What could you buy with the profits from Surfers Paradise property?
Buying Surfers Paradise property doesn't just get you access to one of the most beautiful areas in Australia – it can also unlock significant profits for you in the long term. Price and value growth has been slow but steady in the last few years, in stark contrast to Sydney and Melbourne. However, this might be about to change.
According to a report from BIS Shrapnel, real estate on the Gold Coast is poised to experience healthy growth of 12 to 13 per cent over the three years to 2018. Anyone buying real estate in Surfers Paradise now might be able to experience some hefty benefits down the line – but just how much? And more importantly, what could you then use those profits for?
Investment begets investment – if you build capital gains through real estate in the next few years, perhaps you should expand your portfolio? According to My RP Data figures, the median sale price for apartments in Surfers Paradise for the 12 months to 30 June was $340,000.
If 12 per cent growth occurs in this type of property between now and 2018, this means you could sell for $380,800, without taking inflation into consideration. This would be raw profit of $40,800 give or take the relevant fees – almost enough to start looking at another property purchase!
In fact, you could use this boosted equity in the apartment to leverage your way into another without even having to sell the first one. This is a common trick used by investors, and can see you generate serious wealth through real estate in the long term.
A retirement plan
Of course, this is a lofty goal – but one that becomes ever closer when you purchase real estate in Surfers Paradise! My RP Data numbers show that over the last year, the median sale price for a house in this area was a luxurious $1.1million. While significant, it is important to remember that growth in this type of real estate will also be greater than with an apartment.
For example: Based on those 12 per cent growth figures predicted by BIS Shrapnel, a house worth $1.1million now would be worth $1.232million in 2018. That's growth of $132,000 over three years without inflation – not a bad annual income for simply owning a property!
According to the Association of Superannuation Funds of Australia, a couple needs $58,444 per year to live a comfortable retirement. So clearly, purchasing one house in Surfers Paradise and selling three years from now might not be enough for the long-term lifestyle you want.
However, it's an important reminder of the kind of wealth generation that can be achieved when you buy Main Beach real estate. By selecting the right property with the help of an agent and setting up your finances correctly, you can build a nest egg through investment that means you can live the life you deserve when it comes time to retire!
A sports car?
Of course, sometimes you just want to feel the wind in your hair. According to IBISWorld research from the beginning of 2015, many Australians were more inclined to use equity built up in their homes for big one-off purchases, like cars.
If you've been thirsting for a new set of wheels or simply watched Fast and the Furious 7 one too many times, this could be the option for you!
For short term or long term, there are many ways that real estate in Surfers Paradise can help you achieve your goals. Come and see us at Ray White when you want to make your dreams come true.