Why New South Wales investors are eyeing Kirra’s Miles Residences
New South Wales investors have been on red alert since the launch of Miles Residences on the Gold Coast's Kirra Beach late last year.
Miles Residences, the apartment component of the luxury $180 million redevelopment of the Kirra Beach Hotel, are offering investors strong yields in one of the most sought-after locations in the country at the moment, with many forecasting the demand to continue for years to come.
The development of 118 apartments, which will sit above the new pub pavilion, is being developed by the Peggy Flannery-led KTQ Group, who are behind the award-winning Elements of Byron.
The affordable entry point has Sydneysiders considering an investment bolthole intrastate, with the option of taking a holiday or moving to the area permanently upon retirement.
KTQ have calculated solid net rental yields for investors based on a 75 per cent occupancy rate, which doesn't account for higher demand and peak rates over summer, school holidays and in particular Christmas.
The Real Estate Institute of Queensland predicts the relaxation of border restrictions will make it even harder to find a rental property on the Gold Coast. In November, the vacancy rate was 1.6 percent. Vacancy rates are predicted to remain as tight in 2021.
And Mark Smith from PRDnationwide Burleigh Heads, reckons the Gold Coast is very attractive, especially for investors.
"Even with our market gaining and theirs falling, we still have a long way to go before we reach the level of unaffordability experienced in Sydney and Melbourne.”
Sea Apartments
The Sea Apartment collection of Miles Residences, facing the beach, start from $545,000, considerably below Sydney's median apartment price of $755,360.
The one bedroom Sea Apartment, with an occupancy rate of just under 75 per cent for a calendar year, will offer investor owners a return of 6.7 per cent.
Based on an average daily rate of $220, the 82 sqm apartment will yield $1,157 a week and over $60,000 a year.
After the property management fees such as body corp, letting management fees and council rates, investors are likely to secure a net return of five per cent, just under $30,000.
There's the same net return on offer for a two bedroom Sea Apartment, which would warrant a $275 daily rate, $1,447 a week and over $75,000 a year.
With the same occupancy rate of 75 per cent, an investor would see a net return of over $39,000, a five per cent net return.
The two bedroom Sea apartments, with an internal area of 91 sqm and 33 sqm external, are priced from $795,000.
Stone Apartments
The larger Stone Apartments are forecast to see a net return of four per cent if a 75 per cent occupancy is achieved.
The two bedroom apartments with multi-purpose room, priced from $1.13 million, are set to command an average daily rate of $330, which would mean $1,736 a week and over $90,000 a year.
The apartments, spanning 106 sqm of internal living space and 18 sqm external area, would see a net return after fees of $50,665 per annum.
The three bedroom stone apartments with 132 sqm of internal area and 28 sqm of balconies could see investors pocket over $61,000 in net income.
Those apartments are forecast to fetch $385 a day, over $2,000 a week or $105,366 a year.
To find out more, click here.