The Sunshine Coast property market is booming.
This comes to no surprise, with multiple developments and infrastructure projects on the go such as the Aura – City of Colour, the Sunshine Coast Airport expansion at Coolum, the new hospital at Kawana and not to mention the new Maroochydore CBD.
So what does this all mean for property investors? It’s simple: There has never been more demand or a better time to buy an investment property on the Sunshine Coast.
Interstate investors are snapping up property in some of the Sunshine Coast’s most sought-after suburbs as the region prepares for more growth in 2018. Ken Guy Buderim principal, Danny Redman, said the area was attracting buyers from Sydney, Brisbane and the Gold Coast, who recognised great investment opportunities.
“Buderim is heavily targeted by interstate buyers,” Mr Redman said. (Source).
Data indicates the annual median sale price in March 2012 was $430,000. Five years later, the median house price in the region (Sunshine Coast and Noosa combined) has reached a new quarterly record of $560,000 (Source).
REIQ Sunshine Coast zone chair and principal of Amber Werchon Property, Amber Werchon, said the Sunshine Coast market was “very buoyant” on the back of “massive public and private infrastructure investment” being made, noting last year it was Queensland’s best-performing market.
“There is a lot of confidence in this region, which is driving huge levels of investment,” she said.
“If you look at the pipeline for the next decade, and even beyond; the Sunshine Coast should continue to perform strongly. It’s an exciting time to live and invest here.”
For interstate investors, many are buying ”renovators” and doing up the property either to rent out or move into themselves. The relaxed Sunshine Coast is a beautiful and appealing place to consider for retirement and/ or raising a family.
Investors from Sydney or Interstate: If you consider the average property in Alexandra Headland is $885,000 (-5.9%), or Minyama is $865,000 (-8.9%), it may be a better strategy overall to buy an older property, as renovating it will be cheaper than buying an immaculate waterfront property, or home in a beachside suburb. The same property in a beautiful presentation and condition could be anywhere between 1.2- 1.6 million dollars (or roundabouts), so renovating either for profit or investment is a good strategy. Your Asset can even provide the Building and Pest Inspection for you!
When renovating for investment or profit, it’s all about doing the numbers- and buying at the right price. If you buy a 4 bedroom, 2 bathroom waterfront property, in a popular suburb such as Mooloolaba, you might get it for a price roughly between 850,000- 900,000k. Spend 250,000k on the renovation and the property is now worth 1.4. Consider five years ago you could have bought the same property for 700,000k and you can see why the numbers add up. For an example of astute property renovation for growth, take our Twin Waters renovation : they bought the house for 1.2million, spent 200,000k on the renovation and when they had it revalued by real estate, firstly the Agent couldn’t believe it was the same property- but they were thrilled to have the propertys’ new value at 1.6million! So for a 200k spend they made 400k- they made their $200k back plus an extra $200k to use as equity to leverage for other projects.
Alternatively, if property flipping and large-scale renovations aren’t your thing, yet you are interested in investing in property as a long-term investment only, consider the average weekly rent, according to Coast2Bay Housing Group CEO Andrew Elvin:
“Local data shows that median rents for two bedroom units stands at $340 a week in the Sunshine Coast and $360 in Noosa,” he said.
“Three-bedroom houses are $420 and $430 and four-bedroom $500 and $550 respectively. (Source)
Essentially, an Investor would need to purchase a property whereby the mortgage repayments cover the weekly rental amount.
If you would like to buy an investment property and wish to renovate it to a quality standard for rent, or profit without overcapitalizing, contact us today- 07 5444 3687. Need a mortgage broker? We know people! Need a Building & Pest? We can help you!