Property Investing in 2022

It’s fair to say that Brisbane hasn’t always been the property investor’s first choice of Australian capital cities. In the past, you just weren’t able to get the big returns you could reliably expect in Sydney, Melbourne or even Perth during the mining boom.

But that was then and this is now. Lately I’ve been fielding a great deal of interest from local and overseas investors who are eager to enter the Brisbane market. I don’t need to tell you it’s being driven by the pandemic. People living in bigger, colder cities have re-evaluated their lifestyle and want changes. People are opting for more space, less traffic and better weather.

WIll it last?

Will investors continue to show an interest in Brisbane property once the masks are off for good, or is this just a passing fancy? Timing is everything when it comes to investment.

Recently I have been listing to podcasts and watching webinars so I can hear from other experts and understand what that property market will look like for investors in 2022 as we have been working through some unique times.

Let’s consider some of the key drivers impacting the investors market:

  • Adoption of numerous Government stimulus packages
  • Construction chaos, increased building prices and we are seeing builders going bust due to over committing to clients, lack of supplies/materials available and increased rising costs
  • People are re-assessing their own lives and how they live/work in their homes
  • More consumers are using mortgage brokers to secure loans and seeking advice from professionals before signing off on property contracts.
  • Interest rate raises
  • Investors have positive cash flow, significant equity often derived from their own principal residences and are therefore re-financing to invest into more property

Brisbane’s Rental Crisis

Another reason investors are taking notice of Brisbane is that the rental market has become massively competitive. Yields are on a sharp incline.

This rental crisis is being driven in part by people who are selling their homes at the top of the market, struggling to buy again and then having to rent for a time.

I have created some tips that could be worth considering as an investor entering into the market as a first timer or maybe a refresh for the avid investor.

  • Educate yourself and be informed of your search area, infrastructure and growth
  • Get professional advice – have solicitors, financial planners and buyers advocate all in your circle
  • Obtain finance before ANYTHING else
  • Understand ALL the impacts and ramifications of your purchase
  • Get your investment strategy right for you and your goals – consider your ideal tenants, property type, suburb and your WHY??? Be confident!!!
  • Have additional options with your locations, consider suburb A, B, C, D
  • If you have finance approval, don’t wait – jump in now – don’t sit hold & wait for the market to turn
  • Supply & demand are significant contributing growth factors that is driving the prices
  • Don’t get FOMO
  • Don’t be an emotive buyer – stick to your game plan!!!
  • There are NO more bargains to be had!!!
  • Set your purchase price and stick to it
  • You need to make quick decisions or your will miss the boat
  • Minimise your contract conditions BUT include conditions if you need to undertake more due diligence
  • Don’t buy sight unseen, get an independent person to inspect the property – better still engage a Buyer’s Advocate
  • Consider land value vs land size – bigger is not always better
  • DON’T give up!!!

Ultimately, selecting the right property to invest in comes down to understanding the local market – where it’s been and where it’s going. You need someone on the ground who can fill you in and guide your purchase.

Engage an exclusive buyer’s advocate to assist with your property purchase and be willing to pay for the professional advice and support that they will provide for you. You will avoid some costly mistakes when you have a professional in your corner.