Hi, I have a couple investment properties in the Moreton Bay region and now looking for my next. Budget for this one is $550K max and I am thinking Sunshine Coast. Where would you buy in the Sunshine Coast for less than $550K? Any other suggestions in terms of locations with high growth prospects? Appreciate the feedback Lily
Hi Lily, With your budget in mind I would consider purchasing a home in: - Sippy Downs Close to the university and a popular local school, increased local development, some blocks up to 700m2 can still be found, low vacancy rates. Standard four bedrooms homes will achieve a rent between $480pw - $520pw depending on quality. - Buderim Highly popular, easy access to beaches/shops/schools, a three bedroom home in your budget could be found or an older four bedroom home, low vacancy rates, leafy suburb with good sized blocks up to 1,000m2. Rents vary from $520pw to $650pw for four bedroom homes depending on quality. - Coes Creek/Palmwoods New homes can be purchased for high $400's with solar/water tanks & A/C. Good block sizes up to 750m2. Consistently renting between $480-$520pw. I've started to rent more in this area as interest increases. - Bli Bli/Mudjimba Close to local airport (soon to be international), currently under development. Some bargains can still be found, but prices are increasing. New three bedroom homes are consistently renting between $460pw - $500pw. -Brightwater Mountain Creek Close to local schools & shops, high tenant demand, some bargains can be found in your price range. An average three bedroom home will rent $450-$500pw. Those would be my picks in your price range, purely from a rental agent P.O.V. There are many other suburbs which are popular with investors such as Birtinya, Palmview, Aura. However I find they aren't as popular with tenants as they could be, this will change in time as more people move to the area.
If you already have few towards north of Brisbane, why not spread the love to other states? Diversification is a great thing...
And don't forget the Land Tax trap of having all your eggs in the same state... plus Qld's draconian taxation if you ever intend to live abroad at anytime in the future & possibly be nonresident for tax purposes with property in own name..... many traps to consider.....
Thank you, What do you mean by land tax traps? Can you please provide more details? I'd be keen to explore other states, I'm just not convinced there will be as much growth as in the Moreton Bay region or Sunshine Coast.
Thank you Bradley, this is very helpful. Do you think there will be significant growth in Buderim? Any areas to avoid in Buderim, or streets to target more specifically? Thanks a million Lily
Hi Jill, Buderim is a very highly sought after area, development is steady. There are plans for a large new resort which should be the 'bees knees'. Sunshine Coast to get new 5-star Buderim Resort - Visit Sunshine Coast . It's an interesting suburb, if you throw a rock in any direction you will hit no less than 10 groups/committees, so to complete any large scale development can take some time. I can't comment on your future house-price growth (not my area of expertise), however from a rental income perspective as long as the home is well maintained and presented you'll achieve solid returns. If you purchase in Buderim, I'd recommend the southern region opposite the Kuluin area. Homes at the top of the hill around King Street are renting well, as are homes in the Buderim Meadows estate near Karawatha Drive/Street but some standard homes in this area are nudging $600k+.
In Qld once you cumulatively own $600k of investment land value, the state government will slug you with land tax (note: own home exemption) Every state is different. Qld links as follows: What is land tax? | Environment, land and water | Queensland Government Taxable value of land | Environment, land and water | Queensland Government Enjoy!
Nice post @Bradley Peet What are your thoughts on the northern end of the coast? Coolum up to Noosa? Cheers Jamie
Hi Jamie, I've found stock in the northern pockets rent very well. Even new builds in Peregian Springs are achieving excellent returns and we're finding tenants within one week. If you know of any local investors needing help, don't hesitate to PM me. If I had to buy, my pick would be Coolum. Noosa is fantastic, but Coolum is what Noosa was 20 years ago and I think that there are still great opportunities available in the area even for first time investors. Even the drive from Coolum to Maroochydore is 20 odd minutes. I think that's pretty good, move to Brisbane and it takes you 30min to drive from Fortitude Valley to Wavell Heights
I know old thread, but you seem to know a bit the sunshine coast region. What do you think about the area around Meridan Plains/Currimundi/ Caloundra west/ Sippy downs as potential investment areas. Thanks.
Hi M & C, It will depend on what your expectations are but for a simple investment that will always rent fairly well I'd suggest Sippy Downs of those choices. There may be a bit of maintenance though as those homes are ageing, but that precinct is touted as the new Education City, local development has been incredible.
