Bidpro has uncovered a rare find for circa $600,000 property investors.
At this time when the property market is as flat as we have seen it for many years, there is very little to get excited about on the investment front. That’s what we thought until we stumbled on a Queensland Sunshine Coast development that looks a clear standout.
25 house and land packages are about to come to the market in what is quickly becoming one of Queensland’s fastest growing regions, spurred on by an estimated $15.3m of infrastructure expenditure in the immediate future.
Here are the findings of our due diligence investigations -
Residential vacancy rates in this area are currently at 1.5%, representing a market in undersupply. Pressure is therefore on rents to the extent that the gross return on these properties will be close to 5% on completion.
Situated only10 minutes from Maroochydore, 8 minutes from Mooloolabah, 15 minutes from the Sunshine Coast Airport, 2 minutes from the Sunshine Coast University and with schools, shopping centres and public amenities all within a stone’s throw, the location is AAA.
The following are just some of the things that are about to happen within proximity of this development that will no doubt have a further impact on rental and property prices -
· Sunshine Coast University Hospital ($1.8 billion) opened in 2017 with 450 beds and will grow to 738 beds by 2021. Will create 4,500 direct employment opportunities and generate more than 11,000 construction jobs.
· Sunshine Coast Airport Upgrade ($347 million). New facilities catering for international flights. Will contribute $4.1 billion to the regional economy between 2020 and 2040 and 2,230 new full time jobs by 2040.
· Bruce Highway ($120 million) to widen from four to six lanes. Due for completion in 2020.
· Insurance giant YOUI to make the Sunshine Coast its permanent Australian and New Zealand headquarters. With an estimated 3,000 staff (1,700 in Stage 1 by the end of this year), the total forecast economic benefit for the Sunshine Coast is $1.2 billion.
· Sunshine Plaza Redevelopment ($350 million) to create 5,700 jobs across the project.
· Proposed SunCentral Maroochydore, Oceanside Kawana and Aura Caloundara mixed use developments with a combined value of $10.6 billion, that will create many thousands of jobs in the development phase and on final completion.
Housing to accommodate this growth is in very short supply. This is therefore a unique opportunity to invest in property that will not only deliver strong returns from day one but will also gain further momentum from this incredible level of infrastructure commitment.
High rental returns combined with the prospect of strong capital growth is not easy to find, especially in the current Australian property environment. That is why we find this opportunity extremely attractive and one that we are highly recommending to our clients and associates.
For further details, please don’t hesitate to give me a call on 0418 511 390.
Bidpro Property Advocates