QLD Investing in Surfers Paradise unit

Hi everyone,

Current scenario:

I've got the oppurtunity to purchase a unit (2 bed, 2 bath) in a newly developed building (8 levels) in Surfers Paradise, specifically, 5-7 peninsular drive. This unit would be for investment purposes only, paying P+I plus putting more into an offset account. Rent approx 480-500/wk. This would be my first investment and it would be great to get a full scope on things like investing in high density areas and whether or not this is a good first investment.
Cheers

 

High body corp (lots of amenities in the building - spas are expensive, onsite management), unlimited supply and volatile job market makes gc a difficult place to invest in. Slick website.

Where did the ‘opportunity’ come from? ‘Investment strategist’ who called you about it? Investment seminar? Dont see any sale ads, so its all handled by the developer? Friendly 'advisor' who can handle everything for you because they have inhouse lawyers and mortgage people?

Personally would prefer a house in brisbane for that price point.

 

Property is 569k purchase price roughly just over 4k body corporate a year. I see your point. Investment/ financial advisor that the family have dealt with. But different circumstances. Family purchasing through SMSF with a bit of a portfolio now. Myself, brand new to purchasing property, looking at places with growth and also ideally an area i could settle down later on. Thanks for your input.

 

When you want to settle down on the Gold Coast, rent your lifestyle. That way you can test where you wish to live. In the meantime, invest where it's best.

There are literally thousands of these "opportunities" which you describe. No undersupply whatsoever. Apartments on the Gold Coast were pretty good buying up until a couple of years ago and even better in 2011 and 2012. Those buyers have made money.

If your pockets allow buy a 3 BR rentable brick veneer house on a dry bock for circa 700K in Mermaid Waters, Miami and along the southern strip as close as possible to the GC Highway and the beaches. They're not making any more land there. Otherwise look at houses on land in Brisbane.

Merely my 0.02

 

For the first year, maybe. Expect increases and regular special levies.

So if you end up buying more than one property, do all of them have to be places you can settle down on? Have you ever heard of rich people who can't afford a place to settle down on?Is it still going to look so shiny in 20 years?

Who knows, Surfers might boom. Been cyclically down for a while. But its hard to see how this thing will compete against the highrises that will be built in the future.

 

100% no

Nothing unique about property. Literally tens of thousand that are similar and more made every year as yours ages.
No ability to improve it / develop it in future
High strata costs
High competition for a tenant
Rental return is not good

There is literally nothing about this that says it’s a good investment.

Your “advisor” is making a commission from the sale or is a **** advisor.

 

Better off with a house. You can get standalone houses in that price bracket, particularly northern gold coast. You then dont have the strata costs, better rentability, longer term tenancies, etc

 

Did you end up working out what to do here? Love to hear an update on if you found a dry block 3br instead of the unit or if you bought the unit?

 

No. No. No

 

Avoid this complex at the far end of Peninsular Dve and have a look at some of the walk up blocks closer to Lionel Perry park. I've got 4 on the Gold Coast and had excellent growth on all of them (2 in Surfers, 1 in Mermaid Beach, 1 in Palm Beach) over the years. Also used to own a block of units in Labrador but sold them when we got to parity with the USD to invest o'seas. The trick is to find a unit you can add value to with a reno of the kitchen/bathroom. Peninsular Dve used to be called Whelan St but they changed the name to get rid of the stigma (it was nicknamed Whelan and Dealin' street due to drug activity). Avoid north Gold Coast.

 

Gold Coast's most wanted man.. murder in Peninsular Dve

No Cookies | Gold Coast Bulletin

 

We have done very well at GC (Surfers Paradise Units). But it does take a lot of work to find the right building with low Body Corps, the right price etc.
Both permanently rented, very well presented, fully furnished.
I would not buy in Peninsular Drive.

 

Nothing wrong with Peninsular Drive, I also have a unit in this street close to the park. It's a very popular street, only a few minutes walk to CavilI Ave and all the shops/restaurants, beach and light rail. I paid 127k years ago and it's now rented for $425pw (2 bed, 2 bath). You need to select the right building, something with low body corp, no onsite manager, no lifts. Pool is ok if body corp isn't too high. I used to rent mine fully furnished but now rent unfurnished on 12 month leases. I found tenants wouldn't stay long if it was fully furnished.

 

I agree while everyone says don’t buy units on the Gold Coast there is potential if you know what to look for and buy in right location and building.

e