“DEVELOPING INSIGHTS”
CONVERSATIONS ON SUNSHINE COAST PROPERTY
In this month’s Developing Insights we speak to the Managing Director of one of the companies making the Sunshine Coast economic dream a reality – Vizion Group Qld. Vizion was formed in 2011 by four entrepreneurs with a focus on delivering cashflow positive investment properties to customers across Australia. Paula Harris was one of the four founders, and today is the Managing Director of a real Sunshine Coast success story. You will definitely hear more about them in the future. Read her story if you really want to understand the property market here.
Thanks for joining us Paula. Tell us a little about Vizion Group Qld, your business model, your team and your markets.We specialise in duplex properties, which we design and build for owner occupiers and investors on the Sunshine Coast and North Brisbane. We have a carefully picked team which are used for every build so we are in complete control of the process and the outcome. Because of this we have been able to introduce a buy back guarantee. All our duplexes have true positive cashflow (before tax) and equity at completion.
When did you first get interested in the development industry / how did you get your start?
We had been investing in property for over 20 years and have accumulated a large portfolio in three countries. We had been helping friends grow their portfolios and saw a gap in the market to do it as a business. For every person who is successful in property, there are a 1,000 who fail and we wanted to change that. We created a great product, and tested it in our own portfolios first and then released it to clients once we formed Vizion Group Qld. We design our duplexes specifically with tenants in mind which is why they rent so quickly.
Who has been the most influential person in your development education and why? Who do you look up to in the industry?
To be honest I would have to say my father. As a kid, I watched him invest in Commercial Property when all his friends were putting their money into cars and boats. I never forgot how this set him up for retirement at the age of 50. He was constantly educating himself and changing how he did things and was always thinking outside the box. This was a very valuable lesson. As times change, if your business doesn’t change with it, you get left behind.
What has been your best performing geographic market over the last three years?
It would have to be the Sunshine Coast and in particular the Bli Bli area. We built duplexes there when people told us we were crazy, as it was before much was happening there. Those properties had the biggest growth out of anything we have done, and the equity in those properties turbo charged out client’s portfolios.
The Sunshine Coast is a notoriously cyclical economy. What are the main strengths of the development industry on the Coast?
The huge amount of funding the State and Federal Government are putting into infrastructure on the Sunshine Coast and the number of approved large projects. The Government don’t put that kind of funding into an area unless they are expecting huge growth. The Sunshine Coast Council have a long term plan for the area and the infrastructure is a big step towards this. These big projects and many more are creating jobs, and this puts pressure on the housing market, when demand exceeds supply. People are moving to the Sunshine Coast for jobs and a better lifestyle, and they all need somewhere to live.
What has changed in the last 5 years in the industry here?
The Sunshine Coast Council have changed their management structure with a new team and this has opened the door to a lot of new projects being approved, which has been beneficial for the industry.
Overseas investment appears to be here to stay in the Sydney and Melbourne markets. Do you see any overseas investors entering the Sunshine Coast market anytime soon?
In larger projects, Asia is a huge asset to Australia and if we don’t embrace them there will be missed opportunity. The economic and business benefits are endless. With regard to the Sunshine Coast housing market, I personally don’t think it will be anything like the Sydney and Melbourne markets with overseas investment. Most of them are only looking at the capital cities.
What has been your most significant / favourite project here on the Sunshine Coast?
It would have to be the Glasshouse Country Estate in Glasshouse Mountains. We had to jump through hoops to get land in this estate, and we have the only duplexes there. The quality of our work in the Estate paved the way for us to get into Estates that are predominantly owner occupiers, and where the land developers are extremely resistant to duplexes.
What should investors on the Sunshine Coast watch out for?
Land sizes are getting smaller and smaller in many multi stage developments, leaving little room for growth.
How could the development and construction industries improve?
By putting integrity back into the industry. Everyone should be winning. It’s a domino effect. From the developer, the builder, the trades, to the home owner/investor and all those in between. Each sector of the industry needs to support the next and deliver on their word.
What does the next five years look like here on the Sunshine Coast?
Consistent growth due to the support from State and Federal approved projects. Housing demand should continue to exceed supply.
What do you get on your soap box about?
It would have to be about property spruikers and marketers selling properties to inexperienced property investors, telling them the property will be positive cashflow, when in fact it turns out to be negatively geared. I see it happening time and time again.
August 2017
