Hello, Jason Dwyer here from Dwyer Property Investments.
By now, you've probably heard or read about the property mini boom happening on the Sunshine Coast. If you haven't, you may be missing out. These days you can't pick up a paper or listen to the radio without the mention of skyrocketing property prices or surging housing demand, and it's all true.
At the start of the year when COVID hit and the national market stalled, no one knew exactly how property prices were going to be impacted. There was, however, a lot of scare mongering in the press and the headlines had everyone believing prices were going to crash. But I was confident the local market would not only remain stable, but also keep growing during the pandemic, and that's exactly what's happened. As I predicted eight months ago and all the media outlets and now reporting, Southeast Queensland is entering a housing boom that looks set to continue for years to come.
What I couldn't have known however was just how well it would perform. Westpac and now A and Z economists are forecasting property prices to increase by an incredible 20% over the next two years. That's the highest gain in Australia. We've already seen growth of up to 10% on the coast, and in 35 years of selling property I've never seen conditions quite like this. This is great news for investors, of course, because there's fantastic capital growth potential for anyone who wants to secure an investment property. But with buyer demand not slowing down anytime soon and good land becoming harder to secure, prices are only going to continue to rise. So my best advice is not to wait. The sooner you buy the bigger your gains will be down the track. So what's driving this mini boom? It's simple, really. Demand for housing is high, supply is low, and this is pushing up property prices.
The demand is largely being driven because investors are on the move. For a while now, we've been seeing more and more people migrate to Queensland, many from capital cities such as Sydney and Melbourne. According to the stats, almost 20% of Australians were either moving or thinking about moving to another location. They want to get out of the crowded capital cities. They want a more affordable housing and they want a better lifestyle, all of which Queensland offers. Now that people have the flexibility to work from home relocating to this region is an attractive option after what has been a terrible year for many. In fact, the Real Estate Institute believes this migration will surge as the lockdowns and border closures begin to lift. Property prices on the coast were already rising before the pandemic, mainly due to strong population growth and greater spending on infrastructure.
When you factor in the growing number of people making a lifestyle move here, what you have is a double driver of demand. Now, here are a couple of other important facts the media isn't reporting but should give investors even more confidence in the housing market. Firstly, borrowing power is increasing because we're reducing our debt. Since the pandemic started, Australians have tightened their belts and are spending less on non-essential items. We're also paying off our plastic. Credit card debt is down to its lowest level since 2006. Secondly, banks are favouring borrowers who already own a home. Don't forget that interest rates are the lowest they've been at around 2.5%, so borrowing money is super cheap at the moment. Investors really are in the driver's seat. You couldn't really ask for a better time or better conditions to invest in property.
Now's the time to cash in on the COVID property boom on the coast.