Located in the growing Sunshine Coast suburb of Mount Coolum, this investment property was purchased Home Scouts for…
Are you looking to buy a holiday unit on the Sunshine Coast? If so, you’ll want to make sure you find the perfect property for your needs and have the key tools to decide if it’s a good investment. After all, you’ll be spending a lot of time in the area, so it’s important that you get the most out of your investment.
Pros and cons of buying a Sunshine Coast holiday unit
Buying a Sunshine Coast holiday unit can be a great investment and provide a great source of income. However, there are a few pros and cons to consider before investing in a holiday unit on the Sunshine Coast.
- One of the biggest pros of buying a holiday unit on the Sunshine Coast is that you can enjoy the great Queensland climate year-round. With warm weather, beautiful beaches, and plenty of outdoor activities, the Sunshine Coast is the perfect place to spend your holidays.
- With a holiday unit, you can also enjoy all that the Sunshine Coast has to offer without the worry of paying for accommodation each time you visit.
- Another great advantage of buying a holiday unit on the Sunshine Coast is that it can be a great source of income. You can rent out your holiday unit to holidaymakers, providing you with an income stream. You can also choose to put your holiday unit on Airbnb (subject to relevant Council approvals of course!), allowing you to earn even more income.
- Compared to other areas of Australia, buying a holiday unit in the Sunshine Coast can be relatively affordable.
While there are many advantages to buying a holiday unit on the Sunshine Coast, there are also a few drawbacks.
- It can be a costly investment. Not only will you have to pay for the purchase price of the unit, but you will also have to pay for ongoing maintenance and repairs.
- Additional stamp duty charges for investment properties. In Queensland, stamp duty costs are higher if you are buying an investment property (compared to an owner occupied property). You need to be able to budget for this.
- You may not always have holidaymakers staying in your unit year round. This means that you may not be able to rely on a steady income stream, as there may be times when your unit is empty.
- How often you use your Sunshine Coast holiday unit, will impact your income stream. Every week you stay in your holiday property is a week’s less rental income you will receive.
- Will you be able to escape to it on a regular basis? Or will the excitement pale as other commitments encroach on your time and it becomes too hard to get away? The idea of a holiday unit and the reality can often be very different.
- Certain apartment buildings or councils (eg. Noosa Council) may not allow short-term rentals.
Key costs involved in buying a Sunshine Coast holiday unit
When considering buying a holiday unit on the Sunshine Coast, there are a number of key costs to keep in mind which can impact the rental returns on your investment.
- Property purchase price. An obvious one, but this can vary greatly, depending on its size, location, and condition. It is critical to have comparable sales to ensure your purchase is the best investment for you.
- Other purchase costs. This includes the purchase price of the property, stamp duty, and legal fees. For an investment property, stamp duty costs are higher than they would be for an owner occupied property.
- Body corporate and sinking fund costs. If the unit is part of a complex, then you will be up for Body Corporate and Sinking Fund fees. Units in complexes with lifts, pools, gyms etc generally have higher Body Corporate fees than those units in smaller lower maintenance complexes. It’s critical you (or your conveyancer) do a detailed review of the Body Corporate records to ensure you are aware if any big expenditures are planned by the Body Corporate which could require you to pay additional funds.
- Maintenance and repairs. You’ll need to allow for ongoing costs associated with owning a holiday unit, such as maintenance and repairs from painting, landscaping, repairs of goods within the unit to general maintenance.
- Cost of furniture and any other amenities. You will also need to factor in the cost of furniture and any other amenities (eg. Internet access, linen, etc) you may need to make your holiday unit attractive to potential renters. This can be expensive, depending on the quality of furnishings you choose.
- Property Management fees. Onsite property managers’ fees are generally higher than property management fees for long term rentals. You need to do your research to make sure you get the best property management rate for your investment unit and property managers who are proactive.
- Insurance. This is important to protect you in the event that something goes wrong such as damage, theft or other risks.
What to look for when buying a Sunshine Coast holiday unit
- Location: The location of your holiday unit is one of the most important factors to consider. You’ll want to make sure it’s close to the places you (and other holiday makers) would want to visit, such as beaches, restaurants, and other attractions. Additionally, you’ll want to make sure you’re close to public transportation, so you (or those renting your unit) can easily get around the area.
- Amenities and ease of maintenance: When buying a holiday unit, you’ll want to make sure it comes with all the amenities you need. This includes things like a swimming pool, BBQ area, and other recreational facilities. Additionally, you’ll want to make sure the unit has a comfortable layout, plenty of storage space, and modern fixtures and fittings. It also needs to be easy to maintain.
- Value for Money: The price of the holiday unit will likely be one of your top considerations. However, it’s important to remember that you get what you pay for. Make sure you compare prices and features, so you can get the best value for your money.
- View: The view from your holiday unit can be one of the most enjoyable aspects of your stay. Make sure you check out the views from the unit before you commit to buying it, so you can make sure you’ll get to enjoy amazing scenery every time you’re there.
- Security: Finally, you’ll want to make sure your holiday unit is secure. Look for units in a gated community, or with secure access codes, so you can have peace of mind when you’re not there.
By following these tips, you can make sure your Sunshine Coast holiday unit is perfect for you and your family. If you would like further help purchasing a Sunshine Coast holiday unit or want to know more about purchasing these type of properties, please get in touch with Home Scouts, your local Sunshine Coast holiday unit Buyers Agent.