In the residential housing market, investors can buy standalone homes, as well as single-level villas, multi-level townhouses and units. Properties (such as apartments) purchased under strata titles usually incur body corporate fees for maintenance. These fees are out of the owner’s control and can often be so high that they seriously impact investment returns.
“Return on investment”, or ROI, is a combination of rental income and the property’s capital growth. And in our experience, off-the-plan house and land packages in high-growth areas make excellent investments, because they represent some of the highest returns.
Dwyer’s high-end terraces at Harmony estate have proven particularly popular among savvy investors. All 14 built last year have been sold and there are 14 more in the pipeline. With their excellent rental yield and potential capital growth, we believe these high-demand properties offer the best ROI on the Sunshine Coast.
This is in line with current market trends. Rental demand is growing for detached, lower-density and larger houses, especially in the more affordable regional areas that have seen a surge in population growth – like the Coast.
Traditionally, units underperform in rental yield and price growth when compared with houses. We’ve seen this happen during the pandemic, too. New home sales, however, have risen significantly since June last year, probably helped along by government incentives such as the HomeBuilder scheme.
Choosing locations that will provide consistently high rental income as well as strong capital growth (“hotspots”) will also help maximise investor returns. How popular or desirable an area is depends greatly on its proximity to services like transport, schools, shopping, medical facilities and job hubs. So, the level of infrastructure development is another key factor that determines the best places to invest in.
For more information, contact Jason Dwyer from Dwyer Property Investments on 1800 088 437.