QLD Upper Coomera - Gold Coast Region - Capital Growth?

Hi all,

I am looking to invest on a house in the Upper Coomera area (Gold Coast Region). What is everyones views of this area in terms of medium to long term capital growth? Is it a typical negative gearing area to look in to invest>

 

Many years ago (can't remember the year) there was a property company that built high rises there and were pushing them in Sydney. They were calling it "Boomera Coomera". It was being pushed as negative gearing, save on tax type investments. I didn't want to go down that track. Also they were pushing their own agenda. Cheaper stuff was available direct, in surrounding suburbs.

I remember watching for 5 years. Nothing happened. What's the growth been like in the last 10 years? Are they still building high risers there? Look at vacancy rates also.

 

What price point are you looking at?

 

I can't think of where there are any high rises in coomera. But i did live there for a while and over the past 3-4 years I saw it go from medium 4 bed 2 bath $340k to now around $420k. The only issue I see is that it is very heavily dominated by rentals and there is no scarcity on land around coomera and pimpama with them building flat out. But they are putting in a lot of infrastructure

 

Margaret Lomas thinks Upper Coomera won't boom but will increase in value steadily over time.

 

Thanks Joker. What about Coomera. Is that in the same boat in terms of increasing value steadily over time?

 

There was recently some media about which suburbs contained defaulters (ie. bank selling property) and oxenford has recently come up which is adjacent to coomera. Also historically helensvale was on that list - adjacent to coomera. May mean nothing at all, but i think sometimes the banks look closely at these defaulting suburbs. More locally the schools are picking up bad reputations so i don't know if that plays into it at all.

 

Yes I think she was talking about both suburbs.

 

You have good and bad areas in Upper Coomera. Prices are on a swift uprise in some areas. Some schools have bad reputations and large renters which are becoming crime hotspots.

 

Which are the good and bad areas?

 

Sorry I didn't see this response until now. I don't know the area well enough to give advice as to exactly which are the good and bad areas in Upper Coomera.

 

EDIT (I know this is an old post but for others reading on the principle remains) Do you know what the vacancy rate is? If you don't then you should find out. Once you do this then you might reconsider.

 

http://www.goldcoastbulletin.com.au...o/news-story/05f9eec3f1db90734d4c320148d7f376

http://www.goldcoastbulletin.com.au...h/news-story/f12074c3008a7d8bf68c1c2420d180bb

Australia's housing hotspots: HIA report

 

I had 2 houses in Coomera until last week. I have some others nearby on the north end. Coomera did really well 2014 to late 2015. I see no capital growth since early 2016 and a rapidly increasing vacancy rate. Ive sold one and still deciding what to do on the other.

Infrastructure has improved as mentioned and a very very slow Coomera Westfield is being built, but that's the only bit of gloss now. It's probably not the place to be looking from here on.

 

SQM Research - Residential Vacancy Rates

Sqm vacancy stats. I've finally found a 12 month Tennant after the pm struggled for 6 weeks to find a longer term Tennant. Ive dropped rent from 520 to 505 with the understanding it will go up in January ( if I'm lucky)

So far so good in Helensvale and Coombabah, but I'm now being warned about changes occuring in Helensvale

 

We bought our PPOR in Highland reserve (Upper Coomera) early in 2015 the market had been flat for a long time & we felt we bought well, 4x2x2 elevated, lake views, pool, extensive landscaping & large covered outdoor entertaining areas, high ceilings 6 year old property for 509k. The property had been off & on the market several times. A 3x2x2 5 houses down from me, smaller house, smaller block no view just sold for $582k last week.

17 Garawarra Crescent, Upper Coomera, QLD 4209 - House for sale #WDEGTJ - LJ Hooker Coomera

. A 4x2x2 just sold for an estate record for a single story house $705k.

21 Abercrombie Crescent, Upper Coomera, QLD 4209 - House for sale #12E5GTJ - LJ Hooker Coomera

Houses are starting to sell quite fast in our aria and prices are steadily rising.

The area is much higher OO percentage in the estate than greater Upper Coomera.

 

There will probably be steady growth, nothing super significant unless you purchase significant land holdings or development land near key infrastructure sites such as the Westfield, or along the train line from Helensvale circa 1km).

A reasonable place to invest, but there are better options around in the GC, especially near light rail stage 3

 

That's how I see it too. Not too bad especially if it costs you little to hold.

 

Un

Till more are built and vacancies increase, then you may drop rents or have longer vacancy periods, no one has a crystal ball that it will cost you little to hold, until you do your analysis.
For me too much land available for future developments, hospitality or construction industry only (hence people in these professions earn less - if they earn less the banks lend less, not much wage growth, properties do not increase much, why?) hence for me for long term I am out!

 

I have had my property for 10 years and never had a problem getting a tenant or having to drop rent.