Why interstate investors are eyeing up luxury Surfers Paradise apartment tower Chevron One
Chevron One, set to be Chevron Island's first high-rise, is no doubt set to attract the eye of interstate investors.
Developer Bensons Property Group are offering a range of incentives for investors in the 41 level tower designed in collaboration with Marchese Partners and Byrns Lardner Landscape Architecture.
What investors need to know
Investors can bag a six per cent rental guarantee for five years, considerably stronger than the average yields on offer in the major capital cities.
CoreLogic calculated that gross rental yields in Sydney and Melbourne fell to fresh record lows in February, with Sydney at 2.9 per cent and Melbourne at three per cent.
Rental income is down -5.3 per cent in Sydney and -8 per cent in Melbourne annually, according to CoreLogic.
The yields on offer at Chevron One would outweigh other capital cities whose gross rental yields are around the mid-4 per cent mark or higher. Regional Queensland, the category in which Chevron Island falls in to, is at 5.1 per cent.
Chevron One Residences offer a fully furnished, fully managed and hassle-free ‘turnkey’ lifestyle investment.
Interstate investors in particular will be keen on the 14 day free days of holiday accomodation per year for their apartment. Chevron One boasts close to 2000 sqm of resort-style amenities, with a Club One residents’ lounge, floating cinema, sculptured gardens and dining facilities.
The entry price to Chevron One is as low as $480,000 for a one bedroom, one bathroom apartment. A two bedroom, two bathroom apartment with parking is priced from $705,000.
Repayments on a $700,000 apartment, with a low interest rate of around two per cent, would be around $14,630 of interest per annum, compared to the $42,000 in rental income per annum.
Hutchinson Builders have been appointed to build the tower having demolished the former building at 46 Stanhill Drive. Completion is slated for mid-2023.