Buying in Pimpama(Gold Coast) -

I am looking at the Gold coast market and it looks like a good market for Cash Flow. The vacancy rates(as per propertynerds) are low. If I am not too fussed about Capital gains then it sounds like a good place to invest if the rental space remains healthy. I need someone to be a devil’s advocate on this and potentially point out if there are any problems with sustainability of such a purchase.
Appreciate any assistance and feedback.

 

Pimpama should be compared to Beenleigh and Loganholme, Ormeau and Coomera as it is a commuter suburb. Although people do commute to gold coast they also commute to Logan City Council areas (industrial zones) and Brisbane for work.

Pimpama has a train line, and i think there are plans for a station. That is helpful for commuters.

I think there are more houses to be built in Pimpama, so i think in the future vacancy rates will be the same as Ormeau and Coomera.

 

Thanks a lot for the information. I would like to explore more on this and understand these areas a bit better. Your insight into this area is very useful. I am worried about the vacancy rates as I live in Sydney so a bit sceptical of venturing outside to areas where housing is abundant and vacancy rates could change for the worse.
Cheers

 

Pimpana and those other vast new estates stretching for 50km between Brisbane and the Gold Coast are just that....between Brisbane and the Gold Coast.

Most residents have to commute for work.

Maybe also look at suburbs closer to Brisbane, or closer to the Gold Coast.

 

Thanks a lot! I have already started looking around these places but with a fixed budget in mind. ATM i can only afford a positive cashflow property which I am looking to get using my equity in another investment. It will all come down to the numbers but I am fearful of investing in places with potential for high rental vacancy

 

Why not buy in Brisbane where you might get better growth? The rental demand in Brisbane has always been strong if you are holding the right property and at the moment rental demand is very high. I'd look at an area that doesn't have so much spare land like Pimpama. Alternatively you could look closer to the Gold Coast where the vacancy rates are currently less than 1%. Area's like Southport buyers are practically falling over themselves to buy houses.

Gold Coast records lowest vacancy rate in 2 years