investing in gold coast

im also looking in Brisbane, down here in Melbourne is crazy expensive, no way I would buy here. paying 4-600k and only getting 350 a week in rent. No thanks.

I don’t know anything about Brisbane but will have to research It up and maybe even go for a holiday there or something.

Just curious, what sort of rental return did you get, since you mentioned it was good return.

Hi Blackhotel,

I purchased 3 x houses in 2008, 2009 & 2010 on the Gold Coast (Ashmore). Yes great rental return but absolute crapppppppppp growth.

The timing of your purchases was unfortunate – I would have thought this was just a year after the peak of the market in SEQ. Since 2008, Brisbane has pretty much stood still. I suspect the GC would have been similar. I would have thought Ashmore to be a burb that will do well over time – it is hardly “out in the boonies”.

Right now, the Brisbane property clock time shows 8 o’clock. Barring any major change in fundamentals, Bne (and perhaps the GC?) should do pretty nicely thank you over the next 3 years or so. I am seeing definite upward signs in Bne.

What are you seeing in the GC, or have you given up checking? ;) It could be just the time for a big hike in the values.

Benny

I would stay away from GC only because of the oversupply of units and crap rentals. My sister purchased an investment property in 2014 and the rentals are okay but growth is real slow…. I would suggest looking into Logan, Redbank Plains or even Springfield if you are considering Brisbane….The rentals are very consistent and the growth in these areas are very good.

So I am based on gold coast, invest here and interstate.

would suggest houses over units here, even duplexs hold good yields comparatively as bc cuts into gains.

depends what your looking at to fit your strategy, but I agree with Sarah south and east of bris are far better deals (generalization)

Kind regards

Jaxon Avery

Hi Ajay,

Hi Benny – that’s what I’m betting on. But it’s surprising there was such limited growth in Gold Coast houses over the last 10 years. Articles such as these seem to contradict this. Am I missing something?

One of the articles mentioned the median growing more than twice as fast as Brisbane – that could be valid – IDK, as I only see the Brisbane Median figures. But watch out for some little tricky things:-

1. As one commenter pointed out in the 2nd link – the map at the top shows MOST of the Gold Coast either lost value or stayed the same (based on the colours on the map). A few went up in value, and one or two wildly so.
My question to that comment is this – How accurate is the map? It seems to have 10% rests between each colour. So, if a suburb went down by 4%, and the suburb next door went up by 4%, how would they signify that? Likely both would show the same colour (in which case one colour can represent an 8% difference in values without being notated – how weird!!).

2. A mention of Pimpama going up 61% over 5 years – what is not mentioned is that they will be comparing sales of 50-year-old farm workers cottages being sold, against brand new 4Bd2Ba homes being built. All of that development started about 3-4 years ago. There was a small loss in median value in the last 12 months.

3. Is there a “Commonwealth Games in Apr2018” factor in all this? Is that some kind of catalyst helping folk to decide to migrate from Southern States once more? Supply/demand lifts prices..

4. Some areas lifting by 30% – sure, it happens. Currumbin has never been a high-flyer – too far from Surfers, but is getting close to the airport. Perhaps it has been overlooked and just been re-discovered? And re-look at point 2. Is it repeated in other areas apart from Pimpama?

5. The overall mismatch of median data between sources. The figures supplied by Jason over the last few months has seen Sydney’s median exceed $1m, and Mel nearing $900k – while THIS sample shows Syd at $930k and Mel at $650k. Which figures can be trusted? These in the links were from Mar17 – perhaps that is part of the difference.

As I mentioned, I haven’t seen Gold Coast Medians in a while – it could be that GC IS stretching ahead of Brisbane right now – but don’t forget a Median is the “middle sale” in ALL of the sales in ALL suburbs of the Gold Coast. Many suburbs will have Medians less than the GC Median, while others will wildly outstrip the GC Median value. Hard to get accuracy with an across-the-board Median like that.

6. Good work, Ajay – it is good that you challenge what you hear that doesn’t seem to make sense to you. As mentioned above, my comments were coming from a point of “less information”. As such, they were open to challenge, and I have learned, thanks to you. Keep on looking and making up your mind about all of the facts and opinions in front of you.

The main thing is to NOT confuse those two (FACT and OPINION). ;)

Benny

Jaxon, when you say 8-9%, is this in the sense of 8-9% without buying below market value

or you need to be below market value to get that 8-9%, otherwise you’d only get 5-6% (like how much we get in Melbourne if we don’t buy below market value)

I understand how you calculated it, but that was not the intention of my question.

I was actually asking:

When you say get those 8-9% return for those “west bris” properties, were you able to get those properties at market value and still get 8-9% return (meaning west bris is such a fantastic area to invest in that we should really get to it while we can now and if one can buy at market value and still get 8-9% return then one should be able to get an even bigger return — such as more than 10-12% — if they apply good research and negotiation skills to buy below market value)

Or it is not possible to get those 8-9% return unless you try to apply good negotiation skills to buy at a sales price that is significantly below market value?

My instincts tells me it is the latter….