Dreamland - Gold Coast

Hi All,

I found and interesting article in the weekend Bulletin for those of you who are interested in development in the Gold Coast area :

A town the size of Southport with more shops than Pacific Fair has been given the go ahead for Coomera. A rezoning of the land around Dreamworld (owned by it) has been approved.

This is to be the focal point of the northern corridor. Apparently, the fastest growing area in Australia. The is a train station right in the centre of the area providing quick access to Brisbane.

I checked out Upper Coomera a couple of weeks ago. There are three secondary schools in the area, and houses less than three years old for around $250k. I was put off by the low rent of ~$200 pw but this announcement may put a different light on the area.

Cheers,

Bazza
 
I dunno Bazza, I like areas where there is not much land left so greater demand for existing housing and if it is a desirable area that usually equates to good capital growth.
I have seen areas where a lot of land is released onto the market and although in growing areas it can take quite a while to realise any real CG.
Thats just my thing and it could do just the opposite. Having said that I do like to see SEQ developing and the population base increasing.
astroboy
 
Hi Astroboy,

Yes I agree there is a hell of a lot of land between Coomera and Brisbane. I don't particularly like the area myself - just a bit of info for those who are interested.

Cheers,

Bazza
 
Bazza and Astroboy
Thanks for the info
Just been contacted by a developer with a deal going in Coomera with a house and land package comprising 60 blocks!? Seems they are going to build new houses and flog them to investors (me one?) and then develop another site with 125 blocks, etc.
Talks about rentals of @270 pw. With that many properties new to the area, would there be that many rentors ready to pay that rent??
Also mentioned a 4 lane highway?
What don't you like about the area?
If the numbers are correct (rent, purchase price, building & content dep. etc) it could be a good +ve cashflow. Gross yield around 6%

Appreciate any more info
jahn
 
Hi Jahn,

I sold a 4 bedroom house in Upper Coomera in January for $215K. It was rented out at the time for $215/wk.

I bought the property off developer about 5 years ago and was stung to the tune of $50K. Took the 5 years to make up what we overpaid.

If I knew then what I know now about finance and real estate, I would have refinanced and kept the place.

Out of curiosity, are the builders for this developer 'Choice Homes'?

Cheers,
Bmok :)
 
The prob with the Nth end of the coast is that it's along way from anything sort of stuck in the middle of two big cities. The freeway that runs thru dreamworld also runs 3 mins from Palm Beach Currumbin and Burleigh. That is where you want to be buying, I am negotioating 3 3 bed town hoses right now in these areas.
 
Hi Jahn,

There are plenty of renters from what I have seen but you won't get anywhere near $270/wk. Bmok's ex-rental at $215/wk is more typical in the $200-220 range. So, it would be difficult to get +CF out of a new property (~ 4% yield) although long term CG may be realised with the new development in the area.

The freeway to Brisbane is excellent. You could do the Coomera to Brisbane trip in half an hour.

I agree with Mort - Currumbin or Tugun are the go. Burleigh and Palm Beach are over priced (which is good as we have a PPOR in Burleigh).

Cheers,

Bazza
 
Thanks for the replies
Seems like I might have to change tack on this one.

Sorry, Bmok. Don't know what they call themselves just yet. Only got a phone call from a guy I had dealings with before. Will let you know if I can. We got stung by a Company 3 years ago when we bought a unit in Liverpool (overpriced by 20k, but came out of it OK with time and re-financing and CG.;)

Thanks Bazza. Somehow I thought the rent might be lower than forecast.

Good on you Mort.
I might have to do some research on Curumbin and vicinity.
Any clues on going prices there?
 
Like mort said,

It's stuck between here and no man's land. I personally wouldn't touch it with a ten foot pole. Do your research and you will find much better investments for Capital growth and rental yield than this.

As Bazza said - hell of a lot of land between here and Bris Vegas.

Bundy:(
 
We have recently purchased in upper coomera with a long term out look. I beleive long term this area will be good.It is growing,
it is very well planned. Look up the Gold Coast City Council and QLD govt websites and read their plans for this area.
The property we bought is new 3 br 3 bth split level with views over the surounding area. We are not in for short term gains but CG and moderate returns are a good starting point. I beleive this area is good... a lil overpriced maybe but it aint going to get any cheaper guys !
 
Hi RickH,

I agree. If you are going to live in a PPOR then you will get long term CG but to rent out as a IP the numbers don't work for me.

We took another look at the area a couple of weeks ago - Regatta Waters in particular and spoke to a number of builders. The best turnkey package we found was from Hotondo Homes. We spoke to the Managing Director (which by the way cuts out the salesman's commission) and the best package was $276k for 4 bed, 2 bathroom complete.

This was a house & land package and when we looked at he land it was just a paddock with a bulldozer and a few piles of trees (not in Regatta Waters). It takes roughly 4.5 months to complete and then you can only rent it (if someone like to live in a dust pit) for $220 max.

Now just quickly running it through my PIA software (but I can guess the result) for a purchase price of $276K and assuming $60k income it would cost $71/week negatively geared (forgetting the payments while the house is being built) and wouldn't become neural let alone +CF for 18 years.

Doesn't work for me. Hope your calculations look better than mine.

These areas are really more suited to first home buyers than investors and agreed will appreciate in time.

Cheers,

Bazza
 
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