looking at purchasing a large block in labrador on the gold caost, you can get an old house there for as low as 300k at the momnet, I know the gold coast is very pro development, which is not so good for capital growth but good if I decide to develop, whats everyones thoughts on the area as an investment, cheers!!
gold coast, labrador...thoughts??
- Thread starter bohrey
- Start date
as a near local, and having lived next door, I like it
has lots of upside potential
But like all dogs, she might have more fleas than is at first apparent
Much comes down to the individual deal
ta
rolf
has lots of upside potential
But like all dogs, she might have more fleas than is at first apparent
Much comes down to the individual deal
ta
rolf
Have a lovely townhouse in Labrador 500mts from the beach, bought at a good price 4 years ago. Prices have been flat since then but I keep an eye on re and it seems to me prices are moving (which is what I thought would happen about now and also a friends' son living up there confirms). We plan to sell end year/ early next. I think it would be a good move for you to develop as it will take a while to design/getapprovals/build and you should be ready to sell when prices have moved up quite a bit. It is a great suburb, away from the hurly burly but quite close to Surfers, Ours is near the top of the ridge and we get beautiful sea breezes through and only had the a/c on 3 times in 18 mths living there and I would chose this spot again as against closer to the beach. Just over the ridge is cheaper but hot as hell through summer
Been doing a lot of inspections and checking places out in there too. I like Southport too for houses at the moment. Agents are starting to spruik that places coming on the market in those areas are getting multiple offers in first week, and some of them are dumps.
There is one thing I do worry about is the development of the Parklands for the Commonwealth Games village. Once over, that is going to be a lot of vacant rooms and I wonder what will come of that once the games finish. Plenty of nurses and students next door at the university hospital would see good demand for those rooms but ..... Downside to that is if they all move into that accommodation the rental vacancies in Labrador and Southport will rise.
There is one thing I do worry about is the development of the Parklands for the Commonwealth Games village. Once over, that is going to be a lot of vacant rooms and I wonder what will come of that once the games finish. Plenty of nurses and students next door at the university hospital would see good demand for those rooms but ..... Downside to that is if they all move into that accommodation the rental vacancies in Labrador and Southport will rise.
I received this email content from a GC REA (below). I approached him to get a feel for the market as I was potentially looking at selling my IP in Upper Coomera. His response, was sell now, the market will continue to fall. He regaled me with a 'personal' story of recently selling an IP in Southport recently for a loss of $60k (260 v 320). It was quite an interesting way that he positioned himself and his value proposition to me. He was forthright, direct but very bearish.
My cynical side, tends to believe that this was as much as 'scaring' me to put the property on the market. I would be interested to read people's view of the area.
My cynical side, tends to believe that this was as much as 'scaring' me to put the property on the market. I would be interested to read people's view of the area.
Buzz we were looking to upgrade our PPOR late last year. We took it off the market just three weeks into the selling campaign with three offers within 20k of asking price. The reason - the selling agents said the market was still falling and even their "valuations" were only good for 60 days due to how the market was travelling. However - the agents of properties we were looking at said the market had turned, they have had their best month in 4 years, every property they listed had offers within the first week etc etc. I did the sums on paper - we wanted a house with a pool and a rumpus room in our same neighbourhood - unfortunately the difference between my selling price and their asking prices was 150k+ - everything else equal (land size, value, condition, fitout etc). I gave up, we are holding the PPOR and going to buy an IP before turning the PPOR over as an IP and renting that bigger house with a pool ourselves.
The truth - the Gold Coast is still a declining market, but I doubt it has much left to fall. The selling prices today are about the same as they were in 2005/6 all things being equal (eg. not renovated since then). I have yet to see a house bought in 2008 onwards sell for a better price unless it had a major (100k plus) renovation. I do however get a big sense that there are a lot of people that had been sitting on the sidelines now looking to get back in - the numbers at open inspections have tripled in my observations and things are selling quicker and close to asking. Even mortgagee sales are getting really good results.
SRB, thanks for your response and insight.
In looking at the GC market more broadly, I am still trying to see what economic development outside of tourism will drive incomes higher and increase economic activity.
I was on the GC last week for work and was based at Tweed Heads, and I was dismayed at how quiet the streets were after 5pm. Appreciate the weather wasn't great, its not school holidays, but it had the feeling of a ghost down, with the exception of a few surfers.
In looking at the GC market more broadly, I am still trying to see what economic development outside of tourism will drive incomes higher and increase economic activity.
I was on the GC last week for work and was based at Tweed Heads, and I was dismayed at how quiet the streets were after 5pm. Appreciate the weather wasn't great, its not school holidays, but it had the feeling of a ghost down, with the exception of a few surfers.
That's sus, obviously he must think he can easily sell it!! My friend has a unit in heart of Surfers. They were thinking of selling last year. No agents would take on their listing as they didn't want to wast their time. (maybe they were asking too much as they bought in the last boom?) They talked one agent into listing for 4 weeks only. He took it on but it didn't sell.
I think Southport has good potential due to the light rail also.
Once the light rail is finished and we move closer to the 2018 Games I think it will be a different story. At the moment even tourism is hurting with the high dollar and with tourism down economic activity is stagnant. The place just looks wrecked.
You only need to get on the M1 at 6am and see all the people driving north to work in Brisbane. There just aren't jobs here on the coast. I have said for some time the coast is in its own little recession but I still dont think it will get any worse which is why I am looking to get off the sidelines myself and start accumulating.
The boom and bust cycle of the coast is nothing new, just history repeating itself.
As for selling - I have regretted every property I have ever sold. If you can do it, hold on.
No issues in holding, its more about opportunity costs and whether funds are better utilised elsewhere.
My musings on the Gold Coast
My observations on the ground are that housing (single family hoouses) are probably at bottom. Stock is clearing as vendors become more realistic. Yes, there would no doubt be people upside down here as there would be in other places in Australia. The stats are reported on sales that end up underwater, not those who are still holding. If it were the latter then there would be many places nationwide that have floundered and retreated over the last 4-5 years. Perhaps people have struggled here with job losses and having been forced to sell the data skews in that manner.
My personal anectdote is that having bought half way through the mess here in 2011 (and having bought very well) our PPOR isn't worth what we paid for it either. We aren't selling although we are prudent in that we haven't renovated to the point we want to yet until some upside to prices is being realised. We are at the southern Pacific Fair end of the light rail project. Sales volumes around Broadbeach Waters and Mermaid Waters are at the highest level since we moved here two years ago.
I agree with others above that the light rail will be a decent piece of infrastructure to be buying/holding property near. If I were to buy IP's on the Gold Coast it would be in the older etsablished (and slowly gentrifying/renewing) suburbs such as Southport and Labrador. Parkwood near the Uni and new hospital may also be OK although I don't follow that suburb.
Space Ranger, I don't follow the Coomera market at all and others may have more insights there on the northern end wrt pricing and also rentals. Vacancies aren't excessive with houses (possibly townhouses) however there is still a plethora of units here. That market may still have a way to fall; both new and used product. The lack of cranes in the sky will eventually bode well for the supply and demand situation. Projects are planned but nothing significant starting yet. Employment will improve when projects are underway and tourism is slowly on the rise. Last January was busy everywhere with many No Vacancy signs to be seen.
Commercial property is still distressed and there are some opportunities if buffers are allowed for (by purchasing well) to counter vacancies or if buying VP. There are still quite a number of vendors here who are off with the fairies though, with their expectations.
As mentioned by SRB, there is the daily grind/commute north to Brisbane up the M.1 and that corridor is busy. There are jobs that are not only restricted to the Gold Coast itself.
In summary, units probably haven't seen the bottom yet. Median priced housing to sub 1 Million IMO is at bottom (400 K-900 K). Prestige and trophy homes are half price and possibly have more to fall. I sense a small wiff of recovery in the salt air here. It won't be rapid, but it will come. This place has it's volatility and is probably more cyclical than more established capital cities. Be aware there are still sellers who are living in fairy lala land though and this is reflected in the asking prices and the ensuing lengthy days on market.
Merely my 0.02..............
My observations on the ground are that housing (single family hoouses) are probably at bottom. Stock is clearing as vendors become more realistic. Yes, there would no doubt be people upside down here as there would be in other places in Australia. The stats are reported on sales that end up underwater, not those who are still holding. If it were the latter then there would be many places nationwide that have floundered and retreated over the last 4-5 years. Perhaps people have struggled here with job losses and having been forced to sell the data skews in that manner.
My personal anectdote is that having bought half way through the mess here in 2011 (and having bought very well) our PPOR isn't worth what we paid for it either. We aren't selling although we are prudent in that we haven't renovated to the point we want to yet until some upside to prices is being realised. We are at the southern Pacific Fair end of the light rail project. Sales volumes around Broadbeach Waters and Mermaid Waters are at the highest level since we moved here two years ago.
I agree with others above that the light rail will be a decent piece of infrastructure to be buying/holding property near. If I were to buy IP's on the Gold Coast it would be in the older etsablished (and slowly gentrifying/renewing) suburbs such as Southport and Labrador. Parkwood near the Uni and new hospital may also be OK although I don't follow that suburb.
Space Ranger, I don't follow the Coomera market at all and others may have more insights there on the northern end wrt pricing and also rentals. Vacancies aren't excessive with houses (possibly townhouses) however there is still a plethora of units here. That market may still have a way to fall; both new and used product. The lack of cranes in the sky will eventually bode well for the supply and demand situation. Projects are planned but nothing significant starting yet. Employment will improve when projects are underway and tourism is slowly on the rise. Last January was busy everywhere with many No Vacancy signs to be seen.
Commercial property is still distressed and there are some opportunities if buffers are allowed for (by purchasing well) to counter vacancies or if buying VP. There are still quite a number of vendors here who are off with the fairies though, with their expectations.
As mentioned by SRB, there is the daily grind/commute north to Brisbane up the M.1 and that corridor is busy. There are jobs that are not only restricted to the Gold Coast itself.
In summary, units probably haven't seen the bottom yet. Median priced housing to sub 1 Million IMO is at bottom (400 K-900 K). Prestige and trophy homes are half price and possibly have more to fall. I sense a small wiff of recovery in the salt air here. It won't be rapid, but it will come. This place has it's volatility and is probably more cyclical than more established capital cities. Be aware there are still sellers who are living in fairy lala land though and this is reflected in the asking prices and the ensuing lengthy days on market.
Merely my 0.02..............
My feelings... It continues to be a great area for property and the 2018 games will certainly give the whole place a lift, but I am still a bit dubious as to what the long term impact will be. Labrador is a gorgeous place just far enough away from the hurly burly of Surfers to be peaceful but still have all the trimmings. Personally I'd hold onto the property for a while and just see what the market does (if you can afford to of course - I realise sometimes you need to sell out of necessity).
hahahahaha
Rental Increases?!
Just thought I would give an update on my latest rental experience with my IP. As per the earlier posts, I have a 3br 2bath SLUG townhouse in Upper Coomera.
It has been at the same rental level ($320) since 2011 with some periods of vacancy during that time. 5 weeks was the worst changeover vacancy, Well the recent tenants vacated after being there for 12 months and I feared the same outcome with some period of vacancy. Well it was rented straight away. And at $350. This is the highest rental it has achieved.
Maybe things are looking a bit brighter on the Gold Coast..
Just thought I would give an update on my latest rental experience with my IP. As per the earlier posts, I have a 3br 2bath SLUG townhouse in Upper Coomera.
It has been at the same rental level ($320) since 2011 with some periods of vacancy during that time. 5 weeks was the worst changeover vacancy, Well the recent tenants vacated after being there for 12 months and I feared the same outcome with some period of vacancy. Well it was rented straight away. And at $350. This is the highest rental it has achieved.
Maybe things are looking a bit brighter on the Gold Coast..
Things are starting to get good on the Gold Coast, give it time and we will see good increases.
$92 Billion dollars is being spent on the Gold Coast.
Try buy a house and you will find you have compitition, especially on newly listed stock.
It is only going to get better.
Money is starting to flow.
Things are starting to change Space Ranger. Rental situation for houses and townhouses is quite good. Not so great for apartments/units.
From a sales perspective, ugotadollar4me has nailed it. For normal houses (not units or apartments) in the 400 K to circa sub 1 Mill mark clearances are up. Sellers have become more realistic and time on market is far better than in the past 3-4 years. Prices in this category bottomed late last year and, if you strike "real sellers" some good value is to be had.
The trophy homes are still languishing although there is compelling value there for those inclined. Some are selling for less than replacement cost with land thrown in for free. These are in multiples of seven figures though.
I have been looking around for commercial IP's and missed a couple. Yields are quite high for the right thing. I am still putting offers out however am in no rush. Some vendors in the commercial space however are still in fairy la la land.
I did stray from the plan a little recently and bought a house a few doors up from us. It settled yesterday. As much as I dislike auctions, it was on the market for a ridiculous price. I then started bidding and snared it for the price of a dry block house. I had to buy it.
They aren't making any more waterfront land where we live and they are about to spend approx. 600 Million on Pacific Fair, which is our local milk bar. Broadbeach central is walkable and less than 10 minutes walk to the beach and new light-rail when completed. The current interest rate situation is also handy for locking up the majority of the loan on a fixed term and leaving the rest variable with 100 % offset for re-val and equity boost in 6-12 months. now is the time to buy before prices increase which will happen Very Soon
