How is the economy helping job growth on the Gold Coast?
Coming off a fantastic, warm and sunny summer, people that have been on holiday will be looking to get back into the workforce before winter hits. Recent figures have shown that employment rates are up across the country – which is great news for the national economy – but the quality of life on the Gold Coast could improve because of this rise, as well as the property market.
How could it get better? Well, as more people have jobs, there will be a greater level of average income in the region, which is also great news for the local economy. The Gold Coast could see an influx of people looking to find employment in a growing city that also offers a fantastic lifestyle.
The end of a long summer
The start of the year looks promising for property, and according to Roy Morgan Research data, the same can be said for employment. It found that February unemployment levels have decreased to 10 per cent, down from 10.3 per cent on the previous month.
Almost 13.2million people are in the workforce, which is an improvement of 648,000 people compared to February 2015. That's a staggering increase, and more Australians finding work is great news for prospective job-hunters.
"The typical seasonal trends in the February employment markets were evident again this year with those looking for part-time work increasing to 730,000 (up 80,000) and those looking for full-time work falling to 589,000 (down 107,000)," noted Roy Morgan Research Executive Chairman Gary Morgan.
Particularly for university students who have recently headed back to their studies, part-time work is almost a necessity in an age where education costs an arm and a leg. Roy Morgan Research points to 730,000 unemployed Australians who are looking for part-time work, and a significant number of those people will be students.
Why does that matter for the Gold Coast? Well, rentals in the city could be more sought after as students pour back to study at the University of Southern Queensland, for example. That's great news for anyone looking at purchasing a Surfers Paradise investment property.
The National Institute of Economic and Industry Research found that retail trade on the Gold Coast was the largest generator of work in the region. In fact, retail created 35,363 local jobs through 2013-14, almost 5,000 more than healthcare, the next-highest employer.
Retail jobs are a great avenue for students to pursue because of how flexible they can be, and how important (and busy) shopping is around the Gold Coast as a major tourist destination. Students searching for a good university in a city with great retail employment prospects won't go past the Gold Coast.
Who can benefit from this?
While jobs are on the rise around the country, combined incomes in some households might be driven up as one or two or even more people in a family are employed. With that information, taking out a mortgage on an investment property is much more achievable. More income means more access to loans, and with a bigger loan comes the ability to secure a rental in a more sought after location. That's great news for investors, whether turning the first page of a property portfolio over or adding to an existing one.
Renters will also benefit, as more income could mean that there is a greater accessibility to get into nicer properties. If investors are purchasing in attractive locations with the intent of renting out, and renters themselves are looking for more comfortable homes and suburbs in which to live, then vacancy rates could also decline, and that's welcome news.
Encouraged to get into the property market with an investment on the Gold Coast? Talk to the team at Ray White Surfers Paradise and see what they have for you.