The road to owning rentals in Surfers Paradise isn't always an easy one. From macroeconomic shift to changes in your own daily routine, there countless factors that can impede your road to wealth through investment. And just because many of these point in your favour at the moment doesn't mean you can ignore the barriers in the way. In fact, paying close attention to challenges both near and far can set you up nicely down the line.
So with this in mind, lets take a look at some of the challenges facing investors in the current market.
Did you know that we are currently seeing record levels of housing construction across the country? According to the Housing Industry Association (HIA) Autumn 2015 National Outlook, real estate construction is actually pulling the Australian economy forward on its own – despite a tight concentration of activity.
"On-going momentum in 2015 is narrowly driven compared to last year, in terms of both geographical area and dwelling type – it's far from a universally strong story," said HIA chief economist Harley Dale in the 18 May release.
Despite the record growth in homes being built, significant barriers exist in the form of red tape. Detached homes did not reach expected highs, with Mr Dale saying this is because people cannot wait up to 14 months for land titles, or months simply for a housing approval – not to mention the fees and taxes that come with a property.
"A lack of focus on housing policy reform is shutting Australians' out of their new home at a time when they could borrow responsibly at attractive interest rates and be part of the great Australian dream," Mr Dale added. Without necessary changes, red tape stands as a significant barrier to Surfers Paradise property investment.
Unless you've been living under a rock, you'll be aware of the fire burning at the heart of our property prices, particularly in Sydney. Just look at the RP Data CoreLogic monthly home value indices – for the 12 months to 30 April this year, median house values in Sydney have gone up 15.52 per cent. On a $500,000 home that is a $77,600 increase!
It is a situation that has Real Estate Institute of NSW president Malcolm Gunning concerned about whether many people in the city could afford a home. While this situation does not yet apply to Main Beach real estate, it is worth keeping an eye on.
According to a recent release from the Real Estate Institute of Queensland, median property prices are steadily rising right across the state, with the Gold Coast experiencing similar growth to Brisbane. CEO of the organisation Antonia Mercorella states that the Sunshine State is not undergoing a boom and bust cycle, but it remains worth keeping an eye on prices. They could continue rising, and if it picks up in speed there could be further barriers to investment.
For now, however, prices in Queensland are much more affordable than in the New South Wales capital – you could find it easy to secure a great home.
These are but two barriers to investment real estate in Surfers Paradise in a market filled with them. For more information on how to make property investment work for you, make sure to get in touch with Ray White Surfers Paradise. We are hosting a landlord symposium in the first week of June, which offers owners and prospective buyers the opportunity to share ideas and tips for successful investment.
Visit our website to RSVP, or to simply have a look at what is currently available in the local market. You might be pleasantly surprised at what is available.