Gold Coast

Howdy all, long time reader, first time poster here.

Looking to buy the 3rd IP, and am bullish on the Gold Coast.

Can spend around $500k-$550k, though can possibly stretch to $600k if the right place comes up. Currently looking around the Burleigh Waters, Robina, Varsity Lakes and Elanora areas...hoping to get a 3br house or duplex, with a bit of a yard out the back.

Thoughts on the following points would be hugely appreciated:-
- Prospects for the Gold Coast in general
- Thoughts on specific suburbs mentioned, or suburbs which will do well
- Thoughts on whether 3br house/duplex is the right way to go

Thanks in advance!
BBB

 

Always try and get a house if you can afford to... not all parts of Burleigh Waters are the same most people want to live on beach side of Bermuda St but dont think you will find a house for under $600,000 that side very easily. Id be looking at on old doer upper in Miami, Mermaid waters, Palm Beach, if you can still get them under $600,000. There may still be some good options in Southport as well. Most areas of the GC have seen about 10% growth per year over the last 2 years....I think it will be steady this year but not quite as bullish as the rental yields are not looking as good now I do think it will perform better than a lot of the Brisbane market though over the next few years.

 

I am a big backer of the Gold Coast as a broad/general region for sustainable growth moving forward. As the GC evolves into a coty in its own right it will hopefully diversify the local economy beyond its tourism-reliance.

The light rail installation, hospital and casino expansion, and other public and/or private infrastructure projects should help this along nicely.

As for what areas, I am not in an informed-enough position to offer any useful advice, however, if it were me I would be looking at the houses on the largest possible land-size, in the best connected locations as possible. Areas along the GC City 60km stretch that are in the goldilovcks zone in between the beach and the highway. I.e. say 1-2km from beach, and also close to the highway on the other side.

Look for good amenity, and good schools. If GC is to evolve into a true city, expect quality schooling to help to drive this.

 

Thanks for the responses - much appreciated.

Cheers Rolf - I was actually looking at 3 x 2 x 1/2 with a little land - it's a formula that's worked for me in the past as it seems to appeal to families as well as couples or share houses...I'm a bit worried about 4 bedders - are they as popular for renters around these parts?

Mel my preference is definitely Burleigh Waters, but like you say it's not easy getting something in my price range. I've found a 3 x 2 x 1 on about 400m2 just on the beach side of Bermuda Street which I'm going to contact the agent about. Now rental yields are fantastic, but what if the GC tanks and vacancies go up again - is a place like that still going to be easy to let?

An old doer upper sounds pretty profitable (I've done that here in Vic before) but I'm just too far away to make it happen...maybe once I get that $100k pa net portfolio I'll be able to tell the boss to stick it and have the time to travel up to do that!!

Thanks C-mac - unfortunately I don't think I could afford to be beachside of the highway and get some land...I'm prioritising land size (say 300-400m2) further from the beach as opposed to a unit near the beach...what are your thoughts on this as a strategy??

Thanks again for the replies folks!

 

It's a fairly volatile place. In the late 90s and into the 2000s my family and friends thought the gold coast had finally established itself and was highly unlikely to ever have another real downturn, but it did, and a fairly big one.

Just be cautious of hype, and be extra wary of what is likely to happen once the com games are over, to both cg and yield

 

Yeah definitely cautious (but still bullish) about the GC - when it busts I'm hoping that the right property in the right area won't suffer too much (i.e. house in Burleigh Waters, Varsity Lakes, Robina and maybe Elanora)...

...but gotta be in it to win it - and I'm not sure of anywhere else in Australia which will do quite as well after the last few years