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Investor Nets $182,000 Annually from $2.6 Million Display Home

A recent property acquisition in the SkyRidge Estate on the Gold Coast has set a new benchmark for rental returns in the area. An investor purchased a display home for $2.6 million, which is expected to generate an impressive $182,000 annually. This projected income is significantly higher than the typical rental yield for the suburb, which stands at around $1,100 per week.

The four-bedroom home, built by Brighton Homes, comes with a 7 percent leaseback agreement. This arrangement ensures that the builder will continue leasing the property post-settlement at approximately $3,500 per week. According to PropTrack data, the median rental price for a four-bedroom house in Worongary has surged by 22 percent over the past year.

Luxurious Features and Investor Appeal

The property, located at 37 Parkway Circuit, boasts a double-storey design on a 512 sqm lot. Its floor plan includes four spacious bedrooms, four bathrooms, and three living areas, all leading to an outdoor entertaining area with a pool. The listing describes the home as “an exquisite ode to coastal tranquility,” highlighting high-end finishes throughout.

Agent Gerard McClelland emphasized that the deal represents an attractive opportunity for investors seeking strong short-term rental yields, which are typically around 4 to 5 percent. He noted that the display home model allows builders to showcase their designs while freeing up capital. “These display homes are premium properties with all the bells and whistles,” McClelland stated.

The home is designed to impress, featuring a designer kitchen equipped with a butler’s pantry and elegant herringbone flooring. The property’s striking façade includes tall arched windows that enhance its aesthetic appeal.

McClelland indicated that the investor market has begun to recognize the benefits of such leaseback agreements. “It can take a while to sell display homes depending on the price, but the investor market is waking up to the fact that 7 percent is a pretty good return,” he explained. Two display homes were sold within the same week, both to cash buyers.

SkyRidge Development and Future Prospects

The sale of this display home coincides with the $1.5 billion development initiative behind SkyRidge Estate. The Perron Group, in partnership with Queensland businessman Ross Atkins, has initiated an expressions of interest campaign to attract stakeholders. The project spans 297 hectares and has planning approval for 3,500 dwellings, with expectations that it will accommodate over 10,000 residents by 2036.

Recently, SkyRidge recorded its first $1 million land sale for a 700 sqm block. Notably, Metricon holds the estate’s highest sale records, with two of its display homes selling for $2.8 million each.

In addition to the SkyRidge display home sale, another property named the Grayson 30 sold for $1.83 million. The buyer of this home is expected to earn an annual return of approximately $128,100 and may occupy the property once the lease concludes.

As the housing market in Worongary continues to evolve, the recent sales exemplify a growing trend towards high-yield investments in premium properties. Over the past year, house prices in the suburb have risen by 4.5 percent, bringing the median price to $1.285 million.

This surge in property values and rental yields underlines the strong demand for quality homes in emerging communities like SkyRidge, indicating promising prospects for investors and developers alike.

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