If you've been using your time during recent lockdowns to envision a more relaxed lifestyle and everyday access to the beach, it's a great moment to consider acquiring property on the Gold Cast via auction. Inventory here is nearly sold out, with many socially distant buyers having purchased their new homes under the virtual gavel. Many of these will be rented until lockdowns finish. So why the sudden interest in Queensland?
The sizzling QLD real estate market
The extent to which real estate prices are soaring in Queensland is truly spectacular. In between June 2020 and June 2021, home prices along the Sunshine Coast rose by 400% more than the average household salary, reports Dwell. This means that in an area where the average salary is roughly $77,000, annual home values increased $445,000.
These wild increases are largely owing to a lack of inventory to satisfy all the interested buyers who are seeking a lifestyle change in the face of the pandemic. The population of the Gold Coast grew by 11% between March 2020 and March 2021, most of the influx from dense urban centers in Melbourne and Sydney, says data collected and analysed by the Commonwealth Bank and the Regional Australia Institute (RAI). The Sunshine Coast saw a spike of 6% in the same time frame.
Meanwhile, the data shows that existing residents of the region aren't leaving. This demand greatly stresses housing inventory – and is sending prices skyrocketing. The upcoming 2032 Olympics is also adding to demand by creating the expectation that additional investments in infrastructure will only serve as value-adding amenities positively impacting housing prices in Brisbane and suburbs like Toowoomba.
For those looking to make a real estate purchase whose value would benefit from Olympic infrastructure upgrades, consider investing in South Brisbane and Woolloongabba. Along the Gold Coast, many first-time homebuyers and those looking for good value might consider apartments, particularly in hot spots like Palm Beach. Surfer's Paradise offers the chance to live in a busy area without a car while still enjoying the beach. Upper Coomera is a good option for young families.
Auctions for all properties in Queensland can be found by searching government sites such as The Public Trustee and listings websites like ours. And before buying or selling, it's important to review the steps of an auction and begin to prepare financially. Sellers will need to research and set a reserve price, or a minimum sale price for which they are prepared to sell the property. Buyers will need to have finances secured, ready to transfer on the day should they secure the residence.
Auction tips for sellers
Sellers will want to familiarise themselves with the standard procedures of an auction as well as how virtual auctions proceed. As with many areas of life at the moment, it is important to realise that the pandemic is impacting the real estate auction process. Virtual auctions are increasingly popular, a way for interstate buyers to bid on homes they may be unable to visit in person due to public health restrictions. Should you and your agent choose a virtual option, they will share information about their platform and procedures; some agencies host hybrid auctions and others keep things online only.
A seller interested in maximising the value of their property will perform any upgrades to it to boost resale value. As that work progresses, requesting a Comparative Market Analysis, or CMA, is a good way to begin to understand the most realistic and advantageous reserve price. This document will compare your property to a few others that are in similar condition, located inside a 5-kilometer radius and sold in the last six months. This information will help guide your reserve price. Once it is set, the minimum price for which you are prepared to sell your home must not be shared with anyone. A penalty of $27,570 could be levied against someone who violated this process.
Next, it's time to prepare a buyer's guide. This document can be considered marketing materials and should showcase your property in a good light. Yet it must not misrepresent the home in any way. Images and descriptions can be included. It can be used to advertise the auction. In the current competitive bidding climate, an increasing number of homes are being sold ahead of auction. When motivated sellers contact your real estate agent with an offer, it can be considered ahead of the sale. This is why it's imperative to advertise the upcoming auction well; motivated sellers may make an irresistible offer and negate the need for an auction.
Once it is auction day, the house can only sell to a registered, identified bidder. Transparency is of the utmost importance to the auction process, at its heart alongside the basic idea of demand driving prices.
You as the seller do not have to release the house unless the reserve price is met. If bidders do not cross this threshold, the house can go back on the market.
Buying coastal property at auction
If you are a buyer interested in purchasing a home on the Gold Coast, it's important to carry out due diligence. This might include an inspection, which you can request anytime ahead of the auction once it is being advertised. It is particularly wise to check for moisture damage at this time, such as rotten wood or corrosion to relevant metals or steel, when making sure the house is as advertised.
Once you've decided to bid on a particular house, it is crucial to secure financing. All purchases made at the time of the auction are final; a deposit must be given at the auction should you win it under the gavel. The money will be paid through a pre-arranged method; in fact all details like this will be presented by the seller's agent both ahead of the auction and during the big day.
Finally, it's essential to have a strategy to avoid the emotional lure of overbidding or overspending.
Ray White Surfers Paradise has helped sellers and buyers through the exciting auctions process countless times over the years. We would love to be able to do the same for you. Get in touch with us today so we can start the process of preparing with confidence.