It might look like Australia’s property market is on a continuous downturn but the South Coast home values are going against this trend. Whilst there will be an expected decline in property values in Southern Highlands and Shoalhaven among New South Wales regional areas this year, agents remain upbeat about the market’s future. The limited supply is forcing prices to pick up and the number of homes for sale is not going to change anytime soon. Is it wise to invest in Australia South Coast buy-to-let properties?
What Makes South Coast a Property Market Powerhouse?
Thinking about Australia, most people think that the country is nothing more than just koala bears, kangaroos, amazing wilderness, and white sand beaches. South Coast will change all that. The place is a holidaymaker magnet with its gastronomic cuisine and jaw popping adventures. The South Coast area offers tourists a host of spectacular activities such as kayaking, which helps sustain the property market.
South Coast area, apart from its amazing features, has sparked a renewed interest from different sectors, particularly the senior citizens. More and more people are moving into the area because of its inimitable charm. Young families who prefer to live away from the city life decide to move into the area. This, for one, is causing the uptrend in the real estate market of South Coast despite the gloomy outlook of Australia as a whole.
The affordability of rental properties in the South Coast area is another factor that drives the real estate market. The rental market of South Coast, compared with Sydney, is far much cheaper and has higher yields. However, property experts still advise doing intensive research about the market before jumping in and buying a property. Whilst home prices are generally better than those from Sydney, keep in mind that each market has its own unique drivers.
More than yields, it would also be best to look at a particular market’s vacancy rates. Taking these factors into consideration will help you create a better picture of how much capital you would be needing and the expected return of investment.
Exploring the South Coast Buy-to-Let Properties
Prices of rental properties in the South Coast area differ depending on the location. For example, properties in the Malua Bay on the New South Wales South Coast suburbs have the highest yielding market. It has an advertised weekly median rent amounting to approximately 1,300 Australian dollars. Official data reveals that rental properties in the area have a starting price of 600,000 Australian dollars with an estimated yearly yield of about 6%. The market also has a potential capital growth exceeding 8% with a completion upside up to 30%.
How long will this uptrend in the Australia South Coast buy-to-let properties persist? It’s hard to say, especially when experts still don’t know whether Brexit will have an effect on the property prices or not. The good thing, for now, is that the South Coast real estate market remains vibrant and stable. Property experts hope the market will remain this way, unaffected by Brexit.