Buying for the long-term
A NATIONAL firm of real estate valuers says while “the days of a quick buck” have disappeared from the Tweed and Gold Coast real estate market, now is still a good time to buy for the long term.
The latest monthly review of real estate markets around the country by valuers Herron Todd White urges investors and home buyers to think long-term.
“The days of a quick buck on the Gold Coast are most certainly gone, however, the potential long-term growth is promising,” the company’s report said.
It said prudent buyers were seeking out prime beachside locations and purchasing both units and dwellings at prices up to a 50% below their peak in late 2007.
The report also suggests modest homes in areas such as Kingscliff or Banora Point make solid long-term investments. Local agents appear to agree.
“I see Kingscliff as one of the most solid markets on the whole east coast,” said LJ Hooker Kingscliff principal Paul McMahon.
He added “mixed signals” from the Reserve Bank regarding the future of interest rates was holding some buyers back and had helped create a “buyers’ market”.
“It reminds me a lot of the ’90s,” Mr McMahon said.
“People who purchased in the ’90s have done very well in property. This is the first buyers’ market I’ve seen since.”
The Herron Todd White report said “a strong investment in the Tweed residential region would be a property which goes back to basics; a modest design, lowset dwelling ... offering three to four bedrooms with two bathrooms and double lock-up garage in or surrounding Banora Point or Kingscliff”.
It said there would be no quick miracle recovery.
Kingscliff and Banora Point houses $400,000- $550,000 are considered a good long-term investment.