BUYING AN INVESTMENT PROPERTY ON THE GOLD COAST?
The Gold Coast is one of the fastest-growing cities in Australia, and its property market offers some great opportunities for the educated property investor. As Australia's sixth largest city, the Gold Coast property market has now reached a level of critical mass in its population and economy to deliver greater long-term stability for the investor. Values are increasing and rental yields remain high, while strong future population growth, improving infrastructure and shortages of quality property should drive long-term price growth.
But perhaps more than any other city, you need to have a good understanding of the Gold Coast and its property market before you buy an investment property here. Don't be seduced by the idea that because it would be a nice holiday home or retirement property, it will make a great investment. It probably won't. If you want to make money out of your Gold Coast investment property, you need to do your research.
Where can i invest on the gold coast?
The Gold Coast is a linear city running roughly north to south. Its geography is dictated by the coast to the east and the mountains to its west. I've broken down the city into four major areas:
Beachside - North
This area consists of the most well-known beach suburbs on the Gold Coast, including Surfers Paradise, Broadbeach & Mermaid Beach as well as the Coast's CBD of Southport. It boasts a mixture of high density units in Surfers and Broadbeach, reducing to medium density units and luxury housing along Mermaid Beach and Miami. Southport is a priority development area with a large concentration of high-density units, although there is plenty of traditional housing and lower density development in its immediate surrounds. There are also a number of suburbs built along canals running immediately inland from the beach, such as Bundall, Broadbeach Waters, Mermaid Waters and Clear Island Waters. This area is the main centre for tourism, holiday accommodation and nightlife.
Beachside - South
This area runs from the famous Burleigh Heads south to the QLD-NSW border at Coolangatta. There are patches of high density development within Burleigh and Coolangatta, although there is also detached housing and duplexes scattered throughout the area, particularly in the beachside suburbs of Palm Beach and Tugun. There are also many low-rise beachfront units along this coastal stretch. With wide, northerly facing beaches and hinterland views, this is a very attractive part of the Coast. The region also houses the Gold Coast International Airport - an increasingly important piece of infrastructure driving growing visitor numbers to the city.
Inland - North
This is the largest suburban area of the Gold Coast, and houses most of the city's traditional suburban housing. It sretches from the development areas of Pimpama, Oxenford and Coomera in the north, through to established suburbs including Ashmore, Parkwood, Arundel and Helensvale in the centre and Nerang, Highland Park and Carrara to the south. Property types vary from new house and land packages and townhouses in the newer suburbs, through to less modern but more diverse styles in the established areas. The area boasts the new Gold Coast Hospital precinct, alongside Griffith University, as well as the various Gold Coast Theme Parks.
Inland - South
The major populated suburbs in the south are Robina and Varsity Lakes, which are relatively new creations built around the Robina Town Centre and Bond University. There is a mixture of detached houses, duplexes and townhouses spread throughout the area, with medium density apartments surrounding Robina Town Centre and Bond University. Nearby are the hinterland suburbs of Mudgeeraba, Tallai and Bonogin, and further south are the beautiful Tallebudgera and Currumbin Valleys. Hinterland properties generally have larger homes and block sizes. The main areas of employment in this region is the Robina CBD and the Varsity Lakes business precincts. Most suburbs have easy access to the M1.
WHAT is a good investment property on the Gold Coast?
One of the keys to successful property investment on the Gold Coast is to understand that it is a proper city - not just a tourist destination or retirement village - and plan your investment accordingly. My strong recommendation is to look at properties and areas that aren't purely occupied by tourists, but have appeal to a range of demographic groups. It's also important to realise that incomes are not as high on the Gold Coast as they are in many of our capital cities, which means you need to be more careful around price.
investment Properties to consider
- Properties with good amenity, but also close to job sources and quality infrastructure.
- Flexible properties that appeal to a range of different buyers and renters, such as modern detached houses, duplexes, townhouses and units in small complexes.
- Properties within the key price range of $350,000-600,000.
investment properties to avoid
- High-density units, particularly within Surfers Paradise, Broadbeach and Southport. There is almost no demand from locals for these properties, and there continual issues with oversupply
- Be very careful about new house and land packages and townhouses in the northern growth corridor. There is a lot of new supply coming on here and many are overpriced, with large commissions built in for those selling them.
- Lifestyle properties with 'resort' style facilities - these are generally too expensive and have large body corporates, making them unattractive to the average owner-occupier.
How do we help Gold Coast Property Investors?
Aquila Property Investment offers a highly professional, independent and affordable alternative for those looking to invest in property on the Gold Coast. We'll help you:
- Independently determine where to invest and what to invest in, based on your personal objectives and financial situation,
- Locate and purchase a high-quality property on the Gold Coast at the best possible price using our expert buyers agency service,
- Provide ongoing service to ensure your property is professionally managed and maintained.
We specialise in buying high-performing properties on the Gold Coast at below market price. We don't sell properties or take commissions, so our advice and services are fully independent and in your interest.
Want to find out more? Book a consultation with our local expert and Gold Coast Buyers Agent, Andrew Wegener. Get the latest insights, property market knowledge and buying strategies, and discuss your plans for investing in Gold Coast property. It's one-to-one, at a time of your choosing, and it's cost and obligation-free. Best of all, Andrew's advice is completely independent.
gold coast property investment - case studies
1/1 Campelles Ave Varsity Lakes QLD 4227 - $445,000
In one of the Gold Coast's best pockets for jobs, amenities, schools, and transport, this well-designed and flexible triplex was purchased for $20,000 under value, with a likely rental return of 5.72%.
50 Melinda St Southport - $410,000
Located close to the Gold Coast's Southport CBD, this property lies in a quiet, family friendly area, and has returned 14% in capital growth and a rental return of 5.7% since its purchase 2 years ago.
2/15 Blue Ridge Crescent Varsity Lakes - $405,000
Elevated, renovated, well-designed and in a small, well-managed complex, this townhouse has returned 10% capital growth and a rental return of 5.71% since its purchase 18 months ago.