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Australia’s best place to invest is here in Queensland

Experts are hailing the Sunshine Coast as the best place in the nation to invest in property. EXPERTS are hailing Queensland’s Sunshine Coast as the hottest place in the nation to invest in property right now. A lack of housing, a tight rental market and a rapidly growing population mean supply is failing to keep…Read More→

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Experts are hailing the Sunshine Coast as the best place in the nation to invest in property.

EXPERTS are hailing Queensland’s Sunshine Coast as the hottest place in the nation to invest in property right now.

A lack of housing, a tight rental market and a rapidly growing population mean supply is failing to keep up with demand in the region – creating perfect conditions for investors.

Leading real estate industry figure John McGrath said the Sunshine Coast presented one of the best opportunities for capital growth because of its liveability, affordability and future economic prospects.

Australia’s best place to invest is here in Queensland
Main Beach at Noosa is a popular attraction with both locals and tourists.

“From an investment point of view, where in Australia right now can you invest your dollar and get better returns than the Sunshine Coast or southeast Queensland?” Mr McGrath said.

” I don’t think there is a location that’s going to offer better investment growth in the future.”

His views are echoed by prestige property agent Tom Offermann of Tom Offermann Real Estate, who claims the Sunshine Coast “is on the cusp of the highest growth period in its history”.

“This is being driven by a raft of infrastructure projects that are delivering exceptional lifestyles, which in the past required some compromises for people coming from big cities,” Mr Offermann said.

The region is in the midst of an infrastructure boom, with billions of dollars being invested in upgrading and creating new facilities.

Work is underway on a new runway at the local airport, which is set to become international by 2020, and a new hospital and health precinct has recently been established.

“These are game changers,” Mr Offermann said.

“Astute property investors who recognise what is happening, and take action to secure the best located property they can afford, will reap the rewards of their foresight.”

Local agents say the region is crying out for more investment properties to cater to the needs of the increasing population.

According to demographer Bernard Salt, the Sunshine Coast’s population of around 298,000 residents is set to rise to 550,000 in 23 years, which will require more than 100,000 new homes to be built.

The latest Real Estate Institute of Queensland figures show the rental vacancy rate on the Sunshine Coast is just 1 per cent, with Caloundra having the tightest vacancy rate in the state at just 0.5 per cent.

Australia’s best place to invest is here in Queensland
Canal front homes on Noosa Sound. Photo: Lachie Millard.

It’s good news for investors, who are currently achieving healthy rental returns of around 5 per cent.

In its recent report, Herron Todd White noted an increase in investor activity in the Sunshine Coast market, with the sub $350,000 unit and townhouse sector particularly popular.

“It’s not uncommon to see townhouses selling for $220,000 attracting a rental of $280 per week – over 6.5 per cent gross return,” the report said.

For investors looking to capitalise on the growth in the region, McGrath Real Estate founder John McGrath said now was the time to get into the market.

“I think there is a great opportunity, in particular right now, because we’ve seen Sydney and Melbourne have shown unprecedented growth over the last five or six years,” he said.

“Now those markets have come to a plateau and a lot of people are going to be saying; ‘Do we take our profits and reinvest them, or, in fact, do we move up north and get better value for money?’

“So, I think right now there’s a terrific window of opportunity where people can capitalise on the immense growth we’ve seen in the southern states.”

Australia’s best place to invest is here in Queensland
John McGrath, founder of McGrath Estate Agents.

Reed & Co director Adrian Reed the increased international access the new airport would provide would likely change the profile of buyers in the Noosa region.

“We’re currently seeing an increase in Australian expats buying back into the market, but if accessibility becomes easier, we’re expecting a more aggressive upward trend in high-end premium property,” Mr Reed said.

Australia’s best place to invest is here in Queensland
Aerial image over Sunshine Coast Airport. Photo: Lachie Millard.

He said that lending restrictions and the impact of the banking royal commission had had little impact on the region’s prestige market.

“The vast majority of deals I’m doing at the top end of the market are cash,” he said.

“They’re self funded retirees who’ve already sold their principal place of residence.”

Owner/builder Paul Saunderson, who is selling his home in Noosa Heads through Peter TeWhata of Tom Offermann Real Estate, said the local market was “out of control at the moment”.

“There are houses getting knocked down and new dwellings being built everywhere,” Mr Saunderson said.

He said the contemporary, four-bedroom, three-bathroom property at 20 Sanctuary Ave, Noosa Heads, which he lived in with his wife and two children, was attracting strong interest from interstate and overseas investors.

Australia’s best place to invest is here in QueenslandThis home at 20 Sanctuary Ave, Noosa Heads, is for sale.

“It’s a good investment opportunity because it’s been valued as holiday letting, which is anywhere from $6000 to $10,000 a week during peak season,” Mr Saunderson said.

Jamie Smith of Century 21 On Duporth in Maroochydore said he’d never seen so much activity in the Sunshine Coast property market, with strong interest from both local and interstate investors.

Mr Smith said many investors were looking to buy in the less expensive suburbs, where new housing developments were popping up, such as Caloundra, Sippy Downs, Birtinya and Mountain Creek.

“It’s definitely unprecedented in terms of what we’re seeing on the Coast,” he said.

Australia’s best place to invest is here in Queensland
The Sunshine Coast University Hospital’s emergency department. Picture: Jono Searle.

But Mr Smith said investors who were not already in the market needed to act fast.

“If you were here three years ago, you could have bought between $400,000 and $500,000,” he said.

“Now you’re looking at anywhere from $600,000 plus, so it’s definitely changed a little bit.”

SUNSHINE COAST SUBURBS FOR BEST CAPITAL GROWTH

Suburb Property type Median price 12 month change in price

Minyama House $1.31m 45.8%

Kenilworth House $399,000 40%

Yandina Creek House $820,000 32.3%

Beerwah Unit $375,000 25%

Mount Coolum House $676,200 23.2%

Mapleton House $543,250 21.3%

Mudjimba House $739,500 20.7%

Peregian Springs Unit $475,200 18.8%

Battery Hill House $579,500 18.4%

Montville House $707,500 17.9%

(Source: CoreLogic)

Australia’s best place to invest is here in Queensland
An artist’s impression of the Sunshine Coast Airport Expansion project.

Source: www.ipswichadvertiser.com.au

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Opinion

How the house price boom could threaten business start-ups

house price

Whenever the topic of rapidly rising house prices is raised, there are always concerns about what the future will look like for younger generations when it is time for them to try and buy the roof over their head.

There are fears of financial insecurity, rising wealth inequality and, eventually, a group of people retiring with a rental bill hanging over their head or a mortgage yet to be paid off. For those unable to get onto the property ladder early enough, the outlook is bleak.

But during the federal government-introduced inquiry into housing affordability and supply in Australia this month another concerning outcome of rapidly rising prices was raised that doesn’t get talked about enough.

Independent economist Saul Eslake recently told a public hearing for the inquiry price booms and a market unfairly weighted towards property investors could soon affect the number of start-ups launched across the country.

“It’s very common for someone who starts a small business to have their house on the line in order to get the finance they require,” Eslake said.

“Indeed, among the longer term adverse consequences of the decline in homeownership rates in Australia is that it may be more difficult for people to start and operate small businesses because fewer of them will have homes that they can use as security for business loans.”

Could this be yet another unexpected and adverse outcome of the latest property market boom? Time will tell.

But there is some research suggesting that Eslake’s concerns that the dynamism of the small business sector is uniquely at risk from changing levels of homeownership is a fair analysis. A Reserve Bank research paper from 2015 by Ellis Connolly, Gianni La Cava and Matthew Read found households who own small businesses are more likely than employee households to owe residential-secured debt. This was typically second mortgages or property investor loans.

And for newer small businesses this was even more evident, with these households owning a young start-up less likely to owe business debt but just as likely to owe home debt or credit card debt.

“This could be consistent with these households finding it harder to raise business debt and instead relying on personal lending products to fund their young business,” the researchers said. In other words, it’s tricky to get lenders to put up the money at reasonable interest rates to launch a risky new venture.

And when founders look for other ways to fund their small business start up, the value built up in their home is often one of the more common sources they tap into. If you don’t have a home, this is not an option available to you. If you have taken on a bigger mortgage than you can afford to get onto the property ladder, this might also no longer be an option.

On the other hand, rising home values could actually spur on small business creation for those who own property already.

A 2013 European Central Bank paper from Stefano Corradin and Alexander Popov examined the relationship between entrepreneurialism, home prices and home equity in the United States where homeownership rates are relatively high. It’s arguable how much this would apply to Australia, but it’s possible these trends are similar here.

The research noted that those who might otherwise launch a business could be discouraged from becoming a founder if they have low levels of wealth or other borrowing constraints, but owning a property in a rising market was found to help provide the funds to become an entrepreneur.

“A 10 per cent increase in home equity increases the probability that a non-business owning household will switch to entrepreneurship in the future by up to 14 per cent,” the research says. Conversely, a fall in home values and a drop in equity could have the opposite effect.

As homeowners and home buyers know, the housing boom in Australia is still underway, but there is evidence of a slowdown on the horizon.

The Commonwealth Bank is forecasting national property prices to increase 7 per cent in 2022, followed by a 10 per cent decline in 2023 should interest rates rise.

But determining whether the double-digit property price rises seen this year have been good for the small business sector now and into the future is tricky.

While there is a risk those who have failed to get onto the property ladder will be unable to launch new start-ups, the price rises have helped some existing small businesses weather through the coronavirus-driven economic storm. The outlook was grim when the pandemic initially hit the world and economists were steeling for sky-high unemployment rates alongside a tidal wave of insolvencies that would leave the nation in a mess not seen since the Great Depression. Instead, there has been record levels of government support, the relatively rapid development of vaccines and a spending and hiring spree post-lockdowns.

We might need to thank house prices for some of that. The RBA’s October Financial Stability Review says small and medium businesses were provided significant amounts of government support to keep them afloat during the pandemic-induced recession, but it wasn’t the only source of protection.

“One potential mitigating factor from a financial stability perspective is that around 30 per cent of bank lending for small and medium enterprises (those with an annual turnover of less than $50 million) is secured by residential property, meaning that the recent increases in housing prices will likely help some businesses avoid insolvency,” the review says.

This benefit, at least, should not be understated.

 

Article Source: www.brisbanetimes.com.au

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Gold Coast

What residents get at the full-floor La Mer, Main Beach apartments

La Mer

The goal for developer Polites Property Group was to create a luxury tower than residents wouldn’t have a need to leave.

Residents of the new luxury Main Beach apartment development, La Mer, will have the ultimate Gold Coast lifestyle on their doorstep when the whole-floor apartments are finished in late 2023.

Across the road from the beach on Main Beach Parade, La Mer comprises just 29 apartments across its 34 levels. Only a handful of apartments remain, with high demand for a higher level of luxury continuing to sweep the Gold Coast.

It’s just a stroll to the bustling Tedder Avenue, one of the most well-known strips on the Gold Coast for high-end fashion shops, convenience stores, restaurants and cafes.

A little further along the path is the Southport Yacht Club, which hosts live music, and the Marina Mirage, one of the most popular fresh fish eateries in the area.

La Mer

La Mer 3580 Main Beach Parade, Main Beach QLD 4217 

But the goal for developer Polites Property Group was to create a luxury tower than residents wouldn’t have a need to leave.

Archidiom, the local Gold Coast architecture firm who handled the design, said the development takes the opportunity for the design of a contemporary, innovative subtropical building to provide a ‘relaxed beachfront’ living.

“The development will contribute positively to the character of the area by replacing the existing tired low rise building with a project displaying fresh, simple architectural lines to create modern urban living,” Archidiom says.

“The large liveable apartments which maximise natural light and cross ventilation through the provision of spacious living and balcony areas will be appealing to a large demographic of potential buyers.”

Just whole-floor apartments, starting from 307 sqm, La Mer is pitching itself as the ultimate downsizer development. “Transitioning from a house to an apartment has never been easier,” NPA Projects, who are marketing the development, suggest.

Cris Edwards, at Mannigan Interior Design, a boutique design house with offices in California and on the Gold Coast, handled the interiors of the luxury apartments.

Each apartment features at least three bedrooms, two ocean-view balconies and a luxury kitchen with a large walk-in pantry.

Each apartment also has the convenience of a dedicated storage cage and two parking spaces.

Communal recreational facilities also sprawl across an entire floor, a blend of physical wellbeing and entertainment facilities.

There’s a 13-metre pool, which is cleverly designed to be private, while also being open plan to take advantage of the consistent Gold Coast climate and the views to the beach.

There’s private sun lounges, a yoga lawn, and a number of dining areas with barbecue facilities.

The two-level penthouse in La Mer was snapped up by a Gold Coast local for just short of $6 million earlier in the year.

 

Article Source:www.urban.com.au

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Gold Coast

Why Aperture, Broadbeach apartments are attracting the local and interstate buyer: Five minutes with Little Projects Director Leighton Pyke

“We wanted to put a slightly different spin on what the Gold Coast usually offers – giving it an injection of an outside perspective,”.

The Melbourne-based Little Projects has sought to meet the ever-growing demand for high-end apartments at their latest Gold Coast apartment development, Aperture.

The Broadbeach tower will be home to just 29 apartments across its 35 levels when it is completed in mid-2023, with buyers already showing interest due to the 200 sqm plus of living space across each apartment.

Leighton Pyke, director at Little Projects, said that after the sell-out success of Signature around the corner, the team wanted to create something a little different.

“Signature was obviously higher density with 245 apartments, a project of that scale takes considerably longer to move,” Pyke said.

“We saw there was a good level of demand for that larger product and wanted to take something to the high-end owner-occupier market quickly to try and meet that demand.”

Aperture Broadbeach

Aperture Broadbeach 20 Mary Avenue, Broadbeach QLD 4218 

Pyke and the Little Projects team engaged the Melbourne-based architect, Elenberg Fraser, to create the 120 metre tower, having worked with them previously on the design phase of a development of around 1000 apartments in Fishermans Bend in Melbourne.

It’s only the second time the architecture firm has designed an apartment project on the Gold Coast. The only other is the mixed-use hotel and apartment development Mondrian at Burleigh Heads, currently in market.

“We wanted to put a slightly different spin on what the Gold Coast usually offers – giving it an injection of an outside perspective,” Pyke says.

“Their involvement certainly sets us apart, potentially bringing a few new ideas to the Gold Coast.”

Pyke says there’s already been a big wave of Sydney residents enquiring on Aperture.

With house prices rocketing in the Harbour capital, some downsizers and retirees are happy to take advantage of current market conditions and cash in on their longtime family homes and buy something smaller as a city base, freeing up money to secure a more expensive holiday home that they will spend a significant amount of time at.

Pyke however added that the same sentiment is felt with the local market, where there’s also windfall house sales.

House prices in Broadbeach – Burleigh experienced the highest annual growth in the Gold Coast in the 12 months to August 2021, with gains of over 38 per cent, according to data from the data-driven buyer’s agency, InvestorKit.

Apartments in the same area grew by 15.7 per cent over the same period.

“It’s speeding up that transition to downsize, which is why we are seeing huge levels of owner-occupiers wanting to buy something that might be toward that higher price point.”

Pyke says the team have a firm belief in the longevity of the Gold Coast apartment market, and are working towards securing more development sites heading in to 2022.

 

Article Source:www.urban.com.au

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