QLD Investment property in Sunshine Coast

I chose this one:
https://www.realestate.com.au/property-townhouse-qld-maroochydore-132422982

Briefly, one of 38 townhouses under construction now in the middle of the Sunshine Coast. A 2 level 2bed/2bath/1garage and area about 140m2. Expected to be completed in Feb next year (10 months to wait). Rent for this one I estimate $450-500.

Pros:

• Location! Close to the airport (9min), CBD+ giant shopping centre+ and beach 5 min away. Major hospitals 15-20 min away. Schools, coffee shops, etc are all within 15 minutes.
• Brand new - tax benefits and builder warranty (hopefully!)
• Major infrastructure developments: biggest health hub ($5b+ invested), new CBD ($4b), Bruce Highway upgrade ($1b), new runway in the airport ($347m), etc. All listed here: https://www.centralresidences.com.au/your-invesment
• Population growth from domestic migration.
• Block of land is surrounded by existing houses, parks, etc. I mean, limited supply of land so close to everything

Cons:

• Unknown project company / builder - ACA Property Group. From what I know - it is their 5th project. Example: https://www.realestate.com.au/sold/property-townhouse-qld-maroochydore-128521626
• Risks of delay. Timeline is already quite long - 10 months for my stage.
• Risks of the company disappear and not to provide warranty. We all heard those stories when some building defects are revealed and builders went 'bankrupt' to avoid responsibility.
• Overall financial climate - rates can go up, interest only loans may be harder to get.

All opinions are welcome!

 

Cons:

It backs onto the motorway.
Units are generally not very popular on the Sunshine Coast unless right next to (within 2-3 mins walk) of the beach.
There are over 100 apartments and townhouses for sale in this suburb. This is in a RED HOT market, highlighting that this type of property isn’t really in demand.


What demographic would you be targeting as a tenant?

 

This is not exactly a unit. It is a townhouse. Basically, a relatively cheap one. May have a courtyard, possibly pet-friendly.

In the nearby Mountain Creek similar complex of 36 townhouses had only 4 claimed as investments. Thus, owner occupied properties seem to dominate.

My other IP - similar townhouse - rented out after 1st inspection $20 higher than I expected! So, I am not concerned of rental demand at this stage.

As far as I know there is no particular demographic I can target. I mean, all sorts of. Ageing couples, maybe with 1 kid, small family, etc.

 

If you’re keen and confident then go for it. But seeing as you asked for opinions I gave mine The SC overall is going crazy - but Maroochydore isn't a very sought after area compared to most other parts of the SC. Mountain creek is a different (and more in demand) suburb.

 

Depends on your investment goals mate. Usually off-the-plan/new builds you are giving the first 5 years off growth to the developer. They underperform in the short-medium term making it hard to build a portfolio.

 

So why is Mountain Creek more desirable? A bit quieter and outside the tourist strip perhaps?

 

Maroochydore is more a business area. There is a nice touristy part (Cotton Tree) but it’s on the other side, not near this unit. I drive through there a lot and there are some very undesirable parts (lots of druggies, very run down places). Mountain Creek is more a family-friendly suburb.

 

Statistics shows a much higher demand for Mountain Creek rather than for Maroochydore.

Maroochydore: https://www.realestate.com.au/neighbourhoods/maroochydore-4558-qld?cid=srp

Mountain Creek: https://www.realestate.com.au/neighbourhoods/mountain-creek-4557-qld

But Maroochydore seem to be a little bit more expensive. The massive shopping centre - Sunshine Plaza in there, and the new CBD is coming as well https://www.maroochydore-city.com.au , and it is 10 minute away from the airport.