Melbourne CBD or Gold Coast Apartment investment?

Hey all, my name is Kevin. I'm 19 and I'm new to the property market and these forums. I'm currently trying to save 50k for a deposit for my first house or apartment. I'm probably about a 2 or 3 years or so away from that.

My strategy would be to buy an apartment in melbourne CBD or Gold Coast. Melbourne CBD apartments are a lot cheaper than I thought, potentially you could short term rent on AirBnB in melbourne CBD and earn quite a lot.

But, from my research and reading on here, the capital growth would be nothing if not, negative, because of the amount of apartments being built there every year. Seems a little bit over saturated. If you have a good location I don't imagine leasing it out would be a problem,

Gold Coast would be a 2nd pick. Short term rental could work in the summer, but I know it would be hard during winter because its quiet there that time of the year. Leasing it out to someone could also be difficult because of the amount of other apartments there and there's not as many jobs there. But with the Commonwealth games coming up it could also be a good opportunity.

Both have their pros and cons, I'm almost starting to think I should wait a few more years longer and buy a house for a first time property.

Has anyone had experience in short term rentals in melbourne or Gold Coast? What's everyones view points on this?

Any and all advice and opinions appreciated

Kevin

 

Just my two cents... I think you should consider a house on land in a capital city or commuting distance to a capital city too. Long term, it should perform. It needs to yield sufficiently. Avoid mining towns.

As a young person you need capital gains so you can pull out equity and buy a second or third IP. If you buy something with little growth, which I suspect both Melbourne CBD and Gold Coast apartments may suffer from, you aren't going to be able to build a portfolio for many years after that unless you save another deposit, and that's really hard. Pulling equity is typically easier and faster. Perhaps buy a home you can reno and immediately extract equity.

 

Thanks for the advice. This does make a lot of sense. You said to avoid mining towns? Why would that be?

 

Do a search on the forum about Moranbah.

 

The first thing that comes to my mind from reading the title of this thread is "Oversupply".

If you are really looking at buying a unit, rather than a detached house, you'd better off looking at older units/apartments with less amount of units in one building. Try to look at adding value through cosmetic renovations while living there. I would suggest to look at inner suburbs like Hawthorn, Camberwell in the east, Collingwood, Fritzroy in the north, St.Klida, Elwood in the South east., instead of CBD ones.

 

I agree with the other comments: a house or unit is preferable, 3 bedrooms if possible with off-street parking.