Brisbane’s most promising suburbs + Shannon Davis gives his property picks + Tips on sound property investing

Brisbane’s most promising suburbs + Shannon Davis gives his property picks + Tips on sound property investing

Highlights from this week:

  • Why you should look for demand to exceed supply
  • How to invest counter cyclically and why
  • Why D.O.M is important
  • How to eliminate competition when it comes to investing
  • Why an abundance of owner occupiers is a good indicator
  • What is an ‘acceptable’ vacancy rate

Transcripts :

Bible Belt property – Shannon Davis + Trent Ray

Kevin:  Good morning and welcome to the show. Nice to have your company. Today in the show, a special feature because we’re going to be having a real focus on the Brisbane market. We’ve actually done some research. Well, I say “we”; that’s the royal we. Someone has done it for me, and I’ll be talking to him in just a moment.

We’re looking at the Brisbane suburbs with the most promise, the ones that demonstrate that they’re going to be the suburbs you should watch out for in the future. We’ve selected four of them. We’re going to look at those individual markets. We’ll also pick out a property in each of those markets, and we’ll talk to the agent about that particular property and tell you why we think it’s one you should have a look at.

The man who has done all the work and who joins me in the studio is Shannon Davis.

Good day, Shannon.

Shannon:  Good morning, Kevin.

Kevin:  Shannon, thank you for doing this research. I know you and your team have spent a lot of time putting all this together. What were some of the things that you looked at to identify these suburbs and these properties?

Shannon:  We want to see where demand is exceeding supply. Some indicators we look for are low days on market. That’s always a good sign. We’re trying to look at what the percentage of renters are, because for us, landlords are competition. So, we want that percentage of renters to be on the lower side, as well, so we don’t have too much competition for our investment properties.

Kevin:  What is on the lower side? What would you accept?

Shannon:  About 30 and below is pretty good. When, say, 75% of your occupants are investors and therefore tenants, that’s a bit of a bloodbath. Owner-occupiers are the better ones. They’re more house proud, they’re doing more renovations, extensions, improvements. That’s what we want in an area where we’re investing.

Kevin:  So, 70% is the top end, 30% is more acceptable. Is the average therefore around late 40% to 50%? Is that the split in the market?

Shannon:  Yes, there is, but in the areas we’re looking for, we’re looking at low 30s and high 20s, and that helps.

Also, Brisbane has also a fair bit of vacancy in some parts right now, so we’re looking at vacancy rates. Acceptable right now would be anything between 2.5% up to 3.5%.

We look at what level of owners are discounting, as well. In some areas, the owners know what they have and therefore aren’t prepared to come down much from their asking price.

Also, as another track, we look at what the three-year growth has been as well and just see how that’s going to affect properties on the market.

Kevin:  Let’s go to the first market, and you’ve chosen Mansfield. Tell me a little bit more about Mansfield and why you’ve chosen that.

Shannon:  Yes, Mansfield is a great little south side suburb. It has really good schools, a bit of a Chinese population that’s moving in as well. And it doesn’t last long. If you’re in walking distance of those Mansfield schools, properties get snapped up.

It’s predominantly young families in there, and they’re likely to be professionals. It’s just done really well. You can see 20% growth in the last three years, and compared to the Brisbane average, that’s really good.

Kevin:  What would you pay for a house in there? What’s the median?

Shannon:  The median is about $639,000, but with some of those better houses, maybe two stories and a pool and a decent sized block, you’re getting anywhere up to around the $1 million mark.

Kevin:  I want to make the point here that this is not about the most affordable properties; this is the area where there’s going to be good growth and the sort of property that will probably even grow above the growth in that suburb. Is that the way you’ve looked at it?

Shannon:  Yes, definitely. We’re looking at capital growth as one of the major factors here and where demand is exceeding supply and has done so for a while and continues to out-perform.

Kevin:  Okay. The dominant age group in that particular area?

Shannon:  You have couples with children primarily as a…

Kevin:  So it’s a growing suburb.

Shannon:  Yes, growing. And the owner-occupier percentage is growing, too. Back in 2006, it was about 69.5%, but now it’s at 72.9%. So, it’s moving in the right direction.

Kevin:  You’ve chosen a property in there. You chosen a property at 1 Trident Street in Mansfield. We have the agent with us, Trent Ray. Trent is from Brad Bell Real Estate.

Trent, thanks for your time.

Trent:  Thanks, Kevin. Thanks for having me on.

Kevin:  Shannon and I have just been talking about Mansfield, and I think this particular property is listed just a touch under $760,000. Is that right?

Trent:  That’s correct, yes.

Kevin:  Okay. Tell me a little bit about it.

Trent:  It’s a lovely big home, first time offered to market. A big four-bedroom brick [5:09 inaudible] on the crest of a hill. By location, blue chip for our area. Walking distance to Mansfield State High School and in catchments for the primary and the high.

The people we’ve had through the property thus far are very school-driven and school-orientated – as Shannon touched on around families moving into the area. That seems to be the common thread.

Kevin:  Has the fact that it’s within walking distance to the schools been a big plus for you? Is that determining where the buyers are coming from?

Trent:  That’s correct, yes. And we do have a large percentage of our buyers from the Chinese demographic who have come through and obviously identified Mansfield as a great school. So, with school enrollments done later in the year, property generally does well in our area.

We also have very close access to the motorway and walking instance to local shops, so it has a couple of things there, but I would say the school is a big plus for that particular home.

Shannon:  I saw, Trent, that it also allows the new owner to put a bit of a cosmetic touch onto it. It’s a big boned house on a nice block and it has a pool, but you can add some value to it with a bit of a cosmetic renovation, as well.

Trent:  That’s right. You can simply move in and enjoy that house right now. They have a nice tidy kitchen with a nice clean property, but it does lend itself to a renovation. If someone wants to rip up the carpets, there are some beautiful timber floorboards underneath, and it just has the big boned, traditional property of Mansfield where it could be something completely different if you wanted to put your finishing touches on it.

Kevin:  Trent, how long has this been on the market?

Trent:  We’re probably coming up to the three-week mark now.

Kevin:  Yes, it’s probably pretty primed right now because as Shannon mentioned, I think days on market in Mansfield currently is 31 days. Is that right, Shannon?

Shannon:  Yes. 31 days, and the discounting for Mansfield vendors is only like negative 2.6%, so they tend to get what they ask for.

Kevin:  Just to explain, the discounting is the difference from the list price to the sale price. So, the level of interest that you’re getting at present, Trent, is there much debate on price?

Trent:  We went for top dollar with that particular one, but we’ve had 50 groups through. The owners are actually currently looking at a really strong offer that came in late this week. So, we’re obviously still canvasing buyers, but it’s reflective in the numbers that have come through the home.

Kevin:  And it’s open today?

Trent:  It certainly is. I’ll be up there at 10:00.

Kevin:  10:00 at 1 Trident Street, Mansfield. Trent Ray is the agent. If you’d like to contact him, his mobile number is 0433 043 660.

Trent, thanks for your time, mate. All the best. Let us know how you go with that property and that offer.

Trent:  Thanks, Kevin. Cheers.

Shannon:  Thanks, Trent.

Kevin:  Yes, a good property that one, and a good one to start with. But classic of what you’re talking about – and once again, I have to emphasize the point that this is not about affordability; it’s all about getting a property that maybe has a bit of a twist, that you can add a bit of value to.

Shannon:  Yes, and I think when we are investing, let’s just turn it on its head for a bit and think like an owner-occupier, because they make the bigger part of the market. And it’s what they want and what they do that drives prices.

Kevin:  On our special show this morning, we’re featuring classic suburbs and properties around the Brisbane market. And in the weeks to come, too, we’ll be taking you into the other markets around Australia, too – Sydney, Melbourne, Adelaide, Perth, we’ll shoot across to Tasmania, as well – as we try to help you identify what to look for in particular areas and the types of properties that you should be sourcing.

 

A Brisbane suburb with low ratio of renters – Shannon Davis

Kevin:  Our special focus this week is we’re looking at some suburbs around the south-east Queensland market, specifically in Brisbane. As I said, in future shows, we’re going to be looking at the other markets around Australia, as well. But for today, the focus is on Brisbane.

My guest is Shannon Davis from Metropole Properties in Brisbane. They are buyer’s agents, and this is what they do. That’s why we gave them the mission of doing this for us, to identify the properties and the suburbs that they believe are going to accelerate in value.

The second area that you’ve looked at Shannon, is Belmont. Tell me a little bit about Belmont.

Shannon:  Belmont, a tiny suburb. Only ten square kilometers. Not many units. It has a massive percentage of owner-occupiers. We’re talking 77.9% of owner-occupiers. Really tightly held.

Kevin:  Just on that point, if I could ask you, the predominance of owner-occupiers, does that tell you something about the suburb and the quality of housing in the suburb?

Shannon:  Yes, nice place to live. Also, renters and landlords are my competition. I’d rather have an element of scarcity there, so that every time my house becomes vacant, or every time I’m going to market, I’m going to be competing against less rather than more.

Kevin:  It does mean, though, that you’re probably going to be paying slightly above the odds. You can always buy a lot cheaper, as you are going to see, as we go through the ones that we’ve identified, and even the median prices.

Shannon:  Yes. But I also believe that it’s quality over quantity. I’d rather have two really good investment-grade properties rather than five average or mediocre ones. I think a lot of people beat their chest about how many properties they own, but are they worth it, and are they wealth-producing?

Kevin:  So, Belmont, a pretty small area, ten square kilometers.

Shannon:  Days on market is really low at 33. We mentioned the percentage of renters. Strong yields for houses at 4.4%. Again, it’s not got the level of discounting as some other suburbs and had a pretty good three-year growth period, as well.

Kevin:  The growth in population’s quite strong in there, too, around 24%. Tell me that message that sends you?

Shannon:  Again, it’s just not much land becoming there available there, but there is a nice place to live, and it’s grown its price really well, as well. We’re looking at a median price of about $635,000, so it’s still pretty affordable by Brisbane comparisons – and I’m talking about Brisbane City Council, in that area.

Kevin:  In our previous segment, when we were talking about Mansfield, we mentioned that the discount there was negative 2.6%. Belmont’s is 7%. Does that indicate that the prices in there, the asking price, the differential, well obviously, it’s a little bit higher, so you’ve got a little bit more room to negotiate?

Shannon:  Yes, definitely. But, again, negative 7% is quite low relatively to the other Brisbane suburbs where we are right now.

Kevin:  A market in equilibrium – just so we get some balance in here – I believe is anything up to 10%. Anything over 10% is probably a touch on the high side. So, 7% is getting up there, but it’s not the highest.

Tell me about the property you chosen in Belmont and why you’ve chosen it.

Shannon: That one there, Kevin, it’s 13 Crestmead Place at Belmont. It’s being marketed by Purple Bricks. It’s a cul-de-sac position, but I think it’s getting pretty close towards land value there, and I think, with its cul-de-sac position, it might open itself up to a knockover. There’s no demolition control and we could build a contemporary house and manufacture some equity.

Kevin:  Was the fact that is was listed with Purple Bricks any sort of an attraction, or what did that tell you about the property and the seller?

Shannon:  I’m a big fan of selling agents being a big guide to how suburbs perform and how houses perform. And with Purple Bricks, I think I can take my chances a little bit more with some previous experience of negotiation.

Kevin:  What do you mean?

Shannon:  I think it’s more of a volume model – less attention to detail and you can probably get a better result for the buyer.

Kevin:  Yeah, the business model for Purple Bricks, just to explain again, is that the owner of the property will actually pay a listing fee. So, it’s not a success fee. It’s not a selling fee. It’s a fee to list. It’s around about $4500, and whether or not you sell, you still pay that fee.

So, the quality of the agent is probably one of the determining factors. Is that what you’re leading to there?

Shannon:  That’s what I was trying to say, yes, in fewer words.

Kevin:  I thought it might be.

Shannon:  But also, Kevin, it has a long lease, and I think marketing with a long lease is a real trap for investors because the majority of buyers are owner-occupiers, and when you have a long lease involved, it really cuts out a big chunk of your market.

Kevin:  This is quite an interesting point that we’re making here because there is a long lease on this, and obviously, the agent concerned is marketing this on the fact that there is a long lease. But this is a property you’ve identified that could be quite a good knockdown.

Shannon:  Yes. I think you wouldn’t be in any danger of over-capitalizing, given the prices of a contemporary. Often, it’s cheaper to build than it is to renovate, and I think Belmont will look after you with its demographics into the long term.

Kevin:  So, what’s the price on this one?

Shannon:  It’s offers around about the $560,000 mark.

Kevin:  Yes. So, there’s a fair bit of room for negotiation in there, and given that it’s a knockdown, you’re effectively paying land value. Happy to talk to anyone who might be interested about this off air. We were not able to get the agent on this particular one, but an interesting property. 13 Crestmead Place at Belmont.

Belmont is the third property that we’re having a look at, as we look around Brisbane – look at the suburbs and the properties that we believe could grow in value.

My guest is Shannon Davis, and Shannon is from Metropole Properties. This is what they do. They are buyer’s agents, and they look around.

Coming up a little bit later in the show, we’re going to have a look at Everton Park, which is another great suburb with a median price of around $600,000. And the final area that we will look at in the show today, is a very strong part of the Brisbane market, with a median up in the $700,000s. We’ll talk to you about that a little bit later in the show.

 

Everton Park enjoys low days on market – Shannon Davis + Madeleine Hicks

Kevin:  Welcome back to the show. My special guest this morning is Shannon Davis from Image Property and also from Metropole Properties. We’re looking at the key suburbs around South East Queensland, particularly Brisbane, that you should be having a look at.

This time we’re going to turn the focus onto Everton Park, Shannon. Tell me a little bit about that.

Shannon:  We’re switching north-side this time, Kevin. Everton Park is a lovely small suburb there, and good shopping, schools, transport – what we’re looking for. Again, it has a high percentage of owner-occupiers and the vacancy rate is only around about 3%, which is quite good right now. The vendors are only discounting prices by around negative 3.3% off the ask, and it’s had a strong 18.2% growth over three years.

Kevin:  So, it’s a fairly good growth. It’s a fairly consistent area. Low days on market. We’re looking at around 35 days.

There are some pretty constant themes right through all the properties and areas that we’re looking at. Days on market is always around that 30 to 35 days, percentage of renters, and also the yields in there.

Yields in Everton Park, 3.9% for houses, 4.4% for units. Not the best yields you’ll get, but nice and solid. And I think more particularly, it’s all about the growth, because you mentioned there’s a three-year growth of 18.2%, Shannon.

Shannon:  Yes, yields can lag a little bit behind because of the way we structure leases, 6- to 12-month leases. So, if there’s a bit of a spurt on in capital growth, the yields percentage-wise appear a little bit low.

But again, not much stock on the market. Lots of online searches per listing, and we identified this one, 46 Stretton Parade, Everton Park. A big family house, 4-2-2.

Kevin:  4-2-2?

Shannon:  Four bedrooms, two bathrooms, two car parks.

Kevin:  Thank you. Just qualifying that. That’s in talk there, 4-2-2.

Madeleine Hicks from Madeleine Hicks Real Estate is the listing agent. She’s on the line.

G’day, Madeleine. How are you?

Madeleine:  Great, Kevin. Good morning.

Kevin:  Madeleine, just a little bit about this property. Tell me, how long has it been on the market?

Madeleine:  We’ve been on the market just over two weeks. We’re going into our third week now, and we’ve had a lot of interest in the property. As Shannon said, Everton Park is an area that continually keeps growing in high-end demand.

Kevin:  And what’s the listed price on this one, Madeleine?

Madeleine:  We’re looking for offers over $649,000. It’s quite difficult finding a four-bedder in Everton Park, a genuine four-bedder where you have the four bedrooms upstairs, and that’s what this home offers. It has the four bedrooms upstairs, the living area, and then downstairs you have utility/rumpus and then a utility/fifth bedroom if you wanted or a study down there. So, it’s a big, massive family home.

Kevin:  What sort of buyers are attracted to this, Madeleine? What are you hearing?

Madeleine:  The buyers that have come through have been mainly families. Again, we have a huge owner-occupier. We have had a couple of buyer’s agents come through – people similar to Shannon who have recommended the property to their clients. But the majority are families.

We have very good schools in the area, and we also have very good transport in Everton Park because we’re serviced not only by the bus but we’re serviced by two train stations because we’re on the cusp of Enoggera and Mitchelton. So, we have two very good train stations that service it.

Kevin:  Are you opening this one today, Madeleine?

Madeleine:  Yes, I am. I’ll be there at 10:30 today.

Kevin:  Only an hour and a bit away. If you want to talk to Madeleine about this, it’s 0413 733 617. Madeleine Hicks from Madeleine Hicks Real Estate.

Appreciate you squeezing us in to a very busy day, Madeleine. Thanks for your time.

Madeleine:  Thank you, Kevin. Have a great day.

Shannon:  Thanks, Madeleine.

Kevin:  As Madeleine identified there, buyer’s agents crawling over this one because it’s one of the reasons, I guess, why you’ve identified it, and that is that it’s classic of the sorts of properties that investors are looking at because of a high volume of families in the area, low volume of renters. So, therefore, it’s a good area.

Shannon:  Yes, and something special there with that genuine four-bedroom house. A lot of Everton Park houses at the time are three-bedroom, and we’ve seen some garage conversions and things like that going on. But, yes, a genuine four-bedroom is a big house.

Kevin:  Genuine four-bedroom and very close to the city, too. Good transport, good schools, so good reasons why you want to have a look at that one.

Just recapping, we’re looking there at Everton Park, one of the key suburbs in Brisbane. 46 Stretton Parade, Everton Park is the property that we’ve identified there.

Any other stats that we should be looking at? I notice one of the things that you do look at is the stock on market. What have you found about Everton Park? It would appear that stock is pretty tight in that area.

Shannon:  Yes, it is going very quickly. It’s 35 days on market, and the stock levels have a lot to do with that. But also, we’ve seen Everton Park really come into itself as part of the shopping destination. There’s a big Woolworths and the JB Hi-Fi and the stuff that have gone into that area as well. It’s really opened up its amenity, and I think we’re seeing that it’s come into favor.

It’s really well-located, as Madeleine said. You can walk to two train stations and it has a great bus network as well. So, it’s what owner-occupiers want, and when we have that, we have the prices going up.

Kevin:  We’re going to come back after the break, and we’ll have a look at the final suburb we want to talk about. And then after that, we’ll give you a bit of a wrap on the Brisbane market, the South East Queensland market, where we see it headed.

 

Brisbane suburb with 30% – 3 yr growth – Shannon Davis + Vish Uttam

Kevin:  For the final area that we’re going to go, we’re also going to take you to a property with bit of a twist. Quite interesting this one. It’s on 900 square meters. We’ll tell you more about it in just a moment because it’s situated in Holland Park, and we’re looking at identifying the properties around Brisbane, South East Queensland, that we believe are well worth having a look at, and we’re telling you the reasons why.

Our guest in studio is Shannon Davis from Metropole Properties. That’s what they’ve done, they’ve been through and identified these areas.

The next one you’ve chosen is Holland Park. Tell me a little bit about that Shannon.

Shannon:  Holland Park has really had a boom the last three years. South side we’re flicking over to again, Kevin. It’s had about 30.5% growth in that three-year period, which is, for Brisbane standards, really strong.

Kevin:  That’s very good. What’s behind that? Why is that mate?

Shannon:  I think there are lots of houses that appeal to young professional families with children, as well. So, a professional couple with young children, good schools, good transport, and houses that you can put a bit of a touch on to with a slightly bigger block, as well.

Kevin:  This particular area has the highest median of all the ones we’ve been looking at. We have a median here of $730,000.

Shannon:  That has just shot up remarkably in the last couple of years.

Kevin:  When you get growth of around 30%, that’s a pretty good indicator.

What about stock on market?

Shannon:  Stock on market is quite tight. We’re looking at about 35 days on market. Again, high owner-occupier percentage. The vendors are only taking a 2.6% discount.

Kevin:  That’s low.

Shannon:  Very tight vacancy in that area.

What I found here Kevin, was as rare as hen’s teeth. It’s a double block. There’s only being one listed on the market, but there’s also the next door neighboring that has the same owner’s interest, and they’re prepared to sell both.

I just like the options on this property. We can build a nice house…

Kevin:  Can I just double track? You said the property next door is available as well?

Shannon:  That’s right. 51 and 53 Latimer Street, Holland Park.

We can just build two contemporary houses on those two blocks. We could perhaps squeeze three in and have a smaller house with another subdivision, or there’s a DA approval for nine units on this one.

I just thought it’s got a lot of options here. Land is a great option in somewhere like Holland Park, and land banking as a strategy works well. And it’s just taken a nice price drop, too.

Kevin:  We’ll talk about that. The agent is on the line, Vish Uttam. Vish is from Experience Real Estate.

G’day, Vish. How are you doing?

Vish:  Good morning gentleman. How are you going?

Kevin:  Yeah, good. I have to use this line. This was on our Vish list, Vish.

Vish:  It’s been a while, Kevin.

Kevin:  Yes, it’s been a long time, mate. Vish has been on our show before. We talked about his Vish list.

Tell me a little bit about this property that Shannon has identified.

Vish:  Very lucky to have it landed on my lap. Basically, there were two houses previously there on the block, and it was going to be a little bit of a development project. Now, what happened is they demolished both houses and for whatever reason, they can’t go ahead and build, so they decided to put it on the market.

Initially, basically, one block of land, 53 Latimer Street, which was 460 square meters, but we also have access to 51 Latimer Street as well, interested party.

Kevin:  Is that the same land size?

Vish:  15 square meters bigger. So, one is 460, one is 475.

Kevin:   All right. So, we’re a touch over 900 square meters here. Shannon touched on the fact that you could build a couple of contemporaries there, or three smaller houses maybe, or even up to nine units. What’s a unit site worth nowadays?

Vish:  Well, in Holland Park, it varies. It really depends on the quality of the build, but the valuers we got in place to do appraisals for that, for the nine units, comprised one three-bedroom, one one-bedroom and seven two-bedrooms, and they range from anywhere between $450,000 to about $600,000.

Kevin:  Okay. And what’s the asking price on this land?

Vish:  You have a couple of options here. The smaller block of land has had a price drop and now it’s at $599,000. That’s 53 Latimer Street. 51 Latimer Street is at $620,000. Or you can buy the whole block and we’ve listed it at $1.2 million.

Kevin:  All right. And level of interest in this? I’d imagine there would be a lot of people crawling over this one, Vish?

Vish:  Yes, absolutely. We’ve had it on the market for about two and a half weeks, but the first week and half, it was actually a little bit higher than this price. It actually started on the market at $1.3 million, and the blocks of land were listed at around $680,000 and $660,000.

Shannon:  So, we’re starting to get down to the real price now, hey, Vish?

Vish:  Absolutely. It’s been interesting. We have been getting a lot of phone calls from a variety of people. We have had developers give us a call, we have had mom and dads give us a call, and young couples who want to build their first homes. So, it’s been really interesting, and a varied market. But yes, I feel we are getting very, very close.

Kevin:  Vish, just give us your mobile number before we leave, just so people can give you a call.

Vish:  Absolutely. 0409 891 339.

Kevin:  Thanks, mate. Good on you, Vish. Vish Uttam, and Vish is from Experience Real Estate. Thanks for your time mate.

Vish:  Thanks for having me.

Shannon:  See you, mate.

Kevin:  Easy to see why that one is our final one. We’re going to come back after a very short break, and we are going to give you a wrap on the properties we’ve looked at and also the property market in Brisbane.

 

Tips on sound investing in Brisbane – Shannon Davis

Kevin:  Welcome back to the show. Just a bit of a wrap for you. We’ve been talking to Shannon Davis in the show today, from Metropole Properties and Image Properties in Brisbane, looking at the prime Brisbane suburbs and the properties.

Just give me a wrap on the Brisbane market, Shannon, just to leave us.

Shannon:  Kevin, I think freestanding houses and townhouses make great value at the moment. You can buy two or three for one Sydney apartment at the moment. I’m thinking in time, it’s going to look like Sydney is over-valued and Brisbane’s showing great value.

I think eventually, units are going to be a good counter-cyclical play. I think you could take the longer view. I think you’re going to start too see some really good bargains there that you’ll be happy with the price that you paid in 10 to 15 years’ time. So, if everyone’s saying it’s a crazy idea, it might just be a good idea.

Kevin:  Yes, counter-cyclical. There was some news during the week, too, about the slowdown of building of units in Brisbane – units coming out of the ground. So, there’s definitely going to be a shortage of them in the next 18 months, two years.

Shannon:  Yes, definitely. And I think, also, interstate migration. There was news out this week where the 20-year-olds and 40-year-olds are making their way up to South  East Queensland. They’re two pretty handy demographics to have.

And I think it’s just going to be irresistible. Moving up to a better climate, pretty good infrastructure, not as much congestion and traffic, and we’re only showing that our prices are 3.5 times the annual salary, whereas Sydney and Melbourne are showing their annual income to be 9.5 times. So, they’re a lot more leveraged than we are, and that’s going to have a knock-on effect to the cost of living going forward.

Kevin:  And the Brisbane market itself, while it hasn’t been growing as strong as Sydney and Melbourne – and they continue to grow – the Brisbane market continually surprises me in that it’s just so stable and that it’s almost like a budgeted continual growth.

Shannon:  Yes, definitely. I think that’s how we want our investing to be. We don’t want really exciting and dramatic investments; we want them to just move along and progress is great. Make your life interesting and your investments boring.

Kevin:  The suburbs that we have looked at in the Brisbane area that you should be having a look at were Mansfield, Belmont, Everton Park, and Holland Park. All averaging low days on market of around 30 to 35, so ticking over quite nicely. And three-year growth there, Mansfield was spectacular at 20.31%, 8.6% growth in Belmont, 18.2% in Everton Park, and 30.5% in Holland Park, so some really good indicators there about growth.

Just quickly – about a minute to go – just your key tops for anyone looking to buy an investment property.

Shannon:  When we invest, we have to think about owner-occupiers. All those suburbs have young professional families in common. Australians spend more on our housing up to about age 55, and then it starts to decline. So, what we are looking for is young families moving to the area.

Take action. Time your life, not the market. If you’re in a place where you can invest and it makes sense for you, do so. Also, take your time, do your research. This is a long-term play. You need to make sure that you’ve done all the research before you jump in to an expensive thing like a house.

Kevin:  It’s been great this morning. Shannon Davis has been my guest in this special show this week, as we looked at the Brisbane market and identified those four suburbs for you and why you should be looking at them, and even selected some of the properties that you should be looking at in there, as well.

Shannon, thank you very much for your time.

Shannon:  Thanks, Kevin.

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Kevin Turner
kevin@realestatetalk.com.au
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