Understanding the Brisbane Property Market
It is not a surprise to most of us that the Brisbane property market has seen strong growth over the last 12 months. Headlines have highlighted high buyer activity and very few sellers, putting strong upward pressure on property prices.
This growth creates a favourable environment for those wanting to start an investment portfolio, especially if you already own property and can leverage equity for your next purchase.
Start an Investment Portfolio in Brisbane Without a Deposit
If you already own a property, you may have seen significant equity growth in recent years. Equity growth occurs when a property increases in value over a number of years which results in the value being much higher than the original purchase price paid by the property owner.
Banks allow property buyers to leverage this existing equity, which means equity with your home can help you start an investment portfolio without saving for a cash deposit.
When investing, most people aim for either:
- A boost to their current cashflow, or
- Long-term capital growth contributing to wealth creation
The balance between income (investment yield) and growth (equity) will depend on your unique circumstances. A strategic financing approach that aligns with your existing debt, like a home loan, can also maximise tax advantages and investment potential.
How Can You Use Existing Property Equity to Start an Investment Portfolio?
The equity in your property is the difference between its current market value and your outstanding mortgage. Banks may allow you to borrow up to 80% of a property’s value without Lenders Mortgage Insurance (LMI).
This means you can potentially use the equity in your home as a deposit for a first investment property, which is especially useful given Brisbane’s recent market growth.
Equity increases either through:
- Mortgage repayments (reducing debt), or
- Capital growth of the property
By understanding your equity position, you can start your investment property journey without needing to save additional funds for a deposit.
How to Start Your Investment Property Journey
Starting is straightforward, but requires careful planning. Follow these steps:
- Contact a Mortgage Broker – Obtain a property valuation estimate and calculate your available equity.
- Assess Borrowing Capacity – Determine how much you can borrow for your next property purchase.
- Re-mortgage or Refinance – Draw out your equity through an equity loan to use as a deposit.
- Ensure Affordability – Confirm you can meet the repayments for the investment property as well as your existing mortgage.
Once you know your capacity, research the right locations and property types to meet your goals. Seeking professional assistance from a buyers agent is recommended if you are unsure about the best property for your circumstances.
Why Pick Brisbane to Invest?
Brisbane offers multiple advantages for property investors:
1. Affordability – Brisbane still provides more affordable options than Sydney, and what you actually get in Brisbane based on house and land size on a square meter basis is still superior to Melbourde – despite any differences in overall median values.
2. Strong Rental Yields – Brisbane offers stronger gross yields compared to other east coast capital cities in Australia.
3. Positive Net Migration – Many people are moving to South-East Queensland, increasing housing demand
4. Rental Shortages – Vacancy rates are at historically low levels across Brisbane which is contributing to strong rental price increases year on year.
5. Lifestyle & Pandemic Response – Brisbane offers lifestyle benefits and has managed COVID-19 better than other capitals
6. Infrastructure Growth – The 2032 Olympic Games will fast-track projects that improve connectivity and long-term property value
What Makes Brisbane a Great Market for Property Investment?
Brisbane combines affordability, strong yields, low vacancy, positive migration, lifestyle benefits, and infrastructure growth. These factors create an ideal environment for both first-time and experienced investors to start or grow an investment portfolio.
Using Equity to Start Your Investment Portfolio
Whether you own a home or another property, your equity can fund a new investment.
- Equity = Current property value − Mortgage balance
- Banks allow borrowing up to 80% for a property investment equity loan
- Accessing equity reduces the need to save a deposit and accelerates portfolio growth
By using this strategy, Brisbane’s recent market growth works in your favour, making it easier to kickstart your property investment journey.
Conclusion: Building Your Investment Portfolio in Brisbane
Starting an investment portfolio in Brisbane is achievable by:
- Leveraging your existing property equity
- Applying a strategic financing approach
- Selecting properties aligned with your long-term goals
While market data is important, local knowledge and professional guidance are essential to ensure your investment strategy suits your unique circumstances.
How Streamline Property Buyers Help You Start a Smart Investment Portfolio
At Streamline Property Buyers, our experienced and award-winning buyers agents guide clients in creating an investment portfolio by combining property data with on-the-ground market expertise. While statistics like median prices, yields, and vacancy rates provide useful insights, they often miss critical factors that influence individual property performance, including location-specific risks, equity potential, and long-term growth opportunities.
If you want to leverage your existing property equity, minimise risk, and make informed choices when starting or expanding your investment portfolio, partnering with a professional buyers agent provides the clarity, strategy, and confidence needed to succeed in the Brisbane property market.
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