Gold Coast prices
- Thread starter Hgrant
- Start date
Hi NedKelly, have you had much capital gain over the 4 year period?
I'd say your correct. Its just a normal part of the cycle and the gold coast seems to up a lot and down a lot.
I have friends at Nerang, Helensvale, Southport and Palm Beach and they tell me the market has tanked up there. 3 of the 4 have IPs so keep a keen eye on the market.
Bargains around but still crappy yield so no urgency. Hence the still deflated prices.
I have friends at Nerang, Helensvale, Southport and Palm Beach and they tell me the market has tanked up there. 3 of the 4 have IPs so keep a keen eye on the market.
Bargains around but still crappy yield so no urgency. Hence the still deflated prices.
Hi Ned,
The saying that property grows 10%pa is really an average over the 7 -10 year period. Some years you get 30% growth, some years 10%. It's a long term average.
If your new IP was an OTP bought through a developer, I hate to say it, but you may even have paid too much. You would have bought at the peak of the market in 2004.
Hold though, it will come back!
Regards JO
I tend to disagree. I live on waterfront and monitor the other waterfront properties in Palm Beach, Mermaid beach etc... and unless the owners "NEED" to sell they are staying on the market for 6 months +.
My first 2c
Capital Gain, what's that?
I paid just over $425,000 if you include stamp duty and legal costs. There is an identical one in the same road on the market for $425,000 and similar new ones are going for about $395,000 so I doubt they will get the full asking price even if they manage to sell it.
If you take out agent fees and other expenses I would be lucky to end up with $380,000. So my capital gain would be a capital loss of over 10% in 4 years less the $5,000 a year shortfall because it is negatively geared making a 20% loss over the 4 years.
Spot on Josko, owners on the Gold Coast have been subject to many of the same factors that have forced prices down in other states so no surprise there. While a tourism decline will no doubt impact some sectors of the property market, the Gold Coast has far less dependancy on holiday makers than it has in years gone by. Look at areas like Southport, Robina, Coomera and you'll see they're far more focussed around health, law, finance, marine and education then tourism. They all have legitimate, successful industries.
I had a good look at Coomera around the same time as you and what worried me at the time was the sheer volume of green-field development coupled with the high availability of new land. Much of the promise for the area was based on the coming Coomera Town Centre which is yet to be realised (correct me if I'm wrong) and it didn't have a position advantage over the rest of the GC other than accessibility to Brisbane.
Having said that, I think once the area matures and the master plan eventuates it will be a different story, it might just take a bit longer than originally expected. You've also got the marine prescient growing nicely next door so hopefully this will bode well for values in the future.
Hey Mart,
is this also indicative of the water properties (non-ocean) on canal front like Broadbeach Waters and Mermaid Waters?
Can you elaborate please? As you are a local, your opinion is appreciated
Even this is optimistic at times. The mantra of 'property doubling every 7 years' is still being spouted by spruikers. Sure, if you looked at a particular property over, say, 21 years you might find it tripled in value over that time. But there could have been long periods of little growth. People who bought in some parts of Sydney at the top of the boom around 03, for example, may have found their property is worth less now than when they bought it. I bought my PPOR in 02. I'm not expecting it to be worth twice what I paid for it next year.
Scott
This has taught me a valuable lesson that just because you have a growth area you don't necessarily get growth in house prices.
Yes, and I figured that by the time they built it the value would have increased.
It's difficult to call them bargains and say they have a crappy yield in the same sentence. I wouldn't say they are bargains until the yields are good.
This is why I am confident of a large correction. Prices can't just level out. Once the belief in capital gain has dried up there is no point holding something that yields 3-4% as it just burns a hole in your pocket with no joy on the valuation front.
Those with low LVRs and steady employment could hold on as the hole in their pocket doesn't feel so real - it's just an opportunity cost.
Yes i agree with this. I too am a believer in a decent price earnings ratio (yield) equating to value.
I meant 'bargains' solely in the sense of comparison to previously inflated prices.
I also agree with the rest of your post that when the 'greater fool theory' diminishes, why hold the property.
I meant 'bargains' solely in the sense of comparison to previously inflated prices.
I also agree with the rest of your post that when the 'greater fool theory' diminishes, why hold the property.
This is just my opinion from what I see after looking through all the RE Agents smoke screens in my local area, I also realise they are just doing their job. I probably sound like a hypocrite due to my profession
Earlier this year waterfront (canal) property in Palm Beach where being listed for 07 prices, as you would expect, and most were sitting on the market for month after month dropping 50-100K at a time. Every so often a buyer brain explosion would occur and one would sell for 2007 prices. Most that I monitored would come off the market after 5 months after going from agent to agent.
Mermaid, to me seems in the same boat (pun intended) as Palm Beach as does Broadbeach. But I’m talking waterfront valued between 0 – 1.5mill, after that it’s probably a different ballgame.
Just got back from looking at a 4 bedder in Pacific pines.
Bought this year in Feb for 485,000, now being sold and will be lucky to get 440,000 I recon.
That area has dropped, the agents ae talking it up (doing there job well) but it don't look like it just yet. More adds apearing each week for urgent sale etc.
Bought this year in Feb for 485,000, now being sold and will be lucky to get 440,000 I recon.
That area has dropped, the agents ae talking it up (doing there job well) but it don't look like it just yet. More adds apearing each week for urgent sale etc.
Why do agents advertise with phrases like "desperate seller" or "bank knocking at the door". It doesn't exactly invite one to come forward with a offer near the money does it?
