What to keep in mind when investing in detached Surfers Paradise property
A recent Housing Industry Association (HIA) released outlined the growth in detached housing figures seen across Queensland, which could be a great opportunity for buyers interested in Surfers Paradise property to consider making moves into the market.
HIA executive director for Queensland Warwick Temby said that housing building approvals have increased by 14 per cent for detached homes over the three months to November 2014 compared to the same time last year.
"Over the same period approvals for multi-unit residential projects fell by 28 per cent but remain at historically high levels. Most of the growth in detached home approvals has been centred on the south east of the state," said Mr Temby in a 16 January statement.
"In the major renovation part of the home building market, conditions are also improving after many years in the doldrums and are up 12 per cent over the year to the November quarter. The continuation of low interest rates and some growth in established house prices should see this part of the market improve further over 2015."
Specifically, detached home approvals rose by 51 per cent in the Gold Coast, compared to 43 per cent in the Sunshine Coast and only 30 per cent in Brisbane. With increases like this recorded across the state, the possibility of making moves into the local detached real estate market in Surfers Paradise could be a great option to consider.
What are some considerations when investing in detached homes?
Regardless of whether you're interested in purchasing for occupation or as an investment, there are a wide range of factors to consider when buying detached houses as your next slice of real estate in Australia.
For example, the first thing to consider before making a decision of this magnitude is to figure out the type of people you're hoping to attract. As an investor, there's no point in purchasing real estate that no buyer will be interested in. But having a clear cut idea about the type of people you want to attract can be helpful – and this is where the distinction between houses and apartments comes in.
Detached homes are often more appropriate for more long term, stable tenants to consider. When it comes to detached homes, it could be worth considering tenants like young families, university students, or older people looking to leave the hustle and bustle of an inner city lifestyle for something a little more spacious and lacking in the constant noise of metropolitan living.
Furthermore, detached homes have seen some significant growth in values over the last year, and this is something expected to continue well into 2015. The latest CoreLogic RP Data Pain & Gain found that over the September 2014 quarter, 90.7 per cent of homes sold managed to earn a profit on their initial purchase price – with 30.1 per cent managing to more than double their original purchase price.
If capital gains growth is something you're interested in achieving, detached homes in Surfers Paradise could be a brilliant avenue to consider. The gross profit total from these sales was $13.5billion, with the average profit across all these resales coming out at $223,870.
Furthermore, Surfers Paradise is a massive tourist spot. So consider the possibility of purchasing a detached home to turn into a holiday home for the long summer months. People are always looking for short term accommodation while on holiday, so taking the initiative and figuring out a good holiday home investment plan could be a lucrative investment.
These are just some of the benefits that can come from detached home investment. Be sure to get in touch with a local real estate agent to discuss the options available to you.