The beauty of Brisbane real estate is that you can benefit from both continued capital growth and ever-increasing rental yields that are fast becoming cash-flow positive in many suburbs. Add the bonus of rising rental yields to current reductions in interest rates and you have an equation that is ideal for any wise investor looking to expand an investment portfolio. Aside from the fact that Queensland is renowned for its wonderful sub-tropical climate, Brisbane is still attracting record numbers of immigrants from not only the cooler, southern states of Australia, but also internationally. This has led to somewhat of a housing shortage in and around the Brisbane area. Rental properties are always in high demand as the population continues to grow far in excess of all other Australian states.

When you compare similar properties in suburbs surrounding Sydney or Melbourne, it’s easy to see why Brisbane is a more attractive option. Brisbane’s close proximity to the exciting Gold Coast and the glorious Sunshine Coast means that families living in the city and suburban areas have an easy drive to some excellent weekend get-away locations. Many of the older areas around the Brisbane CBD are under-going a period of gentrification. Some astute investors have discovered that there are amazing profits to be had by purchasing some of the older homes that were built on large blocks of land. Sub-dividing and redeveloping those blocks into higher-density living can return excellent investment profits for those willing to take the plunge. Of course not all investors buy properties with the intent of renting them out or pulling them down.

There are many investors who specialize in renovating the older ‘Queenslander’ style homes.

The object is to find a structurally sound Queenslander-type home. These are often sold at lower prices than they could have received if they’d been completed properly. By working to a renovation budget and bringing the home back to its former glory, clever renovators are able to make quite substantial profits from homes like these in the Brisbane area.

Taking the time to find a pre-finished home does not need to be a difficult process if you contact one of the local real estate agents in Brisbane. The right real estate agents will have many “for renovation” homes available for you to look at and hopefully you will find the one that is right for you. After finding the right home, it is only a matter of finding a renovation specialist that is affordable, for you to make a profit on your newly purchased home.

Brisbane property investments are in a very unusual position. Given the economic downturn worldwide, and particularly in the USA, property investment in most parts of the world has come to a halt.

The competitive advantage enjoyed by Brisbane property investors is that Brisbane – and the southeast of Queensland in general – has continued to grow as Australians have headed north to the Sunshine State and immigrants have continued to arrive. This population growth has outstripped property investment, keeping prices reasonably buoyant compared to the rest of the world. This is particularly true of Brisbane CBD properties. Even during the black times of 2008, property within 10 km of Brisbane CBD was actually growing in some suburbs.

The second half of 2009 will be very interesting for Brisbane property investments. The Australian government’s first home buyer’s grant of $21,000 for new homes and $14,000 for established homes is due to be halved at the end of September 2009, and phased out completely before the end of 2009. This grant has fuelled property investment in Brisbane during 2008-9, but its removal may slow growth in 2010, making this the ideal time to invest in real estate in Brisbane.

While Brisbane CBD investment properties are strong, there are suburbs where property has yet to move. For this reason it is very important if you are considering property investment in Brisbane to do analysis suburb by suburb. Even during 2008 there were suburbs were experiencing double-digit growth in value, while other suburbs moved backwards. This disparity between suburbs makes the Brisbane real estate scene an interesting one, with bargains available for both buyers and sellers.

Another interesting element in timing is that at the time of this report – September 2009 – interest rates in Australia have dropped by 4.25%, but all indications now are that future movements will be upwards. The combination of low interest rates and the first-time buyer’s grant have fueled property investment in Brisbane, but the removal of this grant and higher interest rates may slow growth during 2010 – although this is by no means certain, as the population will almost certainly continue to grow.

If you need to sell your house, either for personal reasons or to rebalance your property investment portfolio, late 2009 may be a good time for selling Brisbane property investments.

Also, Brisbane real estate is currently seeing some very competitive offers on reducing the normal 2.5% commissions. By shopping around, Brisbane real estate buyers may be able to save them themselves thousands on real estate commissions. A graph of Brisbane property prices over the last 30 years shows consistent growth and it may be a great time to buy Brisbane CBD investment properties, particularly if you can afford to hold your investment for a while.

While there will always be a degree of uncertainty in buying and selling real estate, the position with Brisbane’s CBD investment properties compares extremely favorably with properties in places like in the USA and the UK that have been hit hard by the current economic recession.