Escalating property prices confirm that real estate in Hervey Bay is absolutely booming. When it comes to buying a Hervey Bay investment property, there are many important factors that need to be considered with a high demand for rentals at the top of the list. There’s also location, school system, community, and more. The following article will explore the pros and cons of buying an investment or rental home in the gorgeous coastal city of Hervey Bay. Rest assured, that NOW is the best time to cash in on the boom. Looking to downsize and perhaps sell your large family home and buy something smaller along with an investment property or two? Call into our office located at Whale Bay Marina in Urangan for a friendly chat about how we can help.
Real Estate in Hervey Bay Investment Growth
It’s no secret that Hervey Bay, Australia has a lot to offer tourists, but the coastal city is also one of the best places to live. There’s great weather all year round, gorgeous safe beaches to enjoy, a relaxed outdoor lifestyle, affordable family living, and so on. It’s no wonder that there is a continual high influx of people deciding to relocate to the area. It’s an exciting time to be in Hervey Bay. With the population growing, new businesses are opening up, and more people are moving here. The population of Hervey Bay has increased by 20% since 2011. This means that it is becoming increasingly competitive to find a rental property in this area which is great for property investors.
Local Amenities, Shops & Schools in Hervey Bay
The coastal city is famous for tourism with Fraser Island and Whale Watching both high on the list of attractions along with beaches, great fishing, and an amazing relaxed lifestyle opportunity unparalleled by larger city living. With plenty of ways to spend your time out and about in this gorgeous coastal city; you could go fishing off the coast or do some diving at one of the many dive sites around Hervey Bay’s coastline. There are also many different shops and restaurants in Hervey Bay that offer something for everyone. When it comes to education, there are some great schools and universities for students of all ages and abilities.
Hervey Bay’s local amenities include everything your family will need including a public library, plenty of parks, hospitals, medical centres, several shopping centres, and plenty of excellent private and public schools to choose from. Check out our suburbs pages on Living in Hervey Bay.
What’s the Current Market Status of the Hervey Bay Real Estate Market?
The Hervey Bay Real Estate Market has been a very stable one over the years, growing at a slow but steady rate. Since Covid-19, like much of Australia, Hervey Bay has experienced strong growth as buyers look to relocate from the large cities to regional parts of the country such as our gorgeous coastal city.
How Much is the Average Price for a House in Hervey Bay?
Pre-covid, the median house price of a four-bedroom house with two bathrooms in this area was between $330,000 and $400,000. Nowadays the same house types are fetching upwards of $500,000 and are snapped up very quickly. Three-bedroom homes in Hervey Bay are selling in the $400,000s.
Likewise, there have been substantial rental price increases across the board with the median price for a three-bedroom home now at $400+ and four-bedroom homes averaging $500+ per week.
One of the smartest ways to invest wisely has always been to put your money into bricks and mortar— buying multiple residential properties has been good for long term financial planning and so long as your rental property rental income is able to provide adequate cash flow, is an excellent retirement plan that should boost the amount of money in your retirement savings account or self-funded superannuation.
But how do you know if you should buy a particular house or not? Obviously, you always should start by calculating your financial needs. How much are you planning on spending per year on housing? What is your credit score? If your credit score is low, then it might take a little more time for you to find a lender who will approve financing for you.
Property investments are not only about an increase in value but also tax advantages. The capital gains tax rate is usually lower than that of other investments like stocks or bonds. Renting out property is a great way to provide additional income.
What Not to Do When Investing in Real Estate
As mentioned, investing in real estate can be a very profitable and rewarding venture. However, it also comes with some risks. To maximize your potential profits and reduce the risk of losses, there are steps you should take to mitigate these risks.
If you’re just starting out in real estate investments, here’s what not to do:
Don’t Invest all your money in one property or location: Investing in real estate is a common strategy for building wealth. But what is the best way to invest your money? Some people think that you should only invest in one property or location, while others opt for a variety of different properties. The truth is that there are pros and cons to each strategy, so it is up to you.
Never get emotionally attached to your investment property: It is only there to make you money as an investment, not as your ideal or dream home that you want to live in.
Only Fools Rush In
In conclusion, assessing the potential risks of investing your hard cash should always be taken into account. Be sure to adequately research any Hervey Bay investment property options before making a decision. You may decide it wiser to consider spreading your investments among different asset classes which may be less risky. Perhaps investing in stocks, bonds, and mutual funds as well as real estate will help you diversify your portfolio thereby lowering any risk should the national median property price drop so drastically it results in a major National real estate market crash. Real estate investment has stood the test of time over the years and the steady influx of people relocating to Hervey Bay will all need somewhere to call home.