Gold Coast Highrise

S

Sanny

Hi Guys,

I'm looking to buy IP in Goldcoast, Qld. I was there last month for a holiday. Can anyone invested in Goldcoast please give me advise.
1. Highrise apartment with the view for around 450 -500ks (Brand New)
2. Townhouse/Small Units inland bit further down (1-2Km) from the water.

I Just concern about the highrise apartments , because of the Occupancy rate and resale values because of the foreign investers. Experts from Goldcaost please give me some your expertise advise.

Sanny
 
I am no expert on the gold coast however I would steer clear on high rises, you have no "control" with this type of investment.

I would go further out and buy house and land, just my opinion.
 
Land...land....land....(component)

Given the population movements into the area, especially younger families, IMHO you will get a better long term capital growth with a house or at a minimum, a townhouse compared to an apartment.

You can buy a very nice house in Coomera for example for that price ($450-500k), with a far better rental return.
 
Sanny

You have to ask yourself what is special about a highrise? they are everywhere. To be successful you have to go for scarcity value.

You already answered the question yourself...occupancy rates and resale values are always an issue... and because there are so many of them, a few desperate sellers can drive the price down.

Who lives in these properties? holiday makes and renters....
 
Hi Sanny,

New high rise apartments are expensive because overseas investors can only purchase 'new' properties. If you really want to buy one then I would suggest one that is a couple of years old as there is less demand. But over Christmas and Easter there are still many vacant so IMHO not a good IP.

As others have said it is best to buy property with land content as the land will increasing in value whereas the building will depreciate.

I have often wondered what will happen to the older high rises as the 'concrete cancer' takes over and the building has to be demolished. This is estimated to be about 50 years. Do all the owners own one square metre of land?

Cheers,

Bazza
 
want2bewealthy said:
I keep hearing that its the land component that increases, true, but whats with unit values showing the same return on average? hmmmm?
Click to expand...

Actually, I read that GC units are currently increasing at 2% pa more than houses. I think this because there are a lot of baby boomers about to retire and downsize here and this is what is fuelling the current demand. But how long will that last?

Cheers,

Bazza
 
buzzlightyear said:
Good point, but land can give you more options in the future....
Click to expand...

Yes true, thats a big plus for me,
I wouldve thought that boutique smaller units on the gold coast would be a good investment, the place is thriving and will definitely continue right into the future for the lifestyle alone and trendiness factor.
 
Thanks Guys.
I really appreciate your thoughts, it helps me lots.
But bit confused with the Growth on the Units there are pretty much same or 1 % less than the houses (agree with want2bewealthy) High-rises will be the risk factor. What about boutique Units (10-20)?

Town houses. Which category they fall into House/Units on Median price and Growth?
Again townhouses also you restricted with Body Corporate and other factors same as unit, still bit of land there. Any thoughts please

Thanks Again
Sanny
 
Yea it is confusing regarding the debate of land vs units but most agree that boutique developments are the way to go as far as units are concearned, especially when well located and provided theyre not old and decrepid, my preferance leans toward around 10 year old units for cheaper entry costs aswell as capital growth compared to purchase price.
Sure house and land are better IMO but not everyone can affors them and theres also a big trend towards inner city living with apartments with many more younger people preferring this factor, no mowing the lawn!
 
want2bewealthy said:
I keep hearing that its the land component that increases, true, but whats with unit values showing the same return on average? hmmmm?
Click to expand...

The reason is because it's land+location that counts, not just land.

For example, an inner-city apartment might only include 2 or 3 sqm of land component but that land is worth as much as 400 or 500 sqm in the suburbs (Imagine how much you'd have to pay for an empty 800sqm block in the CBD).

You don't usually find 50-level high-rise buildings smack bang in the middle of an outer suburb. If you did, the land component on those apartments wouldn't be worth much more than a packet of staples.
 
Smack bang in the middle Ian,

I just find it funny that theres that mentality is all,
I do however worry about what happens when your unit is 80 years old and falling down around you.. ahhhhh! I guess I should probarbly sell before that happens hey...
 
Sanny said:
But bit confused with the Growth on the Units there are pretty much same or 1 % less than the houses
Click to expand...

There was an article in the Gold Coast Bulletin a couple of weeks ago. I think it was regarding prices in Broadbeach where there are many new high rise developments and I think they said houses increased by 13% and units by 15%. Which is surprising!

Cheers,

Bazza
 
I reckon a good investment is a solid brick 1970s 2 bedroom walk up unit, in a quietish street in central Surfers. Stick to smaller blocks of units if possible and avoid complexes with onsite managers, lifts, gyms etc. because they can have very high bodycorp fees.
You probably buy for about 300K, rent for about $300/week, bodycorp about $1000 PA+.
You will have and endless line of permanent tennants and the potential to renovate and furnish inside for greater return.
Maybe you can get some holiday use out of it yourself too!
 
units4me said:
I reckon a good investment is a solid brick 1970s 2 bedroom walk up unit, in a quietish street in central Surfers.
Click to expand...

Seriously? It would still cost you $173pw to keep. And, I wouldn't think the CG would be all that good.

Cheers,

Bazza
 
Bazza said:
Seriously? It would still cost you $173pw to keep. And, I wouldn't think the CG would be all that good.

Cheers,

Bazza
Click to expand...

Ok lets put it this way,
Is Surfers Paradise an exclusive area? Very much so.
Is any sort of land scarce and expensive in Surfers? very much so
Does this drive prices up? yes.
Does this sound like a good investment to me? yes.
 
want2bewealthy said:
Ok lets put it this way,
Is Surfers Paradise an exclusive area? Very much so.
Is any sort of land scarce and expensive in Surfers? very much so
Does this drive prices up? yes.
Does this sound like a good investment to me? yes.
Click to expand...

The only way to realise the CG would be to bulldoze the building and sell to a developer. Then it would be worth millions. Until then you have a $173pw liability.

About 25 years ago my brother bought a similar unit in a small block (12 units) in Burleigh about 100m from the beach. He said that with high rises all round he couldn't go wrong. But unfortunately one of the unit owners who had lived there for years refused to sell to a developer so the others investors were left holding an aging unit with low yields. Maybe some day it will be bulldozed but it is still sitting there after 25 years.

Cheers,

Bazza
 
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