QLD Upper Coomera - Gold Coast Region - Capital Growth?

In Coomera? So you are doing well.... ROZZ above mentioned he did?

 

Upper Coomera

 

Ive not had any issues finding 12 month or longer tennants till this year. It's the latest few reports from my pm that's showing some rent reductions and sales prices that have increased only 30k or less. Untill now I barely saw any sold prices which increased less than 50k.

It appears those who had little growth are now finally being put on market and sold with almost no profit or a loss after tax. If it was optimistic for the area, I can't imagine why they would be wanting to sell at this point, if they were in a financial position to be able to hold?

 

Upper Coomera and Coomera are different suburbs, both with good & bad arias. Coomera waters has 1m+ property's, while the suburbs closer to the station are almost all IPs on 350-400m2 blocks.You then have everything in between. Coomera has a lot of land left to develop, more than Upper Coomera. The rise in prices is flow on from GC doing well more so than there being value in Coomera. The Agent I was chatting with yesterday was saying only two years some property's in certain spots that cost 420 to build were selling for 380 or just sitting on the market. High OO estates priced above medium are doing quite well at the moment, nothing amazing but I am not going to sneeze at +20% increase on my PPOR over the last two years. Saying that I recently bought in Logan & will look to other parts of SEQ for my next buy.

 

I'm quite shocked to see some of the comments here, Coomera is the darling of my management portfolio. For the past twelve months I've been getting absolutely gorgeous tenants at good rents very quickly- it's like a holiday compared to renting something in Logan!

I agree with those who have commented that there are good and bad areas- definitely.

There is a HUGE amount of new stock on the market, there were over 150 brand new 4/2/2 homes for rent between about $420-$500p/week about a month ago when I rented my last home in the area. I was nervous that it would be a problem, but my fears turned out to be unfounded, dream tenants found on the second viewing.

My business partner also sold a number of Villaworld homes in the Parkside development between August and December 2016 and about 30% of those were to investors, which came to me. We've seen them grow in value up to about $50,000 since then, which was unexpected, but a pleasant surprise! That being said, one of my clients bought a home through an investment manager quite recently in another development and he paid rather too much for it, so I don't think he'll be seeing capital growth for some time.

 

Can you shed light on the changes in Helensvale please.

 

Based on the monthly report it's a general change across the board, the availability of tennant's and some sales of ip's with only 30k gains or less, where it had been strong for the prior couple of years.

The completion of the light rail project, Commonwealth games amenities and now the decision on the casino will impact surrounding values, possibly as early as they are completed.

Apparently there have been a lot of rental enquiries for 2018 onward from project workers about the casino, I'd imagine they'll drop off? I don't think that's been written off completely though has it?

 

There is still a casino license available but who knows how long the next proposal will take to approve !

 

Ive Just looked at the report for Runaway Bay because it too has been doing well. It was selling consistently 20 to 30 dwellings every month including June and July 2016. Now only 15 sold in June 2017, and only 8 sold in July 2017. Much of what is sold is 1mil and above. it does look like a broader market is slowing. Would it be correct to assume these went unconditional around January to March 2017?

 

Overall, the longer term outlook for the Gold Coast is in my view very very positive. Buying anything and sitting on it will see nice long term gains over the coming decades as the Gold Coast keeps growing. The key for outstanding gains is of course buying in the right location.

 

I got into Pimpama next door about 18 months ago. My investment is basically neutral however when i get my tax done, i might get some more back from Depreciation. Never had a problem with getting tenants but It feels like to me the surge might have been and gone now though. Coomera isn't a lot different, in my opinion.... I am not to sure of the growth prospects moving forward but happy I got in when i did.

 

Glad to hear you've done well with Pimpama. It's generally less popular with Coomera and comes with a stigma, but I really don't see the difference on the ground. I'd be pretty confident you'll see some good growth over the next decade, but all this stock will keep the market depressed for a while.

 

I bought a 4x2 in Upper Coomera for $348k in 2014. Has been rented for $425pw by the same tenant since. Some growth, worth around $420k now at a guess. Gold Coast is in it's growth cycle now so we'll hold on and see where it takes us.

 

Wow $348,000! I'd hazard your house is worth closer to $450k now.

 

Interesting market the Goldie Tom. The person we bought it off paid $380k for it in 2009. The sale before was in 2003 for 256k. Timing is important. One person made $124k in 6 years, the next owner lost $32k in 5 years, while the next one (me) is sitting on $72k (assuming 420k) in 3 years.

 

Gold coast market has a bumpy history but this was noticeable north of the coast as well. the GFC impact on fringe development had the 2009 buyer entering the market at the wrong time, possibly paying a premium for a new H&L package in an aria that had another decade of development left in it.

A property I purchased in logan at the start of the year for 320k was last purchased in 2006 for 285k. The house next door, very comparable on smaller block sold in 2009 for 360k

I bought into Upper Coomera the end of 2014 for what I thought was a great price for a property that had been on and off the market for a long time, well above average for the aria but the owners where trying to sell for what they thought it was worth when they built in 2008. Recently prices in my pocket off UC have taken off.

Looks like I entered the markets at not to bad a time? The US & NK could kick off WW3 next week & stuff that right up though.

Pimpama is the new Coomera, the fringe moves on slowly.

 

yes, it will be a good area / suburbs for investing, see the below updates from Urbis:
https://www.propertychat.com.au/community/attachments/urbis-report-goldcoastnorth-pdf.19363/

 

and also if you asked Todd Hunter (Buyers Agent) and Julio De Lafitte (JDL Strategies) they both has enrdorsed COOMERA as the best place to invest.