Having a few investment properties in QLD I am interested to see what peoples thoughts are on when the QLD Market may turn slightly upwards.
The floods were the icing on the cake for a pretty flat few years in QLD.
Any takers?
fredo_4305,
I wouldn’t be too concerned about Queensland mate. The financial year 2011-12 we are going to see some massive investment due to the resources industry expanding. Queensland should display the strongest growth economically out of all states. Queensland predicts strong exports, a big jump in investment and household spending will drive gross state product up by 5% in the next 12 months and even reach 5.25% in 2012-2013 (A. Rollins, June 25-26, 2011, ‘Mining largesse inconsistent’ The Australian Financial Review).’
I bought in regional Queensland 2010 and will look to buy again in 2012. Great time to buy because the majority of uninformed investors out there don’t understand the underlying fundamentals. Again due diligence applies. I think it may be some time before Brisbane picks up but there are some great regional markets out there.
Jack.
I don't think you'll see much in the next 12 months, but hopefully things will pick up after that.
I bought a townhouse in the logan area 2 years ago, and the value has gone up maybe 5%, but if I were to sell in todays market I may even make a loss. However, I still believe it's fundamentally good investment and the rent has gone from $375/week to $395/week and can possibly get $405/week at the next lease renewal. This shows that the demand is there and it's just a matter of time before values start to catch up with yields.
Remember, it's a long term investment and dealing with flat/negative periods is just part of the game. As long as there is increasing population in your area, the demand should be stable.
Let's just hope interest rates remain steady to ease the pain
I think we all have to just hang in there.
Yup. Stay in the market, get/manage good cashflow, don't overcommit, create equity if you can, let time take care of the rest.
The sky is not falling in and the cycle will swing up again. Not sure when. But I am absolutely certain I will make lots of wealth when it does.
Last month was busy for me, reports around that it's been the best month of the last 7 for various parts of the industry, hard to spot trends till they are well established and likely it's just catch up from a slow period. Interesting none the less.
JT7 wrote:fredo_4305,I wouldn’t be too concerned about Queensland mate. The financial year 2011-12 we are going to see some massive investment due to the resources industry expanding. Queensland should display the strongest growth economically out of all states. Queensland predicts strong exports, a big jump in investment and household spending will drive gross state product up by 5% in the next 12 months and even reach 5.25% in 2012-2013 (A. Rollins, June 25-26, 2011, ‘Mining largesse inconsistent’ The Australian Financial Review).’
I bought in regional Queensland 2010 and will look to buy again in 2012. Great time to buy because the majority of uninformed investors out there don’t understand the underlying fundamentals. Again due diligence applies. I think it may be some time before Brisbane picks up but there are some great regional markets out there.
Jack.
Jacks 100% right here I believe.
Excellent regional areas, population forecasts higher than any other state is Aus and unprecedented levels of mining investment. Regional QLD will receive this investment over the t=next 2- 4 years with the other states and capital cities to follow after. Property has periods of being flat, Melbourne is going there that phase now and is predicted to be there for the next two years potentially.
You would have gone into these investment with a 10 year view i would imagine, if you purchased even 6 years ago you should be happy or if you’ve purchased more recently then you have obviously taken advantage of the downturn and seeing it through and riding it out will be well worth your while.
PPI
We are being encouraged to buy off the plan in brisbane, what are your thoughts please
How do we research builders of new properties in brisbane?
thegcamp wrote:We are being encouraged to buy off the plan in brisbane, what are your thoughts pleaseIf you were selling property to me wouldn't you be encouraging as well?
Property developer pays hefty commission to people who can move their property >> Marketer or promoter does everything possible to disguise that they are actually selling property >> Poor retail investor pays over the mark for property in whatever location the developer built the property.
Now your example might be different… Sad reality is that a lot of property is sold this way however.
thegcamp wrote:We are being encouraged to buy off the plan in brisbane, what are your thoughts pleaseWhy are you being encouraged to buy off the plan? from the developer? The above comment is correct. In a unit deal you should not pay more than valuation…and infact buying off the plan in very early stages should land you an incentive like below market valuation.
Why a unit also? have you considered H&L with a larger land ratio to your investment?
Any more takers, has anyone noticed much of a move in the market?
You would have gone into these investment with a 10 year view i would imagine, if you purchased even 6 years ago you should be happy or if you’ve purchased more recently then you have obviously taken advantage of the downturn and seeing it through and riding it out will be well worth your while.
Michael Matusik's latest thoughts
Quote:Brisbane is at the bottom of the cycle and is set to improve. Three things drive a property cycle north – confidence, supply/demand and jobs. Confidence is on the mend, the Brisbane new housing market remains undersupplied and a plethora of new resource and infrastructure projects will help drive future job growth.http://matusikmissive.wordpress.com/2012/02/17/missive-extra-next-stop-brisbane/
QLD = Winning!
THe lease on my Robina unit expired in Jan. Was only vacant 2 days – thats a positive! Rent hasn't moved in the 2 years I had it. I was expecting an increase this Jan. Not sure if property manager being lazy or markest still a little flat. More homework required I guess!
I recently built a house in Logan area and rental yeilds are good… Wouldn’t expect them to grow much in the next 12 months but after that I can see some big things in some of the regional qld areas and just out of Brisbane…
But as always dont put all your eggs in one basket..
And agree I would always go for H & L package and not a unit unless you are looking for some short term cash-flow and not looking for big CG long term.. Land appreciates…
sam.
I often wonder where some of you guys get your info from or if you just selectively read pro property media stuff to keep your spirits up.
“Bank of Queensland Ltd., Bendigo & Adelaide Bank Ltd. and CUA say they’ll seek AOFM support with future mortgage bond sales.‘Challenges are likely to continue in 2012,’ said Brisbane-based Tim Ledingham, treasurer of Bank of Queensland, citing slow lending growth, rising funding costs, increased unemployment and slipping house prices. ‘Until RMBS transactions are achieving wide and diverse distribution I would expect that the market will benefit from the AOFM’s involvement.’”
‘Tough Out There’
Australian home prices slumped 4.8 percent in 2011, the biggest calendar-year drop on record, as concerns about the European debt crisis kept a lid on demand, according to the statistics bureau. The nation has the second least affordable homes behind Hong Kong’s, according to a Demographia study of prices in Australia, New Zealand, Ireland, the U.K., the U.S., Canada and Hong Kong.
Credit to home purchasers rose 5.4 percent in December from a year earlier, the smallest annual increase since 1977, when central bank data begins.
The challenge for banks is “coming to terms with ‘life in the slow lane,” John Laker, Chairman of the Australian Prudential Regulation Authority, told lawmakers in Canberra this week, according to a copy of his remarks on APRA’s website.
The RBA said in a quarterly statement published Feb. 10 that retail spending remains subdued in Australia and the property market was weak.
“It’s tough out there,” said Tony Taylor, chief financial officer of CUA, the nation’s largest customer-owned lender. The AOFM’s budget for RMBS purchases “should be reviewed quite regularly by those in charge. I have no doubt that an increase will be required at some point.”The Freckle
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