Connect with us
Gold Coast Property Management Leader

Opinion

Why now is the perfect time to buy your first home

Published

on

Why now is the perfect time to buy your first home
The conditions are ripe for first home buyers.

As you turn that key, or these days press the button, the first emotion is generally outright fear. I know that was my experience.

It is this type of fear that I often hear as a reason why people don’t buy property. But even if prices are falling right now, that’s no reason to be fearful.

THE STRATEGY

The first thing that you need to understand when it comes to buying property is that you are not in the game of picking the top or the bottom of a market.

There are plenty of gurus and experts who have tried and failed with picking markets, so you don’t need to add yourself to the list.

Since property is a long-term investment, picking the right time is not as important as you might think.

Another money myth that I hear regularly is that all the good properties are gone.

This is just not the case. At any time, there are good investment-grade properties to buy.

Which leads us to the strategy: It’s always a good time to buy property.

THE WHY FACTORS

So, why do I think now is a good time to buy property? Let’s look at some of the things happening here and overseas that support the strategy.

Before I do, it is important to understand the market conditions.

The good news for those worried about buying at the peak, is that the last cycle peak was in 2017. Since then, all the capital cities have seen declines in value.

But wait, what? Didn’t you say now was a good time to buy.

Despite the falling prices, the thing I know is that property is a long-term game, and over time, prices will rise.

And right now, there are a number of factors that when considered together, will lead to higher prices over the longer term.

Here are a few for you to consider.

First, population growth. Data suggests the Australian population is forecast to grow by between 3 million and 4 million people over the next 10 years. That is the equivalent of Canberra every year for 10 years.

The significant portion of this growth is coming from immigration, especially from China.
More people means more demand for housing.

Second is the low-interest-rate environment. With inflation being under control or within government expectations, a low-interest-rate environment is likely to remain for a little longer yet.

Recent lending restrictions imposed by the Australian Prudential Regulation Authority that have been affecting investors have been relaxed, to an extent, which will bring investors back to the market.

Low interest rates mean more affordability, which leads to more demand.

Third, global markets are experiencing growth. As markets grow there is more wealth created, which means more people are able to invest.

And as you now know, more people investing means more demand, which, yep, means rising prices.

Finally, the changing nature of the family demographic is resulting in more demand.

There are now more single-person homes. People are marrying later and having kids later, which results in more demand for homes, especially units close to capital cities.

BE PREPARED

So, knowing these factors, it is a highly reasonable expectation that prices are going to rise over the longer term.

With a couple of cautionary considerations.

As with any significant purchase, you need to ensure that you only spend what you can afford.

It is important to consider what your repayments are going to be at current interest rates and allow some buffer for the likely event that rates will rise over the time that you are going to hold your property.

Everyone has heard property investing is all about location, location, location.

This means sticking to major capital cities where the demand factors are going to be strongest, and only buy properties that match these factors.

It’s not as important that you love the property when you are an investor, but that it is attractive to a renter, which means being close to the city and amenities.

With all this information in hand, you are now able to overcome that fear that may have held you back before, and get in the game.

It’s like the feeling you had after your first drive. With just a little bit of experience and information, you now know that driving is something you can do. Buying property is the same. Get in the market and start building your financial future.

Andrew Woodward is a mindshift.money accredited money coach based in Sydney who teaches people to take control of their money and invest for their future, simply and efficiently. Sign up for his free weekly money tips at his theinvestorsway.com.au

Source: www.goldcoastbulletin.com.au

Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Opinion

Why this young Sydneysider is packing up and moving to the Gold Coast

Published

on

Why this young Sydneysider is packing up and moving to the Gold Coast

Sydneysider Angus Terry is packing up to move to the Gold Coast. Photo: Gavin Jowitt

Sydneysider Angus Terry is preparing to leave the state he has called home his entire life.

Packing up his job in finance, his house and life, he will move to the Gold Coast with his partner, where the couple have bought a new home and a development site on which Mr Terry will build and run a gym.

The couple are part of a growing movement of young, professional southerners migrating to south-east Queensland.

Why this young Sydneysider is packing up and moving to the Gold Coast
The Vue Terrace Homes at Robina, where Angus Terry has bought a property. Photo: Robina Group

While retirees and holiday-home buyers have long made up a healthy portion of Gold Coast property purchasers, now there’s a new demographic: young couples and families.

Annual migration to the Gold Coast hit its highest level in a decade at the end of 2017, figures from the Australian Bureau of Statistics show.

Lured by a thriving local economy and, of course, the beach lifestyle, cashed-up migrants are often in the headlines for purchases of multimillion-dollar, ocean-front mansions at Mermaid Beach and Surfers Paradise. But for most southerners, the Gold Coast’s relative affordability is what attracts them.

Why this young Sydneysider is packing up and moving to the Gold Coast
The Gold Coast lifestyle: the pool at the Vue Terrace Homes. Photo: Robina Group

Mr Terry said he was surprised at the affordability of the Gold Coast and flew up to see it for himself.

“Honestly, what you can find on the Gold Coast is 10 times the value of what you get here in Sydney,” he said.

“A lot of places in Sydney are quite old and they still want over $1 million. I can come to Robina and get a beautiful, three-bedroom brand new terrace with modern styling in a lovely community atmosphere for $600-odd thousand. Affordability was definitely a massive consideration.”

Why this young Sydneysider is packing up and moving to the Gold Coast

Brand new contemporary homes: Inside one of the Vue Terrace Homes. Photo: Robina Group

Mr Terry will cut his lengthy and crowded train commute to a literal one-minute walk in the park after securing a townhouse in the Robina Group’s Vue Terrace Homes community. He also snapped up a CBD Robina development site with plans to build an Anytime Fitness gym.

“Sydney is a great city but it’s very full-on to get anywhere, it’s very claustrophobic,” he said. “We have always dreamed of living a short drive from the beach. When I was growing up we came to the Gold Coast for family holidays, so I knew the area quite well.

“I’m originally from Bathurst and I wanted a country town feel somewhere on the coast — Robina really was the answer. It has the best of both worlds.

Why this young Sydneysider is packing up and moving to the Gold Coast
Change is in the air: Mr Terry says he’s excited for his fresh start in a new career and a new home town. Photo: Gavin Jowitt

“We are going to be working hard so we wanted a place that we could come back to and really relax. Vue’s beautiful pool and barbecue area and its direct access into Robina City parklands was a huge drawcard.”

Data from the Domain Group shows that house prices in Robina rose by 6.4 per cent over the past 12 months.

Robina Group sales manager Azura Griffen said Robina had become particularly attractive to interstate migrants. Sydney and Melbourne purchasers recognised the value on offer in the Gold Coast market, she said.

“We are seeing an increasing number of buyers from the southern capitals.”

“Buyers from interstate are attracted to the lifestyle benefits on offer in Robina.  Our education facilities in particular are a major drawcard — Robina is home to Gold Coast’s top-two private schools and Bond University.

Continue Reading

Opinion

Queensland is the next property hotspot, experts say

Published

on

Queensland is the next property hotspot, experts say

As New South Wales and Victoria continue to experience weakness. Queensland is expected to take the lead, a National Australia Bank (NAB) poll of property professionals revealed.

According to the survey, industry experts project house prices in Queensland to increase by 0.7% next year and 1.3% in two years.

Some areas seen to perform strongly over the next year include Brisbane, Cairns, the Gold Coast, and the Sunshine Coast. Out of the suburbs, Coomera and New Farm are expected to realize robust gains.

Meanwhile, Queensland’s rental market is also poised to enjoy an upward boost, growing by 1.3% next year and 1.9% in two years. This is despite the stricter rules on housing investment.

The respondents of the survey also expect Queensland to retain foreign buyer interest. In fact, the share of foreign sales hit a four-year high of 22.8% over the previous quarter.

The results of the survey go against NAB’s own projection of the market. For instance, the bank expects house prices to remain flat in Brisbane over the next three years. Unit prices, on the other hand, is seen to fall by 4.5% over the next year.

NAB chief economist Alan Oster said Brisbane’s housing market seemed to be going sideways and its unit market still creates concern.

“It hasn’t peaked yet, so that’s good. We’re seeing quite strong economic activity in Queensland, so that always helps,” Oster said, as quoted by The Courier-Mail.

Source: brisbaneinvestor.com.au

Continue Reading

Opinion

Gold Coast house values record the biggest growth in Queensland

Published

on

Gold Coast house values record the biggest growth in Queensland

The Gold Coast has recorded the strongest growth in house prices in Queensland over the past 12 months.

GOLD Coast house prices are leading the way in Queensland, up six per cent in the past 12 months to an average $620,000.

The latest figures by the Real Estate Institute of Queensland show homes on the Glitter Strip are $35,000 more on the same time last year.

Unit prices are up 1.9 per cent to $428,000.

Gold Coast house values record the biggest growth in Queensland
REIQ data reveals houses on the Glitter Strip are worth $35,000 on the same time last year.

REIQ’s Queensland Market Monitor for March said the strong population growth came on the back of infrastructure projects such as the $550 million Gold Coast Health and Knowledge Precinct and M1 upgrades.

“The property market has been one of the big winners from the sporting event as the $1.5 billion infrastructure investment has boosted confidence and demand for housing in the region,” the report stated.

“We expect house prices will show an upward path in 2018. However, this growth will most likely be more moderate.”

A quiet real estate period leading up to, and during, the Commonwealth Games likely contributed to a slight drop (-0.3 per cent) in the March quarterly median sales price, the report reveals.

Gold Coast house values record the biggest growth in Queensland
Andrew Henderson says a growing population and employment opportunities were contributing to a strong property market. Picture: Jerad Williams

REIQ Gold Coast zone chairman Andrew Henderson said he expected interstate migration to continue to benefit the city.

“I expect the market to remain strong,” he said.

“There is a heavy amount of interstate buyers moving here.

“I was at an auction recently where the winning bidder was from Sydney and the underbidder was from Melbourne.”

Mr Henderson said growing employment opportunities were also attracting homebuyers to the city.

Gold Coast house values record the biggest growth in Queensland
The Gold Coast property market is expected to remain strong.

“We have some of the best health facilities in the country and our universities are world recognised.

“Those two things alone complement the tourism industry and the lifestyle aspects that the Coast offers.”

The report found the fastest-selling suburbs on the Coast included Worongary, Merrimac, Highland Park, Mudgeeraba and Carrara.

It also revealed the rental vacancy held tight throughout the first quarter of the year at 1.1 per cent.

Gold Coast house values record the biggest growth in Queensland
Andrew Bell says the Coast had evolved from a tourist town into a vibrant city with an expanding economy. Picture Mike Batterham

Ray White Surfers Paradise Group CEO Andrew Bell said the Games heralded the next chapter for the Coast, as it evolved from a tourist town into a vibrant city with an expanding economy.

“The city’s property market is riding the irreversible momentum that has now come to the Gold Coast in terms of economic diversity and with more employment options we will need more housing options for people,” Mr Bell said.

“We are no longer going to be subject to tourism upsides and downsides as we were in the past because our economy has well and truly diversified beyond just tourism.”

Source: brisbaneinvestor.com.au

Continue Reading

Make your Super Work

Positive Cashflow Property

duplex designs, dual occupancy homes

Property Investment Advice

Trending