Welcome Guest [Log In] [Register]


Reply
Gold Coast Homes 50% Below 2010 Level - Bloomberg
Topic Started: 5 Sep 2013, 01:27 PM (7,660 Views)
genX
Default APF Avatar


peter fraser
8 Sep 2013, 07:59 AM
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?

Profile "REPLY WITH QUOTE" Go to top
 
The Ponz
Member Avatar


peter fraser
8 Sep 2013, 07:59 AM
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.
Profile "REPLY WITH QUOTE" Go to top
 
doubleview
Member Avatar


foxbat101
8 Sep 2013, 01:23 AM
I am looking at some units, they are the same price they where sold for when they where first sold onto the market 15 years ago.
Peter
Not good, doesn't surprise me though!!

Body corp is fucking over a lot of investments & is shit loads up above inflation.

Profile "REPLY WITH QUOTE" Go to top
 
Frank Castle
Member Avatar
Business As Usual

hoofarted
8 Sep 2013, 10:11 AM
Hilton dickhead - we are talking about the new Hilton apartments

Add: and only two on that first page under $350
Edited by Frank Castle, 8 Sep 2013, 11:01 AM.
Ignore posts by The Whole Truth · View Post · End Ignoring
The forum fuckwit goes RRRAAARRRGGHHhhh - But not a fuck was given..................by anyone.
Profile "REPLY WITH QUOTE" Go to top
 
hoofarted
Member Avatar


Frank Castle
8 Sep 2013, 10:48 AM
Hilton dickhead - we are talking about the new Hilton apartments

Add: and only two on that first page under $350
I was talking about everywhere. As I made the statement first, you came up short asshole.
Profile "REPLY WITH QUOTE" Go to top
 
Frank Castle
Member Avatar
Business As Usual

hoofarted
8 Sep 2013, 11:10 AM
I was talking about everywhere. As I made the statement first, you came up short asshole.
And I was talking Hilton dickhead as was obvious by my links.
Your statement didn't mention everywhere, it mentioned "A" apartment.
Quote:
 
I am actually in the GC at the moment and even I am tempted.
2 bedder with parking overlooking sea and pool for $350k

And it was directly after the article on the Hilton apartments discussion.
Edited by Frank Castle, 8 Sep 2013, 11:24 AM.
Ignore posts by The Whole Truth · View Post · End Ignoring
The forum fuckwit goes RRRAAARRRGGHHhhh - But not a fuck was given..................by anyone.
Profile "REPLY WITH QUOTE" Go to top
 
hoofarted
Member Avatar


Like I give a fuck Frank. People are losing / have lost shit loads of cash.
Profile "REPLY WITH QUOTE" Go to top
 
Sydneyite
Member Avatar


hoofarted
8 Sep 2013, 10:11 AM
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.

Here's an interesting one - for sale for $279k now, rented for $300/week with $50/week strata: http://www.domain.com.au/Property/For-Sale/Apartment-Unit-Flat/QLD/Southport/?adid=2010639891

And here's it's sales history: http://www.onthehouse.com.au/reports/property_profile/3263172/Unit_7,_72_Marine_Parade_SOUTHPORT_QLD_4215/

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.
Edited by Sydneyite, 8 Sep 2013, 02:09 PM.
For Aussie property bears, "denial", is not just a long river in North Africa.....
Profile "REPLY WITH QUOTE" Go to top
 
peter fraser
Member Avatar


Sydneyite
8 Sep 2013, 01:58 PM
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
Profile "REPLY WITH QUOTE" Go to top
 
hoofarted
Member Avatar


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.
Profile "REPLY WITH QUOTE" Go to top
 
1 user reading this topic (1 Guest and 0 Anonymous)
ZetaBoards - Free Forum Hosting
Enjoy forums? Start your own community for free.
Learn More · Sign-up Now
Go to Next Page
« Previous Topic · Australian Property Forum · Next Topic »
Reply



Australian Property Forum is an economics and finance forum dedicated to discussion of Australian and global real estate markets and macroeconomics, including house prices, housing affordability, and the likelihood of a property crash. Is there an Australian housing bubble? Will house prices crash, boom or stagnate? Is the Australian property market a pyramid scheme or Ponzi scheme? Can house prices really rise forever? These are the questions we address on Australian Property Forum, the premier real estate site for property bears, bulls, investors, and speculators. Members may also discuss matters related to finance, modern monetary theory (MMT), debt deflation, cryptocurrencies like Bitcoin Ethereum and Ripple, property investing, landlords, tenants, debt consolidation, reverse home equity loans, the housing shortage, negative gearing, capital gains tax, land tax and macro prudential regulation.

Forum Rules: The main forum may be used to discuss property, politics, economics and finance, precious metals, crypto currency, debt management, generational divides, climate change, sustainability, alternative energy, environmental topics, human rights or social justice issues, and other topics on a case by case basis. Topics unsuitable for the main forum may be discussed in the lounge. You agree you won't use this forum to post material that is illegal, private, defamatory, pornographic, excessively abusive or profane, threatening, or invasive of another forum member's privacy. Don't post NSFW content. Racist or ethnic slurs and homophobic comments aren't tolerated. Accusing forum members of serious crimes is not permitted. Accusations, attacks, abuse or threats, litigious or otherwise, directed against the forum or forum administrators aren't tolerated and will result in immediate suspension of your account for a number of days depending on the severity of the attack. No spamming or advertising in the main forum. Spamming includes repeating the same message over and over again within a short period of time. Don't post ALL CAPS thread titles. The Advertising and Promotion Subforum may be used to promote your Australian property related business or service. Active members of the forum who contribute regularly to main forum discussions may also include a link to their product or service in their signature block. Members are limited to one actively posting account each. A secondary account may be used solely for the purpose of maintaining a blog as long as that account no longer posts in threads. Any member who believes another member has violated these rules may report the offending post using the report button.

Australian Property Forum complies with ASIC Regulatory Guide 162 regarding Internet Discussion Sites. Australian Property Forum is not a provider of financial advice. Australian Property Forum does not in any way endorse the views and opinions of its members, nor does it vouch for for the accuracy or authenticity of their posts. It is not permitted for any Australian Property Forum member to post in the role of a licensed financial advisor or to post as the representative of a financial advisor. It is not permitted for Australian Property Forum members to ask for or offer specific buy, sell or hold recommendations on particular stocks, as a response to a request of this nature may be considered the provision of financial advice.

Views expressed on this forum are not representative of the forum owners. The forum owners are not liable or responsible for comments posted. Information posted does not constitute financial or legal advice. The forum owners accept no liability for information posted, nor for consequences of actions taken on the basis of that information. By visiting or using this forum, members and guests agree to be bound by the Zetaboards Terms of Use.

This site may contain copyright material (i.e. attributed snippets from online news reports), the use of which has not always been specifically authorized by the copyright owner. Such content is posted to advance understanding of environmental, political, human rights, economic, democratic, scientific, and social justice issues. This constitutes 'fair use' of such copyright material as provided for in section 107 of US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed for research and educational purposes only. If you wish to use this material for purposes that go beyond 'fair use', you must obtain permission from the copyright owner. Such material is credited to the true owner or licensee. We will remove from the forum any such material upon the request of the owners of the copyright of said material, as we claim no credit for such material.

For more information go to Limitations on Exclusive Rights: Fair Use

Privacy Policy: Australian Property Forum uses third party advertising companies to serve ads when you visit our site. These third party advertising companies may collect and use information about your visits to Australian Property Forum as well as other web sites in order to provide advertisements about goods and services of interest to you. If you would like more information about this practice and to know your choices about not having this information used by these companies, click here: Google Advertising Privacy FAQ

Australian Property Forum is hosted by Zetaboards. Please refer also to the Zetaboards Privacy Policy