If you have always wanted to own your very own beach side villa, now may just be the perfect time for it. Magnetic Island in North Queensland has sustained a blow that has properties here selling at unimaginable bargain prices. In fact, investors who are looking to add a holiday home or two to their portfolio have never had a better opportunity to move into Australia’s beautiful beach side real estate without spending a fortune.
Prices Dip Lower than Building Cost
To give investors an idea of the kind of prices they can expect Magnetic Island properties are not even attracting the kind of money that will cover their construction cost. Local agents have reiterated that some of these luxury properties are bearing price tags with a 70% cut. The last time that things were this bad was back in 2003 or 2004 when the real estate prices here scraped rock bottom. While other coastal locations like Airlie Beach have also been affected, Magnetic Island is perhaps one of the worst hit locations of this kind, in all of Australia. For investors, the misfortune of this island location is great news indeed.
Predominantly an Investment Market
The fact that Magnetic Island has traditionally been an investor’s market, has worked against it quite significantly, it appears. As a lifestyle destination, the Island properties have enjoyed some great times when travel and tourism was in its heyday across the country. Come recession and the tourism industry dried up worldwide affecting the fortunes of several travel destinations including Magnetic Island. The tough economic conditions have worked against this beach side location so badly that the property prices have dropped to their worst in more than 10 years.
Magnetic Island in Doldrums Right alongside other Coastal Locations
Coastal locations all over Australia have borne the worst of the impact from the downtrend. As a prime tourism destination, Magnetic Island properties did peak in 2007. However, this was followed by a steady decline in prices only to touch rock bottom now. From an investment perspective, the most valuable properties are those near the Nelly Bay harbor, some of which are selling at more than a 60% discount on original prices.
Investors should keep in mind that some confidence is returning to this market and some interest is being shown in these locations once again. A return of demand could shore up prices in the near future, which makes it imperative that any decision about property acquisition in Magnetic Island is made right away.