Why purchase in QLD as an NSW investor? Sunshine state builders record 4X rise in new home enquiries
Increasing high demand has led to Brisbane and Regional QLD producing some of the nation's healthiest rental yields (4.1% and 5.0% respectively for homes and 6.7 and 7% for Dual Key).
Combine this with rising house prices from a flock of sea changers moving north or returning to Australia and you've got the perfect recipe for a high cash flow positive, high capital growth investment at a fraction of the comparative Sydney property price.
Below are some of the summarised information from articles we’ve researched from ABC Gold Coast, SQM Research, and Metricon this week.
Sources: ABC Gold Coast, SQM Research, Metricon
The bottom line;
Builders say relocation companies have experienced a 400 % increase in demand for quotes from Sydney and Melbourne residents
One major builder says new home sales are up 80% in south-east Queensland
Access to tradespeople could come under pressure amidst building boom
Metricon Queensland general manager Luke Fryer said new homes sales were up 80% and the level of enquiry in local property had been extraordinary.
"The major relocation companies are quoting 400% increases in quotes to people who are wanting pricing to relocate from Sydney and Melbourne up to the Gold Coast and Greater Brisbane," Mr Fryer said.
Interstate migration and government stimulus measures have helped boost new homes sales and building approvals across south-east Queensland, he said.
"We are seeing a significant increase in domestic migration.
"The level of enquiry and level of people committing to building a new home on the Gold Coast and south-east Queensland has really been phenomenal."
"I'd suggest some 80 to 90% up year on year.
"It's been an extraordinarily positive result and response from Australians who do have certainty around their employment."
Darryl Meehan director of Q Coast Homes said demand for renovations was unprecedented and unlike anything he had experienced in over 40 years.
"The renovation sector is doing even better than the new home market, especially on the Gold Coast," Mr Meehan said.
"I think that has just gone in absolutely the biggest boom … its [ever] been."
75,143 households applied for a $25,000 grant under the Homebuilder scheme as of the end of December, nearly double Treasury forecasts (Supplied: Metricon)
Mr Meehan said 2021 was looking very positive and the Federal Government's Homebuilder and Job Keeper programs had saved the industry.
"Every builder on the Gold Coast that was able to survive through the pandemic has had an increase in volume, I would say somewhere between 20 to 25 per cent."
Mr Meehan said interstate migration was putting pressure on property prices for existing homes too.
"Properties are selling before they are listed for sale," Mr Fryer said.
"In the olden days that would be sight unseen but now with modern technology with virtual walkthroughs and the like, they're able to view the property digitally and they're purchasing."
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