Carrara (Gold Coast QLD)

W

WendyP61

This is a bit like putting the cart before the horse, because we've already put in an offer on a townhouse in Carrara.

We went with this location mainly for price. As new "investors" we couldn't quite bring ourselves to borrow $250-300K for something in Sydney!

Also, both the rail line to Brisbane and freeway access are not too far away from the complex.

Price is $115K for a three bedroom townhouse with lock up garage. It's an end unit, so only one common wall and added benefit of a extra parking, being in a cul de sac section of the complex driveway.

There is a manager on-site and a pool. Returning $150 p.w. in rent, which will increase to $165 p.w. if current tenants decide to renew or $170 p.w. to newcomers.

Long term? The complex is 7 years old, so we are looking at keeping the townhouse for 5-10 years.

Anyone out there with some comments on this particular location?

Reassurance sought, I guess! It's a step forward at least.
 
Hiya

Congratulations on a forward step.

Not bad location I have heard from clients with stock there.

Pay for a report from residex to see what recent sales have been in the development and in the area perhaps. Rental rtn seems ok, but watch out for the body corp fees.

Ta

rolf
 
Hi wendyp61,

congrats on the IP, I have been looking in that area myself lately, there are some great rental returns on some of those complexes but i was also wondering about body corp fee's, what % of you rent goes to body corp fee's pa.

Thanks

:)
 
Here is an example of Body Corp fees I pay on 3 of my IP,s which are in complexes (pool, tennis court, gym etc).

IP 1 BC = $1850 per year, rent = $250 per week

IP 2 BC = $2200 per year, rent = $230 per week

IP 3 BC = $2100 per year, rent = $265 per week

It all depends on the facilities provided and operating costs of the Body Corp. My IP 2 has fairly comprehensive landscaping, pools, waterfalls and fountains. But as long as they are looking after my invesment I don't mind the cost (within reason of course!).

The Fester
 
As a tag-on to earlier message ...

Body corporate fees, I don't have the paperwork handy but off the top of my head I have a figure of $35 p.w. in mind.

That seemed on the high side, but then there's an on-site manager/maintenance person with a reputation for being a Pit Bull when it comes to collecting rent and complex has a pool (no fountains!).

Worth the extra $ for "vigilant" rent collection and a clean pool?

What's the feeling about installing airconditioning?

I stayed in a motel in that area once during summer, they only had ceiling fans and it was the pits!

Given the price/location etc. I've already mentioned, would $2K on airconditioning be "over-kill"? Not right this second, maybe 12 months down the track.

I guess we could put the rent up a little to recoup some of the expenditure, but how much would be reasonable and would we necessarily have tenants queuing up to pay a premium for staying cool?

Short term, we thought of putting in a couple of ceiling fans. But by the time we spend a couple of hundred on them, maybe we should let the tenants swelter a bit longer and put the money towards aircon?

Thanks for the feedback to date, it's been encouraging.
 
I've had air conditioning in a Brisbane unit. I haven't been able to get a higher rent because of it, but it has been let out quickly when others are vacant for a while. Probably though not enough (so far) to have recouped the cost.

It is, of course, depreciable.
 
I'd definately do my research for this area. I purchased a large 4 bedroom house with pool ona 1/4 acre block in Carrara in 1991 for $165K and sold it on 1999 for only $180K. his was after replacing the kitchen with e new solid blackwood timber one, totally repainting inside and out, landscaping etc.

I was achieving good rental return of $300 per week in the last year, however the growth was very poor. I sold it as i was after capital growth and moved into the beacside suburbs where the growth has been phenominal.

I have friends who have purchased their PPR in Carrara in the past 2 yrs and have had some reasonable growth - 10% which is much better that I received.

I don't know if you are after rental return or capital growth, but if you are after growth may I suggest beachside areas of Tugan, Kirra, Coolangatta areas. You can still pick up cheap units in small complexes with a reasonable return that are in walking distance to the beach which will have great capital growth. The beachside southern end of the Gold Coast is still yet to hit it's straps.

I don't want to disuade you, but I would Definately do your research for carrara.

Happy Hunting

BUNDY


:)
 
Friends of mine have lived in between Carrara & Nerang (Pappas Way) for 4 years and cap. growth on their PPOR has been pretty average, maybe 20-25% in that time.


Bundy,

What do you consider the "beachside southern end" of the Gold Coast being? Coolangatta? Burleigh? Currumbin?
 
Carrara continued ...

Thanks for your input too Bundy (and anyone else I've forgotten to thank).

We are OK with not so phenomenal capital growth, looking long term say 10 years+. Well, this is the theory anyway.

I take your point about Coolangatta also. It's been around 5 years since I was last there, but I noticed it seemed relatively untouched by comparison to Currumbin - there were still some of the old fibro flats opposite the beach.

Turning our attention back to Carrara again, we have not yet returned signed contract because we noticed the complex was "Accommodation Module" under the Body Corporate and Community Management Regulation 1997.

Currently sifting through the comparison table that we obtained from the QLD government website to work out where the differences lie.

According to what I've read so far, the Standard Module is designed for permanent residential developments, whereas Accommodation is less regulated and suits holiday letting or serviced apartments for the investment purchaser (with an onsite manager as a "given").

I guess my question now is would the fact that the property is designated "Accommodation" be any disincentive to purchase - especially if we planned to hold on to it for the ten years proposed?

I'm going to check with the Manager to see if this is what the complex started life as, i.e. holiday townhouses. From what he's already told me, there are a number of owner/occupiers in the complex and their numbers seem to be increasing (which isn't really what he wants happening of course).

What's the chances of us having to change the module to "Standard" down the track to reflect a change in occupant type and at what $.

Sorry to bore you all with these questions!

Maybe there some NSW people out there who've bought in QLD under this sort of arrangement (or vice versa) and can give a precis on the differences - especially compared to what we have down here.

I'm sure the real estate agent will say "No worries", maybe the solicitor acting for us will as well - but he's not exactly qualified to comment on how this could affect re-sale.

Maybe it's just a case of this particular module best suiting the needs of the absentee landlord:confused:
 
Sounds interesting Bundy! How confident are you
about this expected capital growth?

Originally posted by BUNDY
[

I don't know if you are after rental return or capital growth, but if you are after growth may I suggest beachside areas of Tugan, Kirra, Coolangatta areas. You can still pick up cheap units in small complexes with a reasonable return that are in walking distance to the beach which will have great capital growth. The beachside southern end of the Gold Coast is still yet to hit it's straps.

I don't want to disuade you, but I would Definately do your research for carrara.

Happy Hunting

BUNDY


:) [/B]
Click to expand...
 
JDP,

I am very confident in this area. I have done my market research in this area and have been monitoring it for the past 18mths. Good properties - units and houses are on the market and selling in a matter of days/weeks. Location is great ( beaches, transport, shopppoing centres - LIFESTYLE) , development opportunity excellent. I'd be sticking to Tugan, Bilinga, Kirra, Coolangatta and Tweed. Tweed still sems to be the sleepy hollow at the moment. I have purchased at Coolangatta and Bilinga. One propertie has tripled in 2.5 yrs and one has just doubled in 12mths.

I'd urge you to check it out yourself!

Cheers
BUNDY
 
Thanks very much Bundy - I live at Mermaid Beach so I'll
definitely be checking it out - what do you think is a good
price to pay for a 2br unit close to the beach?
 
JDP,

It all depends on the size of the land, numbe of units, location to the beach. A couple of units have just sold on Pacific Pde, Bilinga - this is directly opposite the beach with great ocean views ( simialr to Marine pde, Miami). One was in a complex of 6 untis and went for $395K, the other was a larger unit in a complex of 8 and went for close to $395K. The is another one just up the road listed at $395K and it is on a small block of 4 - ocean views. If you don't want to pay this much, there are a few for sale on Golden four dve and in and around kirra. They range from $200-$300K.

I'd suggest you do the rounds of the agents at Tugan. There are about 4 in a stones throw of each other.

Just remember - do your research.

Happy Hunting

BUNDY;)
 
Thanks Bundy!

I visited a few agents yesterday around Tugun and
Coolongatta - they were mostly telling
me that any bargains coming on the market are being
snapped up quickly (or do they always say that?).

I haven't bought property
before but figure I'll be able to borrow between 400-500k,
so I thought at current prices I might buy two units...
I gather from what you're saying that the amount of
land under the unit is important? (I guess because
they're not building any more land huh?) :)

cheers, justin
 
Justin,

That's right - land appreciates and buildings depreciate. The money is in the land!!!!! Try and buy in a small complex.

There are a couple of houses that are on the market in Boulton Street, Kirra. David Stringer at D.J STRINGER rela estate at kirra has them. They are walking distance to the beach. May be worth a look. 2 have signs on them, but there are a couple of others adjacent that haven't got signs on.

Good luck
BUNDY:)
 
Thanks again Bundy - tooling along in your tire tracks I checked those out :); not the greatest
looking residences, but like you say, it's the land you're
paying for.

A lot of the agents are telling me there've been big jumps in
prices over the last coupla years - how much longer do
you think this boom can last? Apparently too most of the
best ones get snapped up quickly - may be best to just leave
your name/number with the agents and scoot around quickly
if something comes up?

cheers justin
 
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