36 suburbs where houses beat shares

first_imgKendall Cardwell (pictured) and her husband Trent bought an investment in Fig Tree Pocket a year ago and are very happy they did. Photo: Adam HeadBrisbane’s property market was on the rise last financial year with some addresses providing a return almost twice that of the ASX.Exclusive analysis of CoreLogic data by the Courier Mail identified 36 Greater Brisbane mainland suburbs where combined value growth and rent return exceeded the 14.6% gains made on the ASX 100 Accumulation Index over the 2016/17 financial year.The ASX 100 Accumulation Index measures returns based on share price rises plus dividend reinvestment.The analysis was based on gross returns and ignores vagaries created by share franking credits and property depreciation schedules and tax breaks.If you bought an investment in Fig Tree Pocket, fire your stockbroker and take a bow because the analysis showed a whopping 28.3 per cent financial gain last financial year.Anstead property was the next best performer with a return of 27.9 per cent while the inner west suburb of St Lucia returned 26.6 per cent to investors.Wargent Advisory CEO, Pete Wargent, said combined returns were a reasonable way to compare performance, with one caveat.“It’s important not to generalise too much,” Mr Wargent said.In comparing the two investment types, Mr Wargent said real estate investor were able to borrow more to invest in property, which was an advantage over shares.“The share market tends to be more liquid, which can make it more volatile, but the liquidity also means that it’s comparatively easier to sell at short notice,” he said.Property Pursuit Buyers’ Agent principal, Meighan Hetherington said total returns should always be part of your analysis.“We certainly look at it when we’re analysing individual properties and when we do portfolio reviews,” Ms Hetherington said.She said the next step is to look at long-term trends in you suburbs of interest.She said among our top performers, consistent growth in Wilston caught her eye.“Wilston’s growth over five years has been steady — it doesn’t have those big peaks or big troughs,” she said.“Wilston has 66 per cent houses and it has a very strong family focus with high household income — and it has access to very good schools. It’s very close to the city and there’s been lots of renovation work to large Queenslanders,” she said.“The fundamentals are very strong.”Ms Hetherington said Fig Tree Pockets strong showing proved its 2011 flood stigma was fading with an increased number of high-end riverfront sales as well.“There are more transactions happening and it’s an area that people with a high disposable income are attracted to,” Ms Hetherington said.In Gaythorne, Ms Hetherington said apart from increased development site sales, the suburb also has good fundamentals.“It’s well sort after by army (Enoggera Barracks) families, plus is got good schools and the train,” she said.Brisbane Real Estate rentals principal, Lauren Smith, is not surprised to see Fig Tree Pocket top the list.Ms Smith said the suburb contained the right ingredients for success.More from newsMould, age, not enough to stop 17 bidders fighting for this homeless than 1 hour agoBuyers ‘crazy’ not to take govt freebies, says 28-yr-old investorless than 1 hour ago“We have essentially a (rental) database of clients wanting to go into that area whenever we have properties available,” Ms Smith said.She said there are still affordable options for investors looking to build wealth.“They’re definitely out there. You’ve got the older 70s-style brick homes on the western side of the highway and then riverfront high-end property on the other side,” Ms Smith said.“There’s always strong tenant demand in that area,” she said.Kendall and Trent Cardwell bought their Norman St, Fig Tree Pocket investment for $628,000 just over a year ago and couldn’t’ be happier.Their lowset dual occupancy house allowed for two tenancies and created a combined income of $660 per week reflecting a very healthy gross yield of 5.5 per cent.Mrs Cardwell said they were looking for a renovatable property in a suburb with reasonable access to the CBD and large housing blocks, so Fig Tree Pocket fit the bill.“We’re really happy — it pretty much looks after itself and that’s what you hope for when you buy an investment property,” Mrs Cardwell said.Mrs Cardwell said while they do own shares, this type of investment wasn’t their passion.“To be honest I don’t know anything really about shares — we’ve just got a small amount of shares, but it’s not really our interest,” she said.“My husband is very interested in property — it’s a really great interest.”“We’d love to get another property maybe next year,” Mrs Cardwell said.Here’s the full list of Brisbane’s mainland suburbs where total returns on houses exceeded the ASX 100 Cummulative Index of 14.6%:Top total returns for Brisbane houses in financial year 2016/17Follow Kieran Clair on Twitter at @kieranclair or Facebook on Kieran Clair — journolast_img