A friend of mine recently purchased a property on the gold coast. She also signed up a rental agreement with a time share company who will fill it for the year with time share peolpe and pay her rent (even if it is not filled)? Is there any catches she should be aware of? Also what is the market for that area expected to do in say the next five years?
Paul
Did your friend purchase a new or established property?
Was it a high rise or a low rise?
Whereabouts is the property?
I was in Surfers this morning, talking to a lot of the agents etc. Most of them say they’re pretty busy, but we’ve just gone through the peak period.
Market is pretty stable up here at the moment, but there are a lot of highrises being built at the moment and heaps yet to be started.
The biggest problem up here is the infostructure (roads etc hardly coping now).
Financial Wellbeing Coach
W: http://www.pfsfinance.com.au
E:[email protected]
E:[email protected]Development Finance Specialist
It is on ferry st (?) next door to the marriot, about 10minutes walk north of Cavill Mall. It is a small resort by the standards of up there, only about 8 floors high. It is a one bedroom apartment that sleeps up to six, has two balconies, one looking towards the Indy track. It is on Level 3.
regards
Paul
It is listed as 4 and a half star.
Don’t know the building but it’s in a pretty good spot.
How much did your friend pay for it and what rent is expected to pay?
A lot of the apartments in the new/newer buildings ar quite expensive and aren’t really getting that good a return. You can still pick up older type apartments in some of the resorts for pretty good money and the returns are pretty good.
Financial Wellbeing Coach
W: http://www.pfsfinance.com.au
E:[email protected]
E:[email protected]Development Finance Specialist
she bought for $260,000 and will get $280 per week gauranteed. I think the building is called soveriegn australis and is about 8 yrs old. Huge sinking fund but quite high body corporate fees ($80)
rental agreement is for 12 mths and then has option to extend or go with australis
I think she has done alright there.
I’ve worked out what building you are talking about and it is in a pretty good spot.
The thing about QLD is the stamp duty is a bit cheaper then most of the other states.
I was reading the other day that the Gold Coast Airport has had another record year and I know over the christmas period you couldn’t get accomadation anywhere.
Financial Wellbeing Coach
W: http://www.pfsfinance.com.au
E:[email protected]
E:[email protected]Development Finance Specialist
Hi Paul
I am on the coast too and it is interesting to watch the ever changing skyline.
Your friend’s but may not be too bad but it is on the main road (noisy) and that might limit holiday renatls when times are slow.The body corp is also a bit steep so it makes it hard to earn a dollar even with a rent guarantee. Mind you most body corps are over the top at the moment.
I’d suggest that she follow up on the tenancy position well and truly before the agreement expires. Most will tell you that holiday accomodation is risky as far as having concrete returns are concerned so she needs to keep her finger on the pulse.
As for the Gold Coast market…got a crystal ball?it will be about as accurate as what any agent or property guru tells you. But good property will always be good here-just don’t let the hype suck you in!!-do your homework
markk
Happy Hunting
http://www.kentscollections.com
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