Melanie Pilling | October 7th, 2009
INVESTORS are hungry. For 12 months they have been cooling their heels and waiting for the right time to pounce.
New research from PRDNationwide suggests that time is now.
A national survey released yesterday shows nearly 90 per cent of investors are eager to purchase property in the next two years and the Gold Coast will be a big beneficiary.
Rob Grover, PRDNationwide Robina principal, said the Coast, traditionally a haven for investors, would soon be welcoming them back. He said a drop-off in first-home buyers and investment in large infrastructure projects were the two main attractions for investors choosing the Coast.
"There has been a marked increase in the number of inquiries we are getting from investors since the first-home buyer scheme was reduced," he said.
"Investors found it hard to compete with first-home buyers.
"They are also aware of the infrastructure happening here and they know tenants are willing to pay more rent to live near it."
The survey of 764 investors found most were seeking a property priced between $300,000 and $450,000, with an average rental return of between 4 and 5 per cent a year.
Mr Grover said that on the Gold Coast investors were prepared to spend even more and could hope for better rental returns of up to 10 per cent.
He said both local and interstate investors had renewed their confidence in the Coast's property market.
"The Gold Coast is an excellent place to invest," he said.
"There's about a 50-50 split between local and interstate interest with a lot also coming from Brisbane."
According to the survey, most buyers were interested in property in the middle suburban ring (36.3 per cent), followed by inner city (33.7 per cent), coastal area (14.9 per cent), outer suburban suburbs (7.9 per cent), CBD (4.8 per cent) and rural (2.5 per cent).
Other findings included:
* Two-thirds of investors were seeking property for long-term capital growth and 22.5 per cent were seeking a rental yield.
* When purchasing in an apartment complex, most buyers were looking for a property with a gymnasium (22.2 per cent), followed by a pool (20.6 per cent) and BBQ area (18.9 per cent).
* Proximity to public transport was a big factor, with 38.7 per cent saying it influenced their decision, followed closely by retail and entertainment (20.8 per cent) and nearby employment (20.6 per cent).
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