It’s a Buyers Market in Gold Coast
Housing affordability has improved in Queensland, which is good news for those looking at investing in rentals in Surfers Paradise.
The latest report into affordability by Adelaide Bank and the Real Estate Institute of Australia (REIA) shows a significant drop in the percentage of income needed to make loan repayments.
In Queensland, only 26 per cent of family income is now required, which represents a drop of 1.9 percentage points, according to REIA President Peter Bushby.
Investors can also benefit from low interest rates. The Reserve Bank of Australia recently reduced the official cash rate to its base rate of 2.5 per cent.
This cut resulted in a reduction of variable home loan rates, which are now at their lowest level since September 2009.
House prices have gone up by 0.8 per cent on the Gold Coast between June 2012 and 2013, but the value of some properties has dropped by as much as 50 per cent since 2010.
Prices in other Australian cities went up by 3.8 per cent in the same period, according to RP data.
Home prices in the Gold Coast are a third of those in Sydney, making it a prime location for investors looking at real estate in Surfers Paradise.