It’s that time of the year again and may Australians will head north and while on holidays they’ll be tempted to buy an investment property on the Gold Coast or Sunshine Coast.
I have a simple word of warning – don’t!
While they are great places to vacation – holiday locations are not where you should be investing you money.
Currently both the Gold and Sunshine Coasts are oversupplied and the number of dwellings for sale in both areas has almost doubled over the last few years.
At the same time these locations have an increasing vacancy rate and are experiencing a fall in demand and a massive drop in property valued
Even though that property you may be considering looks like a bargain these are declining property markets and should be avoided.
I expect further falls in prices before we reach the bottom of the cycle and that might take some time yet.
You can also read an article by George Kafantaris on whether you should buy a holiday investment property – by clicking here
The holiday location property markets are more volatile than the capital city markets. They may be a great place for vacation, but not a good place to invest.
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