Marina Berths Queensland
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Why invest in marina berths?
Marina berths provide a great alternative asset class offering above market investment returns with low risk.
Marina berths
- offer high rental returns
- have great tax advantages
- provide strong historical capital growth
- have low acquisition costs
- have low ongoing maintenance costs
- can be financed on a stand-alone basis
- are in limited supply with high demand
- offer consistently high occupancy levels
- are an acceptable asset class for inclusion in Self Managed Super Funds investment strategy
RESTRICTED SUPPLY
- the Environmental Protection Agency (EPA) & Federal Environment Minister have very stringent environmental policies in place which govern future development of marinas
- currently the EPA has a near embargo on many new large scale marina sites throughout the QLD coastline, which creates a scarcity in the market for the future supply of marina berths
- supply issues have caused lease terms to reduce from 50 years to the current 20 years, with terms of 10-15 years now common place (Source - Dept of Natural Resources)
- based on boating registration statistics in QLD, there will be a requirement for an additional 7-8 new marinas by 2013, which is unlikely to happen due to current development restrictions, just to accommodate the expected 300,000 registered boats in QLD by 2013 (Source - QLD Marine Industry Report)
- excluding the Horizon Shores & Abel Point Marinas, there are less than 6,000 marina berths in QLD (Source - MIAA)
HIGH DEMAND
- there are currently in excess of 780,000 boats registered in Australia, with approximately a further 110,000 not registered (e.g. being renovated, repaired, etc) (Source - QLD Marine Industry Report)
- QLD makes up nearly 30% of all boating registrations, more than any other state in Australia (Source - QLD Marine Industry Report)
- total boating registrations in QLD exceeded the 236,000 mark as at 30/11/2009, with current boating registration growth exceeding the population growth in QLD and is expected to pass 300,000 new registrations by 2013 (Source - QLD Transport, ABS, QLD Marine Industry Report)
- QLD currently attracts 310 new residents per day with net migration to the state along with a demographic shift of empty nesters and baby boomers looking for a ‘sea change' (Source - ABS)
- QLD has one of the highest levels of population growth in Australia at a rate of 2.6% p.a. outstripping the national rate of just 2.1% p.a. (Source - ABS)
- on water home occupation is increasing at 5% p.a., now making up 10% of all new boating registrations (Source - QLD Marine Industry Report)
- QLD alone has nearly 15,000 registered boats in excess of 8 Meters in length that require specialised berthing/mooring facilities (Source - QLD Transport)
- How strong is the capital growth on Marina Berths?
- Very strong, in fact marina berths at our Horizon Shores location have a compound average of 31% p.a. capital growth over the past 6 years. (Source - Valuer General's Office)
Leasehold berths
- Are able to claim back the full purchase price as a tax deduction over the first 10 years under existing tax law
- Offer a lower entry level for first time investors (from $145,000)
- Have low acquisition costs
- Have consistently high occupancy levels (our marinas at Horizon Shores & Abel Point are currently operating at between 85-100% occupancy which includes owner-occupied berths that are unable to be rented out)
- Have provided strong historical capital growth
- Are in strong demand with limited supply
- Are not subject to land tax assessment
- Do not incur stamp duty on the initial purchase (although resales may be subject to stamp duty)
- Are the industry norm throughout the Australian marina industry
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