Investment rookies find unit Paradise

PROPERTY in Gold Coast hotspots is proving a goldmine for first-time investors.

Units in Surfers Paradise emerged as the property type most sought by investors nationwide last month.

The suburb famous for its high-rise lifestyle offered investors rental yield of 6.17 per cent. The median unit price for units there was $480,000.

Southport was another popular pick for investors, chalking up the fourth-highest volume of inquiries per listing on realestate.com.au, REA Group data shows.

The CBD has a median unit price of $442,600 and rental yield of 6.17 per cent.

With Queensland’s housing crisis pinned to record interstate migration and residents displaced by flooding, Ray White Surfers Paradise CEO Andrew Bell said low interest rates and higher rents made owning an investment property attractive.

“There is a huge demand from tenants, so what has changed dramatically is most landlords have moved from a negative gearing situation to positive cashflow,” Mr Bell said.

“My advice for investors is to buy with the dollars and cents in mind, not with your heart. You are looking for buildings that give the best yield, you don’t necessarily have to buy one that you’d want to live in yourself.

“There is strong demand for all sorts of property – you don’t have to pay premium prices,” he said.

The investor sweetspot previously was about $500,000 with a rental yield of 5 per cent, but many had been scared off as owner-occupiers became the dominant presence in markets ruled by a lack of supply and buyer FOMO.

Buyersbuyers co-founder Pete Wargent said the investor buy-in had soared accordingly.

“For houses, $750,000 to $1.25m is the new normal,” Mr Wargent said.

“Unit prices have generally increased but less dramatically.”

Latest Ray White data shows investors remain shy, with this group making up just 25 per cent of buyers from 406 auctions nationwide in January.

Investors showed best confidence in Brisbane, accounting for 37 per cent of buyers at Ray White auctions, followed by the Gold Coast with 35 per cent.

Houses in Pimpama were another top choice for investors, offering rental yield of 4.87 per cent. The northern suburb has one of the lowest median house prices on the Gold Coast, at $572,000, and ranked 12th among suburbs with the highest number of inquiries in February.

Broadbeach also ranked highly for units, with a median price of $670,000 and 4.87 per cent yield.