QLD Where to buy a new house?

I'm new here, be nice :>

I live on the Gold Coast at the moment. I live near Southport.

The problem is, my budget I'm either looking at a brand new house at say Gainsborough Greens (15-20minutes from Surfers/Southport etc) although I don't find that a long drive, many people do here on the Gold Coast and I would assume it would be hard to get it rented..judging by realestate.com.au there is 95+ properties currently vacant looking for tenants....

or I can buy closer, a much older house, and maybe not even a house, I would probably need to buy a very old duplex.

I do think Pimpama will get bigger, due to all the infrastructure being planned for that area and it is in a nice estate around a Golf course, but I keep getting mixed answers, some say best place to buy right now, and some say stay the heck away.

Just looking for some advice, really do want a new house though. (thinking with my heart right now I think, not my head)

 

Hey @Aussy , welcome aboard.
What's wrong with finding an IP somewhere around Southport?

 

My old man thinks Gainsborough Greens is going to do well. He knows the new owners of the golf club who apparently have big plans to redevelop it.

Is this for an IP or PPOR?

 

Want to buy a house, no such thing around $450k in and around Southport that won't need giant amount of work done on it.

I also have heard things to this degree about the place doing well, but the rental vacancy scares me.

It will be an IP

 

If the vacancy rate is high, it's easy, go elsewhere. An over simplistic view, but empty houses will suppress rents. Suppressed rents will lower yields. Lose - lose.

What is the vacancy rate out of interest? I'm very wary of that stretch south of Logan. I've been told to drive through the ghost town estates. No idea if this is an accurate reflection

 

No idea about the actual vacancy rate sadly, I only know by looking at realestate and seeing 95 places that are up for rent, which is a lot compare to the amount of houses in the suburb. but MAYBE those are all old houses in bad areas and maybe asking for way too much rent hence no one renting them...

 

I think you will benefit from more time on the forum before you jump in

 

I agree, I'm very new to this forum sadly, so I'm a novice, sorry.

Thank you very much for that data though!

 

Let SQM be your friend

 

Judging by that data, it's not as bad as I first thought... but I believe I'm a bit too slow to buy there since only the bad spots are left and still not sold for a reason haha.

 

I didn't mean it in a bad way
I wish I found this place before I bought my first place

 

Ahhh... a tip. You want to buy where there's no more than 2% vacancy....

 

Oh okay, thank you. will keep an eye on that one.

 

Assuming this is for an IP-

Sounds like you're not sure of the area or old/new, here's some things worth thinking about.

Older house- pros- possibly better cashflow compared to a new home, can depreciate some depending on year it's built. Can consider renovate and reval. Cons: Ongoing repairs, might be harder to find a tenant if it's really old.

Newer home pros- less hassle (don't need to renovate), better depreciation, generally less repairs/maintenace
Cons: New homes tend to have a price premium over older homes, rental returns as a percentage may be lower

I would suggest to keep your list open to both and just work out which one is the better deal financially, location etc rather than purely looking for old or new homes.

 

That's the good thing about living close by, can do stuff like painting etc... yourself.
Get some friends/relos in on the fun.

 

You would be much better off buying an older place in southport. In my view a very good time to buy as you will get the land appreciation. If you buy now you will be very happy with that decision come 2018.

 

Thanks, if I was to buy in Southport, it would have to be a duplex, does that matter?

 

Do you mean one or both?

 

Ideally you buy the whole duplex. Both apartments and the land itself. You could then live in one and rent out the other.

 

Good buying in Labrador at the moment.