Stepping into the Brisbane property market as a first-time investor? Great choice! Brisbane continues to be a top destination for property investors, thanks to its steady capital growth, strong rental yields, and relative affordability compared to Sydney and Melbourne.
But with so many suburbs to choose from, where should you begin?
We’ve handpicked 5 Brisbane suburbs that tick all the boxes for first-time investment property buyers in 2024. From rental yields to capital growth potential, these areas offer the best balance between affordability and long-term returns. Plus, we’ll back everything up with real data from the latest market reports.
Let’s dive in!
Why Brisbane is a Hotspot for First-Time Investment Property Buyers in 2024
Brisbane has steadily become one of Australia's most attractive property markets, especially for first-time investors. In 2024, several factors are making Brisbane a go-to destination for those looking to build their investment portfolios.
- Affordability: Compared to Sydney and Melbourne, Brisbane’s property prices are more accessible. In 2024, the median house price in Brisbane sits at around $800,000, significantly lower than Sydney’s $1.3 million (Domain). This makes it easier for first-time investors to get into the market.
- Population Growth: Brisbane is seeing strong population growth, driven by interstate migration and job opportunities. The Queensland Government projects continued growth, which increases rental demand and helps keep vacancy rates low (ABS Population Data).
- Infrastructure Boom: Major infrastructure projects like the Cross River Rail and Brisbane Metro are set to improve connectivity and boost property values in key areas.
- Strong Rental Yields: Brisbane offers some of the best rental yields in the country, with average yields of 4-5% (CoreLogic 2024), providing reliable rental income to help cover mortgage repayments.
- Lifestyle Appeal: Brisbane’s laid-back lifestyle, mild weather, and lower cost of living continue to attract renters, particularly young professionals and families. This contributes to ongoing rental demand and supports capital growth.
These factors make Brisbane a top choice for first-time investors looking to secure both rental income and long-term growth. Now, let’s explore the top 5 Brisbane suburbs for investment in 2024.
Top 5 Suburbs for First-Time Investment Property Buyers in Brisbane
Now that we’ve covered why Brisbane is a top spot for investors, let’s dive into the top 5 suburbs that offer the best potential for first-time investment property buyers in 2024.
These areas balance affordability, strong rental returns, and capital growth:
1. Nundah: A Northside Gem
Located just 8km from Brisbane’s CBD, Nundah is a thriving suburb offering a mix of traditional Queenslanders and modern apartments. The area has seen significant gentrification over the past decade, making it a hot spot for investors looking for reliable rental income and strong future growth.
- Median House Price (2024): $960,000
- Rental Yield (Houses): 4.2%
- Vacancy Rate: 1.3%
Nundah’s proximity to both the CBD and Brisbane Airport makes it attractive to renters, particularly professionals and young families. With a relatively low vacancy rate, finding tenants is rarely a concern, and rental demand continues to grow.
Key Factors to Consider:
- Close proximity to public transport and the CBD
- Steady rental returns with room for capital growth
- Low vacancy rates, meaning minimal downtime between tenants
2. Chermside: Retail Hub with High Rental Demand
Chermside, located just 9km north of the CBD, is known for its enormous Westfield shopping centre, hospitals, and excellent public transport. As one of Brisbane’s major activity centres, Chermside consistently attracts renters.
- Median House Price (2024): $825,000
- Rental Yield (Houses): 4.5%
- Vacancy Rate: 1.4%
Chermside offers strong rental returns and has a relatively affordable entry point compared to the inner city. It's also a favourite among tenants, especially young professionals and families.
Potential Benefits:
- Excellent public transport links
- Strong rental yields that support mortgage repayments
- High tenant demand due to shopping, healthcare, and schools
3. Wynnum: Waterfront Suburb with Affordable Property Prices
If you’re seeking a coastal lifestyle suburb without the hefty price tag, Wynnum is an excellent option. Located 14km east of the CBD, Wynnum offers bayside living at an affordable price point, making it a smart choice for first-time investors.
- Median House Price (2024): $775,000
- Rental Yield (Houses): 4.7%
- Vacancy Rate: 1.2%
Wynnum appeals to a wide variety of tenants, from retirees to young families. With ongoing urban renewal projects and easy access to public transport, Wynnum is expected to enjoy long-term capital growth.
Key Factors to Consider:
- Affordable properties compared to other waterfront areas
- Strong tenant demand and low vacancy rates
- Potential for capital gains as more people seek bayside living
4. Springfield Lakes: Growing Family-Friendly Suburb
Springfield Lakes is located 25km southwest of the Brisbane CBD and is part of one of Queensland’s fastest-growing regions. It’s a master-planned community packed with schools, hospitals, parks, and transport options.
- Median House Price (2024): $590,000
- Rental Yield (Houses): 5.1%
- Vacancy Rate: 1.5%
With its affordable entry point and strong rental yields, Springfield Lakes is a prime location for first-time investors. As the population continues to grow, so does the demand for rental properties.
Key Benefits:
- Affordable purchase price compared to inner-city suburbs
- High rental yields to help cover your mortgage repayments
- Strong capital growth potential due to ongoing infrastructure development
5. Mitchelton: Quiet Suburb with High Growth Potential
Mitchelton is located 8km northwest of the CBD and offers a mix of modern townhouses and older Queenslander homes. This suburb has seen consistent growth in property prices over the last few years.
- Median House Price (2024): $865,000
- Rental Yield (Houses): 4.0%
- Vacancy Rate: 1.4%
Mitchelton’s combination of lifestyle amenities, green spaces, and proximity to the city makes it a popular choice for both renters and first-time investors.
Key Factors:
- Strong rental demand with high-quality tenants
- Affordable entry compared to inner suburbs
- Steady capital growth due to demand and location
Chat with Zest Mortgage Solutions
For tailored mortgage advice and to explore your investment options, contact Zest Mortgage Solutions or call (07) 3461 6499. We’ll help you find the best loan for your budget.
8 Expert Tips for Maximising Your First Investment Property in Brisbane
Securing your first investment property is a big step, but how do you make sure you're maximising its potential? Here are 8 expert tips to help you stay ahead in Brisbane’s real estate market and make the most of your investment property journey.
- Get Pre-Approval Early: Before you begin your property search, it’s essential to secure a pre-approval. This shows you how much you can borrow from mortgage lenders and gives you confidence when exploring investment loan options.
- Understand Tax Benefits and Negative Gearing: As a property investor, you can take advantage of negative gearing, which allows you to deduct certain expenses from your tax return. Be sure to also consider tax benefits like Capital Gains Tax discounts when the property appreciates.
- Compare Mortgage Options: Work with mortgage brokers to evaluate different investment loan products. Pay attention to variable interest rates, investment rates, and whether an interest-only loan works for your investment property strategy.
- Prioritise Location Over Property Type: Choose suitable properties in desirable locations over just focusing on property types. Suburbs with growing demand tend to offer higher rental prices and capital growth. Look at property and suburb reports to find potential properties in preferred locations.
- Consider Future Plans and Exit Strategies: Whether your goal is to generate passive income or climb the property ladder, align your investment goals with your future plans. Having an exit strategy ensures you’re prepared for market shifts or future financial needs.
- Plan for Stamp Duty and Other Upfront Costs: Don’t forget upfront costs like stamp duty, legal costs, and pre-purchase building inspections. Budgeting these into your property purchase will help you avoid financial surprises.
- Boost Your Credit Score: Keep your credit score healthy by paying off credit cards and other outstanding debt. A good credit rating will improve your chances of securing better loan interest rates and investment mortgage products.
- Engage Real Estate Professionals: Working with real estate agents and mortgage brokers gives you access to experts with a track record in real estate investing. A reliable real estate agent can help you find investment-grade property, while a mortgage broker can help with the best financing options.
Why Work with Zest Mortgage Solutions
✔ Access to a Wide Network of Lenders
We collaborate with over 60 lenders and financial institutions to enhance your prospects of securing favourable terms and rates for your investment property home loan.
✔ 100% Free Service
Our services are completely free; we earn a small commission from your chosen lender.
✔ Convenient & Personalised Services
We help streamline your investment property home loan application, from pre-approval to learning from comparison rates to loan settlement, with expert guidance and personalised service and tailored financial solutions.
✔ Proven Expert & Trusted Broker
With over 300 5-star Google reviews, our reputation speaks for itself. Whether you're a first-time investor or expanding your property portfolio, our commitment remains unwavering: to empower you with the knowledge and support needed to make informed decisions.
FAQs
Is now a good time to buy an investment property in Brisbane?
Yes, with Brisbane's current income trends and purchase price trends, the investment property market offers plenty of market opportunities. Investors can still find affordable investment properties in key suburbs with potential for future capital gains.
What will property prices be in 2025 Brisbane?
While predictions vary, most experts expect steady purchase price trends due to ongoing demand and limited supply. Keeping an eye on financial records and income trends will help investors prepare for any shifts in the market.
What is the prediction for Brisbane property in the next 5 years?
Brisbane’s property market is expected to grow, with significant future capital gains in emerging suburbs. Investors who budget in advance and maintain a cash flow buffer will likely benefit from long-term capital growth.
How much will rent cost in Brisbane in 2024?
Rental costs in Brisbane are forecast to rise, driven by increased demand and low vacancy rates. A rental yield percentage of 4-5% is typical, and this trend will likely continue as more people move to the area.
What is a good rental yield for first-time investors?
A rental yield percentage between 4-6% is considered strong for first-time investors, providing solid additional cash flow. This can help cover monthly expenses, including operating expenses and real estate agent fees.
How much should I budget for property maintenance?
Typically, you should set aside 1-2% of your property's value each year for property maintenance and additional expenses. Engaging a professional property inspector can help you keep the property in line with standards for property.
What is positive gearing?
Positive gearing occurs when your rental income exceeds your operating expenses, providing additional cash flow. This strategy offers tax advantages compared to a negatively-geared property.
Final Thoughts
Investing in your first Brisbane property is an exciting step toward building your financial future. With the right strategies and insights into market opportunities, you can make informed decisions that align with your investment goals and set yourself up for long-term success.
Whether you're focusing on rental yield percentage, future capital gains, or finding a property in the right suburb, Brisbane offers a wealth of potential for first-time investors.
If you're ready to explore your options or need expert advice on your investment property journey, reach out to the team at Zest Mortgage Solutions. Give us a call at (07) 3461 6499, and we’ll help you take the next step toward your investment goals. We’ve offices in Springfield, Ipswich & Flagstone - but help clients all across Brisbane & Queensland!
