Opportunity presents during seemingly tough times!
In March 2018 the first of our "Banking Royal Commission" hearings began. The aim was to make Banks and Brokers more accountable to responsible lending. Banks were accused of letting profit prevail over compliance. New measures were imposed which include more detailed screening of applicants, especially their outgoings. Consequently Buyer numbers started to decline.
On top of this State Governments introduced Higher Foreign Investor Stamp Duty which drastically reduced foreign buying especially NSW and VIC. Since July 2018 all we have read about is "The Property Downturn". Whilst this has caused concerning declines in both Sydney and Melbourne, the only negative effect it has had on the Sunshine Coast market has been increased time on market. In fact Sunshine Coast property prices have continued to grow, and for good reason. We only have to look at the significant infrastructure projects that are coming to the Sunshine Coast.
The Maroochydore CBD, the Sunshine Coast Airport expansion, work to the Bruce highway, talk of light rail and of course the exciting Sunshine Coast International Broadband Submarine Cable project will provide businesses with a range of new opportunities that come with increased speed and diversity. These projects create jobs which in turn attracts people to our region, which in turn creates demand for property (both rent and purchase), which leads to price growth and higher rental yields.
So with all the talk of a Property Downturn there lies great opportunity for savvy investors right here. With less buyers and longer time on market, those who have built themselves a sold financial base can take the time to source properties which best fit their portfolios and see some strong gains in the years ahead.
Andy Lake - Property Consultant
PRDnationwide Coolum | Peregian