things to do there was really cool.

Ben 9:25
And then we’ve got once we get into Brisbane City Council, you can only do single income legally right now, which means you know, one home one rent return.

Ryan 9:34
Yeah, so no granny flats in Brisbane City Council. So we often talk about building granny flats in Brisbane, but that’s not in Brisbane City Council

Ben 9:41
know that say they’re in North Brisbane or south or west. So when we talk about Brisbane City, there’s some incredible incredible pockets between nine and six K’s from the city which is kind of for me the sweet spot if you’re going that close because there are areas that have done a lot better than average in the last 10 years. but they haven’t gone crazy and then once you get and the price point there again you’re probably looking at 600k absolute minimum through two people paying 2 million bucks in those suburbs now like there’s a huge range and the bigger the range for me the better as an investor because if i’m open to being a bit more active i could buy like a three bedroom home that i could literally raise up or lift up in the future building an extra bedroom and living space downstairs and renovate and i was talking to this guy literally over on friday sorry he owned a home that was worth 800k with city views in it really nice suburb eight case in the city now he needed to do some work to his property like raise it up and renovate it which might cost him 300 grand but his neighbor had just sold his property for 1.5 mil which was exactly what he could have done and his other neighborhood sold his for 2.2 so there’s these wee little pockets right now where if you’re an active investor there is just opportunity yeah well

Ryan 11:03
that’s you can see the opportunity there if it’s worth 800 and for 300 or total investment 1.1 mil you’re out point five and there’s one that sold you know very similar to that for 1.5 it’s like oh i can see that opportunity in that there’s a lot of margin in there and

Ben 11:18
we haven’t even imagined you held it for seven years and the market goes up by

Ryan 11:23
one and brisbane i guess hasn’t done much special in the last 10 years

Ben 11:28
yeah so there’s that option and then you then you’ve got this whole other market closer to the city which is effectively a lot like sydney and melbourne it’s you know it’s almost doubled in the last 10 years like it’s done very very very well like when people say brisbane has an increase in value it’s just product further than about seven case has an increase in value but the cbd has been running hot for seven or eight years it has gone through a strong growth cycle

Ryan 11:53
but then that’s also talking about houses houses so use have obviously gone back by 20% year so if you look at the unit market i think that pete i think the logic was saying it peaked in 2010 yeah you know so houses and units are very different in these areas

Ben 12:08
yeah everything that i do is talking housing because i want you and i to own the land component which is what increases in value but you know then you can get sort of you know anything closer than five k’s and it’s it’s good quality stuff a lot of the suburbs have been renovated almost everything’s been knocked down and rebuilding the good areas and it’s just kind of like you can see the money everywhere you

Ryan 12:30
know what i mean what sort of pricing we’re talking about the

Ben 12:33
could be anything from 800k through to whatever people are prepared to pay things i’m gonna sell for 24 mil you know what i mean like there’s there’s money there

Ryan 12:41
yeah so as you can see brisbane the pricing points of brisbane and if you try and relate that back to okay what’s a similar distance or a similar suburb in sydney or similar suburb excuse me in melbourne then you can start to see how much more affordable brisbane is compared to melbourne and then if you look at average incomes in brisbane they’re not that much less than sydney and they actually they’ll high the melbourne right in melbourne

Ben 13:05
perhaps

Ryan 13:06
yeah so if you look at the affordability of the city and if you look at okay what’s the affordability as a multiple of average household income you’ll find that brisbane is quite low compared to sydney and melbourne which is still two of the highest i think there was like a hobart is more expensive that’s right compared to average incomes in the area than brisbane and is that really yeah it really is that really happening right now

Ben 13:33
it’s just get on the bandwagon then hobart i had a good 60% run in your last five years but gets me excited when hobart’s and south australia are pretty much more expensive or the same prices brisbane and perth you know it’s good stuff it’s good affordability because that’s not the long term trend and so i did something about a year and a half ago where i overlaid some suburbs in the city of brisbane between five 710 12 cases in the city and then i looked at similarly comparable pockets of sydney and melbourne in terms of incomes in terms of demographics in terms of like brand like you know like for life and i was looking at them when

Ryan 14:11
you say brand you mean like granola has a brand yeah it has a brand like a feeling of desirability about it yeah i was looking

Ben 14:18
for suburbs that locals rated over other suburbs for no reason that said people living there think that they’re better than people living in the next suburb like it’s it’s just ego stuff it’s not reality it’s just that’s cool like if that’s the mercedes benz getting the mercedes anatomy yeah and i looked at it and i was like in the suburbs between seven and nine ks there was a huge difference like i’m talking about an average of about 800 to 1.8 100k to $1.2 million difference between those same suburbs in sydney and melbourne versus brisbane so because my personal strategies cash flow and growth i haven’t really gone in depth the city to speculate but i think there’s a big opportunity for smart investors there there’s a massive opportunity on the beaches like when you look at the value on the beaches and the price points in brisbane versus sydney and melbourne you can pick up some of that stuff for between 15 cents and 30 cents in the dollar that’s real cheap

Ryan 15:21
yeah with generally the same distance from the cbd on the beaches

Ben 15:25
yeah similar types of areas to where they are at

Ryan 15:29
30% cheaper brisbane versus no like when i’m saying 30% 30% of the price of what you were paying in sydney

Ben 15:38
yeah and it just represents really really interesting long term buying so i think for me personally moving forward like i just because you can go and spend a million bucks doesn’t always necessarily mean you should and i think for me at this stage of my life i’m more interested in picking up you know that 10 to 12k ring or on the beaches personally that’s what i’m going to target like the price point i like that someone can afford a pad back off me in a good market and a shitty one and i like the fact that i can get the jewel income but there’s a there’s a heap of options that we help people do in brisbane it’s not all just housing granny flat affordable likely buy a lot of really good stuff close to the city as well

Ryan 16:18
yeah and so that what you want to buy depends on where you’re at what your strategy is what your situation is where you’re trying to get to as well so for some people closer the cbd is going to be a better option for them for some people to be in that you know 10 to 13k range some people will be the more affordable pockets on the beaches or for other people will be the really affordable pocket so depends on you where you’re at and what you’re trying to achieve if you want some help trying to understand okay what’s going to be the best strategy for you to grow your property portfolio then ben and the team over here at pumped on property do offer a free strategy session so you can jump on the phone to then talk about your situation where you’re at what you can afford and what you might like to do and then they can help you understand okay how can you get from where you are to where you want to be and grow your property portfolio and what types of properties are likely going to suit you so head over to onproperty com au forward slash strategy you can learn more about that free strategy session over there and book a time you can do that session you can then go and invest yourself or if you want you can hire the team over here at pumped on property and get their help to find you a great property in a great suburb so go ahead and check that out onproperty com.au forward slash strategy and i’m also going to link out to a previous video mean me and ben did on the brisbane market and what it feels like on the ground in terms of sentiment in terms of growth in terms of what areas are hot what areas aren’t so i’ll link out to that go ahead and check it out otherwise until next time stay positive

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