QLD Coomera or Park ridge for investment - 500k budget

Hi all,

we are looking to buy an investment property with 500K budget in a good growth corridor suburb? We have been exploring Coomera and Park ridge.
Which one is good for better capital growth and rental returns in the next 5 to 7 years?

 

There are quite a few posts on the disadvantages of similar new areas over the last few weeks. Better value for those $ either north or closer in t o Brisbane (e.g daisy hill etc)

 

Coomera and Park Ridge are both D Grade areas for investment. If your budget is 500k then look at walk up units on the Gold Coast east side of highway between Surfers and Kirra.

 

Thanks for your feedback...we are keen on new houses since we heard they are easy to rent out and we want peace of mind too...when you say units they are apartments isn’t it

 

Thanks...what do you think of Strathpine or Greenbank?

 

Depends on what you are after but 500k will get you closer in than strathpine which is more a 430 to 450k market. Nothing wrong with strathpine or bray park btw but are lower income areas than those closer in

 

500K can still get a place in Rochedale South. Will there be growth with the Coomera house and land ..... lots there? Not many reasons for people to want to live in Coomera

 

No one wants to live in Coomera by choice

 

The rentability of a new house depends on how many other new houses are available for rent in the same area. The vacancy rate of the area needs to be considered.
Park Ridge has a current vacancy rate of 9.6% whereas Coomera is 0.7% (as at September 2020). BIG difference!
But when you are also looking for capital growth you have to consider the other drivers such as surrounding future supply.
New houses also have good depreciation benefits but established houses that may be 10-15 years old now, in more land locked locations might deliver better capital growth.
There is a lot that should be weighed up when considering what and where to buy.

 

Hard to get land in either place at moment. I think Aura on the Sunshine Coast is a better gig at moment, but likewise land is hard

 

I'm with Melinda on this as the vacancy rate controls the market and at the end of the day, you want consistency. What people are failing to mention is the reason why Coomera had that reputation in the older original area of Upper Coomera.

It was once quite popular with the Kiwis due to the affordability however as most of us aware, if they can get away with it, they would have family members sleeping in drawers. The drug use was also getting quite high however once again, that is more in the older area and pretty contained. Combine that with a pandemic and most have now gone home.

We manage an abundance of properties in Coomera and plenty of people want to live there due to the schooling and convenience. Weekly rents have been increased up to $50 per week due to the vacancy rate and we can't find housing for quality tenants fast enough.

If you're going to buy in a new housing estate, prepare yourself for a drop in the rent & high vacancy as you have hundreds of other properties all completed at the same time competing for tenants. When the new builds were completed in Yarrabillba were all completed they sat vacant for up to 3 months with a $50 per week drop in rent just to get them leased.

If nobody wanted to live there, the vacancy rate would've been higher one would think however the figures speak for themselves and this is a business decision where numbers count more than personal preference.

 

Hi, how about Pimpama? Seems demand for land is exceeding supply. Will future train station add value?

 

Pimpama is also pretty bad with lots of Kiwi's, drug use, crime and unemployment.. that could change but I'd prefer to buy in a nicer area, already established and in higher demand

 

Thanks all valid points...ya the vacancy rate in park ridge is what is bothering us ...in Coomera we heard the property leases out the next day we settle ...we will consider all these in our assessment before we finalize between Coomera and park
Ridge.

 

Thanks Melinda for highlighting the differences...thsi is exactly what we wanted to know before making a decision ...

 

Also do you think if we buy in Coomera there will be better capital growth in a shorter time compared to park ridge?or is park ridge better for stronger capital growth?

 

We've been able to lease all our Coomera places very quickly to good quality applicants, there's certain pockets to stay away from as Kylie mentioned above, but some parts are very desirable because of the school zones.

 

Aren't Kiwis nice people? I thought they were. Anzacs and all that ........

 

It appears I'm a little late, but I'll add my 2 cents anyway.

Coomera has been brilliant for us. Houses rent in a heartbeat at prices generally quite a bit higher than the competition and the families stay there forever. All but two of my Coomera rentals are on the original tenants we put in over the past four years, and the other two are onto the second tenants who look like they'll be there longterm. Every single one of the tenants are 10/10 with no concerns. I wish all I did was Coomera, but we spend most of our time earning our stripes in Logan! Ha! I have similarly good experiences in Pimpama.

I've heard plenty of agents bagging these areas out for bad tenants and I honestly wonder what they're doing wrong.

As far as Park Ridge, I love the area- I live across the road (literally) in Logan Reserve, but I worry it'll become a bit of a Yarrabilba- too much supply in an average demographic leads to stagnant or dropping rents while buy prices continue to match northward. Land has already climbed nearly $50k in the last couple of years. I'd be confident building something really well thought out on the right block of land, or a sharp buy on an existing house, but take care. This generally applies to most new development areas.