QLD Sunshine Coast (caloundra) or empower wealth

A little brief story about me
I'm 25

I work fly in fly out for what I hope is only 2 more years approx 180,000 gross

Expected income. Around 70,000 when I stop fly in fly out and partner 40,000

Partner of 4.5 years and looking to have kids in the next 2-5 years

I was planning on using empower wealth for my next purchase early next year And been a boarderless investor As they expect about 7% pa growth over the long term . And then buy what would become my ppor eventually with equity on the Sunshine Coast 3x1x1 or 4x2x2 whilst making the most of my high income for the next 2 years

I Purchased a 2x1x1 duplex on Sunshine Coast in caloundra 2015 which is my ppor With good lifestyle drivers. I Have now got the option to buy the other duplex which is identical to mine. And am now undecided where I should buy and need help

As I plan on having kids it's not our ideal ppor for the long term But would be happy to rent a family home if needs be as I don't want to sell properties.


Pros

Money magazine future top 10 growth hot spot in Australia . Even down to the street

Valued between 375-399k could possibly buy for 365 private sale

Use 50% for girlfriends first home owners grant and move into that unit to save some $$$ and rent current duplex for $370 per week with out property managers so would be good yield but as we all know high yields normally mean low growth. Maybe that's about to change

Possible small development Down the track If it's viable . And I believe it could be commercial area total land content of 400m2 with both duplexs and have lawyers and commercial office next door on the corner

Close to shops , pub, beaches restaurants , markets. Everything you could think of

Council has just announced there Doing up the town centre. And will be doing medium to high density apartments and hotels to get more tourists to the area

Could make good money and sell one or both to buy my ppor. In the longer term

Cons

Potentially can get better returns. In a capital city for next purchase where there's higher incomes as its in a area where the average person is 58

All eggs in one basket
Not diversifying

Potential oversupply as there building A whole new city called city of colour aura with expected 50,000 homes and 9 schools I believe it's the biggest residential development happening in Australia

There's been long patches of no significant growth .
the Average annual growth has been 2.45 %

Would have 2 properties on the coast and could end up hitting servicibility wall

There already isn't a great deal of high paying jobs / average jobs.
And with all these people
Going to be coming it worries me.

So after reading all this what would you do by the other Duplex Or use empower wealth.? Reason been I would use them is im very time poor with working a 4 weeks on 1
Week off roster. And after all the podcasts and Information they give I think there great.

Thanks in advance for your responses as this is a very tough decision for me since I'm emotionally attached ...

 

Hello

I am not expert to give advice but somehow after reading your post, I can easily figire oit that it does not sounds a good investment as cons weigh more than pros and you alreafy have an investment in that area.

Would suggest you to turn to other states.
Options are Melbourne
Brisbane
Adelaide
In the same order of preference.

Happy to discuss further in case you need more info.

Regards

 

How much do empower wealth cost?

 

From what I've read on the forum I believe it's around 13 thousand dollars

 

I like Caloundra and looked at buying in Golden Beach. I ultimately didn't as there were too many restrictions on development.

Aura will provide a nearly limitless supply of housing for the foreseeable future - but it has no easy access to the beach, thus its appeal and/or effect on beachside housing will be limited (imo).

I like the idea of the duplex over paying 13k. Do the numbers and base your decision on that, yield sounds like it will be important to you. Both sides of a duplex when you move out down the track would be sweet.

Not advice, I've barely considered your position.

 

I agree with Bran that the Aura development will not have an effect on your position so close to the beach and the CBD. Driving past there this week, I wonder why anyone would want to live so far away from civilization. It is a legitimate threat, but it is also a 20 year project, they wont be developing all those lots straight away. I would be more concerned about all the development so close to your property. What are the current vacancies like?

I would seriously consider the other duplex. If you own both sides, you can then reconfigure the interior to make one large home if you ever wanted to. You would have to consider holding costs and whether such a strategy is viable, but who knows where Caloundra will be economically in a few years' time. As above, maybe nobody will want to live in a home surrounded by apartments. Jump onto Council's website to determine the zoning, it may be worth a lot more if it is commercial land.

 

Yeah I have thought about the problem is. The garages are In the middle and basically two completely separate dwellings. But I'm sure something could be done with existing that could potentially be a ripper of a ppor. In 15 -20 years and worth $$$ if i was to develop it in to a large home. Or in the mean time is a good cash cow with potential for growth


Older homes in The area are starting to be knocked down and. Building 3-4. Townhouses on them.there is 2 developments happening like that With in 200m of me

With the big development happening in Maroochydore it will hopefully bring more jobs.

I shall jump on the website and have a read thanks for your thoughts everyone

 

I voted by the duplex.
No point in my books owning half of something. That way you're 100% in control if down the track developers come in and want to buy off you.
I'm in your neck of the woods and as mentioned above I don't see Aura as a major threat. In fact I see it as driving up your values as people want to be close to the water of "The Coast". Aura has no coast and is projected to take 25-30 years to complete. As a comparison 400sqm DUPLEX blocks in Aura are selling for around 300k. And yes you read that right, 400sqm to house 2 dwellings!
With Caloundra 4551 Vacancy Rate of just 1% equalled only by Maroochydore, the lowest in Qld, its really a no brainer buy the other half of the duplex to add rent to your already impressive Serviceability.

 

What's a boarderless investor?

 

Im thinking its someone willing to invest outside of there home state / city / town?

 

Yeah your right it's an empower wealth terminology. Basically. Tell them you just want capital growth or yield etc and this your budget etc and they will narrow down what they believe is the best suburb / property for you in any suburb through out Australia

 

So in other words a catch phrase to give some credibility to a scam. Why anyone would bother with these so called "wealth" spruikers is beyond me. Resi property investing is not rocket science.

 

Because they make it easy.

Easier for the newb investor all pumped up on property and wanting to hand over the reigns to "specialists".

And easy to take 13k from people such as mentioned above.

No offence intended @Jaye Kershler

 

I

I do agree with you it's not rocket science that they are buying. Basically as close to capital city you can with train line etc and all the lifestyle drivers in a area that you can afford that might be 5km from
The city or 50km depending on budget

I think the biggest bonus for me personally is I'm time poor. And I'm not reseaeching the whole of Australia. And they can usually buy before it hits realestate.com and usually buy under market value

 

I think they have there place and can provide a legitimate service..

Better this ^^^^^ than buy a lemon that doesnt grow or goes backwards.

 

Pretty much plus chuck in a value add strategy to create some equity so not depending on capital growth in the short to medium term.

 

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I can empathise completely with this.

But the duplex is an easy known to consider. Work out the numbers as a stand alone, consider the future potential, and decide on it, and it alone as an investment. If it doesn't stack up, easy decision. If it does, then why not?

 

By the sound of your income.
Partners FHOG and income
You should buy the duplex.
After another 2 years at your income you should have enough equity to redraw to fund part of new PPOR whilst the duplex's service themselves

(Did you say kids....... ? )
#run

 

This is all my opinion but I wouldn't recommend going ahead with the purchase of the duplex.

1. What if Caloundra doesn't do well and you're stuck with your only two properties both not growing. That will really limit your potential to grow a substantial property portfolio.

2. I don't believe it will work as a development. After the buying costs of the 2 units it will be about $800k for approx 400m2 block.I saw recently in the heart of Caloundra a vacant block of land sold to developers for $440k for a 620m2 block which they built 4 X 2 story townhouses on it.
Can't see a developer coming to you offering you $1mill which you would need to make it feasible.

3. The 50,000 new homes in Caloundra south would worry me. I understand Aura is a fair way out but families with kids would much prefer to be a little further out from the CBD and beaches but have a backyard and close to the new schools. Could you imagine families living in a small 2 bedroom unit? Or anyone with pets? It really limits the amount of buyers you may have competing against each other to push prices up.

4. As you are on a high income for the next couple of years it's a perfect opportunity to buy in a blue chip area in a Capital city. Your sercivability is not an issue.

5. After looking into recent sales in Caloundra I have noticed there are no comparables of your unit in the last 6 months which makes it extremely hard to get a higher valuation and then have the option to pull out equity in the future.
Obviously the other unit is the perfect comparable so if you buy it at a good price it won't give you a higher valuation on your original purchase.

6. FHOG shouldn't be a deciding factor in your decision.

This is just all my opinion but it seems to me as this is an easy option for you because you know the area well and may be scared to purchase interstate.

Good luck with your decision.

 

Hi Jaye.
The idea of having a large home on your 400m2 duplex block would be more as your residence in the future than for a short-term sale to a developer. If you are put off by the garages in the middle, that can probably be overcome by turning them into bedrooms or living spaces with a courtyard in the separate space between the two duplexes.

I am currently trying to justify buying a dilapidated asbestos fibro house on a 405m2 block in the Stafford area which would have city views if we build a 2 story house on it. It is not viable in today's climate as the land alone is worth so much but for someone who wants it as their PPOR? The owner will be selling it in the short-term but not just now.

In your duplex situation, it is true that a developer will not pay you big dollars at this time for it. Is there the possibility of doing a Cherie Barber to the existing property IF and only if it is a location that would be appealing to owner-occupiers. What is the outlook? Would the finished product be worth a cool $1m or is the land size just too small? Will you get water views if you extend upwards? What are rusted-out 1950s houses in the area worth? Can you envisage seeing it on Grand Designs one day?

The alternative, buying close to the cbd of a capital city is also a good idea. Can your partner do more research for you while you are interstate?