Hi all with good brains,
I happened to visit Gold coast last week and looks like its been a major tourist attraction destination and property prices are all time high. I was wondering if this is the right time and a good investment to buy apartments/units.
Sometimes I feel it may crash but not sure. Could someone please give me some insight on the Gold coast property marketThanks in advance
Pradeep
pradeep
There’s been a few posts about GC apartments recently and the general consesus seems that yes they are over priced. Remember if you bought now you’d be buying, more than likely, at the peak of the market. That wouldn’t leave much room for any more growth but plenty of scope for the downside.
In my opinion, if you really want to invest on the GC you should wait a while, otherwise you could put your money somewhere better.
I live on the Coast and g7 is spot on. The coast hit its peak with the rest of the country 12-18 months ago and prices are edging backwards on investment type properties. Most agents here talk it up as usual but just watching the real estate papers every week, there are a lot more properties coming back onto the market. They are still at the higher end of the price bracket though(a 2 bed crappy little dark unit in a block of 36 returning about 3.5% in one case)but the volume of the listings will bring prices back in the next 12 months.
having said that there are always good deals to be made if you look depending on expectations.
Stay tuned……
markk
Happy Hunting
http://www.kentscollections.comI have 1 IPs in lower end of QLD market (Beenleigh) and there is always demand for rental properties. However, you do have to put up with issues but nothing that a good property manager cannot fix. Use a bit of creativity and property will put money in your pocket.
Going back to QLD property, I agree with g7 because I called a few real estate agents around to gauge interest in my property but the consenus is best to wait, if you are not in a hurry. It all comes down to what you level of comfort in the deal
Cheers
JohnDreaming about financial freedom is all about taking some action TODAY. I am building my own successfully PART TIME business whilst still working in a Bank. If you want to know more, PM or email ME.
Pradeep
I have several units on the Gold Coast, both in Surfers Paradise. I will tell you about the last two deals that I did there in 2001
1. 2 bed 2 bath 1 carpark Peninsula Building beach front full sea/beach view 8th floor new kitchen and paint. Unit was an 8 out of ten in condition. Listed price $250k
Purchase Price $226k
Settlement cost total $235k
Rental then $320 pw x 52 = $16,640 div $226,000 = 8% Gross
Last valuation 2004 now $490K current rent $400 pw = 5% Gross2. 2 bed 2 bath 1 carpark Monarco St 200 metres to beach wrong side of highway 2nd floor of a three story walk up. 7 out of 10 for condition.
Listed Price $120kPurchase Price $120k
Settlement cost total $126k
Rental then $220 pw x 52 = $11,440 div $120,000 = 9% Gross.
Last valuation 2004 $250k current rent $270.00 pw = 6% GrossNow from the gross returns you need to subtract B/C 1. $83 pw 2 $35 pw and other cost associated with holding the property.
In the current market around Surfers anyway you could expect a Gross return of between 3 and 4%
The market is at peak price at this time in my opinion so further growth in the short term would surprise me.In this area, I personally would not purchase unless I could get at least a 6% Gross return with reasonable outgoings.
You would either have to wait for rents to go higher or prices to drop or put more cash into the deal to give yourself better cash flow. You do the sums.
P.S. It was good buying in 2001 but not so sure now. Maybe we need to wait for the clock to move into a better cycle. Also note that both properties have dropped 3% on investment yields.
Bradshaw.
Hi Guys,
Thanks for all the replies. Much appreciated. It puts me in a better position to rethink
Thanka again
Pradeep
pradeep
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