Spring a busy time for property as market corrects itself
GLADSTONE LJ Hooker sales consultant Steven James shares his knowledge in this weeks Agent Insight.
How is the current housing market - is it rising or falling?
The local property market is currently going through a correction and prices have been falling since this time last year and the number of transactions is significantly down on last year's figures.
The federal election may bring some stability to the market as investor confidence grows from projects being announced in the lead up to the election from both of the major parties, but time will tell.
Historically Spring has always been a busy time in real estate so we should see the number of transactions increase over the next few months, so if you were looking to sell this year "Spring" may just be the right time for you.
What's the return on someone's property in today's current market?
Return on Investment is a common term predominantly used by investors when they are looking at what sought of percentage rate they would get from purchasing an investment property and taking into account the rental income.
Current statistic show that there are quite a few properties getting over 7% p.a. but this is all determined by rent and purchase price, so some of these figures can change with sliding rental yields.
In relation to owner occupied dwellings it all depends on the timing as anyone that has purchased over the last couple of years would find to sell in the current market and recover their holding costs of interest, rates and stamp duties extremely difficult in the current climate.
What suburbs are the most popular in Gladstone at the moment?
The most popular suburbs at the moment have been residential areas close to schools and shopping facilities, so areas like pockets of West Gladstone, Kin Kora, Telina and Sun Valley have always been popular.
Other areas like Seaview Heights have been popular to people looking for a mix of being close to schools, shopping facilities and sporting clubs as well as having quicker access to roads leading to industry via Red Rover Road.
What sort of people are in the buyers market currently?
The current property market buyers are very diverse with no one group dominating the market, but we are seeing a lot of buyers looking to upgrade their current dwelling or buyers from other areas that have been renting and have now decided to purchase a home due to the lower interest rates and the current high rents that are in place in the Gladstone region.
We should see investors come back in more force over the next couple of months after the federal election and another possible rate cut later in the year as interest rates are at their lowest in over 50 years.
What is an average property built on these days - are people tending to be attracted to a smaller sized, easy to maintain blocks?
Most buyers are looking for a home with plenty of space.
Room for the possible pool, shed and good access for the boat are the most common features that we hear from buyers in the current market place, so block sizes over 800m2 are in most demand.
Anything else that people should be informed of?
The multiple introduction of new suburbs is a new phenomenon in Gladstone and one that a large number of locals are skeptical about, but with the amount of investment taking place in this region and the expanding population we need this building to stay ahead of demand.
Government figures project the population for the Gladstone region to be around 121,000 by the year 2030 and we need to remember that for every new family that comes to Gladstone they create approximately 4 new jobs.
Gladstone is changing and is no longer the boom and bust town it once was and I can not think of another place I would rather be in the next couple of years as the changes start to really take impact on our way of life and make Gladstone an even better place to live.