Hi All, need some general advice and insight into the apartment market in Surfers Paradise. We are looking at buying an apartment in Surfers Paradise for investment purpose. Came across an unit which is next to the Peppers Soul building with ocean view. It's $600k for 2 bed + 2 Bath + 1 Car space situated at Level 11. Body Corporate - $114 per week.
There are few 2 bed units in Chevron Renaissance building for less than $500k. Body Corporate - $160 per week.
Appreciate any thoughts or tips on the apartment market in Surfers Paradise?
Was this your own idea or were you visiting the Gold Coast and got offered a free breakfast by a pretty lady? I'm only asking to make sure you're not the victim of the usual marketers over there and this is totally your own idea. If the latter, then why pick the Gold Coast? Unit rents will be fairly seasonal to you'll need to research vacancy rates. Also don't forget management fees on top of body corp fees as well as the usual rates and insurances that go along with investment properties.
Also do some research on the current market, for e.g.
http://www.realestate.com.au/news/offtheplan-apartments-face…
"INNER city units in Sydney, Melbourne, Brisbane and the Gold Coast sold off-the-plan have been declared a “clear and present danger” to property buyers due to over supply forcing down prices."
Wouldn't want to see you get caught with an asset about to lose value. Don't get me wrong, we've done OK with realesate over the years but have sold everything up in the last few years which means we've been sitting on cash with a crappy interest return but at least we know it's safe. We will revisit things early next year after we see what 2017 has turned into. ;)
I also believe that (above information notwithstanding) that city units might offer you a better return and a more consistent rental income than you would get at the Gold Coast.
Also: http://www.yourinvestmentpropertymag.com.au/buying-property/…
https://www.domain.com.au/news/brisbane-unit-oversupply-to-c…
Natasha: They’re the postcodes the banks don’t want you to touch.
Cameron: People should be cautious going into these markets.
Natasha: Seventeen suburbs in the southeast have been flagged as high risk.
Cameron: The risk is about the amount of apartments being built in these areas. We’re seeing a lot of unit construction, record high levels of unit construction. And clearly, some of the lenders are a little bit concerned.
Natasha: Macquarie Bank identified these areas in a secret memo to mortgage brokers just this week. Those hunting for units will be subjected to tighter lending conditions over concerns of oversupply and a slowing property market. It’ll include apartments around inner city Brisbane, but many more on the Gold Coast including South Port, Benowa, Surfers Paradise, Broadbeach and Mermaid Beach. Buyers wanting a bank loan will need a 30% deposit.
Cameron: Obviously, not use some of these banks that have these lending policies, so shop around more.
Dr. Wilson: But does that not just exacerbate the risk in those suburbs by denying them finance?
Natasha: If you already own a unit in one of these risky suburbs and are looking to sell in the next few years, economists warn you’ll be competing with a lot of other properties, and your resale price could fall.
Cameron: If you’re actually an investor, well then the challenge is going to be actually renting out that property over the coming years.