What should you know about the Sunshine Coast?
When you put together a property investment strategy, you want to make sure your real estate purchase is something that will be sought after. Buying a remote cabin in the woods might be good for peace of mind and a quiet getaway, but it might not be the most popular option when it comes to finding tenants!
What you need is somewhere that is popular and has growth prospects – allowing you to both fill a rental property and make great capital gains. With this in mind, we will take a look at where the Sunshine Coast is performing well.
Property is in ascendancy
In February, CoreLogic RP Data released a regional snapshot of Australian property, looking at top-performing areas outside our capital city powerhouses. And the Sunshine Coast has posted some very good results.
For example, over 2014 units and house values went up by 6 and 6.7 per cent, respectively. This means anyone who already owned an investment property in the area would have been seeing some excellent equity growth in their home – increases you should definitely consider becoming a part of. This is great not just for overall profits, but also for leveraging a property into a new investment, expanding your portfolio and income!
Vendor discounting went up
Vendor discounting is how much a seller drops their price from the one initially listed – effectively how much cheaper you can buy a house for. The CoreLogic RP Data report said this was 5.9 per cent on average in 2014.
So if someone had listed their property at your budgeted goal of $500,000, you could theoretically see a further $29,500 shaved off the price on this trend. This gives you more power at the buying table – and maybe a little more money left over in your pocket!
More growth is on the way
These are good results for the year gone by, but what about the future? After all, that is where your capital gains and positive cashflow will be. According to a recent release from Sunshine Coast Council, growth is well under way.
A city centre upgrade at nearby Maroochydore is expected to build both community and commercial prospects, which could be big drivers of population growth – and prospective tenant numbers.
With all this going on, it is worth taking a closer look at this part of Queensland. The purchase of new property is an excellent way to build your wealth, but it is important to attract attention and make sure your own finances are set up appropriately. That is where working with us at Think Money can be essential. We have boundless experience helping people to find investment property and build a portfolio that sets them up for life.