Port Macquarie

[CreativeThought]

Is Port Macquarie a good area to invest in a Family Tourist rental apartment?

It appears to have lots for the holiday maker to do so I assume it's quite easy to get tenants.
I am told that the units will rent for $150 per night.
I don't know much about future capital gains though in this area.

Am currently looking at a brand new 2 bed apartment for $400K?

Your comments are much appreciated.

Regards

Graeme

[voodoo]

Hi,
Port is a nice place and $150 a night would be achievable. Being a holiday unit you would pay about 30 - 50% of this return in maintenance, cleaners, managers etc.
For 400k you would be able to buy a median priced house in Port and it would return around $300 a week.
cheers

[cloclo]

Is Port Macquarie a good area to invest in a Family Tourist rental apartment?

It appears to have lots for the holiday maker to do so I assume it's quite easy to get tenants.
I am told that the units will rent for $150 per night.
I don't know much about future capital gains though in this area.

Am currently looking at a brand new 2 bed apartment for $400K?

Your comments are much appreciated.

Regards

Graeme

In my experience, the holiday market is volatile and is affected by lots of different factors such as weather, season, price of petrol etc. Do your research. For myself I would rather buy a two bed/ensuite apartment in alexandria or erskineville or many other inner-city suburbs of sydney for 400K and get a permanent tenant for $350 to $375 a week., and be asuured of the best possible capital growth.

On the other hand, a good location at Port could have good rental prospects, but remember when tourists go to a coastal resort, they want the best they can get for their money, specially in winter, when you would be competing with better located accomodation. One advantage to take into consideration is that you will be able to use the apartment between tenants, but how often really?

[skater]

My mother lives in Port Macquarie. One thing to be careful of is the fact that there seems to be a glut of tourist accommodation. Port Macquarie used to be a family destination & have many fun parks aimed at young children. This has changed in the past 10 years as most of those places have closed. According to my mother the local council wants to promote more towards young couples without children instead.

[DD1]

Ok so seasonal traffic heads to Port. Partly as it has traditionally been a family holiday spot and secondly as it is one of the most sought after retiement venues on the north coast. Settlement Point (the reclaimed swamp) has had some blocks sell for $900k, and thats just the dirt. All of main beach is dominated by holiday rentals. Many exonomic factors affect tenancy and it has been already stated that these units have high ongoing maintenance costs and body corp fees due to high turnover in peak season.

Buy a house as someone has suggested and you have NO ongoing major costs, permanent tenancy not seasonal/holiday, still get good depreciation even on older houses, and a better calibre of tenant(locals).

Your call but be cautious. By the way I have a timeshare week there every year. I visit my sister who lives there. Many holiday makers visit their relos and kill two birds with one stone and see nanna or grandad who have retired to Port. They dont pay $150/night, they hit Nanna for the floor for the kids and the spare room for mum and dad.

Target the area for the right reasons.
Good Luck

DD1