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Looking at investment unit on Gold Coast; Don't want a fight, just some perspective
Topic Started: 26 Aug 2012, 05:45 PM (6,749 Views)
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First home buyers told to start saving

Jenny Rogers | 10:40am December 7, 2012

FIRST-time buyers will need to save for more than four years to raise the deposit needed to buy their first Gold Coast home.

It takes Gold Coasters longer than anywhere else in Queensland to save the money for the 20 per cent deposit needed to buy a median-priced house here.

A buyer purchasing their first home on the Gold Coast will need to save for an average 4.4 years to raise the $84,100 needed for a 20 per cent deposit on a house worth $455,500, according to the latest Bankwest First Time Buyer Deposit Report.

But that is an improvement since the property market peak.

In 2007, it took 5.3 years to save for a deposit on a house on the Gold Coast and 4.7 years in 2011.

It will take 3.1 years to save the $58,300 needed for a deposit on a Gold Coast unit, down from 3.7 years in 2007.

Bankwest chief economist Alan Langford said in Queensland and nationally, rising wages and stagnating property prices had seen housing affordability improve for first-time buyers.

"The bottom line is that incomes are catching up with property prices which is making it easier for buyers to pick up their first piece of real estate," Mr Langford said.

"However on the Gold Coast there are still significant price pressures and the high Australian dollar doesn't help a region so reliant on tourism.

"The Gold Coast is a really good example of the two-speed economy but there is a definite improvement in affordability since five years ago."

Read more: http://www.goldcoast.com.au/article/2012/12/07/443285_gold-coast-real-estate.html
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Thatguy
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Id' be looking around Australia Ave @ Broadbeach. If you want an apartment.
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frankrider
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don't buy into an old block either way. They depreciate over time, eventually get demolished leaving the owner with a share of the sand below.

Negative gearing is a form of leveraged speculation in which a speculator borrows money to buy an asset, but the income generated by that asset does not cover the interest on the loan

A negative gearing strategy can only make a profit if the asset rises so much in price that the capital gain is more than the sum of the ongoing losses over the life of the speculation. http://en.wikipedia.org/wiki/Negative_gearing
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Frank Castle
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Business As Usual

frankrider
11 Dec 2012, 01:17 AM
don't buy into an old block either way. They depreciate over time, eventually get demolished leaving the owner with a share of the sand below.
Older (walk up) blocks can be good to get into IMHO
They usually have larger bedrooms and living areas for starters, look at buying two cheap ones side by side and making them into one. This can be done with great results in the right place making large 4 bedroom, large living area, multiple balcony units
And, if at a later stage someone wants to redev the site, there is a chance they may have to pay over the odds price to buy you out.

I probably wouldn't buy into older highrise, concrete cancer, lift maintenance, plumbing, a/c could well be an issue with these.
Edited by Frank Castle, 11 Dec 2012, 08:43 AM.
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The forum fuckwit goes RRRAAARRRGGHHhhh - But not a fuck was given..................by anyone.
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Gold Coast glints with golden opportunities

March 7, 2013
Carolyn Boyd

Excess stock on the Gold Coast is being soaked up as confidence returns and buyers cash in on the lower prices on offer.

''It's been the best start to the year that we have had for five or six years,'' says CBRE's Gold Coast residential projects managing director Chris Litfin.

''I've been doing this for 20 years, so I've seen some ups and some downs. It has been pretty tragic the past five [years], but the start of the year has been really good.

''We have talked to our colleagues around town and they are all saying the same thing.''
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While buyer interest has picked up, prices are yet to move and Litfin believes 2013 will be a year in which the market continues to consolidate.

''In my heart of hearts, I think we're 12 months away from breaking its back,'' he says of the excess stock weighing on the market. ''I'm sure prices have definitely bottomed out in the mainstream market - apartments in that $400,000 to $800,000 price bracket.''

CBRE is marketing Synergy, the only off-the-plan development under way in Broadbeach.

''We launched that 20 weeks ago and we've sold 20 [apartments],'' Litfin says. ''It's the second time we've launched that project. We launched it this time last year without any success, so what we're seeing this year is substantially better than last year.''

Two-bedroom, two-bathroom apartments in the 25-storey development, which is across the road from the Gold Coast Convention and Exhibition Centre, are on the market from $389,000.

''It is well priced - certainly not what you would have expected to get in 2006 when things were plugging along really nicely,'' Litfin says.

The developers, Amalgamated Property Group and Morris Property Group, originally planned to build 112 apartments, but recently increased that to 132.

''The developers got a bit of confidence out of good interest over Christmas and went to the council and got another five storeys approved for larger apartments and another 25 apartments,'' Litfin says.

Read more: http://smh.domain.com.au/real-estate-news/gold-coast-glints-with-golden-opportunities-20130307-2fm9t.html
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Rastus2
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peter fraser
27 Aug 2012, 09:16 PM



And therein lies the problem. It's fine moving there when you retire, but retirees don't want the party glitz and glamour strip, so they move to quiter suburbs, so they could really be anywhere if they don't have a view of the ocean.

Retirees also don't spend much, even wealthy ones don't splash money around, so there are only so many viable restaurants, taxis and bars who can make a living during the off season.

Units with ocean views sell well during the good economic times when business is doing well and well paid jobs are easy to find, but the area collapses during tough economic times. It will always be this way.

But if you really must buy a penthouse with fabulous views a short walk to surf beaches, you could do worse than buy right now.

Over the last 10-12 years we've had a pole home @ Currumbin (next to the Santuary), sold it for a nice little profit quite a while ago and (more recently), moved to the Hinterland to overlook the ocean. Prices have indeed been smashed since the peak. (Our Hinternland home was bought for 480k, was valued at 800k and would probably get about 500k if we had to sell it now)... that is just over the last 6 years.

I've considered buying a nice unit/apartment for our retirement (hopefully in some 10-12 years)... I am not really interested in Gold Coast, but rather Sunshine Coast which also seems to be hit hard price wise.

The problem seems to be that holding costs are significant for holidy units. Various expected costs and additional holiday rental costs make it less tempting.
(renting them out for just a night or two has cleaning costs which wipe out a lot of profit).

The lower the prices have got, the keener I was to buy... asking prices have been pushed aside by the buyers demand for discounts so the properties seem to either sit for sale for quite a while, or drop price to sell fast.

Lately, some of the government cuts have caused me to reconsider my plans however. Job security makes government employees spend less out of fear. The last thing I was to do is go from a situation of being debt free with good savings plan to in debt and out of work.

I don't expect the house prices to rise any time soon. It will take the AUD to really drop, Queensland's unemployment to start to trend down, government employees to shed off their fears and migration back to Qld to rise again before we see significant price rises to real estate on the gold/sunshine coast.


Best of luck.
R2
Shadow - Defrauded his Bank ? 2015 I have 9 different loans and my bank had no idea which ones were personal and which were investment. They had half of them classed incorrectly. When this change came in they asked me to tell them if any personal loans were incorrectly classed as investment, which I did, and they switched them to personal for the lower rate. They also had a couple of investment loans incorrectly classed as personal. They didn't ask me about those. So they stay on the lower rate too. Worked out pretty well. :)
Shadow - 2008 Sydney Median House Price 1.25M by 2014-2015

Shadow : I think this boom has already begun in several cities. My prediction :
Peak of boom: 2014-2015. Sydney Median Price: $1,250,000 Bottom of bust: 2017-2018. Sydney Median Price: $1,100,000

Shadow's Original 2010 House Boom and Crash prediction http://s836.photobucket.com/user/rastus22/media/shady-orig-2010-chart.png.html?sort=3&o=0

Shadow's attempt to edit his 2010 chart in 2015 and replace it with one that does not show a crash in 2013 http://s836.photobucket.com/user/rastus22/media/Screen%20Shot%202015-06-06%20at%207.12.52%20pm_1.png.html
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peter fraser
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Rastus2
8 Mar 2013, 10:02 PM
peter fraser
27 Aug 2012, 09:16 PM



And therein lies the problem. It's fine moving there when you retire, but retirees don't want the party glitz and glamour strip, so they move to quiter suburbs, so they could really be anywhere if they don't have a view of the ocean.

Retirees also don't spend much, even wealthy ones don't splash money around, so there are only so many viable restaurants, taxis and bars who can make a living during the off season.

Units with ocean views sell well during the good economic times when business is doing well and well paid jobs are easy to find, but the area collapses during tough economic times. It will always be this way.

But if you really must buy a penthouse with fabulous views a short walk to surf beaches, you could do worse than buy right now.

Over the last 10-12 years we've had a pole home @ Currumbin (next to the Santuary), sold it for a nice little profit quite a while ago and (more recently), moved to the Hinterland to overlook the ocean. Prices have indeed been smashed since the peak. (Our Hinternland home was bought for 480k, was valued at 800k and would probably get about 500k if we had to sell it now)... that is just over the last 6 years.

I've considered buying a nice unit/apartment for our retirement (hopefully in some 10-12 years)... I am not really interested in Gold Coast, but rather Sunshine Coast which also seems to be hit hard price wise.

The problem seems to be that holding costs are significant for holidy units. Various expected costs and additional holiday rental costs make it less tempting.
(renting them out for just a night or two has cleaning costs which wipe out a lot of profit).

The lower the prices have got, the keener I was to buy... asking prices have been pushed aside by the buyers demand for discounts so the properties seem to either sit for sale for quite a while, or drop price to sell fast.

Lately, some of the government cuts have caused me to reconsider my plans however. Job security makes government employees spend less out of fear. The last thing I was to do is go from a situation of being debt free with good savings plan to in debt and out of work.

I don't expect the house prices to rise any time soon. It will take the AUD to really drop, Queensland's unemployment to start to trend down, government employees to shed off their fears and migration back to Qld to rise again before we see significant price rises to real estate on the gold/sunshine coast.


Best of luck.
R2
The sunshine coast isn't as bad as the gold coast, I'm not sure why, probably less supply.
Any expressed market opinion is my own and is not to be taken as financial advice
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lulldapull
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Scotty, don't do it!

That whole area around Labrador/ Runaway bay/ biggera Waters etc is buried deep and far away from the train stations in Helensvale and Nerang. It takes a good 15 minutes to drive out from there to a train station, park your car and hustle on to Brisi........takes 70 minutes to Central......at 6:00am. No place to sit on the train either.

Know plenty of guys at work running that absolutely dumb ass gauntlet. At 4:30pm they start to feel that ' I gotta go butterfly' fukkin flap around inside their ass! Each and everyone of em hated the commute to Brisi. It took 3 hrs outta your life daily, and costs $20 bucks.

The body corporates keep going up, and you hardly use the pool or sauna......Why should anyone pay $5000 for BC?

Sunshine Coast is a giant retirement village. It's a sad place. Fukk that too!

GC/ SC are disaster areas. Neither is worth shit, with all the trouble they bring with living around them.

Those little apartments they're advertising for $350k in that northern GC area is a fukkin trap man.......I know some folks who paid close to 500k off the plan in 2007. Now they can't flog that for even 300k.

Stay away dude......hold onto your late 300's and try to buy in Tenerrife, Ascot, Albion or further down in the better part of the valley.
Edited by lulldapull, 8 Mar 2013, 10:40 PM.
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Thatguy
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Frank Castle
11 Dec 2012, 08:40 AM
Older (walk up) blocks can be good to get into IMHO
They usually have larger bedrooms and living areas for starters, look at buying two cheap ones side by side and making them into one. This can be done with great results in the right place making large 4 bedroom, large living area, multiple balcony units
And, if at a later stage someone wants to redev the site, there is a chance they may have to pay over the odds price to buy you out.

I probably wouldn't buy into older highrise, concrete cancer, lift maintenance, plumbing, a/c could well be an issue with these.
Good advice Frank. Well worth reading this.
lulldapull
8 Mar 2013, 10:36 PM
Scotty, don't do it!

That whole area around Labrador/ Runaway bay/ biggera Waters etc is buried deep and far away from the train stations in Helensvale and Nerang. It takes a good 15 minutes to drive out from there to a train station, park your car and hustle on to Brisi........takes 70 minutes to Central......at 6:00am. No place to sit on the train either.

Know plenty of guys at work running that absolutely dumb ass gauntlet. At 4:30pm they start to feel that ' I gotta go butterfly' fukkin flap around inside their ass! Each and everyone of em hated the commute to Brisi. It took 3 hrs outta your life daily, and costs $20 bucks.

The body corporates keep going up, and you hardly use the pool or sauna......Why should anyone pay $5000 for BC?

Sunshine Coast is a giant retirement village. It's a sad place. Fukk that too!

GC/ SC are disaster areas. Neither is worth shit, with all the trouble they bring with living around them.

Those little apartments they're advertising for $350k in that northern GC area is a fukkin trap man.......I know some folks who paid close to 500k off the plan in 2007. Now they can't flog that for even 300k.

Stay away dude......hold onto your late 300's and try to buy in Tenerrife, Ascot, Albion or further down in the better part of the valley.
I'd say the areas - especially the GC are about ripe to turn into the long promised Asian holiday destination. The numbers of Asian millionaire's has rocketed even with the GFC and they are going to grow even more. Australia and the GC have a huge potential in this market. For Australian domestic purposes the area is the total pits, I agree.
Edited by Thatguy, 11 Mar 2013, 03:02 PM.
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nipa hut
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Thatguy
11 Mar 2013, 03:00 PM
I'd say the areas - especially the GC are about ripe to turn into the long promised Asian holiday destination. The numbers of Asian millionaire's has rocketed even with the GFC and they are going to grow even more. Australia and the GC have a huge potential in this market. For Australian domestic purposes the area is the total pits, I agree.
Really, and I ask this in genuine bafflement, what does the Gold Coast today have for the cashed-up Asian tourist that is either:

a) world-class, as a tourist destination, and worth paying money-no-object dollars for, or
b) mainstream average, as a tourist destination, and a compelling bargain in relation to Bali, Malaysia, Thailand, Viet Nam, New Zealand?

* * *

There is another style of Asian money magnet that could potentially work, but the Gold Coast isn't a target for it at this point. There is still a propensity for rich Asian families to send a son or daughter overseas to acquire a Western education, a safe-harbour passport, some foreign property, and perhaps start a business.

I say "still" because that propensity is by no means new. But long after the initial rush 20 years ago, when Hong Kong's pending repatriation to mainland-China generated a sense of crisis, there is now a much greater emphasis on value-for-money. And here again, the Gold Coast falls down, with a distinct lack of highly-ranked tertiary education options, compared to other Australian cities, let alone other countries. (IMHO, there are several areas of Brisbane that now receive a lot of this money in preference to the Gold Coast.)
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