Many happy returns on coastal rentals
REAL estate investors should consider moving into residential ahead of commercial properties, especially in the coastal holiday areas, says a Yamba agent.
Yamba Iluka Real Estate's Denise Gillies said three and four-bedroom homes were almost impossible to find and could attract rents of $380 to $440 a week.
"That's between 5% and 6% which you can't get at the bank," Ms Gillies said.
"If you take depreciation into account, you can make a pretty reasonable return on your investment."
"Residential real estate is becoming a solid long-term investment," she said.
"If you've got a five-year plan in place, got a good marketing strategy and maintain your property up to standard you can generate good returns.
"I can't see any reason why residential real estate wouldn't be a good option for self-funded superannuation funds."
She said a number of buyers had taken the stress off their mortgages by renting the properties for a year or two before moving in.
Its figures showed rental prices were largely static on the North Coast in the past quarter.
The report said Australia-wide rental prices reflected the downturn in the resources boom, with prices falling in regions near resource centres.
"In regional markets, we are seeing the rental market shift from one where locations linked with the resources sector were seeing strong rental growth and are now seeing rental rates fall in many instances," said report author Cameron Kusher.
"On the other hand, coastal lifestyle markets are now starting to see some growth return after many years of poor value and rental growth prospects."
Raine and Horne Yamba's permanent property manager Lisa Pengilly confirmed the shortage of rental properties in the town.
"I've got two properties on my rental list at the moment," she said.
"Normally this time of the year is our quietest period, but we've been really busy," she said.