Brisbane remains one of Australia’s most attractive property investment markets. Here’s what you need to know about investing in 2024.
Why Invest in Brisbane Property?
Brisbane offers compelling investment fundamentals:
Population Growth
Queensland leads Australia in interstate migration. Thousands of people move from Sydney and Melbourne seeking lifestyle and affordability.
Infrastructure Investment
Major projects driving growth:
- Brisbane 2032 Olympics - Transformational investment
- Cross River Rail - New underground rail
- Brisbane Metro - Bus rapid transit upgrade
- Queen’s Wharf - $3.6 billion CBD development
Relative Affordability
Brisbane property remains more affordable than Sydney and Melbourne, offering better rental yields and growth potential.
Rental Demand
Low vacancy rates across Brisbane mean strong rental income security.
Investment Loan Options
Principal & Interest (P&I)
Pay down your loan balance over time. Best for:
- Long-term wealth building
- Reducing debt levels
- Lower interest costs over loan life
Interest-Only
Pay only interest for a set period (typically 1-5 years). Best for:
- Maximising cash flow
- Tax deduction optimization
- Investors planning to sell within interest-only period
Note: Interest-only periods have time limits and require reversion to P&I eventually.
Line of Credit
Access equity from existing properties. Best for:
- Experienced investors
- Those wanting flexible drawdown
- Short-term investment opportunities
Structuring Investment Loans
How you structure investment finance affects:
- Tax deductions
- Borrowing capacity
- Asset protection
- Flexibility for future purchases
Key principles:
- Keep investment and personal debt separate - Don’t mix owner-occupied and investment borrowings
- Interest is deductible, principal isn’t - Consider interest-only if cash flow allows
- Cross-collateralisation - Understand implications of using multiple properties as security
- Entity structure - Personal name vs trust vs company (seek accounting advice)
Our Brisbane mortgage brokers help structure loans optimally while recommending you consult an accountant for tax advice.
Brisbane Suburbs for Investment
Growth-Focused Suburbs
Areas with strong capital growth potential:
- Brisbane CBD - Olympics regeneration
- South Brisbane - Queen’s Wharf proximity
- Fortitude Valley - Urban renewal
- Newstead/Teneriffe - Continued gentrification
Yield-Focused Suburbs
Areas with strong rental returns:
- Eight Mile Plains - Hospital and business park proximity
- Sunnybank - Diverse tenant demand
- Upper Mt Gravatt - Student and family demand
- Chermside - Hospital worker demand
Balanced Options
Good growth and yield potential:
- Nundah - Village lifestyle, train access
- Indooroopilly - University proximity
- Wynnum - Bayside appeal, affordability
Investment Loan Requirements
To qualify for investment loans, lenders typically require:
- Deposit - 10-20% (LMI applies below 20%)
- Income verification - Pay slips, tax returns
- Rental income assessment - Usually 70-80% of expected rent counted
- Existing debts - Credit cards, other loans considered
- Property type - Some restrictions on small apartments
Different lenders have different policies. Our broker service compares options to maximise your borrowing capacity.
Tax Considerations
Negative Gearing When rental income is less than loan interest and expenses, the loss can offset your other income, reducing tax.
Depreciation Building depreciation and fixtures provide additional tax deductions. Get a quantity surveyor report.
Capital Gains Tax When you sell, CGT applies to your profit. Holding for 12+ months provides a 50% discount.
We recommend working with a qualified accountant for investment property tax planning.
Common Investment Mistakes
Avoid these pitfalls:
- Buying with heart, not head - Investment decisions should be numbers-based
- Insufficient cash buffer - Account for vacancies and repairs
- Ignoring yield - High growth means nothing if you can’t hold the property
- Over-leveraging - Leave capacity for rate rises and opportunities
- Not researching the area - Understand tenant demand and future development
Building Your Portfolio
Successful investors typically:
- Start with one property, manage it well
- Build equity through growth and principal repayments
- Use equity to fund subsequent purchases
- Diversify across property types and locations
- Review and optimise loan structures regularly
Our Brisbane mortgage brokers support investors from first purchase through portfolio expansion.
Ready to Invest in Brisbane Property?
Book a free consultation with our investment property specialists. We’ll discuss your goals, calculate your borrowing capacity, and recommend loan structures to maximise your investment success.
Get Your Free Investment Loan Assessment
Home Loan Brokers Brisbane - supporting Brisbane property investors since 2009.