Which End Of Gold Coast?

angela

angela

Hi
I have been looking at some units on both ends of the Gold Coast on the lower end of the market, similar prices and returns for permanent rentals. But, I'm having trouble deciding which area would be the best area to buy in - around the Southport or Burleigh Heads areas?
Any input on pros and cons for either area appreciated :)
 
Burleigh is more established and regarded by the surfing folk as the coast.............dunno if that would influence growth though.

ta
rolf
 
Thanks for your reply. I prefer Burleigh as a holiday location for my family, possibility of using the unit for retirement, but don't want this to influence my decision too much, as we aren't planning to retire for another 10 to 15 yrs and could buy a few more at the coast in that time :)
 
angela said:
Hi
I have been looking at some units on both ends of the Gold Coast on the lower end of the market, similar prices and returns for permanent rentals. But, I'm having trouble deciding which area would be the best area to buy in - around the Southport or Burleigh Heads areas?
Click to expand...

Hi Angela,

I don't think you could go wrong with either actually. I lived in Labrador and worked in Southport for a few years and did work at Burleigh too.

Burleigh for surfing as Rolf says - for sure.
Southport end is a bit closer for those that may have to commute to Brissy for work......but having said that it is only a short drive from Burleigh up Reedy Creek Rd to the M1 Pacific Motorway.

Six of one and half a dozen of the other for me ;)
 
If I was buying a long term buy and hold I would probably gravitate towards the northern end because the strip between Brisbane and the Gold Coast will eventually fill in and become one long stretch of suburbia (ie places like Jacobs Well will become suburbs - its already slowly happening).
 
Definitely the northern end. I've got a number of IPs in both Southport and Palm Beach and the CG, vacancy, turnover and rental growth have all been significantly better in Southport. The southern end tends to be more transient with less professionals. It's also not gentrifying as quickly and there is not the same level of council investment as we're seeing in Southport.

Have a read through this thread for some examples.
 
angela said:
Hi
I have been looking at some units on both ends of the Gold Coast on the lower end of the market, similar prices and returns for permanent rentals. But, I'm having trouble deciding which area would be the best area to buy in - around the Southport or Burleigh Heads areas?
Any input on pros and cons for either area appreciated :)
Click to expand...

Steer clear of the Gold Coast. Its going to get smacked hard in the coming recession. Have a look at the number of properties for sale and rent that are on the market.
This is NOT a sign of a healthy market. Be wary of those that want you to buy in their neck of the woods.
Stay on the sidelines and watch the carnage. You can thank me later.
 
Lowell does have a bit of a point - GC will get hammered over the next six months or more. But if the yield is there and the rent is realistic and sustainable...
 
spoke to my broker this afternoon, and our LVR is currently at 77.52%. He said if we borrow more, this would likely tip us over 80% and having to pay mortgage insurance.
Think we'll watch from the sidelines a bit, and hopefully pick up some bargains on the way back up again, whenever that will be.
Will concentrate on organising my new kitchen instead.
 
lowell said:
Steer clear of the Gold Coast. Its going to get smacked hard in the coming recession. Have a look at the number of properties for sale and rent that are on the market.
This is NOT a sign of a healthy market. Be wary of those that want you to buy in their neck of the woods.
Stay on the sidelines and watch the carnage. You can thank me later.
Click to expand...

It's a bit of a mixed bag at the moment lowell. On one had you have a lot of stock both for sale and rent (just search for Southport on realestate.com.au and you'll see what I mean), yet on the other hand construction has tapered off dramatically in 08. You've also still got very high levels of internal migration so the balance of demand v supply should improve quite a bit this year.

On the other hand, the Fin Review has been reporting the Gold Coast has become least affordable location in the country to live. But then again we're seeing a lot of government investment into infrastructure (broadwater precinct, light rail, new Southport hospital [largest health project ever in Australia]).

Whilst I don't expect it to be "carnage" (at least compared to other major cities), I'll be watching from the sidelines for a while unless something sensational pops up. If it does (and getting back to the original question), I'll be looking at the northern end where there is more steady employment and infrastructure investment.
 
Hello!

I live personally in Currumbin, we demolished our old house and rebuilt. Currumbin South Gold Coast.

We own three properties on the gold coast then own three in the Brisbane areas.

All are performing comparatively. Rents are very good and we have had zero vacancy. But I do believe we bought correct properties that warrant the demand to rent them.

We absolutely love living in Currumbin as a family. But I do think in General the GC is a difficult to navigate and predict. I think there are definitely good investments still around. We are long term oriented and not because we want to sell later but rather have tenants forever. So some key metrics:

House 1 PPOR bought 355,000 ==> Rebuilt now worth 850,000 Currumbin
House 2 IP bought 362,500 ==> Now worth 470,000 ( Rent 410 ) Currumbin
House 3 IP bought 312,000 ==> Now worth 400,000 ( Rent 385 ) Varsity Lakes

We don't really sit on the sidelines because of our long term view so independent of the market we find good assets and buy them.

We come from New York City and San Diego Ca, two very good real estate markets, both have held up in the US quite well. Most people don't know that because they read headlines.

But the key point I take is rents have a long way to go if you have ever lived in other countries before you might have a different perspective.

If you find something that stacks up for you with the numbers ( know your numbers) I don't see any reason why you wouldn't buy.

We will be more focused on close to CBD ( Aussie capital cities ) going forward.

Chris
 
Care to put a date with your purchases?
It's a bit meaningless to say what you bought them for and what they are valued at now unless we know when they were purchased.

Thanks,

Gools
 
boomtown said:
Lowell does have a bit of a point - GC will get hammered over the next six months or more. But if the yield is there and the rent is realistic and sustainable...
Click to expand...


Plus there is still a few building cranes left on the skyline. Best buying is when there is no cranes left, which should be in a couple more years.

The Gold Coast is in for a hammering I reckon, as always happens.

See ya's.
 
Indeed - if yesterday's auction of a beach-front house in Marine Parade is any indication. The owners knocked back an offer of $14.5M last year, and it sold under the hammer yesterday for $9.01M.

I agree with boomtown and TC. I wouldn't be buying there any time soon.

Cheers
LynnH
 
topcropper said:
The Gold Coast is in for a hammering I reckon, as always happens.
Click to expand...

When was this? I just took a look at 30 years worth of sales data and there are some minor dips and flat periods but certainly no "hammerings".

That said, I would be very wary about buying on the GC at the moment for many of the reasons listed here.
 
troyhunt said:
When was this? I just took a look at 30 years worth of sales data and there are some minor dips and flat periods but certainly no "hammerings".

.
Click to expand...

Were you there from 91 to 98..?? That was a soft time. There was a few years in that period when there wasn't a single building crane on the skyline. Hard to believe now I know, but I saw it, and periods earlier.

The Gold Coast is in for a hammering. It always cops it harder in the bust, and booms harder in the boom. Why will this be different,,?? Except that this time the bust is much bigger.



As I keep ranting on about, a lot of people on here are about to find out what happens in serviced based economies, in a commodity exporting country when a bust happens.

See ya's.
 
Last edited:
topcropper said:
Were you there from 91 to 98..?? That was a soft time.
Click to expand...

I was living on the GC for most of that time and you're right in that it was a very flat period. We went from a median of $140k to $160k during that time. Not what I'd call a hammering but certainly a very underwhelming period.
 
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