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  • Profile photo of Rocky2002Rocky2002
    Member
    @rocky2002
    Join Date: 2003
    Post Count: 2

    We have dreamt of retirement to the Sunshine Coast for several years but due to family commitments have not been able to make the move. At the same time we have watched property prices soar until we felt that maybe our dream was just that…. and would never materialise.
    Anyway during our latest visit to the coast, we purchased a unit in a fantastic location directly opposite a patrolled beach in a resort complex. However it is only one bedroom – we intend to rent it out probably in the holiday pool because it appears to be the most lucrative and also enjoy more time on the coast ourselves. We are wondering what others might think of this type of investment. We are very new at this. Body corporate is low (2500) and returns appear to be good. We are hoping eventually (with the sale of our family home) it will help us to purchase a property close to the coast. Your thoughts will be welcomed.

    Profile photo of Stuart WemyssStuart Wemyss
    Member
    @stuart-wemyss
    Join Date: 2003
    Post Count: 598

    Don’t mix business with pleasure.

    If you have purchased this for investment purposes then all you really have to worry about (with in reason) is the numbers. Is sound like you really like the area (which is great) but don’t let your emotions affect your investment decisions.

    If the capital growth is good or if the rental yield is high then it makes sense.

    Good luck with your investing.

    Cheers

    Stu

    Property & Finance News
    at http://www.prosolution.com.au

    Profile photo of kooringalkooringal
    Member
    @kooringal
    Join Date: 2003
    Post Count: 31

    HI Rocky 2002 where did you buy? I have the same dream (my husband doesn’t, but he’s being talked around, I hope…), and we recently bought in caloundra. from what i saw of units, and prices, ALL is seriously negatively geared.

    I think what you have done is fine, not from an investment point of view, but from a lifestyle point of view.

    the holiday rent thing gets chewed up by the expenses, so it’s an ‘expensive’ lifestyle choice, but hey, if you can afford it, and what you are doing is a LUXURY type of thing, why not?

    have you got other things in place to feed you an income in retirement? apart from the pension?

    we bought a wee little cottage in caloundra, great spot, shocking price, but I wanted to do it ‘now’ because I thought we will NEVER be able to afford such a spot in the future.

    It is tying up a LOT of our after tax income in servicing this huge debt, but, for me, it’s worth it, for a hard headed business person, it is NOT worth it, my husband says it was the WRONG time for us, and he is right, but my gut tells me it was the RIGHT decision, and my husband and I are BOTH hoping I turn out to be ‘right’, not him…

    anyway, good luck, I don’t think either you or I have done the ‘right’ things as far as a good-return-on-investment goes, but hopefully, with cap gains, these decisions won’t turn out to be SO SO wrong in the longer term.

    kooringal

    quote:


    We have dreamt of retirement to the Sunshine Coast for several years but due to family commitments have not been able to make the move. At the same time we have watched property prices soar until we felt that maybe our dream was just that…. and would never materialise.
    Anyway during our latest visit to the coast, we purchased a unit in a fantastic location directly opposite a patrolled beach in a resort complex. However it is only one bedroom – we intend to rent it out probably in the holiday pool because it appears to be the most lucrative and also enjoy more time on the coast ourselves. We are wondering what others might think of this type of investment. We are very new at this. Body corporate is low (2500) and returns appear to be good. We are hoping eventually (with the sale of our family home) it will help us to purchase a property close to the coast. Your thoughts will be welcomed.


    Profile photo of dr housedr house
    Participant
    @dr-house
    Join Date: 2001
    Post Count: 281

    Yes, we all have dreams.
    We returned from the gold coast, after a 2 week break yesterday and it was wonderful.
    We stayed on S.Stradbroke isl on a package, beautiful unspoiled beaches, no ugly developements.
    we then did some house, chickens and cat sitting for a friend in canungra (foothills of Mt. Tambourine).She has 6 acres!
    We spent one day looking at property, drove thru Nerang, Coomera, Helensvale, sanctuary cove (lunch), Runaway Bay.
    unfortunately, there has been this absolute price explosion.The suburbs set back from the coast, are just that, a suburb anywhere.
    I am sure very hot in summer.
    There are a no of lifestyle/water side developements, land prices start at $350.000 to $500,000.
    we looked in the r/e window at runaway bay, no houses under about 700,000, one house was selling at 7 million.
    I have no idea who can afford these sort of prices.
    We gave up at that stage.
    On the last day we looked at Canungra, the agent told us, anything around 200+ just walks out the door.
    There is a small new estate (30kms from the gold coast), we found a 6 year old house with swimming pool and absolutely every comfort, we brought it for 250,000, we expect a rent of about 250 p.week, no problems at all with rental vacancy.
    Even this area has had a cap gain. the current owners purchased this home in Oct. last year for $215.000.
    It’s not cash pos., but I think cap.gains will continue and we hope to live there in 3 years, when our son finishes school and consider semiretirement.
    We would like to buy a boat and just do a bit of crusing.We hopefully will have a sea and mountain air change that way.
    The home is low mainten. on 600sq.m block.
    No body corp.
    We did buy a lovely mirvac apart on main beach but ended up selling it last year, as the cost of rates/body corp was reaching $7000 per annum.
    It was tenanted, in a residential complex.
    By the way, growth rate to south QLD is huge, I’ve been told, although 150 go back.
    They come from NSW, Vic and S. Australia.
    Cap. gains is bound to continue increasing with that sort of growth rate.
    Well, now it back to Melb and cold Feet!
    Also back to tenant etc issues.
    Oh well, hold onto your dreams!

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