Good news moving into the Christmas holidays: there is a way to buy property where you love to vacation and make money in the process.
Many property investors usually steer clear of tourism destinations, but property research site LocationScore has crunched the numbers and identified the top holiday hotspots for property investment across the nation.
The new research scores each suburb out of 100, using eight key indicators that measure the level of supply and demand as well as growth prospects.
LocationScore co-founder and research director Jeremy Sheppard said the research showed the long-held perception that holiday homes were a bad property investment did not always hold true.
“Ordinarily I’d advise investors to buy in great growth locations, not simply a place they’d like to live in or where they like to go on holiday,” Mr. Sheppard said.
“According to Location Score, though, there are holiday locations around the country that stack up investment-wise, including having much more demand than supply, which is essential for capital growth.”
Mr Sheppard admitted some of the suburbs that made the list were not necessarily popular holiday destinations themselves but were within close range of those that were.
“Another point to consider is that not everyone wants to holiday in the middle of classic tourist locations. These areas are often close to popular spots but removed enough that the local property market appeals for investors.”
In NSW, units in Banora Point, just south of Coolangatta, had a remarkable Location Score of 79 out of 100, while houses in nearby Bilambil Heights scored 75.
Both suburbs were popular with holidaymakers from the north and south, as well as being within striking distance of the Gold Coast.
Mr. Sheppard said Banora Point units were being snapped up quickly by eager buyers.
“Our measure for this is days on market. On average, units there spend about six weeks on the market, which is pretty quick – about three times faster than the national average of about four months,” he said.
“And rentals have a vacancy rate of less than 1 percent which is very low — 3 percent is the widely accepted ‘balance’ point. So renters are obviously under pressure and landlords are licking their lips.”
Closer to Sydney, houses in Kanahooka scored 78, which Mr. Sheppard put down to its Lake Illawarra location and short commuting distance to Wollongong.
He added Gosford and the Central Coast were great markets in general for growth, having a holiday feel but just a short drive from Sydney.
Houses in Berkeley Vale on the Central Coast also made the cut, scoring a solid 75.
Mr Sheppard said though Queensland had a plethora of holiday destinations, not all of them made wise investment locations.
“Just because a suburb or town is desirable, doesn’t mean it’s in demand,” he said. “They might be really glamorous locations but are they going to go up on price? Is there demand?
“To get the price growth you need people at auction bidding or making offers, driving prices up — there needs to be the competition.”
The Gold Coast was Queensland’s top holiday destination worth investing in, the research showed, with a number of suburbs ticking investment boxes like strong local employment.
“Houses in Worongary scored 77 out of 100, perhaps partly due to the recent announcement that a new train station is earmarked for the suburb,” Mr Sheppard said.
Elanora had nearly 100 people searching online per property listed for sale. The vacancy rate was 0.46 percent.
Currumbin Waters had over 100 people per property searching online and a healthy yield of 4.74 percent.
On the Sunshine Coast, Currimundi recorded a Location Score of 71 for November, which Mr Sheppard said was partly due to its location just north of the major employment node of Caloundra.
It may not be as glitzy as the Gold Coast, but Clifton Springs near Geelong was kicking its own property goals with a Location Score of 76.
Mr. Sheppard said it had a very impressive auction clearance rate of 92 percent: “That’s the extreme end of demand,” he said.
Nearby Torquay was also a beneficiary of the strong Geelong market, scoring 70.
The charms of Swan Hill, located on the Murray River near the NSW border, resulted in it scoring 71 out of 100 for November with much more demand than supply of property, according to the LocationScore research.
Its most impressive metric was its yield of 5.88 percent. That was enough rent to cover all expenses, including mortgage interest, Mr. Sheppard said.
Tasmania’s property market had strengthened thanks to demand from local and interstate investors. Mr. Sheppard said Hobart and Launceston were the top picks for holiday investment, with both locations backed up by robust local economies.
West Launceston and Invermay were two suburbs showing strong growth prospects, he said.
“When you think of all the fantastic holiday destinations around the country, it’s pretty obvious from our list that great capital growth and great investments don’t often go hand-in-hand,” Mr Sheppard said.
“Although there are some fantastic places to holiday in Australia this summer, don’t be tempted to buy in one as an investment just because you like to visit every now and then.
“You either buy a holiday home or you buy an investment property, which are two different goals, but our research shows that sometimes you can combine both — if you’ve done your research.”
Originally Published: www.domain.com.au
Gold Coast real estate market set to pick up after Comm Games
The Gold Coast real estate market is set to pick up after the Commonwealth Games.Source:Getty Images
The Gold Coast real estate market may have gone quiet throughout the Commonwealth Games but it won’t stay that way for long.
IT WAS a quiet auction weekend on the Gold Coast but the market is expected to pick up now the Commonwealth Games are over.
CoreLogic auction market commentator Geoff White said the property market had gone quiet throughout the Games.
He said business was affected across the board, with many retailers including cafe and restaurant owners reporting a downturn over the past two weeks.
However, he was confident the market would return to “business as usual” now the event had wrapped up.
“(The market) has been affected by the Commonwealth Games, there’s not doubt about that,” Mr White said.
“But that’s not a sign of things to come, I wouldn’t have thought.”
According to CoreLogic, there were 19 auctions over the weekend with seven recorded results, whether they be sold of passed-in.
This coming weekend, there are 37 properties set to go under the hammer on Saturday and another 54 on Sunday.
Most of the properties scheduled to go to auction on Sunday are part of Ray White Queensland’s Gold Coast Auction Spectacular at Main Beach’s Sheraton Grand Mirage.
Coast property market to flourish for years to come
THE Coast’s popularity as a lifestyle destination is strengthening its housing market, according to real estate executive Rem Rafter.
The CBRE Sunshine Coast managing director said the housing market was in “good shape”, driven by increasing population including interstate migration.
“The traditional unit market is very good with strong demand,” Mr Rafter said.
“New developments have had good pre-sales, including Stockland’s Oceanside Kawana and several apartment projects by the Walter Iezzi Property Group.
“Brisbane-based Mosaic Property Group has also been active on the Coast, with off-the-plan apartment projects under way at Coolum and Kings Beach, Caloundra.
“We have seen from recent site sales that developers are concentrating their efforts in these areas and investment yields have become quite tight as a result.”
He said the Coast’s apartment and housing market could flourish for another two to three years.
“A recent presentation by Tim Lawless of CoreLogic shows positive indicators including improved interstate migration and steady capital gains across the coast of 5.5%.
“The Sunshine Coast’s median house price of $579,526 is attractive to southern buyers, with Sydney’s house price now over $1 million and Melbourne not far behind.”
Sydney Baby Boomers drive real estate boom in Brisbane
A MIGRATION of cashed-up Baby Boomers from Sydney will lead to a real estate boom in Brisbane, according to property investment experts.
A Property Investment Professionals of Australia (PIPA) members’ survey revealed that Brisbane was regarded as the best capital city for property investment.
Of the members who participated in the survey, 46.15 per cent rated Brisbane as the best capital for investment prospects in 2018.
PIPA chairman Peter Koulizos said the Queensland capital was expected to boom as a side effect of the Sydney property boom happening when Baby Boomers were looking at retiring.
“People that have a lot of equity in their home can retire or semi-retire by selling up and buying a home in southeast Queensland,” Mr Koulizos said.
And with the median house price in Sydney more than $1 million, he said this would give them a sizeable pile of cash left over after buying a home further north.
“That is because there is such a big price difference between Brisbane and Sydney,” he said.
A PIPA survey from last year also rated Brisbane as the best capital city in which to invest, but in the past 12 months the average house price has increased by just 2.9 per cent.
Mr Koulizos said a boom would come eventually, but picking the exact point was tricky.
“Property booms take a long time to gather momentum, I doubt you will see double digit growth in Brisbane this year but it may be different next year,” he said.
Melbourne was the next best investment option according to the survey, with 19.23 per cent believing it was a good place to invest, followed by Perth at 15.38 per cent.
Originally published: brisbaneinvestor.com.au
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