I am reminded of the expression, “Buy in gloom and Sell in boom”. How many success stories have we heard over the years of people that bought extraordinary properties for $X and sold them a few years later for 2 x $x.
The truth behind these stories is that the people involved were leaders and not followers. Today we are being bombarded with bad news every second week, but in the midst of these extraordinary climatic conditions that the country has been experiencing, unrivalled opportunities are appearing in the property market in Noosa.
Today some of the rare and tightly held positions are being placed on the market for the first time in many years. Some owners are cashing up to take advantage of other opportunities while others just simply have to sell. Some of us are swept along in the negative threads like lemmings going over a cliff, but if we stop and take one step back and look at the bigger picture, there has long been a pattern that proves cycles come and go.
When the Australian property market turns, Noosa is one of the first property markets to make the strong gains. Noosa is undersupplied with property as a result of controlled town planning and is geographically over endowed with natural assets such as lakes, river ways, national parks, eight pristine beaches and the most ideal climate in the world. These assets will always underpin a lifestyle that many aspire to have. It is often the case and a terrible shame that frequently it is foreigners who wake up to these facts before the locals.
Today’s “bargain buys” can be represented in 3 ways.
1. The triple “A” tightly held position that suddenly comes on to the market that would normally not be obtainable.
2. The property that sells for the absolutely irresistible low price.
3. The property that sells for a lower price but has great terms for the buyer.
For instance some developer stock is now selling on reduced prices but also has guaranteed income returns for the next 3 years. An example of this is “The Plantation” at Rainbow Beach, which is a high end beachfront property in an emerging growth market. These apartments are now selling at dramatically reduced prices but give the buyer the security of a 7% guaranteed net return after body corporate and rates for the next 3 years.
In this case the buyer has no outlay for 3 years, but has the tax benefits of depreciation over the same 3 year period. This is cash positive investing with capital growth potential sustained after the next 3 years.
While the Noosa market runs in parallel with Tourist numbers, another question that has come up is the effect of the high $AUD on tourism. Obviously the international inbound tourist numbers are down and this affects the main capital cities more so than Noosa. It is the outbound tourist numbers that benefit from the increased buying power of the $AUD. In the current economic environment we are experiencing more people booking their holidays in Noosa for short term stays. Long term booking numbers are down as people seem to be more responsive to their job or their business. It is difficult to keep your finger on the pulse of your business and respond to the day to day issues from overseas. Another consideration is the value for money of the international destination once you get there. In Noosa some of the best things to enjoy are free. It doesn't cost anything to walk through the national park or to go to Tea Tree Bay for the day or enjoy some of the best beaches in the world.
Jill was professional, efficient, attentive and charming. 10 out of 10.