Property Market Hotting up in Australia
July 29th, 2009 | 
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The RBA Governor Glen Stevens (Reserve Bank of Australia) has publicly come and said what we at RBA Property have been telling our clients- this is the best time to buy property. The Governor has said there is a possibility of a property bubble building up and the two main reasons for it are:
1. Shortage of properties being built in Australia specially NSW
2. Lowest Interest Rates in over 50 years
The two factors combined will result in less supply than demand, plus with interest rates at historic lowes the demand will continue to be strong. With a strong demand and not enough properties being built the price of real estate will increase and continue to head north.
The RBA is basically saying it’s sick of our housing boom-and-bust cycle and wants to see more housing built and the price of existing housing not rise much.
Something which is not in Government control, something which is worry for the Government.
However for the Astute property investor- This is the Best Thing in the World. No one else but the Government is saying it looks like property prices are going to increase and increase rapidly.
For a Smart property investor this is all you need to take actions and find good quality investment properties. With Interest rates for property loans around 5.10% and rental returns on property above 5%, it is not hard to find a cashflow neutral property ( holding the property does not cost you any money).
A friend of mine recently bought a property in Brisbane which is offering a 6% guaranteed rental return for minimum of 2 yrs. With her home loan interest rate with a major bank at 5.14% she will not have to worry at all about paying the interest on the loan. The rental plus the depreciation deductions ( it is a brand new property) will actually put surplus money in her pocket every week.
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Property Investors, Property Wealth Creation 
Tags: Australia, bank loan, Brisbane, Brisbane properties, Business and Economy, cashflow neutral property, Cashflow positive property, depreciation deduction, home loan, interest on loan, Investment, Investment property, low interest rates, New South Wales, Price Bubble, property shortage, RBA Property, Real estate, Real estate bubble, Reserve Bank of Australia
Hi,
Could you please tell me which is the best place to buy in goldcoast and brisbane. I am looking for a high return investment property with good property growth. Thanks Sarah
Hi Sarah,
I will answer your question in detail below.
In Gold Coast the property market upto around $600k has been quite strong for the last 15 months.
There are pockets along the 42km on the Gold Coast where there has been oversupply of apartments.
Places like Hope Island and surrounding areas have seen prices drop between 20-40%. Stay Away
Currently for an investor the good places to consider are:
1. Southport (and surrounding suburbs). Southport is the commercial center for the Gold Coast region.
A new Gold Coast hospital is being built there which should add around 5000 jobs in the area. It has excellent transport links and good schools and shopping centres.
2. Main Beach and Surfers Paradise area. The Cavill Street Mall areas is the popular tourist area and the heart of Gold Coast. This area is next to the beaches and close to Southport. There is always strong demand for property in this areas and the rentals are high.
An investor can get returns of around 6% plus for 1 bedroom apartments.
Capital Growth will be strong as there is an influx of 300 new migrants to this area every week. Also it is very popular tourist destinations and holiday letting provides excellent returns. I recommend you get used to the area first by renting out as a permanent rental and as the economy picks up then consider holiday letting.
In Brisbane any area within 5 km of the CBD is a good buy. Close to water (Brisbane river) will differentiate your investment property from the others and get you good capital growth. I have a special detailed report for the Brisbane property market for investors, if you are interested I can send you that report.
Happy Investing