Last time we’ve looked into the location, demographic, and facilities of Buderim, a suburb in the Sunshine Coast. In this post we will present a quick case study of one of the properties in the area.
Missed the first part of this Suburb Review? Read it here:
Suburb Review: Buderim, Queensland
The Property
Being such a large suburb there are many different areas within Buderim. Housing styles are old and new, with areas of 70s style highset weatherboard homes to low set brick and tile of the 80s, 90s and 2000s right through to contemporary modern architecturally designed hilltop homes. There are smaller residential blocks and then areas with acreage. We will look at a couple of examples with our case study properties.
Summary
With Buderim’s proximity to major growth factors (nothing seems to be too far away), this suburb deserves the interest it has been getting the past couple of years. There are opportunities in this area in the lower price brackets as well as medium to high end.
With its good schools coupled with the massive developments in the nearby suburbs, Buderim will continue to be on the lookout list of property investors who are targeting all types of residents, including university students, young professionals, families and the older generation. For investing in Buderim it’s a matter of deciding what it is you are looking to achieve, who are wanting to attract and then focusing your search on those types of properties as the sheer number of properties available and the size of this area can be overwhelming if you don’t go in with a planned focus.
Pros
- Proximity to beach and hinterland
- Direct links to Brisbane
- A central spot for most of the Sunshine Coast
- Green environment
- Good services and facilities
- Educational facilities – university, private and public schools
- Easy access to major healthcare facilities
Cons
- Large suburb with a large range of property styles, age of property and pricing – so really need to understand what it is you are looking for or you will get lost in it!
The Case Study
Having recently searched for several properties in this area for clients, the thing that really sticks out is the variance in styles and pricing of the property in Buderim. It really does consist of a number of smaller pockets, so if you are looking to purchase here then it’s worth the time and effort, if doing it yourself, to get to know Buderim well. Take a drive, look around, inspect lots of houses in different areas to get to know and understand the sub-areas and the associated pricing brackets.
For our case studies today we have a basic property at the lower end of the market. This is the sort of investment I’d suggest could do well here. The higher end of the market may not be able to show the sort of yield that make it attractive and the higher end of the market is slower to sell if you need to and more sensitive to fluctuations in market prices.
Case Study Property
This property is a 4 bedroom, 2 bathroom property with double garage on 707m2. It is in original condition but is very tidy and has good backyard space. It’s a short drive to Mooloolaba, Maroochydore, to the Sunshine Coast University and to Kawana.
Expected pricing to purchase this property is $425k – $440k. Automated valuation with two different data providers value this property around the $455k-$463k mark. Expected rental is $480 – $500. For the average investor paying 38% tax, this property would cost in the vicinity of $42 per week to hold but also has some capacity to improve the value and the yield with some cosmetic updates.
Summary
Buderim has been a consistent performer for the Sunshine Coast in a market that has been tough over recent years. The last 12 months has seen Buderim really pick up and move and investors are seeing this area as an attractive option for investment. Buderim really is well placed to access major healthcare, shopping and transport facilities and services in close by areas as well as having a stronghold on quality education for the region with a number of private and public schools as well as the major university on the coast.
If you are looking to invest on the Sunshine Coast then Buderim is well worth your time to consider as your target location.
