Over the last couple of weeks we have been delving into what it takes to create real success in property investing. We’ve discussed the foundation of a personalised strategy that has your ‘why’ at its core, is designed for your current position, and has a plan to help realise those goals – matched with the…
Over the last couple of weeks we have been delving into what it takes to create real success in property investing. We’ve discussed the foundation of a personalised strategy that has your ‘why’ at its core, is designed for your current position, and has a plan to help realise those goals – matched with the right types of property.
Noting that each property you invest in (and the funding strategy attached to that) will either empower or limit your ability to achieve your why and strategy, the actual product you invest in becomes the ‘how’.
With our revision done, let’s talk about the elephant in this newsletter being the headline.
Like property, with the right information the complex can be made simple – what we are talking about here is understanding the factors as to what properties to invest in that will form the ‘how’ of your strategy being achieved. In other words ‘why should I invest in that specific property type?’.
The answer lies in ‘the changing face’ of the demographics of the Sunshine Coast. Once a place where ‘white Australia would come to die’ (a reflection of the average age, largest population groups and lack of diversity), the Sunshine Coast is no longer a ‘retirement village’ with an ageing population. Thankfully our diversity is also increasing. With the largest demographic group in the country now Millennials, the Sunshine Coast has a unique position of being a ‘Gen X’ town. This brings some great benefits (see our Research Report for more info on this), yet Millennials are struggling to establish their foothold on the Sunshine Coast due to a distinct lack of the right kind of property – providing huge opportunities for those who can recognise this gap and help close it.
The latest ABS census data shows that based on national averages the Sunshine Coast is short about 20,000 people within this age group (27-42). Due to the region’s exponential growth, we now have the study offerings, jobs and lifestyle this demographic group is chasing, all we are missing is somewhere they can call home. Evidence shows they want to come…and are trying to come…but are struggling to find housing.
To learn more about the millennial shift and see more videos like this check out our latest Sunshine Coast Property Market Update.
So why do we need to cater for more millennials?
Millennials are the powerhouse of our economy and future. They are a diverse group, with growing incomes and a range of needs that focus on smaller housing. While even the older end of the demographic is likely moving into family formation, they don’t necessarily want to live in a ‘traditional’ large family home. They want low maintenance homes such as apartments, terraces or dual living that are conveniently located to make the most of the Sunshine Coast.
This is where we are seeing incredible growth for investors as we do not have enough of this type of product on the Sunshine Coast at the moment. On top of the broad need due to significant undersupply, there is additional demand from Australia’s largest demographic who WANT to live here…so this is why we need to consider their specific needs in the types of properties we should be looking to invest in!
If we compare a terrace home in the same estate as a house and land package. For example, a similar sized home (square metres), on a traditional lot would be over $700,000 versus just over $600,000 for an equivalent terrace home. Rental returns are roughly the same ($650 to $680 per week) yet they present a better return on investment from a capital growth perspective, rental yield and less risk..
✅ It is more affordable
✅ Likely achieve better rates of growth
✅ Is a high demand product type, now and increasing (see our recent market report, here)
The key to growth when investing is ensuring you have an individualised property strategy that aligns with both your goals and the future of the market. Contact us today to organise an obligation free chat with one of our expert property coaches.