All Topics / Help Needed! / Gold Coast

Viewing 20 posts - 1 through 20 (of 23 total)
  • Profile photo of tanner892tanner892
    Participant
    @tanner892
    Join Date: 2013
    Post Count: 25

    Hey there I'm new to property investing and to the Gold Coast and looking for any help on the area.

    I'm aware of the rather sharp decline in land values in the Gold Coast since the GFC and as I'm young and have only just began full-time employment with a low income I'm looking for a lower risk investment, something that can self sustain its own outgoings.

    I've been looking into apartments of which there are very many in the Gold Coast, resulting in very cheap prices but still with decent rental yield, basically I'm wanting to know people's opinions on the future and prosperity of the area.

    There have been light rail works (trams) being constructed here for the last 8 odd months and will be finished in 2014 along with the possibility of a Sea port and the Comm Games in 2018 i believe.

    As this is my first investment, does anyone have any major obligations against investing in an apartment in Surfers Paradise? I am aware of the abundance of apartments here and my biggest concern at this time is finding tenants, although many of them seem to be already rented out, there is still nonetheless many many apartments for sale.

    Thanks for your help.

    Profile photo of Jason957Jason957
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    @jason957
    Join Date: 2013
    Post Count: 22

    Hello,

    Firstly – I am not a investor yet but just something that came to mind, maybe with the Australian dolloar lower is there a chance it could boost tourism in the Gold Coast  influencing capital growth. ?

    Jason

    Jason957

    Sutherland Shire Real Estate Agent - Jason Mikhail - 0402 640 630

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    Hi Tanner

    Firstly welcome to the forum and i hope you enjoy your time with us.

    Spent last week finishing of the exams for my full Real Estate License which will help with our new Buyers Agency arm.

    Funnily enough i sat next to a guy who worked the Surfers Paradise area and he spent most of the telling me about the area.

    Further falling values, diminishing rents and vacancies everywhere was his take on the area and he had worked the area the good and the bad times.

    Anyone who invests in the GC is catching a falling knife and certainly would never put one of my clients into the area especially if they wanted to build their portfolio.

    Just because the prices are cheap doesn't mean they are going to increase in value.

    There are plenty of areas where we put our clients into with cheap prices which have the drivers to encourage capital growth over time and in the meantime enjoy good cash flow meaning the investor can buy again and increase his portfolio.

    My opinion steer well clear.

    Cheers

    Yours in Finance 

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me

    100% Investment Finance now available on selected properties. Email us for further information.

    Profile photo of Jamie MooreJamie Moore
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    @jamie-m
    Join Date: 2010
    Post Count: 5,069
    tanner892 wrote:

    As this is my first investment, does anyone have any major obligations against investing in an apartment in Surfers Paradise? I am aware of the abundance of apartments here and my biggest concern at this time is finding tenants, although many of them seem to be already rented out, there is still nonetheless many many apartments for sale.

    Hi Tanner

    Welcome aboard.

    That's the reason why it's likely to be a bad investment choice. The abundance of apartments for sale doesn't help CG prospects – plus I wouldn't want an IP on my books that I thought I'd have issues renting out.

    I personally wouldn't be overly keen to pick up an apartment there.

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
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    Mortgage Broker assisting clients Australia wide Email: [email protected]

    Profile photo of Jamie MooreJamie Moore
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    @jamie-m
    Join Date: 2010
    Post Count: 5,069

    There you go – Richard already responded while I was typing and he's close to the ground there. Seems like the Gold Coast  is still a dud.

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
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    Profile photo of tanner892tanner892
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    @tanner892
    Join Date: 2013
    Post Count: 25

    Jason957 wrote:
    Hello,

    Firstly – I am not a investor yet but just something that came to mind, maybe with the Australian dolloar lower is there a chance it could boost tourism in the Gold Coast  influencing capital growth. ?

    Jason

    That's a good point, however not sure of the impacts of long term capital growth, its possible it may increase demand for apartments.

    Qlds007 wrote:
    Hi Tanner

    Firstly welcome to the forum and i hope you enjoy your time with us.

    Spent last week finishing of the exams for my full Real Estate License which will help with our new Buyers Agency arm.

    Funnily enough i sat next to a guy who worked the Surfers Paradise area and he spent most of the telling me about the area.

    Further falling values, diminishing rents and vacancies everywhere was his take on the area and he had worked the area the good and the bad times.

    Anyone who invests in the GC is catching a falling knife and certainly would never put one of my clients into the area especially if they wanted to build their portfolio.

    Just because the prices are cheap doesn't mean they are going to increase in value.

    There are plenty of areas where we put our clients into with cheap prices which have the drivers to encourage capital growth over time and in the meantime enjoy good cash flow meaning the investor can buy again and increase his portfolio.

    My opinion steer well clear.

    Cheers

    Yours in Finance 

    Appreciate your input pretty much the answer I was expecting, from what I've seen it seems  like sellers are just desperate to get out, I would be interested in possibly pursuing Brisbane, but the flood disasters they've had there the last few years scare me.

    The insane oversupply of apartments available in the Gold Coast really is a concern.

    Profile photo of tanner892tanner892
    Participant
    @tanner892
    Join Date: 2013
    Post Count: 25

    It has really taken a hit the last few years that's for sure, for a first time investor like myself with limited experience the ability to buy cheap property that's positively geared is enticing on a low income, but nonetheless not overly useful if theres no CG or prices become even more deflated…

    Does anyone ahve any thoughts on apartments in Brisbane?

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069

    Limited experience is even more reason for staying away – and a property sitting vacant isn't putting money in your pocket.

    Brisbane seems to be going pretty strong at the moment. It's a big place – so difficult to comment on particular areas and dwelling types but I'm seeing quite a few investors buy there at the moment (mostly detached houses though).

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
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    Profile photo of Richard TaylorRichard Taylor
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    @qlds007
    Join Date: 2003
    Post Count: 12,024

    Tanner lived in Brisbane for nearly 17 years and no floods in Chapel Hill.

    If you deal with someone who knows the area and carry out the right due diligence then you wont be buying in a flood area.

    Cheers

    Yours in Finance

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me

    100% Investment Finance now available on selected properties. Email us for further information.

    Profile photo of tanner892tanner892
    Participant
    @tanner892
    Join Date: 2013
    Post Count: 25

    Hey thanks for your input, yeah well the whole place isn't a disaster zone I will just need to make sure I've done plenty of flood research before ever committing to a buy, Chapel Hill is west Brisbane isnt it? that isnt for from Toowong I believe? Which is somewhere I was looking at that seems to have a good supply of tenants bringing in great rental returns on apartments there, anyway looks like I'd best steer clear from the Gold Coast , I'm currently focusing on suburbs as close to Brisbane city as possible, just trying to decide on the best setup for my first investment, I'm really after something that is positively geared, I dont have the cash flow for a negatively geared house that cant pay for itself, any thoughts on townhouses around Brisbane? The prices are very enticing and some of these are filled with multiple tenants fetching over $450 p.w in rental income with low B/C costs. Anyone have experience with suburbs like Mt.Gravatt or Coopers Plains or anywhere South of Brisbane?

    Mind you i believe some areas here are probably flood affected, where if any suburbs in Brisbane are there 'safe' areas?

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    Yes Tanner is on the other side of the highway to Indooroopilly and sits underneath Mt Cootha.

    We are on half an acre so a nice sized block.

    I know Toowong very well and own a couple of block of units in both Toowong and Taringa (You can read my API interview on a recent Toowong development in the Feburary 2013 edition). I have owned the properties since 2002 and out of the 24 properties can count the number of days we have had them vacant.

    Always a good supply of quality Tenants with UQ being on the doorstep.

    In saying that it all depends on your anticipated purchase price. We are putting clients into a variety of quality areas both in Qld, NSW and Vic depending on the clients requirements.

    Cheers

    Yours in Finance

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me

    100% Investment Finance now available on selected properties. Email us for further information.

    Profile photo of Nigel KibelNigel Kibel
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    @nigel-kibel
    Join Date: 2005
    Post Count: 1,425

    I think that Brisbane is still undervalued

    Out of all the states I think that Brisbane offers very good medium term buying opportunities.

    However what happens is that when a market is improving it starts from the center and moves out. What I would suggest is look at properties that are around 5 or 6km from the city center. Providing you do your research carefully I do not think you could go far wrong. My investment strategy has to always buy properties that will appeal to end users because you often end up with better long term tenants and properties that provide stronger capital growth. Naturally you have to look at what is affordable. However if you buy the wrong property it may take you a long time to buy your next.

    Nigel Kibel | Property Know How
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    Profile photo of tanner892tanner892
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    @tanner892
    Join Date: 2013
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    Yeah that's some good advice, in my opinion it seems like they are undervalued in alot of suburbs primarily due to them being situated in flood zones, I doubt you can even get insurance in these places.

    My only question is if buying near Universities where its very possible to have tenants primariy of Uni students, are things like garages or parking spaces even overly desirable? Or is it more of a situational thing and depends on the tenant?

    Profile photo of tanner892tanner892
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    @tanner892
    Join Date: 2013
    Post Count: 25

    Yeah I've heard good things about occupancy there near UQ and it has great infrastructure and transport in the area, I think there was some flooding there but nothing significant? I wasn't actually in Qld during the floods so I'm unaware of where and how bad certain areas were affected but doing plenty of research! it seems like alot of southern suburbs were badly affected. In saying that I've looked at Toowong's RP Data report, with house and unit prices remaining fairly  steady even after the GFC in comparison with everywhere else.

    From what I can see it seems like $350,000 should be able to get you a decent but not a great 2 bedroom unit in the area.

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069
    Nigel Kibel wrote:
    I think that Brisbane is still undervalued

    Yeah I agree – just had a client pick up a nice, modern detached house about 10kms or so north of the Brisbane CBD for a price that would probably be 50% higher if it was purchased in Canberra at a similar distance away from the CBD. Makes me wonder why I'm putting up with these winters each year :-(

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
    Email Me | Phone Me

    Mortgage Broker assisting clients Australia wide Email: [email protected]

    Profile photo of Corey BattCorey Batt
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    @cjaysa
    Join Date: 2012
    Post Count: 1,010

    Because you enjoy the company there, Jamie! :P

    I have a friend who works as an RE agent in Surfers, when he came down last he was saying how much of a nightmare it has been the last few years. Developers creating MASSIVE oversupply, businesses shutting down everywhere. Doesn't bode well for a good investment opportunity.

    Tanner, there are definitely better cash flow opportunities out there without the risks associated with GC and Surfers.

    Corey Batt | Precision Funding
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    Investment Focused Finance Strategist - servicing Australia-wide

    Profile photo of DerekDerek
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    @derek
    Join Date: 2004
    Post Count: 3,544

    Hi Tanner,

    Re: Commonwealth Games Effect.

    Not convinced the Commonwealth Games will do much for the GC property market.

    The event itself is only 2 weeks (or so) so those seeking accommodation only do so for a relatively short period of time, particularly in property terms. Any upswing will be created by construction and as I understand it the great majority of venues are existing ones and have already been built so even this impact will be negligible.

    Any benefit will be psychological.

    Profile photo of god_of_moneygod_of_money
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    @god_of_money
    Join Date: 2008
    Post Count: 970

    I moved from Sydney recently to take up the job at Gold Coast University Hospital.

    I am glad that I am able to buy a waterfront house with the fraction of cost in comparison to sydney.

    5bed+3bath+4garage+2 level for ~A$ 720k waterfront house. I dont think you can get such a property in sydney.

    The whole parklands are going to be transformed to Athletes Village for the 2018 Commonwealth Games and the further development of the Health and Knowledge Precinct.

    1.73 billion GCUH + 300 million Robina hospital, expanding the griffith uni, new seaport terminal at broadwater, Light rail link, ?new casino etc will create ongoing sustain economy for GC. With the AUD$ falling, it will help to get the tourism industry going again.

    Most of the apartments at Surfers are well overpriced anyway.

    Profile photo of keikokeiko
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    @keiko
    Join Date: 2008
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    tanner just because one or two people say Gold Coast is a dud it does not mean that it is, I have been investing here since 2008 and I have my ear close to the ground all day every day and currently things are changing and values are going to increase, there are some suburbs that  have been booming on the Gold Coast over the past 12-15 months and most people wouldn't have a clue it is happening other than the people watching or living in these suburbs, I no of one suburb that you drive around the streets and all you see is sold signs every where and this suburb has been increasing in value for some time now.

    As god of money points out there is the new Gold Coast university hospital which will be complete in September which cost $1.8 billion dollars to build and the hospital is the biggest in the Southern Hemisphere, what will this do to values? 

    I hear there is a private hospital to be built along side.

    Griffith university is also doubling in size, mmm where will these people live.

    pacific fair is having a $500 million make over. Surfers through to mermaid beach is going to be transformed as well, money will be spent to transform Gold Coast hwy.

    There is $90 billion currently being splashed around or will be.

    $1 billion jewel towers to be constructed.

    possible new cruise terminal.

    mayor Tom Tate says he is expecting to see at least 12 cranes in the air in the next 12 months.

    Tom has reduced infrastructure charges to increase building activity, in some cases 100% discount.

    gold coast house values increased 7.4% over the last 12 months on average.

    gold coast turned about mid 2012.

    go try buy a house and you will find you have competition.

    i was at a auction last week, average house 3 bed had 40 people at the on site auction with 7 or 8 bidders, sold under the hammer, vehicles were slowing when passing to see what was going on, people were cued on the street.

    most people are behind the eight ball and you will still hear people bagging Gold Coast but things are changing.

    prices have been hit here but you watch when they rebound, yea you would of heard 50% slashed blah blah but this is mainly apartments or high valued properties or properties where people have over paid, some properties never dropped in value at all and some even increased in value, I just picked up 65% profit on a property I bought a few years ago, I bought in the resession and sold in a worse market than I bought in and still made 65%. Right now is the time to buy on the Gold Coast because 2014 will be to late in most the good suburbs.

    they say when the Gold Coast booms it booms and when it busts it busts which is very true, and as I believe we are out of the bust and just starting to gear up at the bottom which is the place to be.

    to many positives for it not to increase in value.

    Profile photo of tanner892tanner892
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    @tanner892
    Join Date: 2013
    Post Count: 25

    Well everything you say is why I was originally interested, I live here and am well aware of everything that is happening construction wise, there is ALOT of overhauling and new infrastructure being built, the abundance of apartments is definitely an issue but in terms of houses I'm not sure where the market is at.

    Brisbane, I like it, but nearly everywhere seems flood prone so it scares me at the moment. I appreciate your input, the Gold Coast seems to have all the right fundamentals, cant help but think that things could be drastically different in the not to distant future if the world economy starts to recover, seems like this downturn has been going on for decades.

    The Gold Coast does however seem purely like a tourist attraction, where are all the jobs here? It seems to lack commercial property and high paying jobs with the place being flooded in apartments for those with short term plans, can it ever really take off like this?

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