2 Bedroom Apartment / Flat for sale in Cannonvale, Australia

Property Description

Whitsunday Shire is approximately 125 km north of Mackay and 250 km south of Townsville, and is centred around Hamilton, Hayman, Daydream, South Molle, Lindeman, Brampton and Long Island. The islands are readily accessible by fast cataraman ferries out of Shute Harbour, which is the second busiest harbour in Australia after Sydney.

Located just 3.5 kms from Airlie Beach. The main access route into Airlie Beach, Shute Harbour Road passes through Cannonvale.

There is a mixture of 2 and 3 bedroom townhouses and apartments, plus some dual key 3 bedroom apartments set on a 2.15 hectare site. Central lagoon style pool, spa and sauna
Intercom security.

The underlying reason is that there is very little land left to be developed in the area as it is surrounded by National Parks.

The median price for land in the 12 months to June 2006 increased by 45.6%, and the five year annual growth rate to June 2006 was 33.6% (Source: PRDnationwide Whitsunday Research & RP Data). So it doesn’t matter what you build on it, if the cost of your land is going up at that rate, then that is where tomorrow’s capital growth in residential property will flow from – the lack of supply to meet demand.

Wisdom states that you make your profit in an investment property deal not when you sell but when you buy – and that is the opportunity you have – the opportunity to buy off the plan, and obtain all the advantages that come with that.

The most common reason for buying off-the-plan is the attraction of buying a new property at today’s prices but not having to pay for it right away. In a strong property market this locks in the price so that when it comes time to settle on the property you already have built in equity through capital growth during construction of the project. And you can enter into the contract by just putting a 10% deposit bond in place for a minimal outlay.

Your best tool for predicting future capital growth is undoubtedly past performance – if a location has shown sustained growth over a reasonable period in the past, you can rest assured that unless something drastic has happened, then the same fundamentals will provide for similar growth into the future.

The Cannonvale Unit/Townhouse/Duplex Annual Median Price Growth Rates as at December 31, 2006 were as follows:
Last Ten Year’s Growth Rate 14.9% p.a.
Last Five Year’s Growth Rate 25.9% p.a.
Last Year’s Growth Rate 25.0% p.a.

Of the 79 units/townhouses/duplexes sold in the six month period ending December 2006, 53 were re-sold properties. These properties were held for an average time of four years and generated an average capital growth of 15.9%. (Source: RP Data)

Expected Permanent Rental Returns, unfurnished, based on
Residential unit 2 bedroom, 2 bathrooms, 1 car garage, 124m2 NFA, $400 per week.
Residential unit 3 bedroom, 2 bathrooms, 2 car garage, 124m2 NFA, $420 per week.
Residential unit 3 bedroom, 2 bathrooms, 2 car garage, 140m2 NFA, $450 per week.
Source: JLA valuation dated 18/7/07