What's happening in Noosa?

[mitchmakhan]

Here's my two cents worth!!

Having recently moved to Noosa and Coolum in particular from Brisbane only 4 months ago I have been out and about searching many properties acroos the whole area...from Cooroy to Buderim and in between.

The market up here I think is approaching mania proportions....which is excellant if you already own in the market...not so good if you wish to buy and know a little of what you are doing.

I looked at a property today at Peregian Beach list price 280k 3 bed timber hightset- no town water listed less than a week ago and already has a contract on it....this property was formally a kit home placed on block and is incredibly small ( ie bedrooms etc )

Other examples are fibro house at Coolum bought in 2 days for 315K on 700 sqm. (nothing to look at and needs work)

Some properties have more than one back up contract on them when they go under contract...and yes most of them are going to down south investors.

No doubt there are properties available for a great price and still have growth in them....but if you believe you make money when you buy...then I believe it will need to change climates to a buyers market...

Land itself also is in high demand with blocks selling for more then 3 times the UCV value...

Oh well if you think it can go further then go for it....I would like to see this market when interest rates start to climb..very interesting what will happen then..ok it may take a few years...but it will happen eventually...

Cheers Mitch

 

[Jimmyjamjars]

Acey,
In answer to your question, what's attracting people to Caloundra is that it's the southern end of the sunshine coast, therefore only 1 hours drive to Brisbane. This means business people can get to work in Brisvegas but have the coastal lifestyle at a reasonable price.
JIM

 

[ocean view]

Sunshine Coast

Damo & Friends

Damo I would not bother selling if your happy with 15% CG for the next 5 years.

You no doubt can get better from the ripple effect of Noosa, examples Bribie, Caloundra ect. But if your up to signing forms & applying for finance every 4 mths its worth it!

It WAS easy getting 50% CG p/A in that area for the past 3 years + the next 5. But it is commonsense which will determine your sucsess not rent returns, or Holidays , Plane strikes, ect. That Market is driven by Hundreds of reasons, But 1 stands above all. Lifestyle!!! I represent over 10,000.00 clients in Sydney.
Which 50 a month come to me for help in regards to selling their home in SYDNEY & moving up there to Live. Most are aged 45-58 (50% But this year I have had alot DINKS & Young parents with 3 -4 young kids moving. They simply want a better life.

They get $700k to $2mil when they sell (sydney) & spend half that up there & bank the rest. No super problems.

If you are looking for work one may not need to go to Centrelink! No need,, Bricklayers are getting $1.30 a brick. That is 30cents more than the olympics charged in sydney. White goods are on Back order & for a boat licence you need to wait 4 weeks for it to be processed!!
The area has been & will be the best area on average to buy a property Country wide.
Past 5 & the next 5 years. I would challenge anyone to give me better returns (other than commercial) then the Sunshine coast. i WILL MOVE THERE along with the rest of my family & half the street in the next 10 years. Just got to buy now so we can

Damo keep the 2 u have & look a bit south for your next if, If you brought 3 yrs ago Congrats,, & that should rev you up to do it again!!! Loan interest is only 6-7% CG is 35-50%.

Ocean VIEW

 

[damianr]

Originally posted by mitchmakhan

Having recently moved to Noosa and Coolum in particular from Brisbane only 4 months ago I have been out and about searching many properties acroos the whole area...from Cooroy to Buderim and in between.

The market up here I think is approaching mania proportions....which is excellant if you already own in the market...not so good if you wish to buy and know a little of what you are doing.

Cheers Mitch [/B]

re - Coolum

My best mate was looking at a brand new house in Coolum a year and half ago, 4 beds, 2 baths, double garage priced at $220k. Didn't buy it as he was convinced that the market was going to crash. I tried to convince him that Coolum was about to explode but he didn't listen to me. Needless to say he regrets his decision as he probably would of made at least $100k for doing nothing. He ended up buying nothing at all...........

While I'm on stories about my mates. My other mate has had $150k cash sitting in his bank account for the last 3/4 years and hasn't done anything with it. He has consistent looked at property but has never found anything he liked! He doesn't really like talking about property much anymore as I think he now realises the mistake he has made.....

Damo

 

[damianr]

Re: Sunshine Coast

Originally posted by ocean view
Damo & Friends

Damo I would not bother selling if your happy with 15% CG for the next 5 years.

Lifestyle!!! I represent over 10,000.00 clients in Sydney.
Which 50 a month come to me for help in regards to selling their home in SYDNEY & moving up there to Live. Most are aged 45-58 (50% But this year I have had alot DINKS & Young parents with 3 -4 young kids moving. They simply want a better life.

If you are looking for work one may not need to go to Centrelink! No need,, Bricklayers are getting $1.30 a brick. That is 30cents more than the olympics charged in sydney. White goods are on Back order & for a boat licence you need to wait 4 weeks for it to be processed!!

Past 5 & the next 5 years. I would challenge anyone to give me better returns (other than commercial) then the Sunshine coast.

Ocean VIEW

Hi Ocean View,

Thanks for your comments especially as yours are a reflection of someone within the industry.

You can be rest assurred that I have no intention of selling any of Noosa properties. The decision to purchase in Noosa was made with future lifestyle and capital gain in mind. I like many Sydneysiders you mentioned are after future lifestyle for my family. But the population cap and the lack of available land in key areas of Noosa is what attracted me from an CG investment perspective.

I was interested by your comments on the employment situation. Was your positive reflection based on client experiences?

Also when you say "returns" you mean CG returns right?

Regards

Damo

 

[miket]

Sunshine Coast & CG's

That's it guys, the area is a magnet for the southerners who want lifestyle. The buck seems to stop at the Noosa end of the Sunshine Coast and a few dribbles up towards Harvey Bay.

Noosa area for example with it's appeal will continue to hold strong in the property market. Other spots too have that magic lifestyle feel but when attempting to invest in these spots, a simple 5 day holiday at Easter of Xmas and a browse of the RE window won't necassarily ensure a winner.

Take some advice from those who are investing and living in the midst of the areas you think are 'it' . They usually have the feel of where and what's happening with the market and most importantly the pockets of potential CG IP's.

Gains of, believe it or not, 100% have been known to be made right there at Sunrise Beach in a matter of 18mths, other gains of 20-40% in 12 mths. A fact too is that local business people (ex Southern States) are now finding business is good so get out of the renter and buy a nice big place for 1mil +. So there's the other market, locals buying up from locals.

Hope to see you guys at the barbie for an ale.

Mike

 

[damianr]

Remax Noosa Property Report

NOOSA MARKET REPORT - SECOND QUARTER, 2003

What a fascinating time for property! It seems that the topic of discussion everywhere is "What is going to happen next in the market?" There are almost as many opinions as there are experts, and each one seems to be different! We have carefully considered the available information and applied it to our situation in Noosa. Our report is as follows:

A seminar held at the Sunshine Coast University in late June featured Dr. Frank Gelber - Chief Economist for BIS Shrapnel. Specifically he explored the subject of Sunshine Coast Property Trends. In a nutshell, Dr. Gelber forecast positive economic conditions for Australia and continued growth for property on the Sunshine Coast and SE Queensland in general over the next 3 years. This should occur regardless of any softening in the Southern State property markets. His reasoning was that Queensland is still undersupplied by about 16,800 dwellings and that we will continue to experience a high level of interstate and international migration and investment.

On a micro-economic level, we feel that there are also other compelling reasons why Noosa’s market will continue to perform strongly over the next three years. Noosa remains a destination of choice for many baby boomers setting up their retirement. They are already investing heavily in Noosa Property and will continue to do so. This Sea Change phenomenon is set to accelerate as the main body of baby boomers approach retirement age. It is also true that Noosa’s population cap is driving prices up. Supply of property in central Noosa is now almost static with just a trickle of sub-dividable land able to be developed over the coming years. This lack of residential supply is affecting the available number of properties for sale and hence the prices being paid for those on the market.

The lack of residential stock and perceived value for money is also leading to some investment or holiday units now being purchased purely for residential use. This has long been mooted as some complexes have struggled to generate acceptable returns for investors. This trend is also likely to accelerate, particularly in unit complexes that are adjacent to water but are struggling to show good investment figures.

Although the second quarter is traditionally the quietest of the year, the last three months has seen some excellent sales with several price records being broken through all segments. Activity has been above expectation as well, with several agencies (RE/MAX included) achieving record prices and numbers of sales in May. Our expectation for the next few months is for continued tight supply and increasing prices in the low to middle residential market with the top end slowing a little.

Notable Noosa sales over the last quarter have included two off-plan units in ‘De-Chirco’ on Gympie Tce for $1.6m each, with ‘Brinbara’ - a one acre beach front property at Sunshine Beach reputed to have sold for over $6m. MakePeace Island in Noosa River sold to Richard Branson for $3m, two homes in Noosa Springs have sold for over $2m and a couple of homes in Noosa Sound have changed hands for over $3m.

In summary, we note that during uncertain times property has traditionally been attractive and the current circumstances underline this. The sharemarket will need to generate very high returns indeed to entice the majority away from property and this appears to be a number of years away, given the current international business climate. Continuing low interest rates will also reinforce the current preference for property.

Updated July 2003

See the link below for the complete report on all Noosa suburbs.

http://www.remaxnoosa.com.au/market-reports.html

 

[Aceyducey]

So what is Remax's bias?

Aah - they want to sell you a property in Noosa....

Even if things were very depressed in Noosa, would you expect any downside from their reports?

Cheers,

Aceyducey

 

[miket]

property reports

Many agents do put out e-newsletters and report on the current market and they do quote the right sales data. I know of several instances where one or two properties were sold far above expected listed price. I recognise these in the newsletter.

Sure they are biased and want sales in their area of coverage but all that aside I find these e-newsletters a valuable source of reference. I also religiously scour the local papers' real estate listings weekly to see just what is going on in the market at the time. All these bits of info that one selects from various sources combined gives great knowledge of the market.

Consider this another tool to your 'smart property investment toolbox'

 

[Aceyducey]

Miket,

Agree with you entirely.

However I wanted to post a warning for anyone new to investing who may not realise that the comments from Remax do contain a bias & take it entirely at face value.

I listen to real estate agents daily, but I weight their input according to what they expect to gain from the relationship when making my decisions.

Cheers,

Aceyducey

 

[ocean view]

Hats in the ring

The land we live in will always have these agents trying to beef up the sales. But it is our job to pick out the homes & suburbs that are doing exactly what they claim.

The agents out there can be right sometimes,, Not much I know , but up at the sunshine coast (Not just Noosa) they have been.

Further more I beleive that the agents did not see this growth comming at all! Not at these rates.

I have an agent I deal with soley, Purchased 12 properties from him in the last 12 months. The lowest CG of these had 75% increase in that time.
When the 3rd settled He asked me 'Why are you buying so many here?" & after 6 mths "I guess I should of purchased one of the homes I SHOWED YOU"
Just goes to show the locals sometimes under value their own areas. Thats my opinion..

Acey Ducey .. That scenario you had about the duplex.. There are many of these up north.. But you don't need to wait 5-6 years. 12-18 mths easily will get one double the CG. One just needs to look. I found another last night.
Ocean View

"Never judge a book buy it's cover"

 

[Les]

G'day all,

It was noted that a separate discussion had tended to sidetrack this thread about Noosa.

It has now been separated out and has a title of Cashflow Solution - here:-
http://www.somersoft.com/forums/showthread.php?s=&threadid=10269

Regards,

 

[miket]

Noosa agents e-newsletters

Most recent e-newsletters from local Noosa RE Agents suggests a sudden trend towards flogging units. Hmm, what, are they having trouble getting house listings?

Is this a trend or fad? Really, are these units at around the 450K+ range a good investment?

Ah but the local Tewantin, Cooroy and Pomona housing market is a booma.

I have some thoughts but would like to hear what you guys read into this 'trend' first?

ta,
Mike

 

[phm]

Hi there.

An article I read yesterday about the Noosa Mayor said that Noosa has introduced a population cap of 56000.

Food for thought.

 

[damianr]

Just reread this thread and really enjoyed it. It was the first thread I started on this forum. Acey, Ocean view, MikeT's and other comments were excellent.

It is amazing how far Noosa has moved since then. Scarcity of supply is the main contributer. My next door neighbours in Sunshine Beach have put their house on the market at more than twice what I paid for mine 18 months ago. Be very interesting to see if it sells. I have my doubts........but it would be nice!

Anyway I was wondering if anyone has heard whether the new shopping centre in Noosaville (Noosa Woods) has been approved yet?

Regards

Damo

 

[asdf]

Hi guys, Just pulling something up from the past. Noticed that most posters are no longer active in the forum. You guys still out there? Care to provide an opinion on the state of play up there in the Sunshine Coast? Thanks

 

[mitchmakhan]

reply to adsf

Hey people, well I can comment on the Coolum Market,

The market has definately cooled down, there is quite alot land in what i consider to be in oversupply, with more still yet to be released, there are even more land releases on the way, houses are not selling like they used to, which is good because it's getting a more realistic feel.

But having said that the fundamentals are still good, with the sun, sand and surf, but thankfully we wont see the mania again for a while.

Here's my two cents worth!!

"The market up here I think is approaching mania proportions....which is excellant if you already own in the market...not so good if you wish to buy and know a little of what you are doing.
....................
'Land itself also is in high demand with blocks selling for more then 3 times the UCV value..."

 

[asdf]

Thanks Mitch, looks like you guys have caught the Syd flu up there too. Won't be jumping into anything in a hurry. Looking at a retirement trade and am a long way away yet so won't be jumping into anything in a hurry. I take it the new land releases are west and north of town? (ie. away from beach) Hows the building industry though? Although its supposed to be a building slowdown here in Syd, I hear its still difficult to get contractors. I would imagine it be the same up there too.

 

[Jocker10]

Hi asdf,

Noosa is still slowly powering along nicely. ( Thanks for asking. And yes, we are still here reading the forum, though not very active )

As a local I can not see the value. I think Noosa is over rated. But properties do sell. And it looks like the more expensive the property , the quicker it sells.

The buyers obviously could see things, I could not see.

Having said that, if I have the money and don't need cash inflow, I would buy here. The history of capital gain here still amazes me.

Maybe because there is not much available land.

Jocker 10

 

[redwing]

*Bump*

Decided to do a search on Noosa and found this interesting thread from a few years ago.