We have signed a contract for the purchase of a brand new duplex property 3br/2ba in Coomera – Lily Estate. We have just received the date of the cooling off period so we have a small window to opt out.
Can anyone comment on this as to whether it would be a good investment — thanks.
Like most of the wider 'Gold Coast' Coomera is struggling at the moment.
Rents have been relatively stagnant for sometime as have property prices. The Gold Coast is heavily reliant upon the constructionm industry and this is struggling big time. Sure there are big plans for the future and when this all comes off Coomera should be OK.
But………………………………….it all depends upon your objectives, timeframe, the numbers and your personal circumstances..
For more detailed comment the forum will need to see purchase price and exoected rental income as minium.
Um the purchase price is $399,995 and expected rental is between $380-$400, our plans are to buy and hold.
Thanks Derek
The yield leaves a bit to be desired but being new you will get good depreciation so won't cost as much to hold. Have you worked out how much it will cost you to hold? ie out of pocket expenses. About $230 a week loss before tax (not counting depreciation).
How does the price compare to duplexes in the same area that are, say 5 years old? ie are you paying a premium because it's new? Because in 5 years time there won't be much difference between yours and the ones that are 5 years old now. How many properties similar to yours in the area? Are they still building more? Yours won't be attractive to buyers in 5 years time if they are building new ones then.
I wouldn't buy it but your goals may be different to mine. I like a better yield and under market price. Buying new will not be under market price.
Why are you doing your due diligence AFTER you've signed the contract?This is my first property investment.
Not sure how it stacks up with duplex that are 5 years old in the same area. Not sure what you mean by paying a premium because its new. There are a few similiar duplexes to ours built in the same estate, well they are the same plan and still building more properties.
Ive only just started to look into it after talking with someone that is property saavy — and she put me on to this forum.
We have purchased through I guess a third party — see my other post. Got a lot to learn.
hakanoa wrote:This is my first property investment.Not sure how it stacks up with duplex that are 5 years old in the same area. Not sure what you mean by paying a premium because its new. There are a few similiar duplexes to ours built in the same estate, well they are the same plan and still building more properties.
This is basic stuff you should check before you buy anything. If similar places to yours but 5 years older are at a lower price then yours will be comparable in, say 5 years time. So if they are $50K cheaper than yours then that means yours has to have a gain of at least $50K before you start making a profit (put simply). Get on realestate.com and check NOW!
Also prices go up (partly) because of supply and demand. If there are heaps like yours and more being built then supply exceeds demand. This is why beachfront properties demand a premium (you can't build more).hakanoa wrote:Ive only just started to look into it after talking with someone that is property saavy — and she put me on to this forum.Type this into Google for several threads on Coomera site:somersoft.com "coomera"
Or just look at http://www.somersoft.com/forums/
hakanoa wrote:We have purchased through I guess a third party — see my other post. Got a lot to learn.Yep. Third party means that's an extra party making a profit out of you.
I was going to send you a personal message (PM) but you haven't added an Email.
hakanoa wrote:We have signed a contract for the purchase of a brand new duplex property 3br/2ba in Coomera – Lily Estate. We have just received the date of the cooling off period so we have a small window to opt out.Can anyone comment on this as to whether it would be a good investment — thanks.
Interesting time to be asking this question!
Generally when you receive 'help' in selecting your property you are talking about a marketing company which will have 25-40k of margin built in, sometimes a whole lot more. The model is the marketing company is really selling developers stock and don't have your best interests at heart. I don't know the specifics of your deal and they could be very different…. buyer beware though.
Have a good look around on realestate.com.au, get some recent sales data from agents, have a look at what houses are selling for, what prices they sell for, what yields they sell for and so on. It's a few hours of browsing only to get some basic grasp of what might constitute fair value.
Good luck with your research and make sure you get a truly independent valuation.
Hi Andrew
Its a bit of mess — I should have done my due diligence before hand.
Do you know of any independent valuers in the area? Thanks for the advice above as well
Herron Todd White have a good grasp of Coomera. 07 55841600 but most valuers (make sure it's not recommended by the seller) will smell a bad deal.
Pretty well most suburbs over the Gold Coast have an over supply issue and Coomera would be up there. Growth has been pretty stagnant over the last 5 years.
Being your 1st investment property…do you mind if I ask what it is your trying to achieve out of it….your goals….and why was the choice narrowed down to Coomera ?
As other posters have mentioned….sounds like your dealing with a common everyday marketing company that make a VERY healthy margin….sales tend to be over and above local comparable sales and this is why they like to also control your finance….so they can find a lender who has a "suitable" valuer that will get the deal over the line so the gravy train gets fed (recommended solicitors, financiers etc).Hey Speedy Gonzales
Its exactly what you have explained above on how we ended up with this so called deal. Our goal firstly was to repay our PPOR mortgage off quickly using an offset account along side having our first investment to create more equity to move on to the next investment and so forth.
The property consultant then provided 3 properties (I cant recall what other suburbs they were) to choose from — and Coomera looked the more favourable, they came up with a rental amount of $490 per week then when we looked into it after the fact, the rental amount for the area would be approx $380-$400.
Thanks
Im just waiting on the solicitor to get back to us — I want to see if we can get out of this some how.
In Qld your contract would have a 10 day "cooling off" period which starts from the date the seller signs the contract….that would be the easiest way out
In QLD the cooling off period is 5 business days, with a 0.25% of purchase price penalty attached. Without looking at your contract there is no way of knowing what your most effective avenue will be, best to get independent legal advice asap if you haven't already.
Hello Hakanoa,
Our thoughts is that is a good idea to ask these questions before placing a contract on the property. Properties to purchase are plentiful at the moment, here should really be no time pressure for a buyer to commit to anything at the moment since there is pretty much a stock standard deal. In Caboolture, north of Brisbane in Queensland there is a property owner who purchased their four-bedroom, two bathroom, double lock-up home on a 450 m² block two years ago for $375,000 from a house and land package marketing company. That house on the market today is worth anywhere between $290,000-$300,000 as there is an oversupply of that type of product in the market at the moment. From my experience one other thing that I’ve noticed is that in these new estates what one talking about and also North Lakes in Brisbane Queensland is that there has been an enormous amount of houses that have been built on extremely small blocks land (350 m² to 450 m²). Initially with a buzz of everything people buy house and land packages on the emotional. The reality hits when the market slows down and they are trying to compete with houses that are on 600 m² blocks and now become the big don’t wanters. We are coming across more more sellers in this particular predicament.
We hope this sheds some light on your situation. All the best.
Jason Moore and Sherry Ortiz
Deal Maker | Great Property Deals
http://www.greatpropertydeals.com.au
Email Me | Phone MeYour Private Off Market Property Acquisition Specialist - Forget Buying Through Real Estate Agents
Sorry Speedy in Qld you only get 5 days cooling off and not 10.
The Contract is dated the day the Deposit Holder signs the Contract not the date the Seller signs it.
Certainly they could be the same date but doesnt have to be.Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Yeah I would get out. $399,000 is alot for a property in Coomera. I have a few investment properties but just bought my PPOR in Highland Park just down the road from Coomera. We just purchased a 3 bedroom house for $270,000. We would get $350 – $400 rent. The only reason we bought is that the repayments are less then renting.
There are much better deals on the Gold Coast at moment. If you are looking for an investment on Gold Coast I would be looking at a house in Miami or one of the beach locations lots of cute cafes and things going in there.
Any update on what you decided to do Hakanoa?
Hi All
I'm new to this forum and to anything more than owning my own home.
I have a home on the sunshine coast that is rented out (slightly positively) but I now live on the gold coast. I doubt I'll be going back.
I have about 200k equity but crap income as I'm self employed and my income looks very low.
My partner could borrow about the same amount. Around 200K.
I need a place on the gold coast. You can get land off the M1 – coomera, oxenford etc for around 200K.
Does anyone any any idea what it would cost to build a duplex pair. Nothing too flashy. 2 – 3 bedroom.
I'm wondering about the feasability of living in one and renting the other out to pay off the money we would borrow or selling them both and in this market could one make a profit?
Does anyone know a good duplex builder on the gold coast?
It's all a bit scary not knowing how to start looking into it all. Any suggestions?
thanks
Miss Tess
Miss Tess
I have a couple of clients recently build duplexes in Brissie with Dixon homes so might want to check them out as you wont get much cheaper than a project builder.
Sure they cover the G coast also.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Last time I was suggested to buy in COOMERA is by Julio De Laffitte (http://www.jdlstrategies.com.au/) in 2011 time frame as well, 4 bed 2 bath 2 garage house brand new for $ $429,000
I don’t think at that time it was a good buy hence I was not going ahead with the purchase.
But last month with the help of another buyers agent Todd Hunter (www.wheregroup.com.au) Their due dilligence confirmed that UPPER COOMERA or ORMEAU is the potential for growth in the next 5-10 years.
Let us know how it goes if you have bought in this area, then you can thank me later.
SiteManager
Investing for a better future
Like most of the wider ‘Gold Coast’ Coomera is struggling at the moment.
Rents have been relatively stagnant for sometime as have property prices. The Gold Coast is heavily reliant upon the constructionm industry and this is struggling big time. Sure there are big plans for the future and when this all comes off Coomera should be OK.
But………………………………….it all depends upon your objectives, timeframe, the numbers and your personal circumstances..
For more detailed comment the forum will need to see purchase price and exoected rental income as minium.@derek, not anymore mnate
See this new exciting development of big Westfield Mall http://www.coronis.com.au/blog/a-decade-of-planning-sees-coomera-flourish
soon it will be a blue chip suburb in SEQ.SiteManager
Investing for a better future
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