Brisbane and Sydney clash in ultimate property decider
It’s been a question our nation has debated for decades. We argue over which has the better location, the better climate and the superior sporting team and now we’re even debating the question when it comes to property: Which is the better city, Sydney or Brisbane? From property prices to investment opportunities, here’s a look at how the two cities stack up.
When choosing between Brisbane and Sydney, you should set yourself a realistic budget. Sydney’s property boom saw property prices shoot up to unseen and unbelievable prices. While they’ve recently stabilised, prices across Sydney are still deemed to be rather expensive, so you need to ensure that if you’re thinking of buying in the harbour city, you have a clear budget to work with.
Brisbane on the other hand has long experienced a steady to slow market and as a result, you’re more likely to get more bang for your buck. Prices are also forecast to rise over the coming years, so it could make for a good long-term investment. Shane Hiscock of Cohen Handler Brisbane says the Queensland city is the clear winner when it comes to affordability.
“Currently the median house price in Brisbane is approximately half that of Sydney’s. You would be surprised at the value for money available in Brisbane within a fairly short distance to the city,” says Shane. “It’s no secret Sydney enjoyed very strong growth up until around 2017 however over the past year or so prices have come off those highs whereas Brisbane is looking like it is entering a recovery phase.”
It’s always important to take location into account when purchasing an investment property. While it doesn’t need to be in a suburb you would want to live in, you should aim to buy something in an area where there is high demand and a strong rental yield. No matter the city, there is usually high demand in areas where there are hospitals, universities and good schools. Suburbs within a 10km radius of the CBD are often the strongest performers when it comes to investment properties. Whether you’re buying in Brisbane or Sydney, a Cohen Handler buyer’s agent can help determine the best areas to invest in.
Whether it’s deciding what time of year to buy or taking into consideration the climate of the city you’re purchasing in, weather can have a big effect on the price and demand for property. While Sydney can often experience four seasons in one day, Brisbane has more of a sub-tropical climate, so its winters are often warmer than the southern cities. With this in mind, Brisbane may experience year-round competition for buyers, while Sydney experiences a lull in demand during winter, letting savvy buyers make a move that could save them money.
Setting investment goals can help you decide whether Brisbane or Sydney is the right city for you. Are you looking to purchase something with a high yield and rental return that will reap you the bigger short-term reward, or are you looking for a property that will experience good long-term capital growth? While the growth of Sydney property prices has come off the boil, certain suburbs in the city are still seeing steady growth and strong rental returns.
However, with Brisbane forecast to see prices rise over the coming years, it may be the better choice for those with the goal of long-term capital growth. Shane says an immediate positive yield may require an investor to consider properties that present dual incomes opportunities.
“An investor can still achieve both high yield and capital growth by purchasing a home as close to the city as possible, with the option of having separated areas that could lend itself to housing a tenant or family member.”
“We recently purchased a property which had a fully self-contained single bedroom granny flat. This property was within 10km of the Brisbane CBD, was purchased for under $700,000 and not only was it positively geared, in 10 years’ time the investor could further develop the property, providing additional upside potential.”
So if you’re in the process of your own ‘ultimate decider’ on where to invest, engaging a Cohen Handler as your buyer’s agent can help make the choice a whole lot easier. Not only do they have great teams in both cities with knowledge on the best places to invest, they can also help you work out your budget, investment goals and make the entire transaction easy and stress-free.
For assistance on where you decide to invest in contact us 1300 420 160 or email [email protected]