A Buyer Guide To Home Loans Brisbane

Whether it’s your first home, a home upgrade, or an investment, buying a property is an exciting process. But it’s also one of the biggest investments you’re ever likely to make, so it’s understandable that you’ll have some questions throughout the process of getting the best home loans in Brisbane. Like, why purchase a property in Brisbane? How do property prices in Brisbane compare with other capital cities around the country? What do you need to know about stamp duty, auction rules, and the First Home Owner’s Grant? And which mortgage option is going to best suit your specific needs?  

Why Purchase a Home in Brisbane?

Brisbane population statistics from the last 8 years reinforce what local residents have long understood: people want to live in Brisbane. In fact, the city saw a population increase of 3.31% in 2019, due in large part to overseas and interstate migration. While some of the city’s popularity is undoubtedly thanks to the balmy weather and stunning beaches, it also helps that property prices in Brisbane are cheaper than what you’ll find in other major capital cities such as Melbourne, Canberra, and Sydney. Add to that a range of large-scale infrastructure projects in the pipeline (which promise to improve public transport in the city), and it seems safe to say that Brisbane’s status as a desirable place to live is likely to continue. 

If you’re already living in Brisbane and are currently renting a property, then you probably already know another compelling reason to buy a house in Brisbane – the astronomical cost of the rent. In fact, according to the Rental Affordability Index (which monitors rent prices in relation to average household income), properties in inner and middle Brisbane are deemed “moderately unaffordable to unaffordable”, with a growing number of suburbs shifting over to just plain unaffordable. With that being the case, buying a property may actually be the more affordable option. This opinion is backed up by Domain Research which found that there are 45 suburbs in Brisbane where rent is more expensive than an average mortgage. According to Domain Research analyst Eliza Owen, “rents outstrip mortgage repayments in more affordable areas.”

Property Prices in Brisbane

Brisbane property prices have seen a slow but steady increase over the last few years, with the occasional minor dip in some inner-city suburbs. But that looks set to change moving forwards into 2021, with market forecasters predicting a surge in demand. As a result of COVID-19, more Australian’s are chasing properties in “lifestyle” areas – if they’re going to work from home, then they want that home to be in a beautiful area and close to a beach. In fact, Doron Peleg from RiskWise estimates that some areas of South-East Queensland could see capital growth in the range of 6-10% during the year 2021. The housing market in Brisbane is already seeing more transactions than it was in pre-COVID times, a trend that shows no sign of slowing down just yet. In other words, now is the time to buy if you want to snag a bargain before prices start to really increase!

Buying A Property in Brisbane

Buying property in Brisbane is also more affordable than buying in some of the other popular Australian capital cities. According to CoreLogic data, the average house price in Brisbane is $546,500, while units have a median price of $375,000. This is decidedly lower than the $666,226 national average for capital city house prices, and hundreds of thousands of dollars cheaper than median prices in Sydney ($868,000 for a house and $685,000 for a unit) and Melbourne ($727,500 for a house and $541,000 for a unit). Of course, house and unit prices in Brisbane will vary across different suburbs. But the data shows that, in general, buying a property in Brisbane still remains a far more affordable option. 

Choosing the Best Home Loans in Brisbane

So, you’ve decided to buy a home in Brisbane, Queensland. Now you just need to find the best home loan to suit your specific needs. Some factors to consider when finding the best home loans in Brisbane include: 

How much you can borrow?

Some Brisbane home loan lenders will have limits on the maximum amount you can borrow, so keep this in mind when applying for a mortgage. While median house prices in Brisbane’s most sought-after suburbs are in the range of $1.5 million, some lenders offer a maximum borrowing limit of just $1 million. 

Where is your home loan mortgage broker located?

Many home loan brokers in Brisbane are now offering virtual consultations, so you may think this question is no longer valid. But it’s still often beneficial to work with a broker who has local knowledge and experience, not to mention the peace of mind that comes with knowing your mortgage broker has an established reputation working in the local Brisbane community.  

Will you be affected by stamp duty?

When you buy a property in Brisbane you will generally have to pay a stamp duty fee (also known as transfer duty). However, various concessions are available to some Queensland property buyers, so it pays to understand what discounts you may be eligible for. 

Are you eligible for the First Home Owners’ Grant if you buy a property in Brisbane?

If you’re buying your first home in Brisbane, then you may be eligible for the $15,000 First Home Owners’ Grant. To check eligibility criteria, see the Queensland Government website. 

Are there specific auction rules in Brisbane?

Queensland does have some state-specific auction rules that you’ll need to know about before bidding at a Brisbane property auction. For example, properties sold at auction won’t have a cooling-off period, so you may wish to gain home loan pre-approval before making a bid. 

What should you know about flooding?

Some areas of Brisbane have experienced flooding in the past, so it may be a good idea to consult with local flood maps prior to finalizing a property purchase. If you’re unsure how to go about this, then some property conveyancers can conduct a search for you as part of the services that they provide. 

What features should your ideal Brisbane home loan include?

Choosing the right home loan involves more than just looking for the lowest interest rate. Depending on your circumstances and future financial goals you may benefit from a mortgage that includes an offset account or the ability to make additional repayments. 

To ensure you get the right home loans in Brisbane to suit your needs, it’s best to talk to an experienced finance broker about which mortgage option is right for you. 

What Other Benefits are There to Buying a Property in Brisbane?

There are plenty of reasons why buying a property in Brisbane is a great option, no matter whether you’re purchasing an investment property, you plan to renovate, or whether you’re buying your first home. These include: 

• Plenty of open spaces to enjoy, with Brisbane City Council reporting over 2,000 parks.
• An average of 261 days of sun each year (almost 100 more than you’ll get in Melbourne!).
• A strong jobs market and robust economy (recorded by Brisbane City Council as $162 billion).
• More affordable cost of living when compared with Sydney and Melbourne. 
• The average temperature in winter is a mild 21 degrees and in summer, a delightful 29 degrees.

What Else Should You Consider When Buying Property in Brisbane?

While the list of pros is seemingly endless, there are some potential cons that it’s important to take into consideration. These include: 

• Some suburbs in Brisbane have a high number of ‘heritage’ listed properties, which may face certain restrictions when it comes to renovations. 
• Summer storms can occasionally cause property damage, along with the potential for flooding, so insurance premiums can be high in certain areas. 
• Like in any capital city, some suburbs come with a much higher price tag due to popular demand. 

To ensure your property doesn’t come with any unexpected surprises, it often pays to do a little research ahead of purchase. 

Should Property Investors Buy in Brisbane?

As this article has already discussed, the Brisbane housing market is predicted to see excellent growth in the coming years. Property investors who make an astute purchase now can expect a reasonable return on investment should they then decide to sell the property a few years down the track. Additionally, Brisbane properties are currently commanding high rent yields, so a property investor can also expect a solid monthly rental income. However, property investors should bear in mind that Brisbane has seen a massive increase in the development of new units in recent years, which could potentially lead to an overall drop in unit property values. 

Top 10 Best Suburbs To Invest In Brisbane, QLD For Investment Property Buyers

According to industry experts, the following ten suburbs are ideal locations for investment property buyers, based on criteria such as capital growth, affordability, buyer demand, school catchment areas, and proximity to public transport, infrastructure, and dining precincts: 

1. Bridgeman Downs: Just 13kms from the CBD, this affordable suburb is currently seeing population growth, low vacancy rates (just 3.2% in late 2019), and increased rent prices.
2. Carina Heights: Only 8kms from the Brisbane CBD and right next door to high-end suburbs including Norman Park and Camp Hill, Carina Heights has become increasingly popular with first home buyers, investors, and home upgraders. 
3. Everton Park: Now seen as a “foodie” location thanks to Everton Plaza’s Park Lane, this northside suburb is attracting first home buyers who want the café lifestyle without having to venture into the CBD. 
4. Ferny Grove: According to Realestate.com.au, properties in Ferny Grove have recently seen a 23% increase in online views, thanks in large part to the abundance of parkland and schools (not to mention the convenience of a train station). 
5. Keperra: Close to the CBD and with a median house price of $550,000, Keperra is predicted to achieve decent capital gains following a similar growth trend in neighboring Mitchelton. 
6. Loganholme: Slightly further from the city centre, but close to the M1 and the Logan Hyperdome, Loganholme has an average house price of just $395,000. But according to Open Agent, it offers some of the highest rent yields at 6.49%.
7. Mansfield: One of the most desirable school catchment areas in Brisbane, Mansfield is very popular with families, resulting in 10% higher rent prices when compared to properties outside the school catchment area. 
8. Oxley: Less than 30 minutes from the CBD via train, Oxley is surrounded by suburbs with much higher median house prices (such as Sherwood, Corinda, and Graceville). This is a strong indicator that it will experience capital growth in the future. 
9. Stafford Heights: A mere 8kms from the CBD, Stafford Heights is considered to be both accessible and affordable, close to shops and in a great school catchment area.  
10. Wynnum: This bayside suburb is close to infrastructure and is expected to see excellent capital growth in the future as the property boom continues to expand outwards. 

How to Get the Best Home Loan in Brisbane?

If you are looking for the best home loans in Brisbane to buy your home then you can contact the award-winning team of North Brisbane Home Loans’ mortgage brokers. With over 100+ years of experience, we have been helping a number of home buyers to complete their home ownership dream cum true.

Patrick Cranshaw

Patrick Cranshaw, a Certified Mortgage Professional for over 21 years, founded North Brisbane Home Loans in 2002. His career began with ANZ Bank in New Zealand, where he progressed over 16 years to a Business Banking role in Virginia. After moving to Brisbane in 2000, Patrick led the QLD market for a home loan agency, helped set up the REMAX Real Estate Finance division, and practiced as a broker.