We have had a large number of Southern Investors who wish to retire ‘one day’ on the coast and are securing property now to get a foot in the market. Prices of inquiry have been, for houses, $500,000-$850,000.
Finding a neat, well located family home (ie 4 bedrooms, 2 bathrooms, double lock up garage and pool or room for a pool) for $500,000 is nearly impossible on the Coast, you really need a budget up to $600,000.
The difference in price range definitely equates to the rental return and in the long run better capital growth.
We have watched investors buy sight unseen properties in very bad locations around the new hospital site and these will always be BAD locations.
For units inquiry has been $400,000-$700,000. As we have discussed before Body Corp fees should definitely be a deciding factor when purchasing units.
Even though selling agents spruik that if the unit is an investment, all fees are a tax deduction, you still have to make money from the property for that principal to work.
As a high percentage of unit complex’s on the coast are over 20 years old, most are high maintenance due to age and salt air and that’s why they are cheap.
As a further note - lenders have toughened up on borrowing for units in Brisbane, Gold Coast and Cairns but not the Sunshine Coast.
At present we don’t have an oversupply although I would be wary buying in Sippy Downs and Birtinya as they are heading for high density.
This may level out as the University and new Hospital site are the main economic and population drivers for these two areas.
Remember rent returns may be steady but when it comes time to sell there will always be at least 10 of the same thing for sale.