Sunshine Coast Employment Opportunities Rising

Sunshine Coast Mayor Mark Jamieson has welcomed new statistics which show employment opportunities in the region are on the increase and unemployment figures are amongst the lowest in the state at 4.8%.

Latest figures show that employment on the Sunshine Coast is up 11,500 over the year – with 6400 jobs in construction alone.

“Employment is the cornerstone of my mayoralty and this a major re-enforcement of Sunshine Coast Council’s agenda,” Mayor Jamieson said.

“While construction is important to our economy, the Sunshine Coast economy is continuing to grow and diversify.

“The Sunshine Coast Regional Economic Development Strategy focuses on achieving four goals for our region over the next 20 years: to grow the economy to $33 billion – triple what it is now; to provide 100,000 new jobs in high-value industries; to produce 20% of goods and services produced for export; and to increase household incomes so they exceed the Queensland average.

“We will achieve that by delivering jobs through the seven high-value industries of health and well-being; education and research; professional services and knowledge industries; tourism, sport and leisure; agribusiness; clean technologies; and aviation and aerospace.

“Sunshine Coast’s competitive business environment, our accessibility to markets, proposed new infrastructure, a highly-skilled workforce and idyllic lifestyle are the winning combination that are attracting national and international investment.

“Many outstanding businesses have already chosen to call the Sunshine Coast home.

“And significant capital investment is already underway. The new Maroochydore City Centre – the only greenfield CBD in Australia at this time – is now under construction and the State Government’s $1.8 billion tertiary teaching hospital has opened this year.

“The Sunshine Coast Airport expansion will deliver Australia’s next international airport by December 2020 and an $81 million expansion of the University of the Sunshine Coast has been completed.

“Aura at Caloundra South will be home to 50,000 residents and Palmview will be home to 18,000.

“The Sunshine Plaza expansion is well underway, as is the Kawana Shopping Centre redevelopment.

“Our region’s scorecard is very impressive – consistently recording some of the highest levels of business confidence of any region in Queensland and an average annual economic growth rate of 4.09% – a full percentage higher than the nation’s and tourism is booming.

“We have been recognised by Infrastructure Australia as one of five cities – in addition to the State capitals – that will drive the productivity of the Australian economy and we are one of only four Australian regions on this year’s World’s Smart 21 communities list.” has also named Buderim, Maroochydore, Mooloolaba and Caloundra in the list of the most in-demand South-East Queensland suburbs for home-buyers.

“This is an important time in the history of the Sunshine Coast as the region becomes a major Australian urban and economic centre,” Mayor Jamieson said.

“We are delivering a healthy, smart and creative region. The future is here on the Sunshine Coast.”

Reposted from

Sunshine Coast infrastructure projects driving growth

Knowing where the infrastructure hotspots and employment hubs are and will be in the near future is essential when evaluating where to invest. The Sunshine Coast is one of those rising stars, with significant infrastructure spend moving the area from largely a tourism destination to a strategic lifestyle choice with employment opportunities.

With tens of billions of dollars in investment taking place across the coast in the coming years, this infrastructure means jobs, which drives both population growth and house and land prices.

This extraordinary amount of investment is seeing significant changes to the area, including a great growth forecast. The Sunshine Coast population is projected to reach 469,873 persons in 2036 which represents annual growth of 2.3% per annum.

Growth is forecast to be strongest between 2016 and 2021, which coincides with the Sunshine Coast economy entering into a new growth phase, supported by this significant, unprecedented infrastructure investment.

The Sunshine Coast is just one area where our clients are currently benefiting from great results. This isn’t the only area that we are helping clients to invest in, but it certainly is a great market. However, no matter where you invest, even across the coast, if you aren’t careful you can make some costly mistakes without the right advice.

In this edition of the Triple Zero Property Newsletter, we wanted to share what’s been happening and share what’s planned as far as infrastructure spending across the Sunshine Coast.

The unprecedented infrastructure projects on the Sunshine Coast include:

$1.8 billion University Public Hospital | Birtinya

The hospital opened in April 2017 and will contain 738 beds and 6,000 staff by 2021.

$5 billion Aura Master Planned City | Caloundra South

A new city approximately the size of Gladstone was officially unveiled by Stockland in late 2015 and upon completion within the next 20 years will be home to more than 50,000 people and have created over 20,000 new jobs.

$347 million Sunshine Coast Airport Expansion | Marcoola

The Queensland State Coordinator General’s report delivered on 19 May 2016 approved the Environmental Impact Statement (EIS) for the Sunshine Coast Airport Expansion Project and confirms the project will deliver major economic and social benefits to the region. The proposed airport extension is forecast to contribute $4.1 billion in Gross Regional Product, generate 2,231 jobs and significantly benefit the tourism industry. The demand for this new airport can be evidenced by the fact that Qantas Airways has re-established direct daily services after a break of ten years and the existing airport was also awarded as the fastest growing in Australia, with a 23.9% increase in passengers for the year ending February 2016.

$2.1 billion Maroochydore City Centre | Maroochydore

This 53 hectare site planned for re-development is set to include fine dining, exclusive retail, entertainment facilities, a five-star hotel and an entertainment, convention and exhibition centre. Stage one of development commenced in February 2016 and by 2040, result in 30,000 extra jobs and an economic boost of $4.4 billion for the Sunshine Coast.

$5 billion Oceanside Kawana Development | Birtinya

Stockland is also currently developing Oceanside Kawana into a world-class destination with a mix of housing, retail and business uses and, on completion, the project is anticipated to create approximately 12,000 ongoing jobs and contribute $828 million annually to the local and state economy.

$81 million Sunshine Coast University Upgrade | Sippy Downs

The University of the Sunshine Coast is one of Australia’s fastest growing Universities and consequently, an upgrade to the campus was recently competed in 2015 and the university now has around 12,000 student enrolments.

$1.1 billion Bruce Highway Upgrade

The Bruce Highway between Caloundra Road and the Sunshine Motorway is being upgraded from four to six lanes which will enable the speed limit to be increased to 110km per hour and is scheduled to be completed by 2020.

These are just some of the projects currently underway on the Coast. I’m sure you can see why it is a market of extreme interest to us. If this market or any others interests you or you would like to learn more, please contact us. We would love to learn how we can help you with your investment journey.

What do the proposed changes to depreciation mean for you?

Recently the federal government announced some proposed changes relating to plant and equipment deductions. Since then we’ve had time to review how this could affect residential property investors.

Although we are not expecting the legislation to be finalised anytime soon, we have been talking with government with the aim of developing fair policy which covers all the necessary factors.

Many investors who have contacted us have asked how they will be affected. The proposed changes won’t have any effect on properties that are already owned. It will only affect owners who have exchanged contracts on an investment property after the 9th of May 2017.

Below are the key points to answer the questions investors have relating to the proposed changes. Because the legislation is yet to be finalised, it is important to note that further changes may still take place.

What changes have been proposed?

  • Subsequent owners (those who purchase a second hand property) who exchange contracts after the 9th of May 2017 will not be able to claim depreciation on existing plant and equipment assets
  • Although there is nothing specific mentioned about new properties, we expect that investors will be able to depreciate new plant and equipment assets within a new property as they have been previously. This will continue as normal
  • Any additional assets added to a property can be depreciated as normal.
  • Investors will still be eligible to claim qualifying capital works deductions, which are the deductions available on the structure of the building. This includes any additional capital works carried out by themselves or a previous owner. The Capital works deduction is available on properties that commenced construction after the 16th of September 1987
  • The budget notes advise that existing investments will be grandfathered. This means that any investor who exchanged contracts prior to the 9th of May 2017 can still claim plant and equipment depreciation per normal

What is plant and equipment?

  • These are the easily removable or mechanical assets found within an investment property
  • Some examples include air conditioners, hot water systems, smoke alarms, garbage bins, blinds and curtains
  • The Australian Taxation Office provides individual effective lives for plant and equipment which can be used to calculate the rate of depreciation over time

When will the changes take place?

  • The proposed new legislation will be in force from the 1st of July 2017

Who will be affected by this change?

  • Property investors who exchanged contracts to purchase a second hand residential property after 7:30pm on the 9th of May although the new rules won’t be applicable until after July 1 2017

How will these investors be affected?

  • These investors will only be able to claim plant and equipment depreciation on the assets they purchase and add to the property themselves
  • Investors who purchase a second hand property should still contact a specialist Quantity Surveyor to discuss the deductions they can claim for qualifying capital works deductions

Who won’t be affected by these proposed changes?

  • Owners of brand new residential properties who exchanged contracts both before and after the 9th of May
  • Residential property investors who exchanged contracts prior to the 9th of May 2017
  • Commercial property owners and their tenants can continue to use the existing rules. It is our understanding that the changes relate only to residential investment properties
  • Home owners are unaffected as only income producing properties will be impacted. However, those who decide to turn their primary place of residence into an investment property are only affected if their property was purchased after the 9th of May 2017. If a home owner purchased their property prior to the 9th of May 2017 and they decide later to rent it out, owners can use the pre-existing depreciation legislation

Depreciation scenario – before and after 9th of May

The following tables show the deductions an investor would receive for both a three year old and a ten year old residential property purchased for $600,000. They examine the deductions an investor who exchanged contracts prior to the 9th of May could claim compared with the likely depreciation deductions they could claim if they exchanged contracts after the 9th of May under the proposed new legislation.

Article provided by BMT Tax Depreciation originally published online at Bradley Beer (B. Con. Mgt, AAIQS, MRICS, AVAA) is the Chief Executive Officer of BMT Tax Depreciation.Please contact 1300 728 726 or visit for an Australia-wide service.

Importance of ‘where’ & ‘what’ in property investment

The importance of ‘where’ and ‘what’ in property investment

It is said so often that it is almost a cliché – ‘location, location, location’. We believe it is said often for a reason – when it comes to property investment, location is key to success. But when selecting the ideal property placement there are more factors to consider than many investors realise. Strategizing on which states, suburbs and streets will provide better returns is a key part of what the Triple Zero team offer clients, and in this article we will share our thoughts on a few of these considerations.

But before deciding ‘where’ you need to first make sure you know ‘who’ – who are your ideal tenants? Because your who will impact your where! For example, some choose to appeal to students and therefore buy property near a university. Yet it is important to consider that students are transient tenants with long holidays – which can mean long vacant periods. When you can fit all of your belongings in the back of a car there isn’t much stopping you from leaving at the end of a lease!

Family tenants on the other hand generally stay longer, and once they are established in an area they are less likely to want to leave. If this group is your target market, not only will you choose to design a family orientated house, but you will think about their locational needs. It is important to consider the psychology of why they select a location to raise their family, and the different lifestyle drivers, human interest assets and economic activity indicators they will consider.

Here are some of the factors that come into play when deciding on the right place to invest to attract this market:

What opportunities does the location give for children’s education?

When there is a good school in an area, people are willing to move nearby so they are in the right catchment area. Often this can be the only way to get your children into a particular state school. Another important factor is the number of child care centres nearby – even if the parents work in another area, they often want their children to go to a good facility close to home.

How easy is it to get around?

People like to be near major transport hubs. For some this may be public transport options such as train stations and bus routes, or for others being near (but often not on!) major road networks, highways or tunnels. If you buy a property that is more isolated, and in a regional or rural area, you’ll tend to find lower capital growth and the property is harder to rent.

Is there a good shopping centre nearby?

There has been big shift in Australia over the past few decades where the community meeting point is no longer the main street, but the local shopping centre. Your tenants will be looking to make sure there is one nearby where they can go to meet all their social needs. It’s important that you find a property with a good shopping centre close by, or one that is proposed to open in the near future.

Are there plans for major infrastructure projects?

New or existing major infrastructure often means new jobs and a desire for people to live near these areas. This may be a new major hospital, airport, shopping centre, transport hub or industrial area, but it’s important to get in early before it has been constructed. This will allow you to benefit from the rewards that projects like this will bring. But as a word of caution be sure the project is set to have sustainable community benefits once delivered, not just significant involvement during the build. We have seen a lot of investors burnt in the mining towns because there was a big demand for housing during the setup phase, but that same demand wasn’t there once the project was fully operational.

Is there opportunity for employment nearby?

In a modern Australia, people get tired of travelling a long way to work unless they really have to. So finding a property that is close to significant employment hubs is essential to maximising the growth of your property, both for tenants and long term resale value.

What lifestyle opportunities are on offer?

Be sure to also evaluate what lifestyle opportunities are around the area you’re looking to invest in. Many tenants will be thinking of what weekend options the property will give them, being close to a beach, sporting facilities, good cafes or other lifestyle factors can be another box to tick off. People work hard during the week but want to enjoy where they live in their down time. And so if you can walk to a park, water body or café, this will assist in increasing rental returns.

What are the established capital benchmarks?

One of the final factors to consider is areas where good capital benchmarks are already established. When you go to the bank and the valuer goes out to value your property, having good comparable sales in the area can really help your property grow in value, especially if you want to leverage the equity in your house.

These are just some of the considerations we make when reviewing property opportunities for clients. We understand that tenants make decisions on where to live based on many factors – rational, emotional, social and economic. Understanding the psychology of what tenants are looking for and trends in the market place are key when choosing where to invest. If you’d like more information about the areas that are currently ticking boxes for us, please contact our team – we are always happy to share.