QLD Sunshine Coast Investment Property

Have been looking at investing in a new build home on the Sunshine Coast and have been looking Closely at the Aura Development down in Caloundra West.Consist of small Houses 150m2 on 250m2 blocks for approx $400000 which is my budget.
Rent appraisal is around the $400 to $420 .
Anybody know similar places in Sunshine Coast I should be looking closely at as well?
What’s the feedback on the prospect of increase in property values for the Aura Township?

 

Hi @seadogg14

What is your goal with property investing?

What is the supply like in the area?

I'd buy an established property with a larger block of land than postage sized blocks of land.

What is attracting you to the Sunshine Coast?

Have you considered Brisbane at the same price point?

 

Migrated to Australia 4 years ago at the ripe old age of 40.Build a PPOR in Regional QLD couple of years ago and saved up some cash enough for 10% deposit to Invest.Looking at working another 10-15 years which means i wont have enough Super saved up as i came into the country later on.Plan is to use Investment properties to build wealth.
Attracted to Sunny coast as eventually will try and move there and retire.
Have considered Brisbane but have no clue where to start looking besides some news articles and speculation.Too many suburbs all about to boom
Have looked at Northlakes but growth seems very slow.
Looking at some tips which i will then research.Have heard some good things about Redcliff .

 

Hi Seadogg

Well done on what you have done to date after moving to Australia.

I relate being an immigrant myself. But it is so worth it.

If you have saved up cash, and you have an owner occupier loan, structuring to ensure you maximise tax deductibility and non deducibility of loans.... also called debt recycling.

Don't use cash until you have researched this and seek input from a forum broker you connect with - as they are investment savvy.

Sunshine coast sounds like an emotional decision.

Understand your predicament re Brisbane.... I think the general consensus on the forum is that its at a different point in the property cycle than Sydney and Melbourne, and growth is yet to come, and better rental returns on offer.

 

Don't know enough about Sunshine Coast to comment on growth aspects, however one of my client bought an IP there last year and it took well over a month or 2 to get it rented out. So when calculating your rental yield make sure you take more of a conservative approach, talk to local property managers and do thorough due diligence on the type of dwelling (no of bed/bath/have backyard etc) that will have demand for the area.

Cheers,
David

 

Hi Seadogg,

Considering your budget of $400k and requirement of a new build there isn't much else to choose from on the Coast while still being somewhat central.

I've had no problem renting homes in Aura as long as they're realistically priced. The main problem I deal with is builders providing their own over-inflated rental appraisal's.

In regards to future growth of an Aura investment it's hard to say. However our community is growing each year by roughly 10,000 people p/a and there are massive infrastructure works underway.

For a very rough comparison, I was struggling to give away 4 bedroom homes in Brightwater (Mountain Creek) in 2011 for $400pw. Now there are tenant waiting lists and a basic four bedroom home can achieve $550pw. I think Aura will go down the same road.

-BP

 

Personally I wouldn't touch new builds in Aura. Way too much random land can be released in these areas and those blocks are tiny. Personally I think it has low socioeconomic trouble spot written all over it in the future, the infrastructure there is poor and there are few jobs on the coast. My sister in law rents there and i don't like the feel.

If you must invest on the coast and are limited to 400K I'd try a decent size block with a house that needs cosmetic renovation in a good area of a town that will benefit from the proposed light rail. Down the track that may have subdivision potential which would add value. Aura is a pretty poor spot and given you can buy a decent house for 500k near the beach in the warana area to me it's way overpriced.

 

I must admit - I haven't done a lot of research into Aura, etc but on the surface it doesn't sound like a very good investment.

I'd assume that a house on a small block would have limited future growth - so to offset that you'd expect the yield to be pretty decent.....and at $400 p.w it's still going to negatively geared when you take into account rates, management fees, utilities, etc. Personally - I think you could spend $400k on better investments....but again, I haven't looked into Aura so I could be off the mark.

Cheers

Jamie

 

welcome to the forum @seadogg14,

we are at the similar ago, you know ppl say 40 is the new "20", I like that,

Redcliff is good, has a lot to go for, BUT it has already had some decent growth, not sure how much more to go.

 

Thanks for the Tip,Am gonna talk to my Bank about Line of Credit loan and how it will work for me.

Yes your right Sunny Coast is an Emotional decision.

 

Have had a look around and done some basic research and $400 P/w is easily achievable.

 

Hi Jamie,Your correct in saying that it is going to be negatively geared.