I had been thinking about buying an IP on the sunshine coast.....until I recently read a top 10 no-go places to invest - suggesting that the SC was the no.1 place NOT to invest due to poor infrastructure planning to accomodate population growth, rising crime, etc..........you're thoughts?
Sunshine Coast?
- Thread starter Bushranger
- Start date
I'm mixed as I'm there a fair bit in my travels. I think its a big paint brush to paint a whole coastal area.
Noting as well I'm more of a Caloundra area type... and biased to some degree.
one hand you have Terry Mcann (I think - never read the report but heard a lot about it). Think also if you own a unit up there if its not well priced you have a LOT of competition. You can very easily do 20 units in a weekend in open inspections (I've done it myself)
Other hand you have australia zoo tossing up becoming a disneyland or sorts, big developments happening everywhere around Wurtulla, waterparks going in, doubling of road access in from the highway.
With property I have a 'zit theory' - if theres property in the middle of 2 good areas, eventually the two good areas will spread out and start to squeeze the middle, and eventually it will pop.
Dont mind the mess and feel free to ridicule me. Off to the mirror!
Noting as well I'm more of a Caloundra area type... and biased to some degree.
one hand you have Terry Mcann (I think - never read the report but heard a lot about it). Think also if you own a unit up there if its not well priced you have a LOT of competition. You can very easily do 20 units in a weekend in open inspections (I've done it myself)
Other hand you have australia zoo tossing up becoming a disneyland or sorts, big developments happening everywhere around Wurtulla, waterparks going in, doubling of road access in from the highway.
With property I have a 'zit theory' - if theres property in the middle of 2 good areas, eventually the two good areas will spread out and start to squeeze the middle, and eventually it will pop.
Dont mind the mess and feel free to ridicule me. Off to the mirror!
Hi there
we have 2 properties at the Sunshine Coast - one at Maroochydore and one at Buderim - the vacancy rate is fairly tight so you do get tenants pretty quickly and the yields are pretty good.
Yes there is a bit of a catch up with infrastructure - but the place is still a lovely area - and a lot of people do sea change to the area.
Anything on the beach side of the Highway has received good capital gains.
There are plans to improve the railway in the area as well as the roads - so the area will be a satellite for people travelling into Brisbane or the bigger centres in Caloundra etc for work
thanks
we have 2 properties at the Sunshine Coast - one at Maroochydore and one at Buderim - the vacancy rate is fairly tight so you do get tenants pretty quickly and the yields are pretty good.
Yes there is a bit of a catch up with infrastructure - but the place is still a lovely area - and a lot of people do sea change to the area.
Anything on the beach side of the Highway has received good capital gains.
There are plans to improve the railway in the area as well as the roads - so the area will be a satellite for people travelling into Brisbane or the bigger centres in Caloundra etc for work
thanks
Bee, many of those 4 bed 4 bath are squarely aimed at uni students, usually good rental but you may have vacancies over 12-14 week summer uni holidays. Just check that the layout is suitable for other renters rather than just uni students. I have seen some plans with 4 rather large ensuite bedrooms with a very tiny "common" area with minimal kitchen and living facilities.
We have an IP on the sunshine Coast, about 75m to the surf, last tenant changeover was 15th March this year, time between tenants was 2 hours. Most agents are screaming for more rentals.
Most of the comments about the Sunshine Coast also apply to most of SE Qld - the boom in migration and jobs means that the govt and councils are simply unable to keep up with the growth.
Marg
We have an IP on the sunshine Coast, about 75m to the surf, last tenant changeover was 15th March this year, time between tenants was 2 hours. Most agents are screaming for more rentals.
Most of the comments about the Sunshine Coast also apply to most of SE Qld - the boom in migration and jobs means that the govt and councils are simply unable to keep up with the growth.
Marg
Not concerned at all about getting on the "worst" list. Less investors means rising even faster rents!!.
Seriously though, went to an OFI last week and overheard five different parties say they are relocating from interstate. People are still coming here. I am a recent interstate relocator. I have had 1 family member relocate here after their first visit and unfortunately, (
) I know more family members will follow!!!IMHO the PROs far outway the CONs.
By the way I think we came in at no 13 on the list.
I listened to Terry Ryder being interviewed and trying to back up his reasons for not recommending the SC and one of the reasons was our wild weather, referring to Christmas??. Did Mackay make the list due to flooding? Another reason was that our beaches are eroded!! Hmm, hasn't stopped anything and during winter it will be fixed anyway. Mother Nature doing what it does best. By the way, apparently he resides in Maleny (SC hinterland), so maybe he has his own reasons for scaring people away. He also mentioned that the (now amalgamated) Caloundra Council was corrupt and in developers pockets as they approved the Maleny Woolworths, even though the majority did not want it. (He particulary had quite a bit to say on this issue). Another reason was an increase in violence (I don't think this is just a SC thing though).
None of his reasons would keep me, as an investor, out of the market. Then again, there are quite a few areas up here that are much better than others.
My 2c
Sunshine
Lots of these units hitting the market at the moment and there is always one or two for sale. The most expensive I have seen advertised is at $230K about a year ago. I think some are now around the $170K. Don't think you would see much CG, and I believe management fees are quite high. They were discussed in a previous thread in more detail.
IMHO these aren't scarce, and nor is the share accom market.
Sunshine
John Edwards from Residex was recently quized on prospects for sunny coast. I thought the reply was interesting it was along the lines of the area not having the greatest infrastructure however the high tourism numbers ensure a large volume of people "window shop" resi property in the area.
Narangba
Further to Ryder slaying the SC..... He also noted Narangba as another "no-go area".... I was a bit dissapointed onn this 1 coz I bought an IP there last year as well as having another at Morayfield!
I did not catch the reasoning behind this one but to me, it seems lots of new roads/estates r going in and good shops/schools etc together with the train line and redcliffe only 10 mins away so I thought it was a good investment? But anyway am no expert...... Anyone catch the reasons or offer comments on the North Brisbane areas towards Caboolture (approx 30 mins from SC?Noosa).
Thanks guys,
Ritchie77
Further to Ryder slaying the SC..... He also noted Narangba as another "no-go area".... I was a bit dissapointed onn this 1 coz I bought an IP there last year as well as having another at Morayfield!
I did not catch the reasoning behind this one but to me, it seems lots of new roads/estates r going in and good shops/schools etc together with the train line and redcliffe only 10 mins away so I thought it was a good investment? But anyway am no expert......
Anyone catch the reasons or offer comments on the North Brisbane areas towards Caboolture (approx 30 mins from SC?Noosa).Thanks guys,
Ritchie77
The infrastructure is improving though, with a new hospital planned for the Kawana town centre and a rail line through to Maroochydore. Roads have definitely improved but of course, there is more to be done. I have bought 2 properties located near the site of the new hospital.
http://www.somersoft.com/forums/showpost.php?p=354629&postcount=5
We bought our first IP in Mooloolah valley (which is on the hinterland side of the highway) 5 years ago for $150k. We now get $275 rent for it (2BR) which is very good return! Not sure how the prices compare now but we never have trouble getting tenants and rental yields are obviously pretty good.
I think the sunshine coast is a pretty safe place to buy while yes the infrastructure is lacking, there is also plenty of room for growth and a constant stream of sea changers and renters.
Like Raddles said anything on the coastal side of the highway is pretty safe growth wise but the prices are also a lot higher. Our IP has worked so well for us that i am abit biased though and not sure about the current market. Good luck!!
I think the sunshine coast is a pretty safe place to buy while yes the infrastructure is lacking, there is also plenty of room for growth and a constant stream of sea changers and renters.
Like Raddles said anything on the coastal side of the highway is pretty safe growth wise but the prices are also a lot higher. Our IP has worked so well for us that i am abit biased though and not sure about the current market. Good luck!!
