It is generally accepted that there is a shortage of houses in and around Brisbane. More and more people seem to be moving here at a rate that seems to be outstripping the ability of the property market to keep up.
And of course a shortage of property has to eventually drive up prices, doesn’t it?
Well the founder of the Property Club, Kevin Young believes it does as he explained in a Suzanne Colville article on The World News Magazine.
“The significant demand for property in Brisbane is moving so quickly that developers are struggling to keep up. At The Property Club we have over 100 buyers waiting to invest, however sourcing completed suitable stock is becoming increasingly difficult. This is the tip of the iceberg of an ever growing Australian housing supply shortage,” Kevin said.
Of course I would expect someone in the property development market to suggest that the market is set to boom, but is it going to suddenly explode in the next 12-18 months given the state of finances in Europe and the US?
I must admit I’m not quite so sure. However I do agree that investing in property is a great idea regardless. But which properties are going to give the best returns?
Well time and again I see the properties that do best are those that have been well designed. The better homes sell faster and hold their value far better. So should you be rushing out and buying an investment property or investing in your own home?
Well of course that’s a matter for you to discuss with your financial advisor as each person’s situations can be quite different. Personally I would invest in renovating my own home for a future capital gain as I am not as confident of the markets medium term growth for average, un-renovated properties.