Hudson Property Report

Written by Juanita Wrenn

Hello to our property group,

Property in Queensland is certainly experiencing excellent growth. Population growth saw the Sunshine State gain a net 7,237 people from interstate in the September quarter of 2020, while NSW lost 4,110 and Victoria lost 3,749. The December quarter 2020 suggests that net interstate migration into Queensland reached 9,763!

While property is still an excellent investment strategy for a number of reasons including forced savings, it is so important that any property purchased now in such a hot market, is purchased with an outlook of at least 10 years. An increase in interest rates has to be factored in also as while rates aren’t tipped to go up any time soon, my personal belief is that they will start to head up midway through next year.

Blue chip properties in the inner ring will likely outperform cheaper properties in the suburbs where some of the new housing estates will have families who have over extended themselves financially and will suffer more as interest rates head up and we head into a downturn. I believe quality properties and properties that have an increased emphasis on liveability will attract a premium going forward. Pandemic appeal is a new phase being coined, a property that is in a liveable location will continue to do well throughout the next cycle. This is not necessarily within the inner ring as pandemic appeal is more important in my opinion.

Michael Taylor from Specific Property has a new property opportunity to offer our clients. I want to reiterate that Hudson do not necessarily endorse the individual properties that Michael showcases. We do not have an investment committee for properties like we do our managed funds. This means that we have not assessed each property or opportunity from Hudson’s perspective. We do not want to offer our opinion or promote any particular property with our clients due to the changes brought on by the Royal Commission. Rather we would like to offer our advice on property investment and help to incorporate it into you financial plan if it suits your goals and objectives. Once our advisers have ascertained that an investment property fits into your financial goals, it is up to you to source a property. We offer different contacts in order to help you with your decision, and what I can offer you is our endorsement of our referral partners. They have predominately been in business for as long as Hudson and their reputation is excellent. So while we are not endorsing the individual properties we are endorsing the integrity of our partners. If you want to talk through options with Michael Taylor, even about properties that you have sourced yourself, you are always welcome, just book in with Michael through Matt Paul here or call 1800 804 296.

Remember if there is any particular Brisbane suburb you would like me to report on, just let me know.

Brisbane Townhome Opportunity brought to you by Michael Taylor

This is the first release of 24 boutique freehold town homes at “The Grove” Hillcrest priced from $474,900 to $499,900.

Each of the designer 24 town homes includes 4 spacious rooms all with built in robes and storage, 2 bathrooms including ensuite, and separate bath in the family bathroom, and undercover alfresco dining area.

The Grove is meticulously designed to maximize rental yields without compromising the feeling of space and liveability.

All freehold town homes at The Grove are offered with a guaranteed “5% gross rental yield for 2 years”

To see the Hillcrest brochure and suburb profile click here.

# NB: Please note lot 24 has SOLD

Investment Highlights:

Hillcrest is currently, on average achieving a 6% gross rental yield, compared to greater Brisbane at 4.6%, Sydney 2.9% and Melbourne 3.2%
Hillcrest is located just 21 klms to the Brisbane CBD and less than 1hr to Gold Coast
Close to a multitude of major shopping centres, schools, transport and parks
Logan City is recognised as one of Queensland’s fastest growing cities - undergoing a major transformation with more than $18 billion infrastructure & development
The upcoming Crestmead Logistics Estate, a $1.5 billion industrial estate, is set to become QLD’s largest industrial projects - delivering a further 6,000 new jobs
In just over 20 years, Logan’s population is predicted to grow more than 50% to around 548,000 residents
A combination of affordability, a solid pipeline of development and infrastructure, and proximity to job hubs is making Hillcrest an ideal investment choice

Source: Hillcrest Suburb Profile Market Research is included in the above drop box link

Sales Process:

1. Contracts are split like a normal home and land contract ie there is one contract for the land and one contract for the house build. These cannot be single contracts. Metro have purchased the development site and Creation Homes are the home builder.

2. Land contracts will have no finance clauses in the contract ie purchasers need to go cash unconditional and pay a 5% deposit.

3. Build contracts will have no finance clauses in the contracts and purchasers will need to pay a 5% deposit paid as per normal build contract.

4. Civil works are forecast to commence on the site in November 2021 and land is forecast to register in February 2022. Land settlements are forecast to occur in February/March will 2022.

5. Completion of the build is forecast to occur in June 2022.

I think for this kind of money to be only 21km from Brisbane is a steal, especially with where current build prices are going. Most of the builders that I'm speaking to are reporting build price increases of between 10-20% at the moment. Prices of input materials have significantly increased.

Whilst we may not consider Hillcrest an affluent or upmarket suburb for this pricepoint to deliver something that is designed well and low maintenance makes considerable sense to me.

Michael Taylor
Director
Specific Property

General Advice Warning: Information contained herein is general financial product advice and does not take in to account individual situations, needs or goals. It should not be relied upon and persons should satisfy themselves through independent means that any decisions based on this material are appropriate. We recommend that you consult with your qualified and licensed Hudson Adviser who will be able to make a recommendation based on your specific circumstances.

Disclosure: Hudson Financial Planning is not a stock broker. The research for our stock recommendations is collected from various sources: Intelligent Investor, Morning Star, Ord Minnett, ABN Amro Morgans and Citigroup. Employees of Mainview Securities Pty Ltd currently hold shares in the following ASX Codes: ASX Codes: CAJ, EWC, HSN, NAB, QBE, TLS, VRT, GXL, FLT, PDL, AD8, VHT, MVP, ALQ - Managed Funds APIR Codes:- FSF0041AU, FSF0035AU, FSF0264AU, FSF0877AU, FSF0876AU, FSF0877AU, FSF0090AU, FSF0873AU, FSF0924AU, FSF0244AU, FSF0228AU, FSF0873AU, FSF0795AU, FSF0043AU, FSF0505AU, FSF0220AU, FSF0233AU, FSF0409AU, FSF0484AU, FSF0468AU, FSF0469AU, FSF0891AU, FSF0892AU, FSF1085AU, FSF0969AU. This is not a recommendation.

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