It is no secret that Australian property prices have risen dramatically in the past 10 years. Recent reports have Australia competing with notoriously expensive cities like Hong Kong, London and Tokyo in the least affordable housing stakes. In spite of rapid changes in the housing market, purchasing property is not out of reach if you look in the right places! Belle Property focus on the affordability of south-east Brisbane in today’s blog.
Ipswich was rated the most affordable Australian suburb in an AMP report entitled ‘The Great Australian Dream.’ It is a young city; the median age of residents is 33 years old and is a short drive to Brisbane. Upgrades to the Ipswich motorway support economic growth in the area making it an attractive possibility for first home buyers.
Yet if you wish to remain close Brisbane there is good news. Brisbane’s affordability compares favourably against capital cities in other states. The middle ring of suburbs around Brisbane is relatively affordable whereas the comparative areas in Sydney or Melbourne typically push loan repayments above 30% of weekly income. The outer suburbs are even more affordable. Investors and first home buyers might want to give suburban Brisbane some serious thought.
Infrastructure development is probably the best indicator for good future returns in property investment. Areas that have infrastructure in place and are connected to transport routes thrive economically. People are attracted into well-developed areas for their accessibility to cities, and proximity to amenities. Local economies grow in these conditions as do the prices of the houses.
Infrastructure developments abound in Brisbane and South-East Queensland. Highway links to the airport and the Brisbane to Gold Coast railway are but two developments improving the liveability and value of south-east Queensland. Do investigate properties close to these developing transport routes as they are likely to see population growth over the coming years, increasing property demand and subsequent increase in the value of housing in these suburbs. This is where your investment will see returns.
The affordability rule of thumb dictates that 30% of your weekly income can comfortably go towards housing. Expenditure over this percentage can become stressful when there are many other demands on the purse strings. In other Australian capital cities you can easily allocate 50% of income to your home. On the other hand Brisbane and south-east Queensland can offer affordable housing in a sun-drenched environment. Get in touch with the South Brisbane Belle Property office for more details!