Hobart and the Gold Coast’s property markets are starting to benefit from the price downturn in Melbourne and Sydney.
Property investors are increasingly turning north and south to buy more affordable property while renting in their home cities of Melbourne and Sydney.
Sydney residents searched for Gold Coast property on realestate.com 5130,000 times last year, while the majority of Melbourne residents looking outside Victoria for an investment looked south to Tasmania.
Realestate.com’s Nerida Conisbee spoke to News.com about the rentvesting trend that’s on the rise.
“The lower price point is a good thing because if you have a look at what you can buy in Hobart with a fairly low deposit compared to what you can buy in Melbourne, it does give you more home and a better location for your money,” she said.
“That’s also been quite an attractive thing particularly for younger people who may not have had the opportunity to get a deposit together for a home in Melbourne.”
“When we look at what’s happening in the last few years in both Sydney and Melbourne, that extreme pricing has really pushed people into looking at alternative ways to get into the market, and rentvesting is obviously a good way to do that.”
CoreLogic’s head of research Tim Lawless says many buyers in Melbourne and Sydney were being overwhelmed with the costs of buying property.
“Purchasing outside of Sydney and Melbourne as an investor has been a worthwhile option for many buyers,” he said when speaking to News.com.
“It does highlight the affordability constraints that have become formidable barriers to participating in the Sydney and Melbourne housing markets.”
“Many buyers probably still aspire to owning a home in their local city and see the option of investing in other areas as a logical stepping stone on their way to more localised home ownership,” he said.