LEADING real estate experts say Gold Coast property is ripe for investors with the rental crisis only adding more heat to the market.
Rose and Jones Gold Coast director and buyers agent Oliver Jones believes the Gold Coast market is neither a buyers’ or sellers’ market but rather an investor hotspot.
According to the latest PropTrack data, the best yields can be found in Bundall (units), which has a gross rental yield of 6.08 per cent.
Parkwood (units) followed recording 6.02 per cent, while Coombabah (units) rounded out the top three with 5.77 per cent.
Mr Dunstan said investors should be getting at least a 4 per cent rental yield but advised to take capital growth potential into consideration.
“All investors should want the right mix of return and capital growth prospects,” he said.
“We focus on trying to buy in areas with more owner-occupiers than investors.
“Less competition when leasing will result in stronger returns and more owner-occupier appeal will see better long-term growth.
“Walkability is key – efficient access to local amenity such as shops, cafes, public transport and things like parks, playgrounds and the beach will appeal to the widest tenant pool.”
He said this year’s market slowdown allowed investors to jump on property along the Glitter Strip.
“Investors are looking at a market that has less competition and fewer buyers in general,” he said.
Ray White Surfers Paradise CEO Andrew Bell said while it wasn’t only an investors’ market, investors were able to take a huge slice of Gold Coast real estate.
“I’ve never in my life seen more favourable conditions for an investor here,” Mr Bell said.
“Now the market has cooled just a little bit that ‘must have it at any price’ attitude of buyers has softened so investors are getting a crack in the marketplace.”
Mr Bell said investors could earn a 4 to 5 per cent yield as well as capital gains.
“They are getting a double whammy,” he said. “When you combine the two it’s a handsome return.
“The property market is a much more secure and stable market than most other forms of investment.”
There are two types of investment buyers, according to REIQ Gold Coast zone chairman Andrew Henderson – those who buy property to eventually retire in and those who buy to have an income-making asset.
“Is the property strictly an investment for their long-term asset position or is it a property they are going to move in to when they retire on the Gold Coast?
“That has a huge impact on the type of dwelling they will choose,” he said.
“You’ve always got those existing areas close to the beach that will see strong capital growth returns but your better rental returns are often in those areas where your entry level price is cheaper.”
Top 10 suburbs in which to invest
Bundall (units), 6.08%
Parkwood (units), 6.02%
Coombabah (units), 5.77%
Springbrook houses, 5.66%
Biggera Waters (units), 5.65%
Benowa (units), 5.56%
Helensvale (units), 5.55%
Ashmore (units), 5.47%
Arundel (units), 5.45%
Varsity Lakes (units), 5.39%
Source: PropTrack; Figures are indicative gross rental yields to June.