And now, back to the future....
G'day people,
Here we are, now in 2007. Values have grown very nicely, and our second block is currently freehold (we moved the mortgage for both blocks onto the single block with house).
Our plan is to build on the second block - initially, it was to be a PPOR, built to our tastes, where wife and I could spend our twilight years living in a home that was purpose built to suit us.
Only in the last month, wife has decided we should live in the original house (as shown earlier) as she likes that block better. "That's fine", I say, "but there is NO WAY you are going to take to the planked pine with a paint-brush!!" (Which has been the only bone of contention re this purchase). She hates all the wood - while I love it..... (Guess who wins?)
Anyway, prior to purchasing in 2003, we had determined that this whole area has a
THRIVING B'n'B requirement - and that the vacancy rate ACROSS THE BOARD was 14% - or, your B'n'B property was likely to have 86% occupancy rate throughout the year - and at the LOWEST rate of $100
a night, that sounds like serious cash to me. Put it this way, that house shows returns of ~$300 a week as a rental. As a B'n'B, though, at a minimum of $100 a night (and 86% occupancy year round) that sounds like $600 per week to me (less a few extra costs - make it $500 a week).
But, considering this place, $100 a night is a "gimme" - it is probably worth more like $150 a night - especially if rented to families. The minimum $100 a night is for a 1bd, garage-sized, roof-over-your-head. But, in a pinch, $100 a night isn't too shabby when compared to straight renting.
So the possibilities are quite nice. Plans are changing almost daily, but (for the moment), it seems we WILL occupy this place, and B'n'B the BRAND NEW 3/4Bd house that we build on that other block. It'll provide a nice addition to a semi-retirement income that I have set up.
The thing I REALLY like is that the long-term growth of this area seems to be around 18 - 20% (because of scarcity). Only two years back, this area was the second-fastest growth area on the Gold Coast (59%) - and last year (to Dec 06) it was 18% (28% for the bottom quartile). I can live with that - plus we NEVER run out of water
and, if Al Gore is proved to be correct after all
this will be waterfront property by 2035,
Regards,