Forums / Property Investing / Help Needed! / Coomera, Queensland – a good area to buy?

Viewing 18 posts - 1 through 18 (of 18 total)
  • Profile photo of JehJeh
    Participant
    @jehg
    Join Date: 2015
    Post Count: 2

    Hi area experts, I’m thinking of buying a 4-bed IP (house and land package) in Pimpama, Coomera. The development is called Gainsborough Greens Estate and is 35 mins drive south of Brisbane and 25 mins north of Surfer’s Paradise. Does anyone have any knowledge of the area and can give some advice/recommendations?

    All input will be greatly appreciated.

    Regards,
    Jeh

    Profile photo of CatalystCatalyst
    Participant
    @catalyst
    Join Date: 2008
    Post Count: 1,404

    Is this for investment?

    Is this through Positive Real Estate? They have been building and pushing that area to clients for 7 years that I know of. In 2008 they were calling it Boomera Coomera. What has past growth of existing estates been like? How do their prices compare to the new estates? Becuse in a few years time they will be the ones you are competing with if you sell.

    Buyer Beware.

    Profile photo of JehJeh
    Participant
    @jehg
    Join Date: 2015
    Post Count: 2

    Hi Catalyst, thanks for your response, very helpful info indeed. Afraid I’m a bit green and just learning how to do due diligence on a property. Will look online at prices of existing properties in the area. Yes, the property I’m considering is for investment and the company is called The Property Box. Heard of them before at all?

    Jeh

    Profile photo of BennyBenny
    Moderator
    @benny
    Join Date: 2002
    Post Count: 1,366

    Hi Jeh,
    As a new member, welcome aboard – you have come to a good place !! And good on you for asking the questions you need to.

    It is always good to know how to EXIT an investment before getting into it – hence, useful advice from Catalyst.

    Re Pimpama, I don’t know that there is a lot there – are there plans for schools, shops, etc? Or, is it mainly being considered for “tourist rentals”, with its easy access to Dreamworld, Movie World, etc.

    What I do know is that there is PLENTY of land there, so scarcity is unlikely to be a problem for some time to come. Do you have documents re expected prices, rentals, land sizes, facilities, etc?

    Put it up here and let’s see what it shows eh?

    Benny

    Profile photo of CatalystCatalyst
    Participant
    @catalyst
    Join Date: 2008
    Post Count: 1,404

    Good points Benny.
    I wasn’t impresses with the sales push back then and wouldn’t consider buying there myself.

    Property Box- never heard of the 2 guys running it and looking at their past newsletters there are only 2, the first being Dec 2014 so I’d be VERY wary of investing with such a new company.
    When property is in the news and the hype is there (as it is now) these companies come out of the woodwork. Investors are rushing to Queensland as Sydney has peaked.

    Do a LOT more research before buying, especially in new estates. You can make money if you get in on the ground level, but this is definitely not the case with Coomera.

    Jeh do some more reading and post any questions here for some unbiased answers.
    I’m always wary of companies that sell properties. Always consider who’s interest they are caring for. If they are selling a property obviously it is in THEIR interest. Maybe your needs are secondary??

    Profile photo of NarinderNarinder
    Participant
    @narinder
    Join Date: 2017
    Post Count: 4

    Hello everyone
    I am looking forward to either invest in Pimpama or Yarrabilba. I am after the brand new home and land package. I am considering FRD Group. They are providing me 9 year rental guarantee. Is this group reliable and is there the rental or capital growth in these two suburbs. Location wise Pimpama is very strategic right in between Gold Coast and Brisbane. And very near the dream world theme park.
    It also has a railway station nearby. Coomera development and Westfield shopping centre next door.
    Does it make pimpama a better and safer place for investment??
    Please guide and put me on the right track.

    Profile photo of SimonSimon
    Participant
    @simon1313
    Join Date: 2017
    Post Count: 59

    Hello everyone
    I am looking forward to either invest in Pimpama or Yarrabilba. I am after the brand new home and land package. I am considering FRD Group. They are providing me 9 year rental guarantee. Is this group reliable and is there the rental or capital growth in these two suburbs. Location wise Pimpama is very strategic right in between Gold Coast and Brisbane. And very near the dream world theme park.
    It also has a railway station nearby. Coomera development and Westfield shopping centre next door.
    Does it make pimpama a better and safer place for investment??
    Please guide and put me on the right track.

    Pimpama is now what Coomera was 10-15 years ago, fringe suburbs with land for Africa and there is still a lot of land in Coomera. Make of that what you will.
    Coomera is just now getting the infrastructure that was promised 10+ years ago.

    Profile photo of BennyBenny
    Moderator
    @benny
    Join Date: 2002
    Post Count: 1,366

    Hi Narinder,
    If you are wanting Capital growth, I would suggest the way to get that in Pimpama or Coomera is to look for second-hand property there. Anything new is going to be at top price, on a smaller block of land, and Capital Growth is likely to be NIL for at least 5 years, and even more.

    I am always wary of someone offering a “rental guarantee” especially for NINE years. If a place is good value, it should stand on its merits without having to be propped up !! And, rental guarantees would NOT be coming out of the developer’s pocket (you can bet on that) so guess where it comes from !!

    :)

    Pimpama is becoming wall-to-wall terracotta roofs instead of green fields. I think this kind of purchase can suit a FHOB as they often “make it their home” and add value while the community grows and infrastructure gets added over time. They become the P&C’s for the yet-to-be-built schools, etc. By the time 5 years is up, there might be early signs of some growth in values. FHOB’s hold on in bad times as it is “their home” and, eventually, Pimpama will become a complete suburb. Will it be a place where people desire to live? Dunno. Time will tell. But if the homes built there are shoddy and on tiny blocks, I don’t like its chances.

    Good thing is that there is so much land, it should be cheap, so a chance the house sites might be 600m2 or so. If not, I’d steer clear, as houses jammed together do not a happy community make !!

    Before jumping into a H&L in Pimpama, compare it with the values of similar second-hand properties in neighbouring ‘burbs – Coomera, Ormeau, Beenleigh, etc. If the H&L is dearer, then by how much, and is their value for those extra tens of thousands?

    Benny

    Profile photo of NarinderNarinder
    Participant
    @narinder
    Join Date: 2017
    Post Count: 4

    Thanks for your reply Benny and Simon. Much appreciate your views and it does make sense0.however, i am from Sydney area and wont know much about the local conditions other than what the agent tries to show.

    Benny the land in pimpama is around 380 or 450 sim and the asking price for a brand new home and land pkg with 4br, double garage and 2 bathroom is around 470k.

    Profile photo of NarinderNarinder
    Participant
    @narinder
    Join Date: 2017
    Post Count: 4

    Thanks Simon
    There seems to be a big push from Sydney siders towards Brisbane, especially when the prices are not that higher. The Sydney prices are around 800k in comparison to 450k in pimpama.
    Of course capital growth looks better in Sydney over pimpama, but affordability looks good in qld.

    Profile photo of SimonSimon
    Participant
    @simon1313
    Join Date: 2017
    Post Count: 59

    Hi Narinder

    My two cents from a newbie investor that has their PPOR in Upper Coomera.

    Jump on RE and search sold prices in Coomera, Upper Coomera and Pimpama. I would also suggest reading all the threads you can find on the suburbs in this and other forums.

    https://www.realestate.com.au/sold/property-house-qld-coomera-126253042

    Coomera is large and has houses ranging from low spec on 300sm through to 1M in Coomera waters. Pimpama is the next suburb out I have not spent much time out there but what I have seen is lots of houses on 300-400sm blocks. In Coomera and UCoomera there are good and not so good parts. Personally I would be looking at existing on larger blocks as close to the train and westfield as possible if I had to buy there.

    SEQ is a large place, I would be looking well north of Pimpama or north of Brisbane in areas with better fundamentals and yields.

    Ben
    Participant
    @benmstarlinesecurity
    Join Date: 2015
    Post Count: 14

    Hi Narinder,

    The corridor between Brisbane and the Gold Coast has a lot of new development but is also very popular due to people being able to commute to work in Brisbane while being close to the Gold Coast’s surf, sun & fun. There is also a lot of commercial property development happening between Brisbane and the Gold Coast which will, over time, mean more businesses moving here and therefore increased demand for housing in the general area.

    Apart from researching the area for property values, rents, suburb price history and expected future values etc as everyone else here has suggested, I would also add social demographics to your research mix. There are sometimes reasons certain suburbs or areas in this corridor that are cheap and these same reasons will often mean they stay cheaper than surrounding suburbs limiting capital gain.

    I live in Brisbane and although I’ve not researched the Pimpama area itself I’ve not heard any bad things and it is right smack bang in the middle of this growth corridor. Depending on the property, if you were to drop a pin on a SEQ map, Pimpama might prove for it be a good place to have landed.

    I always buy existing, especially if it’s in a newish development precinct, mainly because there is at least some history in the surrounding streets to research, but mostly because that “new home shine” has come off and it is possible to pick up bargains. But this is just one IP strategy. Many have found success working almost exclusively negotiating the lowest possible price for H/L packages and then selling within 3-6 months after putting lots of personal effort into presenting the home for the highest resale through landscaping, interior decorating etc.

    Good luck in your search.

    Profile photo of ajayayyarajayayyar
    Participant
    @ajayayyar
    Join Date: 2005
    Post Count: 175

    Definitely agree about the rental guarantee question – if it’s a good area, it should rent itself out.

    By the way, I’d recommend Coomera and Upper Coomera as excellent investments. I am in the Gold Coast now after spending a few days up here to check out 4 townhouse.

    I think the area has long term growth potential.

    Cheers,
    Ajay

    Profile photo of ajayayyarajayayyar
    Participant
    @ajayayyar
    Join Date: 2005
    Post Count: 175

    Hi Ben,

    I have been in the Commera and Upper Coomera areas over the weekend and had a good look at the area.

    The real estate agent drove me around and there are a number of schools and a lot of shopping and infrastructure in the area, in addition to the upcoming Westfield.

    The fact that Brisbane is 40 minutes away means those who enjoy the surf/sun/fun can live in Gold Coast and travel to Brisbane if they have a fulltime job up there.

    The type of tenant seem to be good/solid people – I couldn’t see too many issues with the social demographics of the area for Upper Coomera.

    I’m aiming to purchase a townhouse up there by end of the year.

    Regards,
    Ajay

    Profile photo of NarinderNarinder
    Participant
    @narinder
    Join Date: 2017
    Post Count: 4

    Hello Ajay
    Did you visit Pimpama as well, which is the next suburb after coomera.
    Is it correct that there will be pimpama railway station coming up in 3-4 years?
    There are shops in pimpama junction.
    What is your opinion about. pimpama or Yarrabilba??

    Profile photo of ajayayyarajayayyar
    Participant
    @ajayayyar
    Join Date: 2005
    Post Count: 175

    Hi narinder nope I didn’t visit those areas and only looked at upper Coomera and Coomera..

    Profile photo of SarahSarah
    Participant
    @sarahlouise
    Join Date: 2017
    Post Count: 10

    Hi Jeh,

    I have an investment property in Logan, QLD and I am looking to buy another one near the Sunshine coast soon. From what I’ve heard Coomera has a strong rental return and the growth is pretty good. Just make sure you do a lot of research before you invest in the area. I would look into infrastructure coming up in the surrounding areas to asses the rental potential of the place. My first investment property at Logan has been doing incredibly well and I believe Queensland’s a great place to invest compared to Sydney or even Melbourne. Good Luck :)

    Profile photo of JaxonJaxon
    Participant
    @jaxona
    Join Date: 2014
    Post Count: 282

    I live GC.

    simple answer there are better investments, for e.g. there is rd4 zoning in nerang if you in a position I can source a deal that would kill 99.5% of deals you find in upper coomera

    I just missed out

    RD5 zoning (up to 23m build)
    $399,000 purchase
    $800,000 build cost
    =1.2+10%
    =1.4 to be harsh

    4×420,000 (2b2b study)
    1×650,000 (2b 3b study and full floor)

    $2,330,000
    -1.4m expenses

    =around a mil profit.

    If you want to make average returns and maybe some average growth then go a standard house upper coomera, but there are far better deals.

    • This reply was modified 1 year, 8 months ago by Profile photo of Jaxon Jaxon.
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