As the economy comes back people are again interested in buying an apartment for their holiday use on the GC. I'll give it 2 maybe 3 years at best before we see cranes on the skyline on the GC and then we will be playing catch up in the market.
And if the economy turns downward? Will it get worse?
What that means is that it's a wonderful time to buy on the Gold Coast if you have the money. they have had their 40% crash and then some more in many transactions.
In a few years there will be people moaning about what they could have done over the 2010 to 2013 timeframe, but didn't. It's much worse on the GC than it is on the Sunshine Coast. Noosa was one area on the SC that was hit badly, so was that Coolum/Perigian area, and the other beach areas, but to a lesser extent on the Southern end of the strip.
It's all about supply and demand. Availability of credit hasn't kept prices up on the Gold Coast, excess supply has kept prices below cost, but as any sane person knows that won't continue forever. Prices on the Gold Coast will skyrocket from their lows as soon as demand matches supply. There has been very little apartment building activity on the GC for years. As the economy comes back people are again interested in buying an apartment for their holiday use on the GC. I'll give it 2 maybe 3 years at best before we see cranes on the skyline on the GC and then we will be playing catch up in the market.
I agree that this will happen in the future. And if you can afford to do it now and your employment is solid then maybe it could work out good. However I feel in the current economic climate it may be wise to be less exposed.
Ignore posts by The Whole Truth · View Post · End Ignoring The forum fuckwit goes RRRAAARRRGGHHhhh - But not a fuck was given..................by anyone.
Ignore posts by The Whole Truth · View Post · End Ignoring The forum fuckwit goes RRRAAARRRGGHHhhh - But not a fuck was given..................by anyone.
Some those look like half decent value. Although I note that even at those crashed / discounted prices, the gross / net yield is still only up to about what has been typical for Sydney apartments for many many years (with no serious price correction occurring in Sydney as we know). So the GC must have been WAY overblown on all the fundamentals, if those prices are 40-50% lower than previous sales.
So selling now for a bit below the 2007 purchase price, and providing about a minimum 5.5%/4.7% gross/net yield at that advertised price (so a bit more if you got it cheaper). In 1992 it cost $96k, probably when it was built.
Some those look like half decent value. Although I note that even at those crashed / discounted prices, the gross / net yield is still only up to about what has been typical for Sydney apartments for many many years (with no serious price correction occurring in Sydney as we know). So the GC must have been WAY overblown on all the fundamentals, if those prices are 40-50% lower than previous sales.
Rent returns are well down. As our dollar rose the GC became less affordable for both local and international tourists, hence they had to compete for permanent tenants rather than rely on short term holiday rentals. The cheap rents attracted the wrong crowd, but they will leave when rents return to long term levels.
I bought a hotel unit in Surfers a little while ago. It used to get a 6% return on the original purchase price. I bought it at a large discount but with a zero return at present, although I do think that it will start to show a small profit in a year or two. Rents are rising again as visitor numbers increase.
As our dollar falls the rents will rise. I see the Gold Coast as a hedge against a falling Aussie dollar.
Any expressed market opinion is my own and is not to be taken as financial advice
Oh Peter. I have seen whole areas in the world go to the dogs. When the rot starts, it does not just stop. The thing to keep in mind is that the GC is great place for the bogan to invest now so keep hoping and praying. So, while I say that some properties look like good value, they do so at the moment. Once all those around it have been snapped up by someone who has been sold the dream then it may not be quite such a good deal.
As mentioned before, quite a gamble. Even at today's prices.
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