Forums / Property Investing / Help Needed! / Is goldcoast apartment is worth to invest?

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  • Profile photo of Simon DSimon D
    Participant
    @sduxiaof
    Join Date: 2002
    Post Count: 5

    Recently i have good holiday in Goldcoast. We are really enjoying the time there. The apartment is relatively cheap comparing to Melbourne (where I live). I am also considering when retired, may spend the Winter there (for example 3 months) to avoid the Melbourne cold-wet weather.
    However, many people said that the apartment there is not increase in value (last a few year it is acutally dropped in price.). However, the view of the apartment is fantastic and is apealing to us.
    Anyone can give me an insight view of this highrise apartment (southport central for example) for investment?

    Profile photo of BuyersAgentBuyersAgent
    Participant
    @knightm
    Join Date: 2005
    Post Count: 306

    Recently i have good holiday in Goldcoast. We are really enjoying the time there. The apartment is relatively cheap comparing to Melbourne (where I live). I am also considering when retired, may spend the Winter there (for example 3 months) to avoid the Melbourne cold-wet weather.
    However, many people said that the apartment there is not increase in value (last a few year it is acutally dropped in price.). However, the view of the apartment is fantastic and is apealing to us.
    Anyone can give me an insight view of this highrise apartment (southport central for example) for investment?

    Hi Simon – this sounds nice and lots of people love the idea of a cheap unit after a holiday when they live in an expensive capital city. The issue isn’t the cost. The issue is whether it is a good investment. Lots of small highrise units are low on land content, have high strata fees and below 50sqm can be very difficult to finance and may struggle to achieve capital gains. It is important to buy something in a quality market and of a fundamental property type that local people will want to live in and buy and rent it or else you will be paying inflated interstate price with no exit strategy. Keep using your head to check things and it might work but don’t buy on emotion alone. You need to check the vacancy rates and strata fees and rental returns as well as thinking about scarcity which is the thing that will drive capital appreciation. All the best!

    BuyersAgent | Precium
    http://www.precium.com.au
    Email Me | Phone Me

    South Coast NSW Independent Buyers Agent - Wollongong to Batemans Bay and Regional NSW

    Profile photo of BennyBenny
    Moderator
    @benny
    Join Date: 2002
    Post Count: 1,168

    Hi Simon,

    And mainly, DON’T go buying something OTP (off-the-plan – i.e. it is yet to be built), especially if offered a free flight there. That would be a HUGE mistake. Glad you enjoyed the holiday, and there can be good deals on the Gold Coast, but these are NOT sold by marketing companies.

    Here is a link that takes you to a host of good information. It started with a member asking about buying OTP in another area. Don’t worry about the area – it is more about the learnings that you will get from reading the thread. And, even if you weren’t looking to buy OTP, do read it anyway.

    https://www.propertyinvesting.com/topic/5027637-need-advice-with-regards-to-property-investment-in-noble-park/#post-5027702

    Be sure to click on the link in my last post on that thread too – it takes you to a very well-written article from Jason about OTP purchases, and why they are not good for investors.

    Benny

    Profile photo of Simon DSimon D
    Participant
    @sduxiaof
    Join Date: 2002
    Post Count: 5

    Hi, Benney and BA(Buyer Agent),

    Thank for your comment and advise. both OTPs and small apartments are not our options. Actually for the highrise apartments, no matter what size it is, all have little land components. The reason we choose highrise is the view, a view is hard to find in other places, and also the location (central locations and close to anywhere) and facilities (lifestyle, high cost on body, the price to pay). And also high demand for rental (with good rental return $620 per week). My only concern is the capital grouth with these highrise apartment (may not going up much or at all in 10 years time).

    Profile photo of BennyBenny
    Moderator
    @benny
    Join Date: 2002
    Post Count: 1,168

    Hi Simon,
    Gold Coast apartments have had quite a checkered history. In the late 80’s (was it?) apartments were often changing hands for double and triple their original price – and then the bottom dropped out when we had “The recession we had to have” – Paul Keating. They then dropped markedly in value (had been well over-priced by marketeers), and they then languished for MANY years.

    In the early 2000’s we had another boom in Brisbane. I wasn’t watching the Gold Coast then, but I suspect values would have climbed once more until about 2006 (a year before the GFC) then once again stagnated, as did Brissie’s prices. Recently people are talking of Brisbane “starting up again” as Syd and Mel values keep rocketing upward – at some point, many will look “elsewhere” and at that time, Brissie and Gold Coast will come into their own again.

    After the last boom, Brissie’s median house price settled near to Melbourne’s median level. Right now, Mel’s median is WAY above Brisbanes – so I think there is a lot of room to move. And a quick search revealed where an Australian RE guru John McGrath is saying “Gold Coast is next!” here :-

    Real estate mogul John Mcgrath has tipped the Gold Coast suburb of Mermaid Waters to be the top growth suburb nationally in 2017, according to The Australian, as renovations lift values in the area close to exclusive Mermaid Beach.

    …from this link:- http://www.news.com.au/finance/real-estate/buying/property-2107-gold-coast-set-to-boom-but-still-no-end-in-sight-for-sydney/news-story/0d10fe1f6ec94ddc1e1698eee52dc368

    Is John McGrath right? I would think so – SEQ has been marking time virtually since the GFC with some signs of an upturn appearing last year. There is still lots of “room at the top” in my opinion.

    Just one sign (to me) that SEQ may not boom as much as last time comes from the overall economy right now – with wages not increasing much, unemployment not robust, and interest rates looking like “the next move might be up”. I don’t think it will stop a boom in SEQ values, but they may not reach the heights of previous years. Of course, Syd and Mel might have values “settle back” too – that means SEQ won’t need to climb so far to meet Mel’s median again !

    Benny

    Profile photo of DiDi
    Participant
    @didee08
    Join Date: 2015
    Post Count: 2

    Hi Simon
    I have 3 investment properties on the GC. 2 units and a townhouse. 2 were bought ’emotionally’ and the townhouse was bought from deceased estate. The 2nd unit we purchased was in 2007 and we paid top dollar for it. (just before GFC) that unit is still not worth what we paid in 2007. We are getting good rent now for them all but there hasnt been much growth.
    I think you mentioned Southport Central. The Body Corporate fee’s would be very expensive in something like that. I would look for an older block of units with no lift. There are still bargains to be had along the Broadwater if you head Nth of Southport.

    Hope this helps.

    Cheers, Di

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