July 09, 2011
As property investors return to the market, the Gold Coast in Queensland and Newcastle in NSW, are emerging as potential hotspots for those looking at an investment loan, according to real estate mogul John McGrath.
In a recent property blog, McGrath said that Queensland’s devastating floods have caused prices on the Gold Coast to plummet, with some homes selling as low as 50 percent of their purchase price. He believes this makes for rich pickings for investors willing to put in the time and wait for the inevitable recovery.
Newcastle was McGrath’s other hot tip on the grounds that it offers great capital growth prospects and high yields. The former steelworks town on the NSW mid-north coast is undergoing a major renaissance that has led to a buoyant property market and positive media attention that is luring retirees and the sea change crowd from more expensive cities such as Sydney.
Slowly but surely, the city is shedding its grungy steel city image and offers great value and lifestyle. For example, a good three bedder in a good suburb is around $500,000.
McGrath added that the rental market is strong; with a large undersupply and tenants willing to pay up to six months’ advance rent.
According to the May AFG Mortgage index, property investment sales rose by 18.8 percent in May. The data showed the biggest upswings were in Victoria and NSW with those states increasing by 27.2 and 23.3 percent respectively.
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