Help Needed...Upper Coomera, SEQ

Hi There, would really appreciate local people thoughts who are familar with the Upper Coomera suburb. Around two years ago, I had purchased a brand new three bedroom home from the devine property developers (link provided below). Since, im in Melbourne I dont get to see much updates on the area. I was thinking of selling the place as the property has not increased much at all, im looking to build up equity so I can purchase another Investment Property. Furthermore, from my research there seems to be an oversupply of property there at the moment and 4 bedrooms seem very popular there as well. I know there will be future projects going on in the future eg the New Coomera Town Center. But personaly, I cant see this will make prices sky rocket. Another side of me says keep it, and see what happens in another few years time. But maybe I should just sell, and purchase somewhere where I could afford that has a higher demand.  Also, can you see property will at least double within ten years there? What are your thoughts? Furthermore, purchased my place for $316,000 and currently getting around $310 rental.

Thanks,

 http://www.devine.com.au/coomerasanctuary/location.html

Personally, unless you think it's a fundamentally bad investment - ie negative cashflow won't be compensated by anticipated growth - then I'd refinance rather than sell. You'll get as much, or more, cash in your pocket, and you continue to benefit from the property's capital growth. Two years is not long enough for time to work its magic! Pundits seem pretty optimistic about the future of this area, so I'd be inclined to refinance to max LVR and use the equity you pull out as deposits on further investments.

Best wishes,

Tracey in Brisbane

i'd hang on, the whole region is tipped for major growth over the next few years.  The developers are buying up any land they can and the sewerage has just been extended in Nov in the area.  There would be lots of information on the net regarding the development happening in the area.  If you have good tenants, and the property is not sitting there empty, i'd sit on it.

Hi,

In saying that, the days of a 30% gain in a year are gone in SE QLD, Addordability has caught up.  You will find that you have done fine in the two year period.  Hold on for 5 and you will see a nice gain also your allready heathly rental yeild will improve further in the comming months.  Check with your agent to insure you are still receiving the market rate.
  
Rick.....  

Hi Guys, thanks for the invaluable advice, it really helps. Keep it comming if anyone else has further thoughts. Cheers.

Hi Jay,

I also purchased a 3 bedroom townhouse in Upper Coomera (Aug 2007 $331,000) as an investment, after speaking to local valuers and researching future plans for the area.  I'm hoping for good capital growth.

Best Wishes

Peter .