Forums / Property Investing / Help Needed! / investing in gold coast

Viewing 20 posts - 1 through 20 (of 21 total)
  • Profile photo of ajayayyarajayayyar
    Participant
    @ajayayyar
    Join Date: 2005
    Post Count: 149

    Hi all,

    I have been hearing mixed messages regarding this but I am considering investing in the gold coast area, either a house or townhouse. Some people have said there’s an oversupply of stock, particularly apartments, but when I look in areas such as merrimac and carrara, I am seeing very low vacancy rates and good rents. Gold coast is also obviously a nice area near beaches etc and less than an hour to Brisbane city. And in the short term there is the commonwealth games.

    Please offer your thought regarding this.

    Regards,
    Ajay

    Profile photo of Frazer89Frazer89
    Participant
    @frazer89
    Join Date: 2017
    Post Count: 0

    im also looking in Brisbane, down here in Melbourne is crazy expensive, no way I would buy here. paying 4-600k and only getting 350 a week in rent. No thanks.

    I don’t know anything about Brisbane but will have to research It up and maybe even go for a holiday there or something.

    Profile photo of blackhotelblackhotel
    Participant
    @blackhotel
    Join Date: 2010
    Post Count: 131

    I purchased 3 x houses in 2008, 2009 & 2010 on the Gold Coast (Ashmore). Yes great rental return but absolute crapppppppppp growth. 3 most important things in real estate investing;
    1. Location,
    2. Location,
    3. Location.
    The Gold Coast is none of these!

    My properties have grown less than 10% in 7-9 years.

    Profile photo of StevenSteven
    Participant
    @steven1982
    Join Date: 2017
    Post Count: 95

    Just curious, what sort of rental return did you get, since you mentioned it was good return.

    Profile photo of blackhotelblackhotel
    Participant
    @blackhotel
    Join Date: 2010
    Post Count: 131
    Profile photo of BennyBenny
    Moderator
    @benny
    Join Date: 2002
    Post Count: 1,213

    Hi Blackhotel,

    I purchased 3 x houses in 2008, 2009 & 2010 on the Gold Coast (Ashmore). Yes great rental return but absolute crapppppppppp growth.

    The timing of your purchases was unfortunate – I would have thought this was just a year after the peak of the market in SEQ. Since 2008, Brisbane has pretty much stood still. I suspect the GC would have been similar. I would have thought Ashmore to be a burb that will do well over time – it is hardly “out in the boonies”.

    Right now, the Brisbane property clock time shows 8 o’clock. Barring any major change in fundamentals, Bne (and perhaps the GC?) should do pretty nicely thank you over the next 3 years or so. I am seeing definite upward signs in Bne.

    What are you seeing in the GC, or have you given up checking? ;) It could be just the time for a big hike in the values.

    Benny

    Profile photo of blackhotelblackhotel
    Participant
    @blackhotel
    Join Date: 2010
    Post Count: 131

    When I purchased my 1st house back in 2008, I remember the agent telling me the last time it boomed on the GC, properties were going up $50K p/month and he found it difficult to price his listings. I asked him why it boomed and his reply “I don’t know”! There’s no reason why GC should not be booming right now. If you sold your home in Sydney now for say $2m (the average Eastern suburbs price), you could live like a king on the GC with this kind of money, but Sydney siders are not moving there like they did back in 2006-07. I’m holding out for another few years, but then I’m out of the GC and I’ll go back to prime waterfronts in Sydney and cop the negative CF for capital growth.

    Profile photo of SarahSarah
    Participant
    @sarahlouise
    Join Date: 2017
    Post Count: 0

    I would stay away from GC only because of the oversupply of units and crap rentals. My sister purchased an investment property in 2014 and the rentals are okay but growth is real slow…. I would suggest looking into Logan, Redbank Plains or even Springfield if you are considering Brisbane….The rentals are very consistent and the growth in these areas are very good.

    Profile photo of ajayayyarajayayyar
    Participant
    @ajayayyar
    Join Date: 2005
    Post Count: 149

    Wow that is surprising.

    I am visiting Gold Coast briefly in a week or two to look at properties.

    Profile photo of ajayayyarajayayyar
    Participant
    @ajayayyar
    Join Date: 2005
    Post Count: 149
    Profile photo of ajayayyarajayayyar
    Participant
    @ajayayyar
    Join Date: 2005
    Post Count: 149

    Thanks Sarah – but would you say steer clear on Gold Coast apartments only (given the large supply), or also houses and town houses?

    Jaxon
    Participant
    @jaxona
    Join Date: 2014
    Post Count: 155

    So I am based on gold coast, invest here and interstate.

    would suggest houses over units here, even duplexs hold good yields comparatively as bc cuts into gains.

    depends what your looking at to fit your strategy, but I agree with Sarah south and east of bris are far better deals (generalization)

    Kind regards

    Jaxon Avery

    Jaxon
    Participant
    @jaxona
    Join Date: 2014
    Post Count: 155

    west bris I mean haha

    Profile photo of BennyBenny
    Moderator
    @benny
    Join Date: 2002
    Post Count: 1,213

    Hi Ajay,

    Hi Benny – that’s what I’m betting on. But it’s surprising there was such limited growth in Gold Coast houses over the last 10 years. Articles such as these seem to contradict this. Am I missing something?

    One of the articles mentioned the median growing more than twice as fast as Brisbane – that could be valid – IDK, as I only see the Brisbane Median figures. But watch out for some little tricky things:-

    1. As one commenter pointed out in the 2nd link – the map at the top shows MOST of the Gold Coast either lost value or stayed the same (based on the colours on the map). A few went up in value, and one or two wildly so.
    My question to that comment is this – How accurate is the map? It seems to have 10% rests between each colour. So, if a suburb went down by 4%, and the suburb next door went up by 4%, how would they signify that? Likely both would show the same colour (in which case one colour can represent an 8% difference in values without being notated – how weird!!).

    2. A mention of Pimpama going up 61% over 5 years – what is not mentioned is that they will be comparing sales of 50-year-old farm workers cottages being sold, against brand new 4Bd2Ba homes being built. All of that development started about 3-4 years ago. There was a small loss in median value in the last 12 months.

    3. Is there a “Commonwealth Games in Apr2018” factor in all this? Is that some kind of catalyst helping folk to decide to migrate from Southern States once more? Supply/demand lifts prices..

    4. Some areas lifting by 30% – sure, it happens. Currumbin has never been a high-flyer – too far from Surfers, but is getting close to the airport. Perhaps it has been overlooked and just been re-discovered? And re-look at point 2. Is it repeated in other areas apart from Pimpama?

    5. The overall mismatch of median data between sources. The figures supplied by Jason over the last few months has seen Sydney’s median exceed $1m, and Mel nearing $900k – while THIS sample shows Syd at $930k and Mel at $650k. Which figures can be trusted? These in the links were from Mar17 – perhaps that is part of the difference.

    As I mentioned, I haven’t seen Gold Coast Medians in a while – it could be that GC IS stretching ahead of Brisbane right now – but don’t forget a Median is the “middle sale” in ALL of the sales in ALL suburbs of the Gold Coast. Many suburbs will have Medians less than the GC Median, while others will wildly outstrip the GC Median value. Hard to get accuracy with an across-the-board Median like that.

    6. Good work, Ajay – it is good that you challenge what you hear that doesn’t seem to make sense to you. As mentioned above, my comments were coming from a point of “less information”. As such, they were open to challenge, and I have learned, thanks to you. Keep on looking and making up your mind about all of the facts and opinions in front of you.

    The main thing is to NOT confuse those two (FACT and OPINION). ;)

    Benny

    Profile photo of ajayayyarajayayyar
    Participant
    @ajayayyar
    Join Date: 2005
    Post Count: 149

    THanks all – appreciate your points.

    My personal view is that there is room for solid growth in Gold Coast town houses and houses (but not necessarily units).

    Here are some examples I am seeing on realestate:

    * https://www.realestate.com.au/property-townhouse-qld-pacific+pines-126938830 ($353k, getting $375 p/w)
    * https://www.realestate.com.au/property-townhouse-qld-mermaid+waters-126792138 ($350k, $450 p/w)

    Let me know your thoughts on these.

    Profile photo of ajayayyarajayayyar
    Participant
    @ajayayyar
    Join Date: 2005
    Post Count: 149

    Hi jaxon / all – regarding the supply/demand equation, is it fair to say that there will always be demand for rental properties in Gold Coast, but that the price growth won’t be spectacular?

    Jaxon
    Participant
    @jaxona
    Join Date: 2014
    Post Count: 155

    Rental demand has only grown here since 2000, people love the gold coast and its easy to understand why.

    I really feel returns are far better for duplexs and houses, when you look at bc fees.

    I can find 7% and over house/duplex returns

    west bris I can find 8-9% returns

    Kind regards

    Jaxon Avery

    Profile photo of StevenSteven
    Participant
    @steven1982
    Join Date: 2017
    Post Count: 95

    Jaxon, when you say 8-9%, is this in the sense of 8-9% without buying below market value

    or you need to be below market value to get that 8-9%, otherwise you’d only get 5-6% (like how much we get in Melbourne if we don’t buy below market value)

    Jaxon
    Participant
    @jaxona
    Join Date: 2014
    Post Count: 155

    Ok So I will break down returns and answer your question.
    All returns are based on sales prices (purchase price) and rents for those areas (I try to be as on the point, not conservative and not optimistic(rent wise)

    what is a ROI % or 5% return mean, well its
    the return percentage (the banks formula generally, I personally have other ROI formulas I prefer)

    it is the weekly rent times 52 divided by purchase

    for e.g.

    $200 per week rent, times 52 weeks divided by purchase price of $100,000
    = 10.4% return

    make sense?

    this formula is useful in working out profitability if you understand all other aspects as well.

    from this you get a good idea if a property will make a gain or loss each financial year. (positive/negatively geared)

    Profile photo of StevenSteven
    Participant
    @steven1982
    Join Date: 2017
    Post Count: 95

    I understand how you calculated it, but that was not the intention of my question.

    I was actually asking:

    When you say get those 8-9% return for those “west bris” properties, were you able to get those properties at market value and still get 8-9% return (meaning west bris is such a fantastic area to invest in that we should really get to it while we can now and if one can buy at market value and still get 8-9% return then one should be able to get an even bigger return — such as more than 10-12% — if they apply good research and negotiation skills to buy below market value)

    Or it is not possible to get those 8-9% return unless you try to apply good negotiation skills to buy at a sales price that is significantly below market value?

    My instincts tells me it is the latter….

Viewing 20 posts - 1 through 20 (of 21 total)

You must be logged in to reply to this topic.