Investor News
It has one of Australia’s hottest investment real estate markets in Gladstone, yet it appears a change of government coupled with interest rate stability is slowly dragging property investors out of the woodwork across Queensland.
On the Gold Coast, there’s definite evidence investors are returning to the market, according to Kae Beadman, Principal of Raine & Horne Mermaid. “It’s hard to know exactly why we have more investor activity, but it’s fair to say the decision by the Reserve Bank of Australia to leave interest rates on hold since late last year is helping,” said Ms Beadman. “It’s also possible that some investors are starting to make a move out of fear that they might miss out.”
Ms Beadman cites the example of the investor who purchased an older style home at 8 Cotton Street, Burleigh Heads for $810,000. “I would describe this investor as very astute and she has been patiently waiting for the right property for at least two years,” said Ms Beadman, who also recently sold a two bedroom apartment at 4/393 Golden Four Drive, Tugun, to an investor. “It’s heartening to see motivated investors back in the Mermaid market, who are committed to purchasing an investment home in the near future.” It’s also worth noting that the Cotton Street and Golden Four Drive properties sold under the hammer, which Ms Beadman says is another indicator that confidence is returning to Gold Coast real estate.
In Brisbane, Bryan McPhail, Principal of Raine & Horne Onsite Sales, says that the change of state government in March has already lifted investor confidence. “The previous state government pared back the $7,000 stamp duty concessions available to owner-occupiers of established homes,” said Mr McPhail. “This proved a disincentive for those who planned to live in a home for 12 months to meet the eligibility rules for the concession, before seeding the home into the rental market,” said Mr McPhail. “This drove potential first-time investors out of the Brisbane market.”
That said, Raine & Horne Onsite Sales have apartments at 15 Dansie Street, Greenslopes for sale from around $375,000, and Mr McPhail says these could rent for $430 a week. “Rents are going up in Brisbane, which is great news for investors sitting on the fence,” he added. Raine & Horne Onsite Sales currently have over 50 properties listed between Brisbane and the Gold Coast, and a large percentage of these are delivering returns of better than 6%. “Confidence is returning courtesy of the new Queensland government, and there’s an expectation that the $7,000 concession could be introduced as soon as this month.”
