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Brisbane Real Estate

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Reyne McLellan

on 5 May 2014

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Transcript of Brisbane Real Estate

Circular Flow Model
Current Economic Climate
Male and Female (married)
35 & 30 respectively
Accomplished architect (currently employed)
Private Hospital Nurse (currently

Who is Making the Choice?
The Economic Problem
Brisbane Real Estate
What is the best family home with a $1,000,000 - $2,500,000 price range for a successful Architect and wife with children?
Occupation (husband)-

Occupation (wife)-
Criterion 1
Criterion 2
What does it mean?
Why choose this?
What does it mean?
Why choose this?
Criterion 3
What does it mean?
Why choose this?
The Final Decision
Presented to You by Reyne McLellan
The Choices
Bridgeman Downs (4035)
Ascot (4007)
Reference- realestate.com
Reference- realestate.com
Bridgeman Downs Median House Price
Ascot Median House Price
Reference- (Realestate.com, 2014)
Reference- (Realestate.com, 2014)
Figure 1A- Monthly Real Estate Prices in Bridgeman Downs (2013-2014)
Bridgeman Downs Monthly Price Trends (2013-2014)
Ascot Monthly Price Trends (2013-2014)
Figure 2A - Monthly Real Estate Prices in Ascot (2013-2014)
Reference- (Propertyvalue, 2014)
Reference- (Propertyvalue, 2014)
Location determines the demographics of a suburb and hence the price of real estate in that region based on its primary occupants (i.e. age, income, race)
It is also a significant factor in choosing real estate as people tend to buy in areas within close vicinity to shopping outlets, schools and other friends.
Location ultimately determines the interest of the buyers and if all the desired traits of real estate location are met, then the buyer will consider the property a viable choice
Location Determinants
Within top-rated private school districts
Close to outdoor recreation and nature
Homes with a view
Near entertainment and shopping
Economically stable neighborhoods
Near public transport, health care and jobs
(Reference- About.com)
Home Loans
Interest Rates
Determined by the Government Sector
Influence the demand and resultant price of properties (low interest rates are desirable)
Opportunity Cost
Bridgeman Downs
Is surrounded by numerous acreage properties
Further away from majority of top-rated private schools
Further away from the CBD and Private Hospitals
Has less acreage properties
Is closer to more top-rated private schools
Is closer to the CBD and Private Hospitals
Capital growth rate is the increase in value of capital assets over time
It is a significant investment factor when determining real estate purchases
The aim is to keep the value of the asset ahead of the current rate of inflation
Effects on Capital Growth
Erection of buildings on the property
Enhancements or updates of existing structures
Property maintenance
Investors and home-buyers seek properties with high appreciation values in the aim of keeping ahead of current and expected rates of inflation as well as yielding greater returns

Bridgeman Downs
Annual Growth Rate Factor - 3.25%
Highest Appreciation Value - 12% ('08 - '09)
Highest Depreciation Value - 10.7% ('11 - '12)
Annual Growth Rate - 3.125%
Highest Appreciation Value - 33% ('07 - '08)
Highest Depreciation Value - 45% ('10 - '11)
Any element of an established property that may give an edge over another when making a real estate choice.
Little Luxuries
Additional Living Area
An Air-conditioning Unit
An Extra Large Garden/Backyard
Outdoor Alfresco Area
Outdoor Entertainment (Pool/Tennis Court)
The additional luxuries of a property may assist future selling success for buyers planning on reselling in the future
They may accommodate for larger families or with young children
They add to the value of the property in conjunction with its corresponding capital growth rate
Bridgeman Downs
Indoor Features - Rumpus Room, Ducted Air-conditioning/Vacuuming, study
Outdoor Features - Alfresco Area & Pool
Land Size - 1.00 acre (approx.)
Indoor Features - Rumpus Room, Fire Place, Air-conditioning
Outdoor Features - Alfresco Area
Land Size - 387 sqm
Bridgeman Downs (4035)
Ascot (4007)
Price - Offers of $1,295,000
Price - $2,195,000
Reference - Domain Real Estate
Reference - Property Reporter
Reference - (Realestate.com, 2014)
Reference- (Realestate.com, 2014)
Price trends are relatively steady throughout March '13 to Feb '14
Prices are gradually increasing
Highest Price over the year period - $750, 000
Price trends fluctuate drastically over the 12 months
Prices have fallen since their peek in October 2013
Highest Price - $1.5 million (Oct '13)
Figure 3B - Australian Interest Rate Graph
Homes are sold to the consumers
Consumers pay firms for homes
Mortgage Rates
> Ascot outperformed Bridgeman Downs
- closer to major shopping
- closer to jobs
- closer to CBD
- closer to majority of private schools

 "House Price Rises Accelerating in Australia." Global Property Guide. N.p., 30 Mar. 2014. Web. 28 Apr. 2014. http://www.globalpropertyguide.com/Pacific/Australia/Price-History
 Paech, Venessa. "Interest Rates Stay Flat for February." The Realestatecomau Blog. N.p., 04 Feb. 2014. Web. 28 Apr. 2014. http://www.realestate.com.au/blog/interest-rates-stay-flat-february/
 Tatum, Malcolm, and Bronwyn Harris. WiseGeek. Conjecture, 29 Mar. 2014. Web. 28 Apr. 2014. <http://www.wisegeek.com/what-is-capital-growth.htm>.
 Weintraub, Elizabeth. "Location, Location, Location." About.com. N.p., 2014. Web. 25 Apr. 2014. <http://homebuying.about.com/od/marketfactstrends/qt/013008_location.htm>.
 Spikol, Liz. "Top 15 Most Popular Features of New Homes in 2014."Philadelphia Magazine. N.p., 04 Mar. 2014. Web. 28 Apr. 2014. <http://www.phillymag.com/property/2014/03/04/top-15-features-new-homes-2014/>.
 "Property Reporter." Property Reporter. N.p., n.d. Web. 4 Apr. 2014. <http%3A%2F%2Fwww.propertyreporter.com.au%2Fproperty%2F1998599%2F>
 Wein, Jonathon. "90 Blue Hills Drive." Domain. N.p., n.d. Web. 25 Apr. 2014. <http://www.domain.com.au/property/for-sale/acreage-semi-rural/qld/bunya/?adid=2010969928>
 "Investing in Property." Financial Review. N.p., 2014. Web. 28 Apr. 2014. <http://www.afr.com/personal_finance/investment_guide/investment_guide_property/>.
Figure 1B - Median House Price
Figure 2B - Median House Price
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