QLD Buying in GOLD COAST?? is it worth while?

Recently i have heard buyers rushing down to Gold Coast to buy anything before Commonwelath games. Is it really going to boost the property prices in Gold Coast? I am looking at a few units in GC at the moment and they are still affordable with ok returns.

 

I don't keep a close on the GC market but having said that - I (personally) wouldn't rush out to buy based primarily on the Commonwealth Games coming to town. I'd be looking at a lot more factors that will add to growth.

Cheers

Jamie

 

My boss at work picked up a $250k unit in Carrara with decent yield (6-7%) off a buyers agent's advice. Makes sense from a cashflow perspective, the 20% would've paid for itself in a few years. Though not sure about capital gains in the area though. Any thoughts?

 

I would look at an older house close to water but not on a canal. That's the most solid option long term.
Don't buy a unit.

 

I am investing/watching/living on coast <? echo $title ?> put in Miami.(houses)...more than 10% growth over last 5 years . I would say the GC has not been a bad place to invest. Will the world implode after Comm Games like everyone suggesting. I dont think so it may make people want to live here more! Dont rule out the western suburbs they are growing as well anything under 500k goes quick. But doer uppers walk to beach and completely renovated are the most in demand at moment houses and duplexes.

 

For capital growth a house in Carrara should get you at least 10% over next year. Have a look at stats had about 12% last year just under 10% last four years. Its family suburb where you can still get houses under 500k easy access to M1 where a lot of the comm games action will be. Not as good yields now though as what you were getting a year ago. Id still consider. At this point in cycle im not sure id buy a unit or duplex in the area a lot of new stuff will be coming up in next few years. May be good for cashflow but I dont see a lot of growth.So depends on your strategy

 

Probably the same people who rushed to Moranbah a few years ago .

IMHO, to make money in any investment, don't follow the herd. Develop your own strategy, implement it, monitor your progress and, if it isn't working, modify it.

Having said that, we did but a place in the GC early last year as that is were we plan to downsize and probably pick up $100K in growth in the last 14 months.

So, I hope that people continue to rush to the GC as that will increase demand, push prices up, ... even though we are not currently interested in selling.

 

There will probably be decent growth on the Gold Coast for the next year or two due to construction and hype around the Commonwealth Games.

Whether it will continue beyond the Games or not is debatable.
Mag

 

Understand the economic drivers of the gc. The games are only one aspect of it.
I would not buy based on games alone, although it's better to have the games than not for the gc. Look at the bigger picture of these, it economy, supply and demand, it's position in the cycle etc...
Ultimately it comes down to supply and demand (as with any investment). I would place emphasis on jobs as the bigger factor on the demand side and supply side being supply of land (existing or slated for devt) , new builds etc.
Understand also that the gc has historically had strong growth in bull cycles and busts in bear markets..this trend looks like to continue even with the games.
If you are happy to stomach this, perhaps..don't know..else I would seek a larger more stronger (in numbers) economy such as the state caps. But that's just my view..it could be that the gc outperform all of these in the next 5 years % wise,, but how will it hold when it's cycle turns?

 

Hi all

Realise an older thread but thought I'd seek your comments.

Been watching and reading posts on GC soaking up the knowledge as I certainly am no expert on IP but a learner. I'm interested in SEQ but worry about the volatility of the GC house market. Would seem you'd need to time your entry and exit very carefully or be careful trying to pick less reactive suburbs to buy an IP house. If the data on RE.com.au and some sites elsewhere is to be believed, in say 2012-2014, a few of the more expensive suburbs appear to have bottomed out (Mermaid Beach, Hope Island, Currumbin, for example) and are now almost back to the previous, say 2008ish, highs. For some suburbs, seems a fair bit of money was lost ($400K+ off the median sales price). I know this is not across the board and many didn't experience this effect but show good gradual growth without a bottoming.

What causes this volatility? Is it skewed due to subdivisions reducing median pricing, floods?

 

Have worked with Hope Island / Coomera / Northern Gold Coast properties for over 3 years now. I think its just catch up to Sydney and Melbourne prices and demand is always increasing as the city of the Gold Coast grows. 1/3 of buyers here are investors or relocations from the south. Maybe 1/3 are Chinese and the rest are locals. Never really get too bad a floods on the Gold Coast. Haven't seen many sub divisions either - however there are a lot of first home buyer houses on the Market around Coomera / Pimpama that obvious sub divide from larger lots by builders.

 

If your looking to buy a unit I would suggest finding a unique product somewhere; not jumping at one of the pre-existing ones in Surfers Paradise or Southport just because its cheap - these will only become more and more harder to sell as more high-rises go up. Also most of them have body corp fees that are through the roof! Find an area thats got very few unit developments as they will maintain or even increase in price over time. I can recommend a few! Some of the newer developments are very clued onto the demand for low body corps nowadays so you can find some really good ones around if you know where to look.