Should you be buying Gold Coast property now?
The sweltering summer heat draws everybody to the beach to enjoy the beautiful weather and surf that Gold Coast coastlines enjoy. That time is now passed, however, and while the beaches stay pristine and inviting, lifestyles dictate that many people are back at work.
This might leave the door open for you to buy some Gold Coast property of your own. While the region is experiencing a slight dip in resale value according to CoreLogic RP Data, there is a great opportunity to capitalise and nab a fantastic deal.
How might this benefit you?
The Gold Coast property market is looking more affordable
The CoreLogic RP Data Pain and Gain Report for December 2015 shows how strong our property market is when it comes to properties that sell for a profit. The report outlines that a 'pain' rating is given to properties that sell for less than they were purchased for, while a 'gain' rating is when a property makes capital gains upon resale.
The capital city of the Sunshine State is looking great when it comes to the proportion of properties that fall into the pain category – only 5.3 per cent. This means 94.7 per cent of Brisbane homes sold for a profit through 2015. By contrast, the strongest house market in the country is Sydney with only a 2 per cent pain section, and the unit market is even stronger, showing only 1.7 per cent.
However, when it comes to regional Queensland, the pain rating is significantly higher than the capital counterpart. A massive 15.4 per cent of property sales in 2015 were for less than the owners paid for them, and that's far above the national regional average of 11.3 per cent.
What does this mean for buyers?
Well, put simply, it means that buyers have a great opportunity to purchase a bargain property. With so many properties around Queensland going for a loss, it shows sellers are closing deals because they need to, not because they want to. If a buyer wants to own a patch of perfect real estate on the Gold Coast for a holiday home, or even for a primary residence and a bit of a switch in lifestyle, now is the best time to make a move.
Research from Jones Lang LaSalle shows that through 2015, there were 4,671 apartment purchases in Brisbane alone. With a different, more relaxed lifestyle on offer in the Gold Coast, could a similar trend be seen down south in the state?
CoreLogic RP Data reports that while the Gold Coast has a lower pain percentage than other regional Queensland cities, it's still relatively high – 14.8 per cent.
Of the homes that sold on the Gold Coast and experienced pain, the median loss on each property was $35,750 and the average period that these were owned for was 7.5 years. By contrast, the 85.2 per cent of homes that made gains had an average surplus of $100,000 and were owned for around 10 years. That's an average difference of $135,750, which might be enough to push your property over the sought-after $1million mark.
Although many properties are showing losses at present, the strength of the current market is likely to turn that around.
How can you capitalise?
If you manage to get in and buy a property for more than $35,000 less than it was bought for years ago, your potential capital gains in the future could be astronomical.
There are so many options for buyers out there – regardless of their specifications. You might snap up a bargain, you could even come across property that experiences a major turnaround in just a few years. Get in touch with the team at Ray White Surfers Paradise to see how they can help.