Fleeing southerners drive demand for holiday-investment homes
Fleeing Victorians and NSW residents have driven demand for rental properties making now the best time to buy that holiday rental home.
QLD News
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A holiday home just metres from the water in an idyllic coastal town was once thought reserved for the rich or famous, but not anymore.
From tiny cottages on the river, to apartments with beautiful beach views, to homes on 1000 sqm-plus blocks, a slice of weekender or holiday paradise can be all yours for less than $1m - if you look in the right place.
Property experts say it could be the perfect time to invest, to give yourself a permanent holiday base and also to make money all year round.
Ray White Surfers Paradise CEO Andrew Bell said southerners fleeing coronavirus lockdowns to come to the sunshine state had wildly increased demand for rentals in Queensland, making it an easier proposition to find short-term tenants for holiday homes.
Be it on the Gold Coast or in Cairns that you’re wanting to holiday in your own ‘home’, there are bargains to be found.
A quick search in beachside areas uncovered a one-bedroom studio apartment (56sq m) on the waterfront at Hope Island selling for just $130,000.
A two-bedroom apartment on Magnetic Island at Townsville, with water and mainland views, will set you back about $255,000.
The stress of finding a tenant to cover running costs and body corporate fees between your visits is the key, Mr Bell told The Courier-Mail.
He said the spike in Victorians and New South Wales residents seeking short-term through his agency alone has been phenomenal.
“From a rental perspective, we had a huge increase in the number of tenants wanting to stay six to 12 months on the Gold Coast,” Mr Bell said.
“With more than 600 properties, we’ve got the biggest property rental on the Gold Coast, and pre-COVID we were fielding 3,000-3,500 inquiries for rental properties per month.
“Now we are receiving in excess of 10,000 inquiries for six-to-12 month rentals.
“The bulk of that increase has come out of Sydney and Melbourne and we are absolutely desperate for stock.”
But, it’s not just the Gold Coast where Melburnians and Sydneysiders are wanting a short-term base.
Cairns has also come into the equation according to Professionals agent Richard Rudd, who said a modern two-bedroom unit, overlooking the ocean was currently on the market for $439,000.
“It’s right on the beachfront and is certainly in a stretch where it could easily be holiday let,” he said.
“I have had interest in this from Melbourne and Sydney people looking at buying it and living in it for a month each year and then letting it out.”
Mr Bell said holiday homes served as an investment property, but some buyers looked beyond the investment.
For some, they’re looking for a property that affords them the luxury of leaving a vehicle parked for long stints on a premises and for others it could be a large lockable storage area.
“People wouldn’t buy them if they didn’t think they were going to go up in value, so they are an investment property, but obviously there is a convenience as well,” he said.
“They can leave their car there, lock a few personal things away from holiday letters.”
And while there are some bargains to be had, experts warn to be of where you buy.
The reasons you bypass or are keen for a property, are also likely to be the same reasons a potential tenant will bypass or gravitate to your holiday pad your desperately wanting to rent out to cover costs.
“You want to be making sure, you’re not just buying because of the price,” Mr Bell said.
“There are those who love all the facilities that they have to offer, be it a tennis court, two pools and a gym and there are others who are budget conscious.
“The very things that attract you to buy are the very things that attract someone to rent and the more basic it is, the less desirable it is for a holiday-maker.”
Chris Ryan, from L J Hooker at Broadwater, said the Grand Apartments, which offer Broadwater views, are popular with holiday home buyers.
He said there were quite a few owners from Brisbane who ventured down the M1 for holidays when not placing their residence in the rental pool.
“There are quite a few owners in this complex who come down on weekends for a getaway because it’s the perfect location being on the water and with the Grand Hotel underneath,” he said.
Under $300,000
$130,000: 2032/56 John Lund Drive, Hope Island
(1 BED, 1 BATH, 1 CAR)
Studio apartment on the waterfront location at Hope Harbour Marina!
$255,000 (neg):
1305/146 Sooning Street, Nelly Bay
(2 BED, 2 BATH, 1 CAR)
On Magnetic Island and 80m to the water’s edge
$269,000:
5 Colonial Drive, Clairview, (2 BED, 1 BATH,
1 CAR) 150m to the beach
$295,000:
30 Maud Street, Flying Fish Point
(2 BED, 2 BATH, 1 CAR)
Just 200m as the crow flies to the beach
Under $500,000
$319,000:
12/4 Tay Avenue, Caloundra
(1 BED, 1 BATH, 1 CAR)
On the promenade at Caloundra with waterfront views
$350,000:
69/100 Bulcock Street, Caloundra
(1 BED, 1 BATH, 1 CAR)
Part of the Breakfree Grand Pacific with waterfront views
$395,000:
5/52 Bestman Avenue, Bongaree
(2 BED, 2 BATH, 1 CAR)
Just 70m to dip your toe in the water on Bribie Island
$399,000:
89 Todd Avenue, Yeppoon, right (2 BED,
2 BATH, 4 CAR)
Just 80m down a dead-end road there’s a pristine beach
$399,000:
49 Seaview Esplanade, Curtis Island.
(3 BED, 1 BATH, 1 CAR)
60m to the water.
$439,000:
4/39 Sims Esplanade, Yorkeys Knob
(2 BED, 2 BATH, 1 CAR)
Overlooks the ocean from this superbly positioned apartment
$490,000:
12 Hancock St, Turkey Beach.
(3 BED, 2 BATH, 3 CAR)
40m to the water
$450,000:
37 Pacific Bvd, Moore Park Beach.
(3 BED, 2 BATH, 2 CAR)
15m to the beach
$399,000:
55 Durdins Rd, Bargara. (4 BED, 2 BATH,
4 CAR) 650m to beach
Offers over $489,000:
1481 Bribie Island Rd, Ningi. (4 BED, 2 BATH, 3 CAR)
10m to the water
Offers over $459,000:
18 Orchard Ave, Boreen Pt.
(3 BED, 1 BATH, 1 CAR)
10m to water.
$490,000 plus:
1306/360 Marine Parade, Labrador
(2 BED, 1 BATH, 1 CAR)
Situated above The Grand Hotel, it overlooks the water and park land
$500,000 and over
$510,000:
55/150 Duporth Avenue, Maroochydore
(2 BED, 2 BATH, 1 CAR)
Mountain and river views on the water’s edge
$599,000:
4 Churchill Street, Urangan
(5 BED, 3 BED, 2 CAR)
A leisurely 80m stroll to the beach at Hervey Bay
$750,000:
1 Oak Ct, Maroochydore.
(4 BED, 2 BATH, 2 CAR.)
500m to the water.
$800,000:
60 Kundes Road, Hazeldean
(3 BED, 1 BATH, 5 CAR)
A 3.1 hectare sprawling rural retreat with views of Somerset Dam which is a couple of hundred metres away
$880,000:
10 Captain Blackwood Drv, Sarina Beach. (3 BED, 1 BATH, 2 CAR)
On the beachfront.
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