Queensland property looks sunny for investors
Residential property prices in the sunshine state have suffered in the wake of a fall- off in interstate migration and tourism, over-building of units in some areas, cuts in first home buyer incentives, relatively high interest rates and a string of natural disasters.
So does that mean it is a no-go area for investors, as Money reader Katie has been advised by her family and friends?
"Queensland is a buyer's market and there are some great opportunities, particularly for people buying for lifestyle reasons," says Kathy MacDermott, executive director of the Property Council of Australia's Queensland branch.
"Coastal areas that attract people working in the resource sector, like Mackay and Townsville, are good for investors because rentals will be underpinned by demand from highly paid workers."
Stick to areas close to airports and infrastructure and think about buying a new property, because if you do the state government will give you a $10,000 cash bonus, advises MacDermott.
This incentive, which runs out at the end of January, is designed as a short-term boost for the home building industry. First-home buyers buying new can also collect the additional $7000 first-home buyer's grant.
But at the same time the state government hiked stamp duty - a rise of up to about $7000 - for those home buyers buying their second or subsequent residence.
Previously non-investors received a long-standing discount.
The Gold Coast is another area where there are bargains for long-term holders because there is a glut of units now, says MacDermott.
Many are of high quality and there are also some good package offers, such as completely furnished apartments.
And if you buy new you will receive the $10,000 bonus, whether you are an investor or an owner occupier.
What Katie and others looking to invest in property must avoid is buying in areas without growth potential.
And the biggest impetus to growth in Queensland is the mining boom. Gladstone, the location of several new liquefied natural gas plants, is recording the biggest growth in new dwellings in the state, according to the Midwood report on the outlook for Queensland property released in June.
Mackay, the coastal base for many mines in the Bowen Basin, and the southern Queensland inland city of Toowoomba, a base for much of the Surat Basin coal-seam gas industry, also recoded strong growth in dwelling approvals.
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