How much money do you need to buy Surfers Paradise property?
Property is a numbers game. Working out how much you will get in terms of returns on your Main Beach real estate, how expensive ongoing maintenance will be, how much to charge your tenants – it's a constant landscape of figures. Luckily, you don't need to have done a Masters in calculus to work out what you need to!
With the right professionals around you, purchasing property for yourself or for renters can be one of the simplest and safest investments in your future that is possible. But before you get ahead of yourself thinking about the profits, there's the matter of actually buying real estate in Surfers Paradise. So how much would you need to get a foothold in our fantastic property market?
For a loft lifestyle
Apartments dominate the Surfers Paradise landscape. You only need to do a quick Google image search for our corner of the world to see glorious towers gleaming in the sun alongside our expansive beaches. According to 2011 census data from the Australian Bureau of Statistics, 74.7 per cent of real estate in Surfers Paradise is either units, apartments or flats. That is almost 6,500 properties in total – a figure which has surely grown substantially in the last four years.
But how much to buy? The CoreLogic RP Data monthly indices for 31 May this year show that for units across Brisbane and the Gold Coast, the median value is $389,420. But specifically in Surfers Paradise, it is a little cheaper – My RP Data statistics have the median sale price for the 12 months to 2 June at $350,000.
Assuming you wish to avoid LVR restrictions with a deposit of at least 20 per cent on such a property, then you are looking at around $70,000 for a deposit on apartment real estate in Surfers Paradise. Of course, there will be units that sit either side of this median – talking to a local agent who knows that market intimately is a great way to find out about these.
To live the Australian dream
The classic home ownership goal is to have your own detached home, complete with a yard, garage and a family of your own. Even though times are changing and many people do prefer to buy apartments these days, the dream of owning a house is far from over.
However, houses in Surfers Paradise tend to be a little more expensive than the statewide median. The CoreLogic RP Data figures indicate that for Brisbane and the Gold Coast, the median house value for the end of May was $519,100. But here at Surfers Paradise, this is up at $1.175million – a hefty fee for the budding property buyer.
This means that for a one-fifth deposit, you're looking at putting together $235,000 to secure a home. While this may seem very significant, remember your other options – using a self managed super fund, or leveraging equity in a property you already own to secure another.
Don't forget the details
This is roughly what you're looking at for a deposit on a piece of real estate in Surfers Paradise, but remember there are also other options. Interest-only loans could see you avoiding paying the principal of a loan, while tax breaks through depreciation on Surfers Paradise property can leave you in good financial stead.
Don't forget the other costs either. Stamp duty, building reports and conveyancing fees all form part of the costs of buying real estate. As we mentioned earlier, the right team of professionals makes this process a breeze. To find out more about how to get on the Surfers Paradise property ladder, come in and have a chat with us.