Coffs Coast in­vestors ex­pected to buy

The Coffs Coast Advocate - - REAL ESTATE - MELISSA MARTIN melissa.martin@coff­s­coas­tad­vo­

THE Coffs Coast prop­erty mar­ket could see an up­lift in six weeks when the Aus­tralian Pru­den­tial Reg­u­la­tion Author­ity (APRA) will scrap its housing in­vestor loan cap.

The loan cap was im­posed in 2014 when a limit was set on in­vestor lend­ing growth of no more than 10 per cent. It was a mea­sure de­signed to cool the Syd­ney and Mel­bourne housing mar­kets, but The Edge Coffs Har­bour prin­ci­pal Mark Webb said the change did have an ef­fect on the Coffs Har­bour mar­ket.

“It was hard for clients to ac­cess money for in­vest­ment so it had a bit of a im­pact on peo­ple pur­chas­ing, but over­all the lo­cal mar­ket re­mained strong and per­formed well,” he said.

Now, be­liev­ing the job has been done, APRA will dis­con­tinue the cap as of July 1.

“There has been a clear re­duc­tion in higher risk lend­ing, with in­vestor loan growth mod­er­at­ing, in­ter­est-only lend­ing de­clin­ing and high loan-to-val­u­a­tion lend­ing also markedly lower,” APRA chair­man Wayne Byres said.

“There have also been im­prove­ments in lend­ing poli­cies, in­creas­ing the rigour of ser­vice­abil­ity as­sess­ments for new bor­row­ers.”

Mr Webb said the change was go­ing to make a big dif­fer­ence on the Coffs Coast and the mar­ket was ready for the change.

“I think in­vestors will get back into the mar­ket and the banks will be keen to lend more,” he said.

“Prices and con­sumer con­fi­dence are there, so I think we should see some good price growth in the near fu­ture.”


If you’re a first time in­vestor it can be hard to know where to start, but the best place to start is with plenty of re­search.

You need to have a real un­der­stand­ing of what is in­volved in prop­erty in­vest­ing, so get some fi­nan­cial ad­vice be­fore you even con­sider look­ing at houses or units.

You need to look at your tax sit­u­a­tion and de­cide if you want a prop­erty that will be neg­a­tively geared. You may want to have cash-flow from day one with a pos­i­tively geared prop­erty, or per­haps you like your DIY and want to flip a prop­erty.

Once you know your plan and bud­get, then you can start look­ing at where you want to in­vest.

There are plenty of good in­vest­ment op­tions on the Coffs Coast, how­ever, be­cause you won’t be liv­ing in the prop­erty, your in­vest­ment could be any­where.

Look for ar­eas with a strong lo­cal econ­omy and suburbs that are in high de­mand with ren­ters, but also have a low va­cancy rate.

Think about what type of prop­erty will at­tract ten­ants and ide­ally give you solid price growth into the fu­ture.

If it all sounds daunt­ing, get in touch with sev­eral real es­tate agents and ask their ad­vice and if they have any prop­er­ties that suit your re­quire­ments. Agents will have plenty of lo­cal in­sights and a feel for where the mar­ket is go­ing.

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