QLD Brisbane Metro or Gold Coast?

Discussion in 'Where to Buy' started by Tim & Chrissy, 11th Dec, 2015.

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Brisbane Metro or Gold Coast?

  1. Brisbane Metro

    67.3%
  2. The GC

    14.3%
  3. Hedge your bets - buy in both

    18.4%
  1. big max

    big max Well-Known Member

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    Exactly. Usually Gold Coast stays flat for the first 70% period of a property cycle and then goes nuts the last 30%.
     
  2. Tim & Chrissy

    Tim & Chrissy Well-Known Member

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    Is the GC good for a foundation portfolio buy though? Could be a make or break for me
     
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  3. Gockie

    Gockie Life is good ☺️ Premium Member

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    I think it's a "buy then before the market turns, sell" kinda market... because of you don't sell you could be holding an underperformer "dog" for many years till the next boom.

    But stay away from Gold Coast apartments whatever you do decide...
     
    Last edited by a moderator: 4th Nov, 2016
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  4. Player

    Player Well-Known Member

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    2010 was still half way through the downturn here. By my observation and active involvement the bottom of the market here for houses was late 2012 and early 2013. There has been significant growth since then and still a way to go IMO. The 2007 peak has not yet manifested but won't be far away in a general sense. It should surpass that level until another softening cycle occurs. The 2008 to 2013 downturn was severe here and affected houses in a manner that in past cycles affected only units/apartments. There is no paucity of cranes at present and more to come. Whoever wants to buy apartments on special here needs to wait four or five years. The carnage will be severe. I doubt it will hit houses anywhere near as hard especially anything around the linear beachside strip maybe up to 2-3km inland......................merely my 0.02
     
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  5. Tim & Chrissy

    Tim & Chrissy Well-Known Member

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    I'm not a fan of apartments in general just because of the ever increasing strata fees.

    Mortgage broker says she can get me about $600k so I'm thinking a free standing house either as close to Brisbane as possible or in a place like Miami
     
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  6. big max

    big max Well-Known Member

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    You will do very well buying in Miami and holding over the next 3-5 years. Very well ...
     
  7. big max

    big max Well-Known Member

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    2010 as a great time to pick up bargains. It's debatable when the bottom was but yes I agree sometime between 2010 and 2013. Now on defiante recovery/Growth mode ...
     
  8. big max

    big max Well-Known Member

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    On your latter point I agree also.

    We are getting more apartments and so the main factor there is how much will be absorbed by the increased population growth.

    The % of beachside houses as a % of total population will only decline over time so yes given scarcity of supply vs demand I can see these being best for growth long term.
     
  9. big max

    big max Well-Known Member

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    Permanent. Lots of new places popping up like this. Great to see!
     
    Last edited by a moderator: 4th Nov, 2016
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  10. Azazel

    Azazel Well-Known Member

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    Mitchelton is in Brisbane, not the GC.
     
  11. big max

    big max Well-Known Member

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    ?
     
  12. Luka

    Luka Well-Known Member

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    Hi everyone.

    I've been reading this forum for a while and have found some great information on here, thank you.

    As some others are, I'm trying to decide where to invest next.

    Up until Christmas 2014, I had three investment properties (4 bedroom lowset houses around the 600k value) on the NE end of the gold coast. I sold one in December 2014 and another in July 2015, and both sold within two weeks of us giving them to our agent who said things were very positive for Gold Coast around that time.

    Considering how quickly the first two sold, and not being too sure about where things are heading for me up till 2018, I put the third property on the market in late August after having an evaluation.

    Things appear to have done a 180 degree turn between June and August, as my agent is finding it difficult getting an offer within 80k of the asking price, even though this house is arguably better than the other two, and at what I feel is a very realistic price. I've sat in on two of my open homes (as a casual buyer) to see who's coming through and to eavesdrop some feedback. There are still some people coming through, though not as many as in June, but the worrying thing is the attitude of the buyers have definitely changed. The overall vibe is that most of the buyers feel there will now be a downturn in property movement on the Gold Coast for a few years.

    So now I'm trying to decide whether to even consider reinvesting locally, or instead trying Brisbane for a longer investment period. I would like to still reinvest somewhere within SE QLD. I'm very keen on listening to everyone's thoughts.

    Regards Luka
     
  13. Gockie

    Gockie Life is good ☺️ Premium Member

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    My suggestion is to not buy on the Gold Coast... if you have to sell in a hurry, you might just have to take the best/only offer on the table...
     
  14. Mel_C

    Mel_C Well-Known Member

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    I bought and sold on the coast in April and feel the market was very hot then...We had an offer in 24 hours. I have noticed now things sit on the market a little longer so I feel the APHRA changes have affected the market and yields may not be as good for investors but I still see some excellent sales and some suburbs still seem quite hot.
     
  15. Tim & Chrissy

    Tim & Chrissy Well-Known Member

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    In June John McGrath was predicting high growth in the 'Golden Triangle' of SE QLD (Brisbane, Toowomba, the GC) in the next 3 to 5 years. This is probably one of the main reasons I started looking there but I haven't been able to move yet due to finance.
     
  16. big max

    big max Well-Known Member

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    I think he's absolutely right.
     
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  17. Tim & Chrissy

    Tim & Chrissy Well-Known Member

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    My refinance settles early Jan and I have an appointment with the mortgage broker on Monday so fingers crossed. Just have to sort out trust, solicitor and find the property! I'll poat an update when it all gets moving
     
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  18. Gockie

    Gockie Life is good ☺️ Premium Member

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    :)
    Me as being conservative... Of the two options I'd choose inner Brisbane. Reason being, I'm not someone who wants to get involved in boom-bust markets. Because while having a huge quick gain is nice, you'd have to sell to realise it otherwise you could lose a lot of that gain. (Yes, you could pull out equity but if the market drops you could see yourself with zero equity). I tend to think Brisbane is still undervalued (with my Sydney lenses on).

    Also, quite a few middle aged or older Sydneysiders have a fear of the Gold Coast because they are all aware of the terrible apartment market. Everybody has heard of the stories where developers (in around the 1990's) were flying up Sydneysiders to the GC for free. The developers gave them a whirlwind tour, the naive Sydneysiders bought apartments at highly inflated prices and later on, they found they couldn't offload them for anywhere near purchase price.

    Another reason why I would avoid the boom bust areas is that buying and selling incurs transaction costs and taxes. I'd rather own something I'm happy with over the longer term. Sure its possible to make good money but you have to know when to exit the market. Inner Brisbane should hold its land value pretty well imo.

    I suppose I can say, Gold Coast vs. Brisbane is similar to Central Coast vs. Sydney. Ok they arent exactly alike but somewhat similar. The Coasts are more lifestyle, holiday destinations for people to go away to. People commute to the main cities for work or work locally. Also if/when people need to offload a home GFC style... the holiday home would be first to go for many. When this happens en mass it's simply carnage.

    The regional areas are more prone to a market bust, and long ones at that taking many years to recover. And, Gold Coast will probably join to Brisbane to become one large urban area at some point in time. Not quite yet though.

    Anyway, I say this as a Sydneysider. I am not on the ground but I feel confident Brisbane is a safer bet than Gold Coast. And there would be a high majority of Sydneysiders who would choose Brisbane over Gold Coast any day.

    My like: maybe look around Stone Corner in Brisbane and see if you can get something around there? Its pretty hip place not too far from the city...
     
    Last edited by a moderator: 4th Nov, 2016
  19. Tim & Chrissy

    Tim & Chrissy Well-Known Member

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    Finance is with the Liberty assessor so I'm still in limbo at the moment. I have been leaning towards a house with granny flat (there is a few around Inala and similar distanced suburbs to the CBD) to get cash flow up because I'm at the top of my serviceability, or buying a big block close to the city as possible to put a flat on in a year or so when I have the funds.
     
  20. JDP1

    JDP1 Well-Known Member

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    I agree with the above...
     
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