QLD Investing Sunshine Coast

Hello,

I would like to buy an investment property on Sunshine Coast (Buderim, Mountain Creek, Mooloolaba, etc).
I have been looking for a few months now and I missed quite a few properties.
The market is absolutely booming. Properties are snapped up on the first inspection with multiple offers.

The prices are at least 20-30% higher than even a few months ago.
I'm wondering whether it's a good idea to invest. Are the prices moving up and staying much higher?
Is it sustainable?

 

Welcome aboard

Yep - it's a strong market at the moment!

It's such a tough question to answer. I don't think anyone knows with any certainty how long this period of growth will go for.

It will be interesting to see how the market performs next year if/when life returns back to relative normality in regards to covid. Apparently a lot of properties are being purchased by interstate buyers - a lot of whom are from Vic. Whether that's created a short-term increase in prices.....I don't know.

Cheers

Jamie

 

Thank you for your opinion. My partner is convinced it will keep going up and we will be completely priced out by next year. For me, it doesn't make sense, but I have been wrong many times before.

 

Welcome to this amazing forum!


My projection is we are going to see very strong growth here on the Sunshine Coast over the next 3-5 years due to the following factors.

1. Interstate Migration – With tens of thousands of people predicted to move to SEQ from the Southern States this will only create more competition for properties on sale
2. Record Low Interest Rates – With the interest rates as low as they are it has never been easier to get into the property market. Low interest rates means more people can afford to buy property = more competition again.
3. Working From home – Since the global pandemic that is COVID-19. More and more people have had to work from home and business’s now realise this is a way of the future. If you can work from home 3 days a week and only have to commute down the highway twice a week why wouldn’t you live in a more desirable location like the Sunshine Coast
4. Developments - The Sunshine Coast is seeing unprecedented developments with the airport going international, the health precinct in Birtyina and the Maroochydore City centre. This will provide construction jobs to begin with but then on going job opportunities for multiple sectors.

 

Thank you. Where would you buy a house? I'm thinking about a house in Mountain Creek. It is a 4-bed house in medium condition on a large block with a smaller frontage. I would buy it 54% higher than it was sold in 2015.

 

My pick on the entire coast would be Buderim ( full disclosure I have just bought a house there) . You can’t beat the leafy streets and ocean views. I know a lot of Melbournians love Buderim as it reminds them of the inner east suburbs down there.

Personally I am not a fan of mountain creek as it is very suburbia.

Other suburbs like Mudjimba, Yaroomba are also worth looking at.

 

There are a few recent threads on the SC market.

 

Certainly a buzz about the place which is good!

 

Buderim is nice, along with the other suburbs you mentioned. Peregian Beach is quite nice as well (perhaps my favourite spot?!), and Marcoola, Coolum and Mt Coolum. Sunshine, etc are nice too but sooo expensive.

I’m not as familiar with the southern suburbs but Mt Creek is pretty suburban and boring, although it’s in a convenient location.

 

COVID-19 looks under control ATM, and government has realised CBD business down when people work at home, next year if vaccine works, a lot of people might have to go back to office.
Brisbane, GC, SC price is lower than Syd and Mel, even lower than Central Coast, Wollongong, Geelong which is around 100km property from Syd and Mel, mainly because work opportunities, which might won't be changed in the next few years. And the supply in SC looks a lot.
From property clock, looks it's almost reach the peak.
No mention Australia economic down and a lot of investor can't pay mortgage now, it might get worse next year?

 

Get in while you can my friend!

 

We are first home buyers in Sydney and looking to purchase our first IP (to rentvest) in the Sunshine coast.

Would love some pearls of wisdom about investing in the region (and owning your first IP in general).

From what I'm reading so far the market is quite hot, any expectations for it to cool down in the near future?

 

I purchased a property in Buderium this time last year and even then the market was booming.
We purchased that property for $617k and it's renting easily for $690 per week.
The thing with all those suburbs is that there is a massive shortage of rentals. People are willing to pay 3 months in advance to secure a rental. I think if you by the right property you will achieve a good rental yield. To top it off you will also have people who are moving from Brisbane, Melbourne and Sydney. I am currently looking for a holiday home in Noosville for a client and it's even tough up there. I can't see this slowing down unfortunately. With interest rates so long and government spending so high is a milkshake of growth.

 

What sort of infrastructure projects are happening on the Sunshine Coast? Traditionally everyone wants to live up there but there isn't enough work- though I guess decentralization and working from home is helping to mitigate that barrier to entry?

 

The Maroochydore airport has just had a major extension and is turning international. The Maroochydore CBD has begun and buildings are starting to go up. The health precinct in Birtinya is world class. Just to name a few. See links below.

CBD - Maroochydore CBD project secures a $2.5 billion development commitment

Airport - Sunshine Coast Airport Expansion Project

Health Precinct - Sunshine Coast Health Precinct

 

Hi Nathan,
My husband and I are researching our second IP and Buderim is a location that really interests us. I have family in Caloundra but I’m not familiar with Buderim (other than the hospital)
Do you have any advice on particular areas to avoid/focus on? I’ve read some areas have poor phone coverage and natural light due to the mountains...? Any advice would be most welcome!
Cheers

 

I think a lot of it is to do with more WFH roles. I’ve been up here a few years and WFH. A lot of people who were planning on ending up here eventually have also decided to bring those plans forward. As for local employment, there is not a lot aside from that required to sustain the city itself and tourism. Lots of people up here too that don’t need to work (and have lots of $$).

 

Any idea that which suburbs influenced by airplane noise?

 

Sunshine Coast is definitely an area I'm interested in looking at. What budget is ideal for this area?