If so, we have put together a must-read summary of the small development sector on the Sunshine Coast as it stands today.
Small project opportunities are not always in abundance and can be difficult to find; however, they are out there and can be lucrative if you do your homework.
Typically, they are found in new estates, and there is a healthy amount of these underway across the Sunshine Coast. Most estates have a number of duplex sites on offer, and it is increasingly popular to build a moderate sized dwelling with a small 1 or 2-bedroom studio on the side. Both these project types allow for maximum rental income, given the two tenancies. However, with the latter being a relatively new trend there is not enough empirical data through yet to prove sustainability of value; this will be more evident over time.
Other opportunities exist, particularly in the hinterland where we are starting to see some rural properties re-zoned providing the opportunity for a block to be cut off for a small subdivision. With the launch of the new south-east Queensland regional plan, there may be even more of these opportunities emerging. However, it is critical to ensure you get good town planning advice and have an accurate idea of council head works charges, professional fees and GST implications before you dive in.
With both the above examples, it is well worth noting, that some financial institutions will lend on a residential basis rather than going for a commercial or development loan; this may lead to a high loan to value ratio and less hurdles, enhancing the attractiveness of these small developments.