This can't be real 33% growth in 6 months in Main Beach, QLD?

Burleigh/Miami is where I am seeing lots of old houses being knocked down and duplexes being put in. Also Paradise point up northern end is fantastic spot and zoned for duplexes. Market has definitely moved there hard to get the development blocks for good price now.

 

I know what you mean. I would say development blocks are no longer at bargain levels but still at levels where you would make very decent gains over 5 years. The kind of stuff where when we look back 5 years from now we would be saying "if only I had bought ..."

 

Im not too suprised. That is the top end of the market tho. on the bottom end everything under 400k has bumped up a good 20k - 40k in the last 12 months.

 

A big block with an old house on it in Southport would have been my pick last year.
But there's always somewhere else, no regrets, everyone is an expert with hindsight.

 

Still very early days in the recovery.

Next couple of years should be really strong. So many stars aligning 2016-2018...

 

I'm trying to get finance preapproved at the moment for a purchase of up to $600k. Have been toying with the idea of buying on the GC or Brisbane for a while but I'm more comfotable with buying in Syd or NSW Central Coast just due to familiarity.

Serviceability is my biggest issue so need to buy something as CF+ as possible without taking on big risk, I only own one property on Central Coast so I'm looking to build my foundation portfolio.

Any tips on where to look?

@MTR @big max @JDP1 @Mel_C or anyone else with a bit of knowledge on those areas

 

Umm... a lot of money ( irrespective of how smart it is or not- doesn't really matter..money is money) bought Sydney and glen Waverley back in the day at incredible prices.
Who knows...id say there is more scope for sheer craziness to happen in the GC rather than in Brisbane ( the GC brings that out in people) Brisbane will do much more volume and be more steady growth.

 

yes, agreed... and the variability between GC suburbs will be large as you correctly point out.

 

The craziness when it comes will be beach front houses (where prices will really become almost devoid of any yield), and penthouse apartments. We are probably 3-4 years away from that.

As a value investor I tend to stay away from there.

Where I see really strong growth with value and yield for around the 600k mark is in Mermaid Waters and Miami. You really can't go too wrong there if you buy now.

 

Just having a look now. There's a few nice townhouses under $600k, I'd be keen on one of the houses but most need reno's and I don't have enough annual leave saved up to go in and do the work.

I notice the adverts list Water and Council rates on the units but no strata, I previously looked in Brisbane Metro and noticed most of the strata complexes were $80+ per week in fees, is it a similar story in Miami and Mermaid Waters?

 

I would go for a free standing house rather than a "town house or villa" which is usually one of 2 structures on the same block.

If you are buying a town house or villa orthere will be no strata fees as these are treated as stand alone properties. But if you are buying an apartment then yes you will have fees. Usually charged monthly.

There should be some pretty decent places in mermaid waters around 600. Not brand new but over all solid and ready to move into etc. Also check Burleigh waters for cheaper options. Perhaps Palm Beach.

 

I'll take a look of those areas as well. I'll have to look at the standards of rentals on the market, I am looking at it through Sydney eyes thinking close to water = tenants who expect a high quality house. Probably not the case on the GC because there are so many canals.

 

Over time all places on the canals will be redeveloped to be real nice places. But yes right now there is a mix of luxury/highend and older lower quality places in these places. All of the latter will be redeveloped over time.

 

Yes, that makes sense..the real lifestyle thing going on...that's what gc is all about...other than the strippers, clubs etc..

 

'Redeveloped' by the king tides? I would be careful about waterfront. High tides and erosion are only going to get worse.

 

Nope I actually think you will find it easier to rent a cheaper house in a good location . Families want to be near beach and amenities if they can afford it. The nicer homes are out of reach rent wise for a lot of families. Anything $650 a week and under rents very quick in the beach suburbs.

 

Thanks Mel, I won't stress about it too much in that case

 

Agreed rental demand is real strong for houses in that that range. The % of houses vs apartments is shrinking daily as the coast grows and accomodate more people. Rents are being snapped up real quick and many are quite ok with a "lived in" type style house.

 

if you have 600k to drop for an IP townhouse you could easily get 3 or 4 on the gold coast for that. theres allot more to the gold coast then the suburbs that surround the gold coast highway. Its amazing people dont realise this.

 

I would not touch a town house though if you want capital growth. The townhouses I talk of are in complexes usually with a pool. Strata is often high. Heaps of these complexes through out the coast. I have friends with these type of properties in nerang and merrimac and they have not had any capital growth for 10 years. They get ok rental yield. Please correct me if I am wrong though @flightcrank