Where are the Best Suburbs to “Buy to Rent” in Brisbane?
If you are thinking of buying a property in Australia as a rental investment, then now is the time to consider taking that leap. While areas such as Sydney and Melbourne are experiencing the property market crashing, Brisbane is currently experiencing a population growth, appealing to many who want that relaxed lifestyle while housing is currently at reasonably affordable prices. The forecast for the Brisbane property market in 2019 shows slow and steady growth as it becomes the number one city for migration, so now is the ideal time for lucrative investment opportunities. You’d better get in there quick!
So where are the best suburbs to invest? Well, like any market you have to invest in the right area for strong growth potential. Look for properties in the inner or middle-ring suburbs as research, confirmed by the Australian Housing and Urban Research Institute shows that those closer to the city centre or the Central Business District (CBD) are not only more popular for renters, but they also increase in value more rapidly than those further away. The research also suggests that properties closer to water have a better rental and strong growth potential.
Here is a breakdown of some of the suburbs that must be on your radar and why:
Entry level suburbs (budgets starting from $530,000-$600,000)
Sitting around 9 Kilometres from Brisbane’s CBD, Keperra is one of the suburbs furthest out but certainly worth considering for “buy to rent” and here’s why. Income in this location has shown to be above Queensland average with the most common occupation being in health and social care. This is going to be the fastest growing sector in Brisbane over the next few years, which will surely entice many to this area looking for work with the promise of higher incomes and job certainty.
Keperra is also a train station suburb which means that it will not only appeal to renters who are looking for more affordable housing than in the CBD, but they will also have the benefit of easily accessing it and other areas via public transport. In addition to that, research shows that suburbs close to railway stations in Brisbane have increased by 40% more in value over the past 10 years, with Keperra having increased in value by 30% in only the past 5 years, and the future continues to look bright!
Chermside West is also around 9 kilometres from the CBD and is worth considering investment here for the following reasons. As this suburb sees retirees and social housing moving out of the area and being replaced by younger professionals, this location currently has exciting opportunities for “buy to rent” investors. Chermside West is gentrifying with these developments and is becoming a popular location for many, especially those who are targeting the nearby Craigslea State School catchment area.
There are also two hospitals within the suburb which offer plenty of job opportunities, drawing many health care professionals to the area. Furthermore, Chermside West will also benefit from the development of neighbouring suburb Chermside which is being turned into a type of satellite city, but without having high rise and business on its own doorstep.
Chermside West has seen an average increase in property value of 36% in the past 5 years, well above Brisbane’s average and is predicted to steadily increase in the future.
Other entry level suburbs to watch:
- Everton Park
- Stafford Heights
Middle Ring (budgets starting from $650,000)
Sitting around 6 kilometres from Brisbane’s CBD, the property prices within this suburb are understandably higher; however the demand for rental property and the average income here are considerably higher, with a dramatic increase over the past 10 years which is expected to continue.
Cannon Hill also ticks many boxes for families, with access to good schools, plenty of green space, easy access to employment hubs and a bus and train line in the area. The suburb also benefits from its easy access to Brisbane’s CBD and is the closest southern suburb to the Brisbane Airport precinct expansion.
Cannon Hill has seen an average increase in property value of 30% in the past 5 years, with further steady increase expected. Cannon Hill property management companies have been noticing a strong increase in rental enquries for the area, mostly from airport workers.
Other middle ring suburbs to watch:
- Holland Park
5km Inner Ring (budgets starting from $800,000)
Suburbs within the 5 kilometre ring are becoming pricey, making investment opportunities fewer and farther between; however, there is still one suburb on the radar which offers value and good rental return.
Sitting around 4 kilometres from Brisbane’s CBD, Ashgrove is a popular suburb for families where some of Brisbane’s most sought-after schools are located. There is also plenty of green space with leafy walking paths throughout the suburb, combined with many restored, large character homes, making it a very pleasant and well-balanced inner-city location to live in.
Although property prices and rent is understandably higher here, the average income is increasingly very strong and will soon be twice the Queensland average. Many jobs are within the professional and service-based industries and attract numerous people to the area who are looking for a good work-life balance in the heart of the city.
Ashgrove also has easy access and good walkability to lifestyle precincts and shops, another reason why this suburb will remain in high demand and has already seen an average increase in property value of more than 36% over the past 5 years.
Other inner ring suburbs to watch:
So those are some of the recommended suburbs for consideration when looking for “buy to rent” property in Brisbane; however is it vitally important to properly research the locations you are interested in, as there are some streets and pockets within these suburbs that are less desirable.
There will be great opportunities for almost every budget but it takes thorough, on the ground investigation to determine whether that property and the surrounding area are sound and worth investing in.
Having said all that if you do your research and find the right property in a good location, you will be rewarded with above average capital growth and rental yield. And now is certainly the right time to get started!