Gold Coast North Central
Generally speaking, most local Queensland investors are not driven directly by yield on the Gold Coast. No doubt their investment decisions will involve an assessment of property price versus income less outgoings but largely indications are that they are more inclined to be driven by decisions of location and amenity. Interstate buyers have a quite different approach. Local real estate agents report that the magic gross yield rate currently sought by interstate investors is 6%. Generally speaking, agents will not get any marketing traction on properties when this minimum yield cannot be demonstrated. The lower end of the local market (say $170,000 to $350,000 price range) in the suburbs of Labrador, Southport and Biggera Waters is currently quite weak with sales volumes down and values falling 5% to 15%. Local property managers are reporting higher vacancy rates and in some cases a drop in rent is required to secure new rental agreements. We also note that local property managers are reporting that there has been a surge of tenants who are exiting their rental agreements in order to buy their own properties in response to the very low mortgage rates now on offer………………………….. download your copy for more local information and from around the country.
