QLD [Gold Coast] Apartment

Discussion in 'Where to Buy' started by Archaon, 3rd May, 2017.

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  1. fumid

    fumid Well-Known Member

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    No just check it online last night, for the position and huge space, it can be a good buy.
     
  2. Poppy

    Poppy Well-Known Member

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    I love the Goldy and holiday there every July for a few weeks cheap break. Kids love it.

    Every time I go I consider purchasing. I know some who have done it and they vaguely say it's OK. I always decide no. My reasons:

    1. keep holiday and IP activities separate. I want IP to return about 20% pa yield and cap growth
    2. QLD has some really strange laws around property; I've bought and sold there 3-4 times and the fees involved, and lack of transparency in strata (they purchase rights and can opt out of an audit), and very very high council rates, and very high letting /agency fees always shock me (I'm in Sydney).
    3. I have calculated I could buy, and be neutral or positive cashflow but in the end I wont get the stellar cap growth I desire from my IPs, because Surfers has unlimited building opps. It will never be saturated or under supplied and your unit will always be supersceded by bigger better blocks (Jewel - looks amazing; one medrms for over 1 mil)
     
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  3. fumid

    fumid Well-Known Member

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    True, council fee, water fee in QLD is incredible high compare to NSW, my 3 bd apart only $150 for water bills in NSW however in GC up to $350, also council $250 in NSW but GC might be $400.
     
  4. qemist

    qemist Active Member

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    What about global warming?
     
  5. big max

    big max Well-Known Member

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    lol. There are far bigger worries and things that should concern and which you should focus on you when investing than the theoretical implications of global warming ...
     
  6. Depreciator

    Depreciator Well-Known Member

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    You left off management and cleaning. I had an apartment in a holiday complex and those costs ran at 15-20% of the income. I can't recall the exact figure because I have mostly managed to erase the experience from my memory. We got to use the flat a fair bit, but not in peak periods because that is when the best income came in.
    Scott
     
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  7. fumid

    fumid Well-Known Member

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    Most apartment in gold coast has a 'fake' high rental yield however the real yield might be 3%
     
  8. Archaon

    Archaon Well-Known Member

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    I believe all cleaning and management fees are included in the 26k deductibles.
     
  9. Depreciator

    Depreciator Well-Known Member

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    Best make sure. Cleaning and management are variable costs, unlike rates, body corp, so often they don't get a mention.
     
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  10. 11160

    11160 Member

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    Body corp at Q1 nears nearly $200 p/w such a saturation of units/apartments on the GC. Get a small 3 bedroom home in a highly desired suburb and Airbnb it to the max :)
     
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  11. GoldCoastBound

    GoldCoastBound Well-Known Member

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    How long ago were you trying to sell?...our 1 in the chevron looks like its gone up 40-50k this year...purchased at 420k 2br2bth, beautiful view of the beach 19th floor
     
  12. 10927

    10927 Member

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    Last year... haven't sold anything in central Gold Coast this year it's all been happening at the northern end. Good to see it's improved in there!
     
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  13. boganfromlogan

    boganfromlogan Well-Known Member

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    I think this is a good question, as the change in climate does a couple of things. First there is the sea level rise, but gold coast is not an atoll, so if that does have the water lapping at the door the more immediate problem relates to storm surge and the violence of the weather systems in the future. So this will cause water to be lapping at the door, especially in the canal estates, and those estates where flash flooding is real. Remember when it was all swamp?

    Solution. Buy in Mount Tamborine. Or Logan :).

    The other solution is be prepared for periodic downturns after freak weather events. They do happen, but we are like goldfish up here, we forget very quickly, we blame the water utilities for opening the dams, we blame the council, and we blame each other.

    The climate is changing. And like a good investing strategy, it is something that grows in impact over the long term.
     
  14. Luke T

    Luke T Well-Known Member

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    great points guys
    a low rise walk up unit in CBD waterside would be my pick .
    For a holiday rental the fees are massive .Even on a walkup running holiday accom it will take most of yr income .Definitely buy where there is an option to sell to developer down the track .
    We have one across the road from a 1.2Billion$ tower going up atm.We paid $179k in 2014 so may have some offers In the next 5-10 years.We are CBD surfers.
     
  15. Luke T

    Luke T Well-Known Member

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    For an idea of fees on these holiday units - we ran $29K income last financial year and costs were ranging from $26-$28k per year with a 60% ish LVR. This is with the some of the cheapest BC fees in the area ($60-70 p/w)
     
  16. God_of_money

    God_of_money Well-Known Member

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  17. Ed Barton

    Ed Barton Well-Known Member

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    Good luck with that.
     
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  18. Slattery

    Slattery New Member

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    I plan on purchasing an apartment in surfers paradise to use for holiday letting up to 75% of the year.
    Am I exempt from this $8000 council fee due to being in surfers or is it applicable for the entire Gold Coast area?
     
  19. boganfromlogan

    boganfromlogan Well-Known Member

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    I heard there was a fee for airbnb and holiday letting. I wasn't aware of an exemption for surfers .... this all came up when the commonwealth games was on. Short term letting was all the rage in Southport.

    U could always ask the council. I find they don't give straight answers or consistent ones, and they don't follow through much