Queensland's Hervey Bay fringes are a good bargain for investors: HTW
The property market in Queensland's Hervey Bay was at the start of the recovery cycle, according to valuation firm Herron Todd White's April property clock, a simple broad brush means to suggest where property prices are and which direction they are headed.
The layout and composition of property in Hervey Bay limits the degree of fringe property. Within the same suburb, property ranges from conventional onground brick or low-set cottages to executive homes with extensive improvements or esplanade frontage.
The Hervey Bay market is well known for its affordability aspect. The past two years has seen rental rates steadily increase which has resulted in relatively good returns for investors. The developing estates offering four-bedroom, two-bathroom accommodation are achieving rental rates in the range of $360 to $380 per week with house and land package prices ranging from $345,000 to $370,000. Falling unit prices and increasing rental rates have also seen investors return to the unit market with some traditional holiday complexes converting to permanent to capitalise on the more consistent cash flow.
The older established areas of Hervey Bay also provide good affordability with early 1990 onground brick, three-bedroom, one-bathroom homes with single garages in the mid $200,000s.
This style of property achieves rental rates in the range of $280 to $320 per week. Although the continuous supply of house and land packages is creating a price ceiling for the new product market, there is potential to see some capital growth in these older established homes given the clear price gap currently being seen.
Maryborough is also a very affordable market. Prices have been falling over the past year with consistent activity in the mid to high $100,000s for typical post-war timber homes of either two- or three-bedroom accommodation. Rental rates appear to be increasing with the base rental rate in the order of $260 per week. At a price of $180,000, this would provide a gross return of 7.5%.
Property Observer looked up some recent sales in Maryborough on www.realestate.com.au and came up with these in the affordable range.
A two-bedroom highset house at 39 Churchill Street Maryborough Qld 4650 (above) fetched $190,000.
A two-bedroom cottage at 27 JOHN LANE Maryborough Qld 4650 sold for $191,000.