For the $500,000 property market, Sunshine Coast offers long-term capital growth: HTW

For the property investor, the question of where to park a lazy $500,000 always remains somewhat challenging in Queensland’s Sunshine Coast, especially given the fact that early and easy capital growth is very difficult to come by, say valuation firm Herron Todd White in their July residential report. 

The $500,000 is a “price point that is also very competitive in the market,” according to HTW.

Beach side properties that provide a modest home with a higher value land component is still a good pick. However, you should be quite selective and along with being prepared for a long-term hold. The gains are not likely to be so easily won over within the next 12 months. There are little to no new beachside estates in the pipeline therefore leading to these properties not being easy to replicate. 

“This is one of the reasons why this product seems so appealing to us,” say HTW.

“The other options we believe continue to have some legs are the rural residential markets in and surrounding the hinterland townships. The market is still yet to recover and remains fairly soft. There is an ability to purchase these properties at below replacement costs which has to hold you in good stead for the future.

“The future upside magnifies if you can afford to get into the $700,000 to $800,000 range where you really do get a lot of home for your money.”

Units in small complexes with low body corporates and near to beaches (typically built in the 1980s) still provide good value at below $300,000, and up to around $400,000 for the refurbished ones, however this market has been picked over in the best areas like Alexandra Headland and Cotton Tree. 

The Sunshine Coast market has been in recovery for some time now. 

“Doing your homework to buy well, and ensuring your investment horizons are more long term, are two ways to try and get the best results.”

The continued good news story of the Sunshine Coast University Hospital, due for completion in 2017, and other infrastructure projects planned for the coast should hold us in good stead. 

As an illustration of the sub-$500,000 market, Property Observer found a three-bedroom, two bathroom house at 5 St Lucia Crescent, Kawana Island, Qld 4575 which recently sold for $470,000.