Thinking of investing in property on the Gold Coast?
Local agent Michael Kollosche has some sage advice.
“Throw a dart at anything at the moment, and it’ll do pretty well,” he said.
“The fundamentals of the Gold Coast market are just so strong; there’s probably never been a better time to invest here.”
While prices have been rising steadily – houses in Broadbeach-Burleigh chalked up a remarkable increase of 27.1 per cent last year – everything points to such sterling capital growth continuing.
A raft of ageing baby boomers is now buying second homes on the Gold Coast, cashed-up ex-pats are purchasing in advance for when they’re allowed to return home, and interstate migration is currently at the highest level of the past 15 years, with many Sydneysiders and Melburnians able to work remotely.
Business, in short, is booming.
“And it sounds as if we’re very likely to get the 2032 Olympics; we’re the hot favourites,” says Mr Kollosche of his eponymous agency.
“Of course, we’re also running out of land in the central part of the Gold Coast, so that will force up prices higher still.
“The future is going to be very bright for the Gold Coast, regardless of what happens nationally, and we’ll see strong growth for at least the next five years, possibly 10.”
Prices have certainly been increasing in leaps and bounds, with those for houses in Surfers Paradise growing 13.9 per cent in the year to March, and units by 13 per cent, according to the latest Domain Group figures.
In Coolangatta, houses are up 11.9 per cent and units only a shade less at 11.3 per cent, and apartments in Broadbeach-Burleigh rose by 8.3 per cent.
Such a shiny outlook is now luring investors back to the Gold Coast.
Buyers’ agent Tony Coughran of Gold Coast Property Advisors recently bought a five-year-old, four-bedroom house on 650 square metres in Gilston, at 4 Moondani Drive, for $735,000 for an international investor.
He rented it out four days after settlement for $780 per week, a 5.5 per cent yield.
“I think the sweet spot for investors at the moment are houses up to $800,000, which are renting out well, and duplexes – with much lower body corporate fees than apartments – for around $500,000,” says Mr Coughran.
“Good locations closer to the water and amenities are a great option, but, in this market, you’ve got to be quick when you find something. We’ve got a lot of people from Sydney and Melbourne now buying properties to rent out, planning to move into them later.”
On the northern boundary of the Gold Coast, Jason Read of Raine & Horne Coomera says family houses are a great bet with parents commuting to Brisbane.
At Broadbeach, Jane Lofthouse at Harcourts says the only hurdle is supply.
“So many investors are looking for somewhere to stay eight weeks a year and rent them out the rest of the time either for full-time rentals or short-stays,” she said.
“Everyone, post-COVID, is now looking for lifestyle.”
Article Source: qldpropertyinvestor.com.au