QLD Sunshine Coast

Hi guys,
What are peoples thoughts on the Sunshine Coast lately, particularly the area of Mooloolaba for a house. Looking to buy as an investment to move into in approx 4-5 years. Do you think now is still a good time or should I wait for it to cool off? All opinions welcomed!!!!

 

A guy I know is doing well from Sunshine Coast properties but he reckons there is not a whole lot steam left. I personally have very little knowledge of the market over there.

 

Thanks for the reply. A friend who is in real estate said that it has leveled off now. I am not sure if I should buy now or wait to see if prices drop. Another point to make, not sure if it is credible, is that it is at the peak of the property clock according to HTW. The international airport is opening next year which may drive prices higher?

 

As a general rule, I would never buy when the market is at the (near)peak. In the mean time, why not look at other markets that are further away from the peak? Brisbane perhaps?

 

The airport already operates international flights but they are limited as it is much easier and cheaper to fly into Brisbane and drive the hour. The runway works are merely a replacement to what is a fairly short existing runway and a woefully small apron/parking area.
I believe Sunshine Coasts fortunes lie in its accessibility to Brisbane rather than tourism. I spend a bit of time on the Sunshine Coast but am not familiar with the property market. Safe to say the local population seem to be mainly Brissy commuters, retired folk, and domestic tourists which means it is competing with Gold Coast and other similar 'lifestyle' towns

 

I am trying to avoid buying at the peak but not sure if it will go down over the next 5 years. You see, I'm not completely looking for an investment, I mostly looking to buy a home to move into in 5 years time as I want to capitalize on my situation. I am living rent free and could have someone in the house on the Sunshine Coast in the meantime helping to pay down the mortgage. Other option is to save and have a larger deposit in 5 years time when I return back to the coast.

 

Corrections don't always results in massive price reductions but the sentiment will surely turn which means even if the market starts going sideways for a few years, you'll be able to take your sweet time to find an absolute bargain for the same money. Try doing that during boom times ...

If you are set on Sunshine Coast then the best thing to do is monitor the market closely and assess every 6 months, reflecting on the decision you made half a year ago.

 

That's interesting to know about the airport. I completely agree that it is in competition with other lifestyle locations and it benefits from being an hour from Brisbane. This is why I don't know if I should just wait 5 years till I am back on the coast to purchase or if I am better to buy now, rent it out and be potentially better off because I might avoid price rises and get my mortgage down quicker. I am more thinking along the lines of pay down my mortgage quickly, pump super and index funds as the way to increasing wealth. I'm not too clued up on property nor am I handy so no chance of flipping or anything . Open to any more opinions/input. Cheers.

 

Great knowledge and ideas. Love it. I have been monitoring for a year or two and prices seem to have been increasing steadily. I am hoping they are beginning to level off so I may just need to wait and reassess like you said. Hmmmm

 

I don't follow the sunny coast market either but it makes sense in my mind to invest elsewhere for now and then look at your options to sell and then buy into the Sunny coast market when you intend to live there. You may be able to afford a different class of property by then and you also may get to capitalise on current growth in a more aggressive market elsewhere in the meantime.

 

It seems as though I should be leaning towards waiting on the purchase at the Sunshine Coast. I'm not too sure about investing in a house as I'm not sure where to buy. I did consider buying in Brisbane (not sure where in Bris) as an investment until I move back to the coast. I am more inclined to buy a house, pay the mortgage down and buy index funds rather than accumulate properties. Any more feedback or input is appreciated.

 

I am by no means a guru but I recently did some research and acted on that and purchased in Ferny Hills. I like the suburb for CG, near the train line (end of the line which goes all the way to Beenleigh) 12km from the city, under Moreton Bay Council, its elevated, good and close schools, town pool, shopping centres, parks, 600m2+ blocks of land. I feel anything south of Patricks Rd is undervalued and has potential. Of course this is just my view. I agree with you about investing profits out of property. Im big on diversification and am in the mindset of "living off returns" which index or direct equity investing on the share market provides me, whilst I pay down huge property debt over time. I would definitely make good use of your rent free situation and act on your due diligence when you find the right property.

 

Thanks again for your input. I will keep looking at the Coast and in Brisbane. If I see a house on the coast I want I will probably buy it as it will eventually be my ppor in 5 years. And over the next 5 years I will have someone in there reducing my mortgage regardless of whether I bought at the peak or not. However I am keeping my eyes peeled in Brisbane and contemplating buying a place strictly as an investment, particularly in the areas you mentioned.

 

I've done a couple of responses in the last year or two on the sunshine coast market - if you want to search my posts you'll find them. The things I'd add to this conversation:
1. Sunshine Coast real estate to me has a lot of "if" to it. Just a random few of many, if:
POSITIVES
- We get the proposed North Coast Connect fast train to Brisbane all of a sudden you can start calling us the Sandringham of Brisbane. A beautiful, peaceful (relative to the Gold Coast!) beachside area that is within a decent workable commuting distance (train ride of 45 mins from Nambour to Brisbane CBD) to jobs. Brisbane is no Melbourne, but that would be a massive positive for the area.
- Adani happens and money starts flowing to the CQ area tourism will go up and money will be spent in the area. Flying from regional towns for a weekend holiday is a pain, but driving 5+ hrs for a holiday is nothing to a lot of regional people. It happened in the last mining boom and will happen again I think.
NEGATIVES
- A recession or major downturn happens it will hammer the Sunshine Coast as jobs here are precarious.

Property wise while we have had a good run in most suburbs I don't think we are overpriced. House prices here aren't that much higher than they were in 2007 before the last downturn. I also think that there are great opportunities for value-add here. Buying a 3-4 bedroom / 2 bathroom, single storey house here with good bones but a dated kitchen etc. for a good price in a good location you can easily add a lot of value. So many people moving here have cash after retiring/selling in a major city and want an already renoed house that they are happy to pay a premium for. The way I see it is that people will always want to live on the Sunshine Coast, and now that it has a decent hospital it can become a city in it's own right.

 

I agree with what you've said and it reinforced the positives (and negatives) that I have been thinking about the Coast. Thanks.

 

Thanks Ross. As a local, what suburbs would you be looking at for either an investment or a PPOR?

 

Take it with a grain of salt as I live there - but "on" Buderim mountain is my favourite spot. If you look hard you can get 800m2 of a flat block in a great street fitting the description above for around 600k. Reno it and a cashed up retiree could easily pay 800k +. That would be my target market. Great spot to live to with a great feel. Don't go on the low lying areas, too hot and flood issues, check a contour map or visit in person. Walking distance to the village is optimal.

The other spot intriguing me is Warana area down just north of currimundi. Great beaches down there and still cheap. From memory its not on the new flight path either like Buddina is so may becone a preferred spot. Just make sure you're the beach side of Nicklin. Not a lot of options as its a small area but if there's no rush its worth keeping an eye on. Check the flood maps and insurance issues though.

 

G'day Sunny Coast,

Congratulations on being in a position to buy!

Mooloolaba and Alexandra Headland is a great spot to settle down and from an investment POV, homes are always in high demand.

 

Thanks Ross. Which part is considered the Village in Buderim? The main shopping area I assume?

 

Alex Heads and Mooloolabah are beautiful, but very transient and touristy with all the issues that come with that. For an investment property they can make a lot of sense, but personally for a PPOR I'd look elsewhere.

The shopping area where Buderim Tavern is. That's why the Sage Landing houses sold for such ridiculous prices, cashed up retirees who want to walk to the village for a coffee in the morning.