Gold Coast rentals in oversupply

[gottabespotless]

i still think the beaches are overrated, sunnycoast has more to offer than goldie but that's just me. having lived there i think lack of big corporations and gov departments will hurt n the long run, top it up with incompetence councils and their high rates

I've never lived on the Sunshine Coast but I'd imagine that the Gold Coast has closer and possibly bigger, better (if it's possible in QLD ) hospitals, health specialists, etc? Also airport, universities. Not sure how Sunshine Coast sits re these but agree on everything else. As far as beaches - the Victorian and NSW expat baby boomers don't really care as they probably only ever look at it ... just as long as they're close enough to it to brag to friends .

Rental yields are terrible. For a city that is supposed to be in dire straits, the cost of real estate is astronmical considering the miserable rental returns. Just took a look at the suburbs of Benowa, Robina, Monterey Keys area - hardly appealing for investors.

 

[silverx]

No worries. I just assumed from your location description that you lived here. Are you on the Sunshine Coast now?

nah i am living in logan now... now hang on before you say anything, it's quite nice here granted no beach and bikini around, but it's close to the source of jobs(brisbbane)

dont get me wrong, i still love to retire in goldie one day, but that's when i dont need to wake up 7am in the morning and get home at 6pm

 

[silverx]

I've never lived on the Sunshine Coast but I'd imagine that the Gold Coast has closer and possibly bigger, better (if it's possible in QLD ) hospitals, health specialists, etc? Also airport, universities. Not sure how Sunshine Coast sits re these but agree on everything else. As far as beaches - the Victorian and NSW expat baby boomers don't really care as they probably only ever look at it ... just as long as they're close enough to it to brag to friends .

Rental yields are terrible. For a city that is supposed to be in dire straits, the cost of real estate is astronmical considering the miserable rental returns. Just took a look at the suburbs of Benowa, Robina, Monterey Keys area - hardly appealing for investors.

yeah have one property across from menterey keys, cant believe the difference of the pricing it had, it practically a minute drive apart, but the price difference is like 1m apart

same goes to robina vs merrimac and benowa vs ashmore

 

[Beau Miller]

Maybe ask your agent to use gumtree.com - I use this for advertising as well as rent.com, homehound, onthehouse.com, thehomepage and realestateview and Gumtree is my second highest enquiry rate after realestate.com.

Also when there are a lot of properties available gumtree doesnt have the glut that the other sites have and people who are serious about finding a place will be looking everywhere and your listings will stand out.

Worth a try - I hope you find a tenant soon.

 

[buzzlightyear]

Just had a recent rental experience in Upper Coomera.

For the 7 years I have owned this property, I have had a 5 days of vacancy. Previous tenants moved out in late September and has only now been leased. The rental price reduced from $340 to $320 per week. The previous rent was at $340 for 12 months.

Yes, rents reduce and I can say that GC property does not double every 7-10 years from my sample of 1......

 

[Bazza]

GC property does not double every 7-10 years from my sample of 1......

Hi Buzz,
It may be 17 years this time round. Although I do now see signs of movement.

I recall reading that in the early 1900's a noted financial guru wrote in the Melbourne Age (newspaper) that housing blocks are now one pound and that they just can't continue to increase at the rate they are.

Cheers,

Bazza

 

[Cherry Pro]

Just checking ...has there been any improvement in vacancies on the Gold Coast in recent months ..considering my next purchase there, good prices to be had for sure.

Thanks,
Amelia

 

[Bazza]

Hi Cherry Pro,

We have all our properties full - with excellent tenants. It has been difficult finding good tenants for a while though as all the high-rise development stopped and the tradies moved out but now we are seeing signs of recovery.

Houses are selling fast in the past couple of weeks. As soon as a property is listed it is sold. So if you are thinking of buying - now is definetely the time.

Cheers, Bazza

 

[1911naomi]

Hey

I have 2 rentals on the Gold Coast.

First one has been rented for years by same tenants with minor rent increase.

Other one we got tenants within 1 week of advertising 6 months ago

New one in banora point just went on market I rent so will see how that goes

 

[Cherry Pro]

Thanks Bazza and Naomi ..any preferred suburbs on the GC ?

 

[Bazza]

Hi Cherry Pro,

I like Varsity Lakes - we have had two properties there for seven years.

There is an older part of Varsity that used to be called 'Stevens' (between Burleigh Waters and Robina) that was merged into Varsity about 10 years ago. It's only about 3 Km from Burleigh/Miami surf beaches.

Varsity is a new area surrounding Bond Uni, close to Robina Town Centre, Railway, M1 and now has many cafes, restaurants and work nearby. Stevens has a higher profile now as a result of the merger and there are some excellent buys there (especially at the moment).

You could also try Tugun and similar suburbs alone the coastal strip but not near Surfers or Broadbeach.

Cheers, Bazza

 

[Trippy]

I've got some friends that purchased a penthouse somewhere on the main strip. They renovated it with a view for a quick sale while using it on weekends etc themselves. Still unsold and they are now trying to rent it out. Started at $1500 a week and are down to $1100 a week with still no takers. They can't sell it (due to losses they would incur) as they over capitalised and now can't rent it. They are well off financially but it is still not a position you want to be in.

 

[Bazza]

Only a fool buys high-rise apartments on the strip.

I see penthouses and sub-penthouse like this for rent all the time for $800 to $1000. The body corp alone is $1k per month.
Nice to rent - but don't buy.

Cheers, Bazza

 

[fisherman]

Top end of Coast, North of Labrador, Biggera Waters to Paradise Point, no problems at all renting three b/r at median rent. The available rentals dried up quickly a while ago. As did the supply of basic 3 b/r established homes.

There were older houses available within a few minutes walk of Biggera Waters shopping centre and the Broadwater.

 

[DaveM]

But the slick investment seminar said off the plan gold coast highrise at 95% + cap LMI was a sure bet investment with property doubling every 10 years!

Only a fool buys high-rise apartments on the strip.

I see penthouses and sub-penthouse like this for rent all the time for $800 to $1000. The body corp alone is $1k per month.
Nice to rent - but don't buy.

Cheers, Bazza

 

[1911naomi]

For me I prefer Sth end of coast. Palm beach, bilinga, Elanora, Tugun etc

 

[fisherman]

Hi Naomi,

How are the sales going in your areas? Around Paradise Point and Biggera Waters on the water side of the highway there is very limited supply of the older established houses. There are again developers nosing about banking properties. It seems poised for a move. The 'burbs kms away inland from the water and amenities might not fare so well.

Maybe some can comment on the areas I mentioned too.

 

[fernfurn]

We have a fabulous 3 storey townhouse, one of 4 seperate on the block at Labrador (between Southport and Biggera Waters 500mts from the beach). Guy who owns a similar one in our block had to sell in a hurry because of business/shifting overseas and got more than we paid for ours 5 years ago so I'm hoping thats the bottom of the market. They are going to throw big money at Surfers over the next few years with a massive international cruise ship terminal and other big projects so I can see it coming back nicely by 2014I'm thinking seriously of selling then, but it is tenanted and often thats not a good look with tenants insitu. Absolutely loved it up there and would be there now except for partners lack of work, but thinking maybe of shifting in for a 3-4 mth holiday while we sell it.

 

[Cherry Pro]

Any thoughts on Nerang ? A standalone house ..anyone had problems renting those ?

 

[sarahirvine001]

Hi Guys,

For the first time ever I have been trying to rent one of our houses on the Gold Coast for 6 weeks and it's getting expensive. This is unusual even just 8 weeks ago we rented one in 3 days.

According to todays newspaper vacancy rates on the Gold Coast are 5.5% compared to 2.2% in Brisbane.

The lack of cranes in the Gold Cost sky is a good indication of the economic situation here. Seems all the tradies have packed up and moved to Brisbane to work on repairing flood damaged houses. And they are our target market.

May be if I ask the bank nicely they will lend me more money

Cheers,

Bazza

There is also not a lot of capital growth on the Gold Coast, prices are dropping and people are moving out especially with all the recent negative media and reports.

Brisbane has far less percentage of vacancy rates due to the close proximity to the CBD - where majority of employment is. Brisbane also has bigger capital growth due to the opportunities it offers and infrastructure. There are also plenty more institutions for study. I used to manage a few properties on the gold coast from Brisbane and they rent for far less than Brisbane. This is due to the stock levels, and low demand for Gold Coast.