Has anyone ever heard of Encounter Bay, SA? You can buy a two storey house with balcony and panoramic ocean views of the bay for as little as $350-$400k. 20 year annual growth rate is about 9.7% based on an average property. Prices haven't really moved since 2010 and people are noticing a lot of baby boomer activity in the area with the first of the baby boomers now reaching 70 years of age. Any thoughts?
Encounter Bay is a coastal suburb nearer the larger town of Victor Harbor. Victor Harbor has Woolworths/Coles shopping complexes, a main street with tourist orientated shops/eateries, 2 private schools and public primary/secondary school. It used to be known as God's waiting room as retirees went down there primarily for the cheaper real estate and cooler summer climate. Now more families seem to be embracing the lifestyle down there and the population demographics are changing. Encounter Bay has no shopping facilities, and apart from the more senior home owners, is predominantly full of holiday rentals. I owned a property there, and found it took a while to get tenants. No bus services to Victor Harbor precludes most families from renting there especially as there are always properties available in Victor. Maintenance charges are also higher down there as there is a limited pool of tradesmen. I would not look there for an investment property, nor Goolwa further along the coast where houses are taking up to 2 years to sell, but Victor Harbor has some good areas.
I think you'll find rent demand to be an issue there. If you're keen on it, I'd do lots of homework on exactly which properties rent well and why.
