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The apartment in Kangaroo Point sold for $110,000 in just five days.
A Brisbane unit sold for just $110,000 after five days on the market as investors snap up ways to stash cash with savings deposit rates tumbling.
Falling interest rates on deposits have been linked to a rise in investor interest in Brisbane units, with cash in the bank getting as little as 1.15 per cent return.
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The unit is in a serviced student accommodation building in Kangaroo Point.
The unit, which was listed as requiring an urgent sale, sold for just $10,000 more than a previous owner paid 15 years ago.
Agent Michael Bacon of Place Kangaroo Point told The Courier-Mail that there were 76 enquiries for the property, most of which was from local investors.
“It went quite crazy,” he said. “These properties are seen as better than cash in the bank, it’s a far better return and a good alternative for a lot of people.”
“Why get a really small return in the bank when you can get close to 10 per cent return? That being said if people want to know the difference, money in bank you can withdraw, but also a lot of these properties sell in five days.”
This is what $110,000 bought.
The fully furnished one bedroom, one bathroom studio apartment was rented at $275 a week as part of student accommodation services.
This comes as the four major banks reduced savings rates in the wake of Reserve Bank of Australia cash rate cuts, with Australia’s largest bank, CBA, slashing by up to 0.25 per cent this week.
CBA’s Netbank savings account now offered 2.05 per cent interest for the first five months and then an ongoing rate of just 0.15 per cent, according to comparison firm RateCity.com.au.
CBA’s Goalsaver rate was slashed by 0.25 percentage points to just 1.15 per cent — but if account holders fail to deposit of $200 or more, or make a withdrawal, the rate falls to just 0.01 per cent that month.
The property has 76 enquiries from investors with a week.
RateCity.com.au research director Sally Tindall said it was a blow to savers.
“Now is an excellent time to review your savings accounts and see if you are getting the most bang for buck in what is a very difficult market for savers.”
Westpac’s Life savings account has a base rate of 0.6 per cent and a max rate of 2.1 per cent if owners make a deposit and end with higher balance per month.
NAB’s Reward Saver’s base rate was 0.11 per cent with a max rate of 1.86 per cent for one deposit and no withdrawals per month.
ANZ’s Progress Saver’s base rate was 0.01 per cent with a max rate of 1.95 per cent for a deposit of just $10 and no withdrawals per month.
According to Ratecity.com.au, one of the highest savings account rates right now was 2.75 per cent from Endeavour Mutual Lifestyle Account, with the condition being a $400 deposit a month and up to age 35.