We are seeing the first signs of investors returning to the Gold Coast property market after a bit of a hiatus due to tight credit restrictions and depressed housing markets in Sydney and Melbourne.
Latest figures from the Australian Bureau of Statistics show the value of new loans to investors (excluding refinancing) across Australia jumped by 4.7% in July – the highest monthly gain since September 2016.
Investment activity is still well down on previous years, but it looks like some people are re-engaging with property.
Also contributing would be the two interest rate cuts, the easing in lending criteria and a lack of appealing alternative investment options due to low deposit rates and sharemarket volatility.
My best piece of advice for property investors is to buy quality and focus on location and aspect.
Go for a quality property in a great street, in a desirable neighbourhood, with plenty of amenities such as cafes, shops and public transport. These properties might cost a bit more, but you’ll get better capital gains.
I also recommend drive-by investing – purchasing in a suburb close enough to home or work so you can get to your property easily.
In terms of locations, I think a good strategy is buying close to new infrastructure. There is so much building going on and this is creating opportunities for investors to capitalise, especially in areas where prices have fallen during the downturn.
Please take a look at our currnet listings – we have some great investment opportunites!