Buying a investment at the beach....sunshine or gold coast

We are wanting to buy a investment property that is close to the beach. Basically a house is out cause we don't have a million $$.
We have started looking at apartments but not sure on how it all works...Body corp fees etc.
Buying an apartment is new and I'm a bit weary as we need to rely on the rent to cover these fees.
What are the pros and cons?
We are thinking of investing now so by the time we retire we would own a second property but would like the benefits of using this apartment when it's free as well....
Hmm I know very confusing but not sure what to do...
We were also looking at the bay islands: Coochie, Macleay, Lamb as well but not sure as the prices of houses on the islands have changed in the last 5 or so years.
Feedback much appreciated

 

Sounds like you need to do some research.

To give you some places to start,

Work out your available deposit and speak to a broker so you know what you can afford.

Have a look at demographics for Gold Coast and Sunshine Coast, I am not familiar with these areas myself.

Houses aren't millions of $'s, some of those areas may have a lot of apartment supply coming up, look into this and where.

An investment has different goals to a lifestyle choice, wanting to stay in it when vacant might be making the purchase more emotional. Some of what you wrote seemed to imply you might be looking at short term rentals, maybe avoid these as there are more pitfalls.

I wouldn't be investing in an island, especially first up as there are more pitfalls, throw that idea out to narrow your focus.

Keep it simple to start with is my main theme

 

Ah yes, the old "buy a property on the beach that doubles as a great investment that pays for itself and allows me to holiday for free". So are you looking to holiday rent? Like Airbnb? That's a whole new issue but if not and you are looking to rent the usual way- how are you going to use it whilst it's vacant? Are you gonna bring a bed and furniture over for the weekend? Are you happy to have inspections whilst you're 'holidaying'? If you are wanting to get an investment property, that's awesome but just treat as that. Look for the factors that make it a great investment, otherwise you will fail miserably.

 

I would say build up a very solid asset base first before looking at holiday area apartments. It could stop you in your tracks before you have even begun.

 

Some of the replys so far sound harsh, but they're just critical.

What you've described doesn't sound like an investment at all. More like a holiday house that you hope to rent out sometimes. That's fine if you can afford it but saying you need to rely on the rent indicates it's not a holiday house.

The body corp runs the unit block. All the owners contribute to it's up keep and vote on what should and shouldn't be done to common areas. So you pay fees for insurance, lifts, pools, gardening etc - anything that everyone benefits from. The more expensive the block is to run the more body corp fees you'll pay. Lifts, gyms, pools, landscaped gardens etc are all expensive and will drive up your body corp fees.

You will also pay into a sinking fund. This is for large irregular expenses, like painting, replacing lifts etc.

You're probably going to want to use it at peak renting times. Holiday rentals are either a lot of work or very high fees.

Forget it.

 

If you wish to use the property as well as rent it, you may do best in a holiday unit complex. Management takes care of holiday rentals and you black out the dates you wish to use it.

Obviously returns will be lower, and deductions only in proportion to the time available to rent.

Get good advice if you wish to use it at peak times, I.e., all school holidays. Obviously a week here and there would not be a problem.

I remember a publicised case years ago where the ATO disallowed most deductions on a rental property. It was on the snowfields, and the owners used it all winter, only having it available for rent during the cheaper summer months, then claimed three quarters of all expenses.
Marg

 

HI Rab

I do't have a firm opinion on location but be very diligent about concrete cancer in high rises, there seem to been a few more issues of late on the Gold Coast.