Us­ing your head, not your heart in auc­tion

Sold On Sunshine Coast - - Market Review -

UN­DER­STAND­ING your in­vest­ment strat­egy be­fore you make any pur­chas­ing de­ci­sion is key to de­ter­min­ing the type of prop­erty to pur­chase.

“That is peo­ple look­ing for tax ben­e­fits through neg­a­tive gear­ing may con­sider dif­fer­ent prop­erty types to those in­vest­ing in SMSF who may want a more pos­i­tively geared prop­erty with more po­ten­tial for long term cap­i­tal gains,” Hen­zells Agency sales man­ager Hamish Bold­er­ston said.

“The old stan­dards with in­vest­ment re­main the same as far as pick­ing good lo­ca­tion for cap­i­tal gains and mak­ing sure the prop­erty is lo­cated near fa­cil­i­ties de­sired by ten­ants such as trans­port, schools and shops also helps.”

Mr Bold­er­ston said the in­vest­ment mar­ket on the Coast was strong at the minute in ar­eas like Pel­i­can Wa­ters and there is con­sid­er­able in­ter­est in the Golden beach and the Caloun­dra unit mar­kets as well as in the Caloun­dra South de­vel­op­ment, Aura.

Ray White Bud­erim prin­ci­pal Dan Smith said the Coast was en­joy­ing a pe­riod in which both the sales and rental mar­kets were strong so leas­ing prop­er­ties was rel­a­tively sim­ple.

“The most chal­leng­ing part is in the buy­ing where the af­ford­able price ranges are com­pet­i­tive and you’ll need to be ready to buy and on the ball to se­cure the right prop­erty when it comes up,” he said.

“The tip is to know what you want from an in­vest­ment prop­erty – have a clear plan.

“Do you want a pas­sive in­vest­ment that pays for it­self and is low main­te­nance?

“Do you want some­thing with de­vel­op­ment po­ten­tial you can value add to?”

In Noosa, Belle Prop­erty’s res­i­den­tial sales con­sul­tant Lach­lan By­croft said there were a num­ber of south­ern­ers pur­chas­ing long-term in­vest­ment prop­er­ties in res­i­den­tial ar­eas.

“They look to move into the prop­erty when they re­tire but in the mean­time they rent it out through the year and book it out when they want to come for a hol­i­day,” he said.

Mr By­croft rec­om­mended any­one look­ing to buy, if the prop­erty is in a com­plex, to take a close look at body cor­po­rate fees and to keep these as low as pos­si­ble.

Brent Thomas is the Sun­shine Coast branch pres­i­dent of the Ur­ban De­vel­op­ment In­sti­tute of Aus­tralia.

He said, in terms of vol­ume of house sales, Bud­erim, Caloun­dra West, and Moun­tain Creek topped the list for the De­cem­ber 2016-Fe­bru­ary 2017 pe­riod. Land sales were strong­est in Bli Bli, Birtinya, and Ma­roochy­dore over the same time pe­riod. Land sales were up 9.2% to 1,831 blocks sold over the twelve months to Fe­bru­ary 2017 for the re­gion (in­clud­ing Noosa).

“Va­cant land is in high de­mand,” Mr Thomas said.

“There’s a lack of land sup­ply north of the Ma­roochy River as ex­ist­ing de­vel­op­ments are com­pleted.

“Land is very tightly held and it is very dif­fi­cult to find zoned land suit­able for hous­ing out­side ex­ist­ing mas­ter planned com­mu­ni­ties.”

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