An Australian woman has revealed why she bought her first property in Queensland after being priced out of it in Sydney. A property expert said the young Australian was part of a growing trend of investors flocking to the Sunshine State, which had been struck by a “perfect storm”.
Kayla Rogers bought her first property in Toowoomba, Queensland, as an investment in February this year. The 25-year-old online personal trainer told Yahoo Finance that as a single, self-employed woman, she realized it was “unrealistic” to buy the type of property she wanted to live in in Sydney.
“I knew that at my age, I didn’t have the money to buy a house or the kind of foundation I wanted to settle down in,” Rogers said.
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“I bought something more affordable because I’ve been interested in investing and building portfolios since I was young. With the current cost of living, it’s definitely difficult to break into the market.”
The average house price in Sydney is $1.6 million. House prices in Toowoomba are less than half that, at around $620,000.
Ms Rogers said she sought help from a buyer’s agent who recommended she purchase a home in the Darling Downs. With a 20 percent down payment, she was able to purchase a four-bedroom property for $550,000.
The property is rented out for $450 a week, which Rogers said was enough to cover most of the mortgage payments.
“It’s better to buy any property than to have no property. Even if it’s local, it’s still beneficial in the long run,” she said.
Rogers said she was able to save up for a down payment by living with her parents and saving once she started working. · Source: Provided
Little Real Estate says inquiries in Queensland have soared fivefold, with 50 per cent now investors, up from 30 per cent at this time last year.
Director of Sales James Kirkland told Yahoo Finance that there are a number of factors that come together to make the Sunshine State an attractive place for investors.
“What we’re hearing from buyers who are making inquiries and making purchases is, first and foremost, before COVID-19, there was a fairly long period where Queensland wasn’t moving at the pace of other southern states. That meant it represented good value,” he said.
“The situation and the imbalance of supply and demand was one thing, so it creates a very strong capital growth scenario.
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“Due to population migration from southern states, rental demand is strong and vacancy rates are very low, leading to higher rental yields and favorable conditions for investors.”
Little Real Estate’s James Kirkland said there was a “perfect storm” in place for investors currently flocking to Queensland. · Source: Little Real Estate
Mr Kirkland said Sydney’s high property prices were driving up investor entry levels, while Melbourne investors faced “significant costs” from land tax and new minimum compliance standards. .
The 2032 Olympics in Brisbane is also creating “hype” for the state.
“Queensland is experiencing a perfect storm for investment right now and we’re seeing it on the ground,” he said.
“We’ve seen a huge increase in buyer agents representing buyers from southern states who aren’t necessarily local. That’s also a really big indicator that there’s strong demand from investors.”
Latest data from the Australian Bureau of Statistics shows new investor lending rose 34.2% in August compared to the same period in 2023, approaching the peak reached in January 2022. In Queensland, investment lending increased by 7.9% in August alone. .
Mr Kirkland said he was seeing investor demand for more affordable housing in Brisbane suburbs such as Springwood and Logan, where rental demand was strong.
Mr Rogers said he plans to buy another investment property in Queensland within the next year and a home within seven years.
She said that since she started working at age 17, she was able to save up for a down payment by living at home with her parents and saving money.
“I’m grateful that I was able to live in my home for basically 25 years of my life and didn’t have to pay rent or have a lot of expenses. Because they took care of me,” she told Yahoo Finance. .
“I’ve always basically saved everything and always been conscious about my spending. I’m not materialistic at all.”
Mr Kirkland said it was becoming increasingly common for young Australians to receive some form of assistance from their parents, such as help with living at home or with savings.
“The level of entry is high at the moment. It’s very difficult to follow the traditional, typical Australian philosophy of saving money, buying property, moving and starting the property ladder at the moment,” he said. say.
“It should be different for most people.”
Mr Rogers said people needed to “want it hard enough” and be willing to “put themselves in difficult situations” to get on the property ladder.
She said getting help from a buyer agent was a “game changer” for her and encouraged others to seek guidance.
“Honestly, I definitely could have bought it three years ago, but I had no idea where to start. If you’re in a position to ask for help, don’t be afraid to ask. Ask for it,” she said.
Mr Rogers moved to the Gold Coast earlier this year and said the move had allowed him to continue growing his personal training business.
She is currently living rent-free with friends on Main Beach in exchange for helping them with their business.
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