QLD Gold Coast Market?

Predictions/forecasts for the Gold Coast in the next 5+ years? Is property going to boom?

 

Yep

 

How much do you think? Not like we've seen in Syd over the last ten years, (house prices doubling)

 

No idea but I have serious bread invested in the GC.

I wouldn’t do that if I didn’t think it would do well.

 

Can I ask, do you have property in Sydney?

 

Nope

 

I don't think there will be a boom, but moderate price growth of roughly 10-20% conservatively over the next 5 years. Mainly due to southern migration and potential renewed interest from asian investors of chinese ethnicity inc investors from mainland, chinese malay, singaporean, hong kong dual citizens/expats. Lower aud, strong tertiary education, tourism and health industries may be a driver. Would never touch newly built estates in northern gold coast or newer apartments there.
Fingers crossed, though I've only got one dev site landbanked there.

 

I am looking for an investment property around the Gold Coast - for rental income yield mainly but of course with capital growth potential and offset my taxable income with depreciation. Even something that could be on the radar for future developers for a profit take.

I am not keen to spend past $350k. I have hit 50 yrs of age so not looking at a long term game and not mortgaged. But looking for something to spruice up income stream - Air B n B I have considered and using an Air BnB managing company to deal with it. To generate that I would something in an attractive area in high demand. Otherwise I will stick to usual long term leases. Would like the option from time to time using it myself to stay in, another reasons for picking the Gold Coast area - but nothing set in stone.

I have noticed a lot of potential red flags with apartments up here - views being built out (with RE agents spruiking views for units that won't have the views for long - when you do checks with approved developments), high body corporate fees, run down buildings that will probably require special levies, possible oversupply (apartments are springing up like mushrooms here).
There are diamonds in the rough out there but not easy to pick.

Town houses, free standing house. What would be a good investment move? Thanks for any ideas.

 

Are you ready for an $8000+ permit and potentially higher rates from Gold Coast City Council to run Airbnb...?!

Airbnb On The Gold Coast: The Home-Based Business Exception

Airbnb & The Law On The Gold Coast

 

A bit snobby of ya...we ain't good enough for your money eh...

 

For $350K good luck getting much more than an apartment, and even then, in high demand areas you would only be looking at 1 bedders in those areas in larger buildings with high body corp fees. There are quite a few 3 story walk up style apartments that get good yield for that kind of money, if you want a view or close to water then prices increase about $100K more than your budget.
In regards to apartments in older buildings, look for walk ups (no lifts) and ideally no pool. You can check if any special levies are coming up or required and also see what the body corp costs are prior to purchasing.

 

Hi Sick, I have experience with a good income producing villa in Gold Coast. I am happy to message you if interested. Somewhat reluctant to post too much info publicly. What surprises me (pleasantly) with this particular one is the long queue of people who want to rent it. It rents itself really .. don't need an agent.

 

Would be great if you could share the numbers with us all eg. Cost price, rental yield, as well as any body corp fees etc?
Usually good yield means not much potential for Capital Growth

 

well, i am happy to give some basics. cost me 300K (very close to anyway), rent is 380 pw. The thing i would share is that i really like the place. That is i really like the villa, the complex, the location, the amenities, and the people (and the ambience and safety of the people). The transport and the infrastructure nearby. I have assumed that the good yield capital growth statement from Lindsay_w is correct, and have no real reason (or justification) to argue that. So in my head I have low expectations.

you don't want to know much more about what is in my head

 

Imagine if I bought in Sydney; prices would drop 40+% overnight .

There would be blood in the street .

I better stick to Brisbane when I can get price increases of 50% in 12 months .

 

Thanks for sharing.
Sounds like there would be a premium for body corp if it's a villa within a larger complex that also provides amenities and maintenance. Body corp fees in these types of complexes can easily erode your actual yield %

 

Yes there is body corp. Yes ... i think there is a reality of this being the case for all but free standing? In the range of 300-350k probably freestanding is not feasible but villas and townhouses are possible. Please feel free to deduct 3K pa from the calcs for body corp i will let you do the maths

 

As a reply to my own post, my experience is also that i don't need an agent to manage this, and agents fees are often a source of erosion of yield as well (sometimes for very little in return). Have I let a cat out of a bag?

 

Correct, however even some free standing houses have Body Corp fees now, pays for 24 hour security, pools, tennis courts, gyms etc.
$3000 per annum in BC fee's aint that bad really.

I don't think you've let the a cat out of a bag
Not everyone wants to self manage their Investment though.
There's also less chance a developer will come knocking, compared to a unit in a small walk up building closer to water or other more sought after location, BUT each to their own, sounds like you're very happy with your investment and rightly so!

 

Which Brisbane suburbs you are talking about exactly? 50 Percent growth in last 12 months? I am just a newbie doing my research these days to invest my little money