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Brisbane house prices likely to DOUBLE as tens of thousands flock to Queensland to escape lockdowns

Annastacia Palaszczuk’s claim that Queensland is in danger of being ‘loved to death’ is no throw away line.

While the premier cites the rush to escape lockdown as the immediate reason for the influx, real estate experts agree the trend is likely long-term. Homebuyers have realised working remotely due to the pandemic is here to stay and entered a “race for space,” co-founder of national property network BuyersBuyers, Pete Wargent said. “There has been a marked shift towards tree-change and especially coastal or sea-change markets, with a rush of city buyers moving outwards to compete for a limited supply on in-demand stock,” he said.

“Surveys conducted via the ABS indicate that while many Australians will ultimately return to the capital cities, the trend towards working remotely is expected to persist for many more businesses than in the pre-pandemic period.” Wargent said tech businesses currently have to offer flexible working arrangements as a matter of course due to border closures and skills shortages. Yet “as buyers get a taste for living in lifestyle locations, many will doubtless choose to stay for the long term”.

While job opportunities have traditionally made Sydney and Melbourne Australia’s population growth centres, internal migration has sharply reversed during protracted lockdowns, with southeast Queensland the main beneficiary.

Wargent said while strict rules around the inspection of properties for sale have impacted housing market turnover especially in Victoria, buyers continue to make relocation plans.

House Prices

Brisbane’s median house price of $678,000 is less than half of Sydney’s and on par with that for Adelaide and Hobart. Yet by the time the 2032 Olympic Games come to town, the figure is likely to be $1.5 million.

It ranked third-fastest city nationally for August (2 per cent) behind only much smaller markets in Canberra (2.2 per cent) and Hobart (2.3 per cent).

Courtesy: https://7news.com.au/business/housing-market/queenslands-long-haul-property-rush-c-3996753

The cost of buying house in Queensland

The cost of buying a new home in Queensland

Transfer Duty in Queensland

Stamp Duty, known as Transfer Duty in Queensland, is calculated based on the value of the property and the purpose of the property. If you’re buying your first home, you’ll avoid transfer duty altogether, which is a sizeable saving. This will only apply to your first home, not to vacant land on which to build your first home. Buying an investment property in QLD attracts a far higher percentage of transfer duty and if you’re a foreign national, additional fees apply.

Conveyancing and Legal Fees in Queensland

If your property purchase is fairly straight forward, you can expect to pay in the ballpark of $1200 – $2000 in legal and conveyancing fees in Queensland. There are plenty of “low cost” conveyancing firms operating in Queensland; however, it pays to check if your conveyancer will go the extra mile and procure information on the legality of renovations and other improvements

Lender Mortgage Fees and Insurances

Every lender will have its own set of “hidden fees” and it really pays to shop around. Application fees will generally start at about $500. Some forego the establishment fee but charge an annual fee of hundreds, if not thousands of dollars to keep you on the lowest interest rate.

Mortgage Registration and Transfer Fees

In Queensland your mortgage registration fee is $187. The transfer fees are calculated on the value and purpose of the property. The current transfer duty levels for Queensland can be found here. Note that foreign nationals will attract an extra 7% levy.

Home and Contents Insurance

You will be required to insure the property from the day you sign the contract on the home. This is BEFORE settlement happens. While it’s technically not a legal requirement, your lender will insist that the property is fully insured from the moment the ink dries on the contract. If the property is subject to building and pest and the contract falls over, you’ll need to cancel the insurance as you withdraw from the purchase.

Building and Pest Insurance

Queensland’s abundance of building challenges and pests means an abundance of building and pest inspectors. Inspections vary greatly in price and quality. Cheap and cheerful building and pest inspections start at about $500 and give a basic overview of the state of the property. They tend to contain watertight terms and conditions so if they miss something, you’re on your own. Unlike built up urban areas in central Sydney and Melbourne, Brisbane is regularly subjected to floods, fires and cockroaches of the gigantic flying variety. Queensland’s humidity and dryness, drought and floods (often all in the same year) makes your building and pest inspection a higher priority than it may be in other locations.

Buying a new home in Queensland

5 Ways to know you found the right house

1) You Want to Go Inside the House

Part of the excitement of looking at homes is not knowing which could be your new home when you pull up to the curb. Is it the one on the left, or does the place on the right strike your fancy? If it’s the house on the right and you like it better than the home on the left, that could be a sign.

2) The House Embraces You the Moment You Enter

You’ll know within about three seconds of entering whether the feels warm and comforting. Does it seem to speak to you? Does it invite you to explore? Does it feel like home? If so, it probably is.

3) You Begin to Envision the Furniture Arrangement

This might be your house if you walk into the master bedroom and can immediately envision your bed against a particular wall. You’re already hooked if you find yourself thinking that the living room window is a perfect spot to put a tree come Christmas. Or maybe you can already see yourself driving up the street, heading home after a hard day at work.

4) You Want to Stop Looking at Other Homes

All the other homes you’ve been looking at no longer appeal to you.

Realizing

Your Dream Home to Reality

5) You're Already Planning to Go Back

If you got in the car, chatted with your spouse, and immediately planned your next visit to the property before you even left the driveway, you’re a goner. You want to see it at a different time of day or take your mom or best friend with you the next time.