Property Business Blog

Most Australians have heard of Noosa. 

The name conjures up thoughts of sun, surf, cafes and restaurants, all alongside the rich and famous.  It’s a place where if you won lotto you could buy that ‘getaway’ you’ve always wanted, right….

Well guess what - now you can afford to buy in Noosa!

This exclusive suburb has been hit hard by the GFC and subsequent downturn in tourism.

Unit prices have decreased by 7.85% in the past 12 months, showing the median unit price at $430,000.

A quick search of available properties shows a river view apartment with 2 bedrooms, 2 bathrooms and 1 car park in a small complex situated in Hastings Street, Noosa Heads at a list price of $425,000. 

Position is THE key criteria when selecting an investment as a holiday letting prospect. 

Holiday makers want to be close to the action. ie. walk to the beach, the shops, restaurants and clubs.  They want to park the car and leave it parked.

A great idea is to spend a few nights at the property yourself before committing to purchase.  This way you can not only check what is and isn’t working but also find out what happens after hours.  Do the bins from restaurants get emptied at 6am?  Is there late night partying that can be heard from a nearby club? 

Secondly, look at the management of the complex- if there is no on-site manager.  Select an agency that has specialist staff to service holiday bookings, with  quick response times if something is broken or ‘extras’ are requested.  I have personally stayed at a resort where the onsite managers were downright rude when extra blankets were requested.  This could ruin anyone’s holiday.

If your holiday tenants have an enjoyable time they will repeat book and tell others to request your property.

Lastly Noosa has hundreds of accommodations, all of which can be booked online.  Many buyers fail to investigate a complex’s online presence.  Check not only the website, photos and search engine capacity but most importantly ease of booking, making payments and response times to online enquiries etc.

Websites such as Trip Advisor have genuine feedback from past guests - both good and bad - concerning their experiences.

Perfect Storm; the phrase has grown to mean any event where a situation is aggravated drastically by an exceptionally rare combination of circumstances. Source: Wikipedia

The ‘situation’ - a slowing property market

The ‘rare combination of circumstances’ –

1. Economy recovering from Global Financial Crisis
2. Steady interest rates
3. The weather events of early 2011

‘Perfect’ is the time to buy = NOW

Local Sunshine Coast agents report increased sales volumes but with the underlying theme of buyers only committing if they believe they are getting a bargain. 

On the back of recent sales at reduced prices, many Vendors, particularly those with extended periods of time already on the market, have had to re-price their properties to gain Buyers interest.

There is now the opportunity to capitalise in traditionally tightly held areas such as Cotton Tree, Alexandra Headland, Sunshine Beach, Kings Beach, Noosa Heads and Buddina at far more affordable prices. 

Over the long term the coastal strip properties are the best capital growth performers. 

Yes - at present they are below their peak but above values of 5 years ago.

                                                                                                         Data Source: Property Data Solutions Pty Ltd 2011

In the current climate a house or permanent let unit would be the wise choice as an income earner, as opposed to holiday let resort style units (Tourism and therefore occupancy rates are currently well down).

How long will this last? 

According to Dr Wilson, senior economist for Australian Property Monitors, the Queensland floods will impact on the market.  “The shortage of rental properties in Brisbane, particularly houses will put upward pressure on property prices, not only in Brisbane but the Gold and Sunshine Coasts, which are in commuting distance”.