A covenant is a document that binds the members of a particular group, such as a neighbourhood, to a certain standard of behaviour or to adhere to a certain set of guidelines and expectations.
1. What is a covenant?
A covenant is a document that is an agreement between a homeowner and the developer of a new land estate subdivision. These rules set the standard for new homes in an estate.
2. How do covenants affect a subdivision?
Covenants are agreements put in place by the developer who builds a subdivision. These agreements are meant to ensure that homes in the estate are built to a certain standard. Developers want a subdivision to be a place where people will want to live and feel comfortable. They will also put covenants in place to protect the value of an estate and improve street appeal.
3. How do covenants affect a neighbourhood?
A covenant is made by a developer in a new land estate subdivision and this is required to be followed by all of the homeowners. The covenant can be anything from the size and build of your home to layout of front yard and the type of trees or landscaping you can have.
Covenants are agreements between homeowners and developers that specify the rules and regulations that must be followed by the homeowners. The covenant is a document between the homeowner and the developer.
What is Rental Yield?
Rental yield is important data to consider, as it indicates how much profit real estate investors will make on a property prior to investing. Rental yield measures profit from a property each year as a percentage of it's value and it helps buyers evaluate income from different investments and compare properties. A higher rental yield equates to greater cash flow. The two types of rental yield to consider are gross rental yield and net rental yield.
Gross yield is calculated through annual rental income and property value.
Net yield is calculated by including all expenses involved.
Investment Property at Pinnacle Hervey Bay
Pinnacle Hervey Bay is located in the Dundowran - Nikenbah Growth Area of Hervey Bay. The estate is strategically positioned on the borders of three emerging growth suburbs - Nikenbah, Wondunna and Kawungan. (source forecast.id.com.au) Rental Vacancy Rates for Hervey Bay were 0.6% as at June 2022 (source SQM research). Statistics for median price growth and rental performance (in the three suburbs surrounding Pinnacle) in the 12 months up until 1 August 2022 according to realestate.com.au:
Median Price Growth as at Aug 2022:
๏ Nikenbah 23.9% price growth.
๏ Kawungan 27.2% price growth.
๏ Wondunna 21.5% price growth.
Rental Market Performance as at Aug 2022:
๏ Nikenbah Rental yield: 5.2%
๏ Nikenbah 15.3% rental price growth over 12 months
๏ Kawungan Rental yield: 5.0%
๏ Kawungan 17.3% rental price growth over 12 months
๏ Wondunna Rental yield: 4.9%
๏ Wondunna 10.1% rental price growth over 12 months
The population forecast specifically for the Dundowran - Nikenbah Growth Area is 2,695, and this is forecast to grow to 7,487 by 2041. This represents a population increase of 177.85% 2022-41. (source forecast.id.com.au)
The coming SEQ property boom
According to the ABS, SEQ is set to welcome an additional 1.5 Million residents between 2020 and 2041, taking the state up to 5.3 Million(1). To accommodate the projected 75,000 new residents (every year for the next 20 years), the QLD Govt projects that 577 new new dwellings will be required (every single week for the next 20 years) to accomodate the QLD population explosion(1). To support this boom, the QLD Govt has allocated $134 Billion in infrastructure projects, that are expected to support approx. 930,000 jobs up until 2031(3). In the shorter term the 20/21 investment is projected to drive economic recovery and directly support 44,000 jobs(4). In the months to June 2020, QLD recorded a 1.6% population growth rate, which was higher than the Australian average(2).
1.Infrastructure Australia and QLD Government SEQ Regional Growth Plan:
SEQ Investment - Growth, Yield & Prices
The latest stats are in and show that South East Queensland is ticking all the right investment boxes with high growth, high yield and low prices. Performing better than the major cities right now, South East QLD is the shining star of the Australian real estate market.
HIGH GROWTH +75,000pa (1)
LOW PRICES $550,000 (2)
HIGH YIELD 5.01% (1)
1. https://sqmresearch.com.au/property-rental-yield.php (yield for SEQ is calculated based on an average including Brisbane East, Moreton Bay, Ipswich, Toowoomba, Logan, and Gold Coast)