Using your head, not your heart in auction
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.”