QLD Coomera QLD, mixed reviews

Hi All,

I am a first time investor based in Sydney who like may have built some equity in the own home over the past few years. Looking at investing in the QLD property market and have singled out Coomera as a suburb.
Why: Midway between Bris and GC, good schools, 600sqm blocks, newish built houses, properties in the $550k to $650k range (my budget) and breaking even from a cash flow perspective based on initial calculations.
Feedback: Based on my research, most articles from 2020 and earlier ask to stay clear of this area due to abundance of land. More supply thann demand = more competition and slow growth. But when looking at the market now, most of the land has already been released and built on and some newer blocks are tiny in size.
Goal: Wealth creation, not looking to be a millionaire overnight but definitely chasing equity growth.
Question: Can an expert advise of pros and cons of investing here? If not here, where in QLD will I get more 'bang for my buck' in my $550k to $650k budget?

Thanks in advance

 

It's a mixed place, I don't think it should be Ur first choice.

Sydney ppl bang on about development land oversupply waaay too much. And then look at canefields as future housing estates! History of Sydney and lack of released land is bureaucracy not geography......

Bris has satellite towns all around, the pull to GC is arguably bigger than Bris.

Anyway reset, find other places to consider.

I would start from Beenleigh, go north and south along train line and/or M1.

Eden's Landing
Loganlea
Pimpama
Bethania
Ormeau.

 

Do you mean Coomera (newer, but smaller blocks) or Upper Coomera (older, larger blocks)?

I’d also consider Pimpama in the mix. There’s a new station being built and rental demand is strong. The best area is Gainsborough Green by a mile, strong owner occupier mix and quality homes. Some parts have body corp, others not. As a whole, this estate will be quite a lot more expensive but the rental return is much stronger to make up for it. West of the M1 is not very desirable but you might find bigger blocks. South of Yawalpah Road on the east side is a bit hit and miss, except for Pacific Cove estate (around Sudbury Drive).

There was a massive glut in 4209 postcode of new houses. This has dried up. Demand has returned and properties are selling like hot cakes for more and more each month. It doesn’t look like any large scale land development can or will occur for quite a while now, if at all (depends on the cane fields and wet lands towards Jacobs Well).

Most new housing stock on the GC will likely be townhouses/row houses or higher density, or indeed extremely small blocks, according to Council and PlanSEQ.

For that reason, I’d think there’s strong capital gains to be had if you purchased a house on land. Especially at the 600k mark.

But to be fair, most of SEQ is well placed for capital growth in the short term (avoid strata and units). In the longer term, look at infrastructure plans. Also look at the granular level in specific streets of specific sales - street view is your friend if you can’t cross the border. Do you see hotted up Commodores? Avoid. Well kept gardens and nice homes? You’ve hit the best street of the area. And every suburb at this price bracket will have both. Be careful

 

For Gold Coast land supply, check this out if you haven’t already. Will help you weigh up your decision:

https://www.udiaqld.com.au/report-confirms-land-supply-concerns/

https://www.udiaqld.com.au/wp-conte...oast-Expansion-Area-Dwelling-Supply-Study.pdf

 

There is still developable land along foxwel rd being developed and waiting to be developed but you could possibly consider that in full now with the majority of land now developed. Coomera has been spruiked to out of state investors and un-savvy locals for over 20 years with green fields as far as the eye could see. I expect it to be built out completely over the next few years. The sign post that sufficient density of population had arrived was the long awaited opening of the Coomera Westfield plaza. There is a large train station next to the plaza and a west bank style lagoon / swimming area in the works I believe. All that said it’s an extremely mixed bag suburb, there are almost ghetto like streets with small block investment stock all rented out long lawns and crappy commodores parked out front. Three k up the road there is very well presented OO property’s on 600+ blocks in relatively nice suburban neighbourhoods. Keep going and you get to Coomera waters through security gates into canals and million dollar homes across the water from sanctuary cove. Median is higher than upper Coomera.

Edit, calling the remaining land next on foxwel rd in full may be a stretch, there is still a ton of land out there though how much is developable I am unsure, works seem to be steaming ahead well north of Coomera now.

 

Foreshore estate (edit, I mentioned Pacific Cove in error here) is quite upmarket too, south of Foxwell. But that whole area just need to make sure your future investment is position far enough away from the Coomera Connector alignment so as not to have your property value impacted down the track.

 

Thank you, will start researching those areas.

 

Thanks this is very helpful, especially the last para

 

This was great, putting things into perspective based on current data, thank you.

 

And this is a drawback.

Main employment opportunities are closer to Brisbane or to the Gold Coast. You may want to pick one or the other and look at suburbs closer.

This is not Sydney - long commutes are not the norm. At peak hours the M1 is often a car park.

 

Hi Heath,

I own in that Gainsborough Greens estate, and have friends that have bought in that corridor as well, Ormeau hills, Pimpama, Coomera etc. Whilst the Gainsborough greens estate has done OK

it’s easily the worst investment I’ve made & had my time over again I’d never buy in the area

If your starting out, you need capital growth. Push yourself to get something that has restricted supply & a whole lot of demand.

The area becoming popular, with all new infrastructure, schools, estates, people moving in etc will have limited to no bearing in growth. Because why would your place rise in value when for the next decade someone can just build brand new down the road on abundant land? The only thing that’s pushed the area up slightly over the last 5 years is the cost to build which is all recent. I can’t see much growth happening with the amount of land to be released.

I’d certainly be looking closer to Brisbane or main centres. Focus on growth. Not new and shiny

 

I’d be holding onto that place if I were you. While it may hold a negative emotional connotation, you will do very, very well in the long run. From memory you built a high-spec home?

If purchasing there I’d be doing a worst house, best street approach. For the mid-600s you can get an entry level house on 450sqm. Forget the shiny houses in the 800s, go for the bottom with the biggest land size you can get for your money, in the nicest street you can get (or estate, in this case).

 

Avoid Coomera if you want long term capital gains. It's in the middle of nowhere, there's heaps of land available in the area and it's depressing. Either buy in Brisbane or the Gold Coast (within 2km of the beach).

 

Thanks mate but I can’t say I agree with you lol I would say it hasn’t got a negative emotion attached to it, just literally looking at all the data - it’s performed poorly in 6 years. I would estimate it’s gone from $630k to $840k at max in that time. Around 30%

The worst parts of Brisbane have done that within 12 months.

$630k spent in Brisbane 6 years ago, would have bought you camp hill, Holland park, definitely wavel heights etc and you would be well over $1m. Even 1.5m if you bought the correct block in camp hill.

With all the available land, and lack of income opportunities in the area I can’t see this place getting $1m+ anytime soon.

 

Fair comments about location and scarcity though if you’re sinking the sort of money into Coomera or Pimpama that you could buy in Brisbane or 2km from the beach in GC, well….

Coomera is Logan money on the GC and that’s what attracts most people to it, people buying in that price point. Its mind boggling the money some people are paying for some properties out Pimpama way but I guess new PPOR is attractive out there for some.

I’m guessing it will perform similar to Logan long term if this boom is different in the sense that Gold coast doesn’t correct hard. If SEQ continues to perform over the next few years it will rise with the tide.

 

Difference is you spend $600-$700k into northern GC your buying a brand new house that is devaluing every single year, sink that money into literally any suburb into Brisbane or the lower GC that’s all ready established with a 30-40yr home on it, and your buying close to land value. Which we will know is heading up, possibly for the next 2-4yrs.

At a time like this, I think it would be an unbelievably big mistake to waste a boom and buy in here. You could be waiting another 10-15yrs + for the next one

 

600-700k you are already 18 months too late in Bris, agree south gold coast though.

 

Not at all, it’s MCC but still within 11-14km of Brisbane CBD there’s a few options around Everton hills, Arana Hills that are in the 650 range. you’ll even pick up a knockdown in Everton park for $700k.

Just takes a bit of effort

 

You’re 100% correct. Acknowledge you would have done far, far better investing your $630k 6 years ago into something closer to Brisbane or the beach. However, we’re talking about the here and now. If you have $630k to spend now on a long term investment, I believe it’s an excellent proposition - that’s a good land value/house value proposition (70% land, 30% house). But for $840k, I’d be buying elsewhere right now. That’s half your property purchase on house alone.

 

I bought a 4x2 house at Upper Coomera for $358k in 2014. Jumped to $420k straight away, then sat there until the pandemic. 6 years of zero growth. Now is at $526k according to realestate.com. So what's that, 46% in 7 years.
Amazingly, it's had the same tenants from day 1, as rents have gone from $380pw to $460pw.
Thought I had bought a turkey but current boom lifting everything. I don't expect it to outperform anywhere once this all settles down.