Friday, September 2, 2011

Sunshine Coast Not Investor Friendly

Property valuers Herron Todd White report that the Sunshine Coast is not investor friendly. High taxation, and no representation. Not a good long term situation.

"Holiday units are typically returning a gross yield in the vicinity of 7% to 7.5% however after management fees etc, the net yield would be in the vicinity of 5%.

One of the drawbacks of owning investment property on the coast continues to be the additional levies that are being charged by the Sunshine Coast Regional Council. these are charged on all non-owner occupied properties, even when they are holiday homes which are not rented. this leaves a sour taste in the mouths of investors, most of whom are not locals who don’t have the opportunity to cast a protest vote."

Source: HTW Report

1 comment:

Annette Higgins said...

We own a 1 bedroom apartment at Caloundra and in the Brisbane CBD. Both similar size and age. These are the comparisons:

1) Purchase price: Brisbane property 18% more
2) Net income after management and clreaning fees: Brisbane property about 25% more
3) Body corporate fees: Caloundra property about 25% more
4) Council rates: Caloundra about 80% more
5) Water utility: Caloundra about 10% more
6) Gas (Origin): Caloundra about 35% more

Both properties are in the short term letting.