Beachside paradise in Queensland’s Engine Room… Mackay. With the Great Barrier Reef, Coral Sea and around 80 tropical islands on its doorstep, and Australia’s largest continuous tropical rainforest as a backdrop, Mackay offers an unmatched location and lifestyle. However it’s the regions economic and property market credentials that provide the most exciting prospect for astute property investors.

Mackay

Mackay has entered a period of unprecedented growth with its population expected to climb from 82,500 people now to 100,000 people in the next 10-15 years. The population increase to date has been matched and will continue to be matched by growth in the regional economy, particularly in the mining sector. While mining is the most significant and is largely responsible for recent fortunes, Mackay’s regional economy is diverse and is complimented by agriculture, beef cattle, sugar cane, engineering, retail, horticulture, tourism and others. Massive investment has underwritten the extensive infrastructure required to support growth in these industries. This has resulted in an ambitious rail network that transports coal and cane from the outlying shires to the largest bulk sugar terminal in the world and the largest coal exporting facility in the Southern Hemisphere. A staggering one billion dollars worth of coal is mined in the region each month.

Mackay is one of the best serviced regional centres for transport in Australia with all major domestic airlines servicing Mackay airport, and the national highway and rail link running past the city. Healthcare and educational services are well represented with three modern hospitals and educational options that include two university campuses.

The city of Mackay is growing faster than the Australian and Queensland average with more than a billion dollars in new residential and lifestyle developments planned over the coming decade including a convention centre precinct, multi-storey residential developments and riverside promenades, wharves and restaurants. Council alone is embarking on a $370 million capital works program over the next five years. These developments will see Mackay confirm its position as the regional capital supporting one of Queensland’s growth hotspots.

Mackay sits on Australia’s largest source of mine-able coal so this alone should see the good times continue to roll for Mackay and its surrounding region. The Mackay region is on the same latitude as Hawaii and enjoys superb weather all year round.

Property

Mackay’s property market is doing exceptionally well with substantial gains being recorded in all suburbs in recent years. Unusually perhaps the best suburbs in Mackay are determined by proximity to the beach and elevated views rather than closeness to the city centre.

Although there have been strong gains to date, industry commentators report that land subdivisions have not kept up with demand which should mean the undersupply continues for some time to come.

Mackay is full. Right up to the brim. Recent vacancy figures as low as 0.02% have been quoted by the Real Estate Institute of Queensland which is as low as it gets. Whatever the figure is this month, something wellunder 1%, it indicates that there have been insufficient investors providing rental accommodation. Consequently rents are huge with over $500 per week not being uncommon for a basic four bedroom house.

Blacks Beach

Blacks Beach is one of the most dramatic in the region. Six kilometres of incredible glistening white sand, lined with Casuarina and Palm trees rising dramatically to a rocky escarpment at is northern end. Anything elevated or within walking distance of the beach experiences strong capital gains. Residents tend to be professional couples, young families as well as empty nesters who have finally found their own slice of paradise.

Blacks Beach is located just 15 kilometres north of Mackay's City Heart. It is just 10 minutes from Mt Pleasant Shopping Centre and five minutes from Mackay Golf Club and the Northern Beaches Bowls Club. Within Black’s Beach itself, residents enjoy the convenience of a local cafe, bakery, take away and a mini supermarket and just a short stroll away is Blacks Beach Tavern with full bistro menu.

The Offer

Blacks Beach Cove is one of the few new land releases on offer in the Mackay region. The Cameron Bird Group has secured a number of new homes sites and organized for the best value builder we can find in the region to construct a variety of large modern home designs ranging from 225m2 to 275m2. (Yes, they are very large residences). These homes are significantly larger, more modern in design and finished to a very high standard compared to those that we have offered in other locations in recent years. Contact us and we will send you plans/photos of the houses. This is specifically to maximize the rent return and cater for the demands of the local market. Such a prime beachside location demands a premium house.

So most of the houses on offer are in the range of $496,000 to $499,000 and local agents estimate these will rent for $500 to $520 per week. But this rent return gets even better if you accept the Cameron Bird rental subsidy of $50 per week for the first two years (conditions apply). You are free to accept this or not, it’s your choice, but the point is, if you do, you will effectively receive $550 to $570 per week rent. Now using our attached cash flow analysis software on the link provided you will find that if you are a middle income taxpayer, paying 40c in the dollar tax, the holding costs associated with owning one of these properties (after tax) is only $3,600 (approximate).

.............. leaving you to answer the question.......................

"Is this investment likely to grow in value by $ 3,600 a year?"

I think we all know the answer to that question.

This is nothing compared to the value of the asset you could add to your portfolio. Only $70 per week to own a half million dollar asset. Or, if you are a high income earner on the top tax bracket, the holding cost is even more negligible, after tax, including the rental subsidy. Call us for details of this and how it is to be administered.

Low Deposit

Usually house and land packages require buyers to put down 10% deposit on the land and 5% on the house. But in this case we have arranged with these builders to do the whole thing on an initial $1,000 deposit. No further deposit is payable on the land until settlement and no deposit is payable on the house until construction time.

The Builder

We are delighted to have found a builder who is able and willing to construct houses for our investors in this area to at least the quality we have seen before in other locations.

Some of the many additional features and benefits we have secured for Cameron Bird investors include the following:

Three day turnaround for processing of the building contract which ensures the upfront paperwork is slick and executed with a minimum of fuss.
Guaranteed construction timeframes. No disappointment of builders turning up to everyone else’s job but yours.
Two independent quality control inspections are performed on your home at completion time at no charge to you to ensure a perfect finish. (As a measure of this company’s commitment to quality, if your building supervisor needs to be called back for a third time to rectify an issue identified by the independent inspector, they’re sacked!)
Outsourced maintenance to an industry professional with immediate notification within 24 hours of any maintenance issues.

Valuation

You are welcome to see a number of independent valuations which have been performed already so you can be assured you are paying no more than the price a bank approved valuer has assessed the home to be worth. And bank valuations tend to be conservative as you may know. But despite this, many of the bank valuations of these houses have been coming in over the contract price. This is almost unheard of and shows the faith that the normally conservative bank valuers have in the Mackay property market, with these houses in particular.

Inspection

We recommend you visit Mackay during your decision making process. Not only can you see for yourself how close your next investment property will be to the beach, but we can organise for you to inspect one of the builders' other houses recently completed. Liaise with us about this as we will have someone meet you there and show you around.

The Jewel in Crown

This could be the jewel in the crown of your property portfolio. A premium house in a beachside suburb in a booming region. Add to this that it's close to cash flow neutral and being valued at its contract price or higher. Growth prospects don’t get much better than this. It is highly likely you will achieve more capital growth on this house than any other two cheaper properties in your portfolio. We expect these houses will at least quadruple in value in the next 20 years.

We all know beachside property does not come cheap anywhere in Australia, particularly for a large brand new house. But the difference here is you can achieve the rent return to support it. At almost any other beachside suburb in Australia, if you can find a new house this close to the beach it is likely to cost at least this much, but you are highly unlikely to get ‘dollar for dollar’ rent or better. This is why we are commending you to consider these properties.

Please contact us to discuss this opportunity in more detail.