Investing in the Queensland property market | Capricorn Coast
Entering the Queensland property market
When thinking to invest in the Queensland property market the first port of call is Research. The main question you should be asking yourself are the price parameters that you are comfortable in servicing and stick to them! That would then give you an idea of the locations and type of properties you are available to afford.
For instance, let’s say that you are looking at purchase a unit in the late $100,000’s to the low $200,000’s on the Capricorn Coast. So, your research parameters will be between $150,000 to $250,000 from January 2020.
The outcome is as follows. (Actual Figures)
2020 has seen the established attached housing market within the parameters attracting reasonable to low interest, considering the COVID-19 landscape. There was a total of 11 sales including 1 sale in Emu Park at $245,000. There were 5 sales between $150,000 and $200,000, with a median of $176,300 and the lowest purchase price at $152,000. And 6 sales between $200,000 and $250,000, with a median of $238,667 and the highest purchase price at $249,000.
Further analysis of the research revealed that Cooee Bay was the most popular of the locations with 5 sales between $150,000 and $200,000, with Taranganba and Yeppoon City more prevalent above the $200,000 value.
The above analysis highlights that there is an opportunity for not only the First Home Buyer’s to enter the market but also the small end of the property investor market to secure a property on reasonable terms.
First Home Buyers
With the First Home Buyers grant for established properties not available. Banks now require evidence of savings and the ability to service the loan.
With interest rates at historic lows and expected to continue at these levels for a while to come, monthly payments could be kept to a minimum and manageable. Job security though is still a major consideration in these uncertain times for younger property goers.
Property Investors
With some confidence slightly returning to the Queensland property market, rents remaining relatively stable, opportunities for FTPI are available within the lower end of the Queensland property market.
Two-bedroom, one-bathroom flats, units and townhouses on the Capricorn Coast that were purchased for $200,000 should rent between $220 to $230 per week. This calculates of a gross return including four weeks of vacancy between $10,560 and $11,040. This equates to an overall gross return between 5.3% and 5.5%, excluding relating additional expenses. Not ground-breaking by any means, but with the market considered to be at the lower end of the property cycle and confidence slowly returning the advantage of capital growth should also be taken into consideration.
The advantage of the Capricorn Coast is that regional infrastructure projects and major industry developments will bring population growth to the region, which in turn will put pressure on accommodation. This should see a decrease in vacancy rates, thus putting pressure on rents, therefore increasing overall returns.
Any queries on Plant, Machinery, Business, Agriculture, Manufacturing, Livestock or Property please do not hesitate to call myself. My details are below:-
LINCOLN GANTER AAPI ASA {MTS} CPV
Owner and Director
GANTPMV Pty Ltd
Email: lincoln@gantpmv.com.au
Mobile: 0413 628 840
Contact Us: HERE
