Considering buying an Investment in Ashmore

Discussion in 'What to buy' started by ARTIS, 10th Feb, 2020.

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  1. ARTIS

    ARTIS Member

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    Hi,

    I am looking at an investment property in Ashmore with Dual Income potential. The block of land is 845 sqm with a potential dual income of $680 per week.

    Are you looking at Capital growth in Ashmore in near future?
    whats the rental market like, is it easy to rent?
    What is the Business prospects in Ashmore?
    Anyone own in the area can tell me bit about the area?
    is Ashmore in flood zone?

    Thank you for your help!
     
  2. My House QLD

    My House QLD Well-Known Member Business Member

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    Ashmore QLD? What's the purchase price?
     
  3. ARTIS

    ARTIS Member

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    mid 5's
     
  4. thatbum

    thatbum Well-Known Member

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    No point getting a higher yield if you're overpaying or buying something with handicapped capital growth. How do you know the actual property is worth what you're paying?
     
  5. My House QLD

    My House QLD Well-Known Member Business Member

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    Potential dual income of $680 per week.

    Is it a dual occ or something can legally be leased separately or is the agent says it's potentially dual income?
     
  6. # 1

    # 1 Well-Known Member

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    Avoid Ashmore, poor growth prospects.
     
  7. Lindsay_W

    Lindsay_W Well-Known Member

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    Ashmore is one of those suburbs where there are good parts and bad parts. High end houses there gor for $1.5M+ but then there are some run down terrible sections.
    If you look at the growth Benowa, Bundall, Sorrento and even Carrara have had Ashmore could do well long term, not really short term but it does depend on which part of Ashmore you're talking about.

    Ashmore is not in a flood zone, some properties are on the river though.
    Have you ever been there? what's attracting you to it, just the dual income potential?
    Higher percentage of Owner Occupiers than rentals.
     
  8. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    How so ?

    ta

    rolf
     
  9. # 1

    # 1 Well-Known Member

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  10. ARTIS

    ARTIS Member

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    I have been looking online at the comparables.
     
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  11. ARTIS

    ARTIS Member

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    It can be legally leased separately. Right now it is not dual income
     
  12. ARTIS

    ARTIS Member

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    Thanks for your reply. I see there's very less rentals available online that's one of the reasons which attracted me towards this property. Not sure about the growth prospects though. hence forth asking for advice here.

    The
     
  13. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    I see.

    I guess the challenge with that sort of data is that its exactly that

    Residex had similar numbers for the 2270 PC in Sydney pre 2011

    If one is going to use data to refute or back a hypothesis, then by my thought process ( often wrong - never in doubt:)..one could offer a counter opinion using that same data source.

    What alternate location would you recommend for the market segment and income needs required by the OP ?

    As an aside, we have been running various versions of such data and analysis for 21 years............ the data is useful for comp sales in a static market, much else is hit and miss on Qld data where there are no new greenfield acreages to break into for new detached housing development.

    History can be useful. Part of the current lower predicted growth may be based on the assumption to backtrend to parity for the greater GC region, since Carrara Houses demonstrated double digit cap gain in 2016 and 2017.

    ta
    rolf
     
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  14. Lindsay_W

    Lindsay_W Well-Known Member

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  15. D.T.

    D.T. Specialist Property Manager Business Member

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    I thought that too. Down last year but up this quarter could be an uptick?
     
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  16. # 1

    # 1 Well-Known Member

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    Ashmore hasn't had much growth for awhile but maybe some is due soon, you can see it's been flat for the past 4-5 years while other areas on the coast like Palm Beach have had better gains in the same period.

    Ashmore House: Median price $567,500, Annual capital growth 1.90%, Number of sales 188, Weekly median advertised rent $540

    Ashmore Unit: Median price $338,250, Annual capital growth 1.02%, Number of sales 60, Weekly median advertised rent $440
    .
    [​IMG]

    Palm Beach House: Median price $875,000, Annual capital growth 5.40%, Number of sales 216, Weekly median advertised rent $650

    Palm Beach Unit: Median price $451,500, Annual capital growth 2.19%, Number of sales 224, Weekly median advertised rent $430

    Like Lindsay said, Ashmore is a mixed bag with some terrible areas alongside nearby family homes on nice blocks. I'm not a fan of the area including Molendinar because it's so far from the beach and has a lot of commercial/industrial pockets. Carrara is way better than Ashmore with multi million dollar houses on the river like Mick Doohan's place. For central Gold Coast, Benowa, Bundall and Sorrento are much better picks. Southport is also a dump full of ratbags and drug users. I once had a townhouse there but flipped it after a reno. I've also owned in Labrador which has similar demographics to Southport.

    I like cap growth so my preference would be to buy something on the eastern side of the GC Highway between Surfers and Tugun. I buy well located older units in walk ups with low body corp and reno the bathroom and kitchen to increase my yield.
     
    Last edited by a moderator: 11th Feb, 2020
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  17. Momentum

    Momentum Well-Known Member

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    On the Gold Coast I wouldn't invest in Ashmore, Molendinar, Nerang, Southport, Labrador, Helensvale, Pacific Pines, Coomera and a few other places. You want to get close to the beach as possible, that's why people want to live on the GC. I agree with #1 and would look for something east side of the GC highway, within 100-200 meters of the beach. Older walk up blocks with future development opportunity and low body corp, can't go wrong.
     
  18. Lindsay_W

    Lindsay_W Well-Known Member

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    Just a couple of examples of some nicer homes in Ashmore
    5 Riverbank Court, Ashmore, Qld 4214
    7 Cameron Court, Ashmore, Qld 4214

    Southport, Labrador and Helensvale all have similar homes in the right areas of those suburbs - Even Nerang has good pockets of houses on the river.
    Labrador and Southport offer good opportunity in smaller walk up style units close to the broadwater with views of Surfers Paradise - not everyone wants to live on the beach, some prefer the river.
     
    Last edited: 12th Feb, 2020
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  19. Lindsay_W

    Lindsay_W Well-Known Member

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    His place is actually in Coomera not Carrara - ther are some terrible spots in Carrara too - near the Rail and Highway -then there are some better spots in there as well.
     
  20. Momentum

    Momentum Well-Known Member

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    Yes but they're all ********s full of people on Centrelink benefits