Checking out Kuluin, Sunshine Coast

[bbruham]

G'day all,

Found a four bedroom house at Kuluin, which is close to Maroochydore. Wanting $255,000. Brick veneer corner block, not too much grass to mow. It's nearly all gardens that only need a water every so often.
Four minute drive from Maroochydore town centre.
Checked some real estate offices on lettings. One R.E. rent roll
has two hundred and sixty listings.Only vacant premises are three houses and seven units. Rents are close to the $280 mark.
Plenty of light industries. Also larger employers,Goodman Fielder,
K-Mart etc.
Primary and high schools and pre schools.
Now waiting for a valuation to come through.
Anyone has any thoughts on this area.

Bruce G.

 

[NigelW]

don't know the area at all, so I'll just comment on the numbers.

280pw at a purchase price of $255K is only 5.7% gross yield.

I don't like those numbers for a regional, albeit coastal house. I would have thought 6.5% should be the absolute minimum...but again this may be pipe dreaming in that area.

Not suggesting you kill the deal, just make certain you're happy that the Capital growth will be around 10% pa.

Can you handle the cash flow impact if interest rates rise and you have to wait a long time for your growth?

Of course you may be able to buy it cheaper...

Or it may have some value add opportunity...

food for thought...

good luck with it.

N.

 

[Lotana]

Goodman Fielder is under a take over. Who knows what the new owner will decide to do?

Cheers,
Lotana

 

[brains]

The average price there has increased from $149k in 2001 to $220k in 2002, quite a jump in one year. Further research would suggest if its peaked or will keep going up. (My personal opinion is it will keep increasing albeit at a slower rate like all of the Sunshine Coast. Average rental return in 2002 was 6.25%.

http://www.aussiehomeloans.com.au/Content.asp?ContentID=120224

 

[Topnotch]

My office is only 100 m from Goodman Fielder, I have buil their sheds etc, they're not moving, it's a really handy location for them.

 

[XBenX]

nice insider info, thats what we like to hear

I have some friends who work at the USC who have a campus up there. They are also property investors and from the buys they have told me they have got the price seems a bit high

Eg they buy rules are not to pay over $200K for a house and it must rent for $250w

Their latest buy was brand new house $185K rent $250w paid in cash 6months in advance on a 2yr lease (but that was probably 3-6months ago

Hrmmm I havent said much ..... oh well hopefully my ramblings might provide some info

 

[bbruham]

G'day all,

Further imfo. I have obtained is the population of Maroochy Municipal Council is 279,000 persons.
Maroochydore's population is 17,800. I prefer to buy with the population of at least 22,000 people.
Awaiting the valuer to report back is afternoon.

Bruce G.

 

[gailh]

Hi,

I read that Maroochydore's population is expected to double over the next 5 years. Heaps of money being spend there. But, yes, huge growth already in the last year, so maybe not ideal. I own a property just outside of Maroochydore, and I am getting letters from real estate agents everyday asking me to list it. Apparently there's a shortage of stock. Maybe not the best time to buy.

Gail

 

[XBenX]

or maybe thats just the agents ad to get you to list......

cynical, but its hard not to be with RE agents

 

[brains]

i'll go along with that, but everyone knows how cynical i am.......

 

[bbruham]

G'day all,

The saga continues. The valuer's value was $240,000 to $250,000
with it renting for $275 to $280 a week without much trouble.
I made an offer of $225,000 maximum.
A big no, $245,000 was his acceptable price.

Topnotch and Gailh. thanks for your input as local knowledge is the only way to go. The valuer said that Kuluin's growth rate would slow and your best bet is to stay as close to the coast as possible.
If anyone wants to know a bit more, here it is.
Valuer John Rule of Heron Todd White
171 Brisbane st, Mooloolaba.

The property address 2 Renison Drive, Kuluin 4558
It's on the corner of Main street. Entry is in Renison Drive.
4 bedrooms, study, seperate toilet, brickveneer house, size, internal 148 square metres. Garage plus 42sq. metres.

Bruce G.