Bundaberg the place to buy
THREE neighbouring suburbs are offering a combination of the cheapest median values and strongest rental yields in Bundaberg.
Real Estate agents say suburbs like South Bundaberg, Walkervale and Svensson Heights are attracting investors from all over Australia.
The rental yields of the three suburbs is around 6.5%, 1% higher than the Bundaberg Regional Council district average and well above the state average of 5.3%.
All three of the suburbs are also in the top five cheapest in the region with Gin Gin and Norville.
Synergy Property Specialists licensed real estate agent Will Brelsford said now was the time to buy in the Bundaberg region. "As much as we don't like to see it this way, it's a buyer's marker," Mr Brelsford said.
He said situation could be attributed to more people wanting to sell than those wanting to buy and a high demand for rental properties.
"It's definitely a good time to be buying in the area."
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Mr Brelsford said investors were crunching the numbers and finding Bundaberg was the place to buy.
"We're cheap enough and we're getting strong rental returns for the area," he said.
"Bundaberg's getting a strong rental demand; it's obviously driving the rental prices up and giving investors their return."
Michael's Real Estate principal, owner and auctioneer Michael Dempsey agreed.
"Investors from all around Australia are investing in Bundaberg," Mr Dempsey said.
"While they were going to Gladstone and Mackay or Emerald and getting high returns on their rentals, they are now looking to Bundaberg.
"Because our median house price is so low and there is a strong demand for rentals."
Mr Dempsey said the "clued up" investors were looking at entry level properties to buy in Bundaberg.
"As you get at the bottom end of the market, you're getting fairy decent homes for around the $200 000 to $250 000, but still getting reasonable rent," he said.
"So the figures are working out a lot better.
"The top end of the market is slower, but between $200 000 and $250 000 sells fairly well."
Mr Dempsey said the bottom end of the market was a secure investment.
"Really at the bottom of the market, prices can't drop, if a house is $200 000, it's not really going to drop to $150 000," he said. "Some of these houses that are say $450 000, if the market dropped they could potentially go down to $400 000.
"The bottom end of the market you don't really lose."
But he said the smart decisions you could make to enhance your entry level purchase was location, location, location.
"Some young couples get a real fancy little house that might be all tizzied up but on a really crappy block of land - and they think it's good," he said.
"Further down the track, the house gets old and it's not a good position.
"Whereas someone else will buy a rough house for the same amount of money in a good area then further down the track that house is always worth more."
Mr Dempsey said the land component of your purchase was a "big factor".
"The ideal thing is, if you can buy an older house in a good area, you're normally getting that quarter acre block of land," he said.
"In the future the land values will go up as the prices increase."
"If you bought a 600m2 block in East Bundaberg near the Sugar Mill, and you have the same house on a 1200 square metre block in Svensson Heights, well you're going to get a lot more capital gains in Svensson Heights."