So you’re looking to enter the Brisbane property market. For a first home buyer, the market is tough out there. The deposit seems an impossible goal and month after month that goal gets shifted further away.
What are the prospects for the Brisbane property market in the coming year and how that may affect your offer, suburb preferences and long term property goals.
A volatile year ahead for Brisbane property buyers
Buying property has never been more volatile. So if the next year signals the time for you and your family to buy your dream home in the Brisbane property market, the next year presents some unique challenges.
How you can get the most out of your property by factoring in these challenges and how recent events from rising interest rates, La Nina, the slowing market and even the highly anticipated Olympic Games may affect your property purchase – specifically from our unique position as professional building inspectors.
Please note that we are not offering legal advice. You must consult a specialist lawyer before making any decisions.
Factors to consider when entering the Brisbane property market
The following discusses the major current and future events you should consider when purchasing property.
Cash Flow & Interest Rates
If you’re looking to enter the Brisbane property market next year, you may be tempted to save money by skimping on your property inspection. With rising interest rates and cost of living, we understand the temptation to save where you can. But avoiding a pre-purchase building inspection could cost you a lot more in the long run.
Solid investments are more important than ever. Make sure you get all potential properties inspected by a thorough, reputable building and pest inspector in Brisbane
Slowing Market
Brisbane property market 2023 predictions indicate that while cash and interest rates are on the rise, the property market is about to slow in the next year.
This means that as the market stabilises, it becomes a great advantage for prospective property owners to enter the market. It also makes the need for a quality property inspection even more important.
Olympic Games
The Olympic Games is on everybody’s minds lately, especially in Queensland. But with growth and expansion comes change.
As Brisbane is set to become a hot commodity over the next couple of years, it may influence where you and your family can afford to buy. It could mean you have to move further out of the city, where properties are more rural and potentially older in construction. Older homes can increase the likelihood of defects.
We’ve written before on the importance of building inspections in rural areas or when buying older homes, but this will become even more prevalent in the following year. It’s also vital that you consider the following when buying an older home or rural property:
- Integrity of home
- Age of home and potential issues
- Flood damage
- Fire damage
- Roof inspections etc.
Outlying Area Growth
Before you jump on board the remote working, tree change lifestyle property purchase, remember that moving outside the Brisbane market altogether could mean you’re locked out forever. If you buy a property further afield, outside of Ipswich or Caboolture for example, or even north or west of the Sunshine Coast, you could find that sluggish growth in these more remote locations mean that your home’s equity never catches up with the Brisbane, Gold Coast and Sunshine Coast growth rates. So, despite owning a property, you’re still in the same position as a first home buyer in Brisbane.
“Through suburbs – the poorer, main roadside cousins to the waterfront beauties or the spacious mansions make for solid investments for first home buyers in Brisbane. There aren’t many first home buyers with their sights set on New Farm or Hamilton, but if you were hoping for Samford, consider the through suburbs like Lawnton, Keperra, Petrie or Brendale. Want Sandgate? Consider Deagon, Boondall or Bracken Ridge. Wishing for Wynnum? Consider Tingalpa.” said Kylie Loof, Brisbane Real Estate Agent.
La Nina and El Nino
Environmental concerns are a major reason why home owners should take the time to employ the services of a professional building inspector. With recent floods, more and more properties on offer in the Brisbane property market will have been exposed to damage such as flooding, leaks, or structural and roof damage. Future storms, rising sea levels, fire and drought should not be disregarded when buying in Queensland’s south east. It may seem like a manageable risk when you’re just trying to climb onto the property ladder, but it can cause detrimental damage to your financial future.
“My biggest tip for first home buyers in South East Queensland is to go beyond the Floodwise reports and ask one simple question – call your insurance company and ask how much home and content insurance will cost on the potential address. If it’s substantially higher than expected, there’s every chance your new property lays in harm’s way”. Said John Salmon, plumber Brisbane, who has spent more than 20 years dealing with water inundation issues in South East Queensland.
When buying a property in Brisbane, you need to do your research if you want to make sure you’re not going to fall victim to natural disasters, or invest in a property that may have already been exposed to flood damage. At Action Property Inspections, we’ll identify previous water damage, subsidence and other structural defects that may be indicators of environmental factors that could have the potential to affect the safety of your property in the future.
