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The month in review: Gold Coast
By Herron Todd White
July, 2009
Not a lot has changed from our June 2008 month in review
on where and what to buy with your lazy $500,000. The
only real change is some sectors and/or areas are now
accessible for under $500,000 due to a small drop in
market values.
As discussed in the 2008 review the northern corridor
of the Gold Coast presents some good opportunities for
buyers looking to invest up to $500,000. The established
areas of Oxenford, Helensvale and Parkwood, which
are typically located close to schools, transport and the
Westfield Shopping Centre at Helensvale are a good
starting point. These areas are a mix of both owner
occupied and investor end users. Rental levels in these
areas have softened slightly in the last 3 months, however
are still considered attractive given the current low
interest rate environment. $500,000 in these area would
buy a 10 year old brick house on a 600-800sqm block of
land with a pool.
Some of the newer estates in the northern corridor also
now present some opportunities under $500,000. Two
estates of interest are Jacobs Ridge and Coomera Waters.
A good quality 5 bedroom house in Jacobs Ridge recently
sold for less than $500,000. The older stages of Coomera
Waters with houses 3-4 years old have also been selling
for less than $500,000.
The northern Broadwater suburbs of Hollywell, Paradise
Point and Runaway Bay currently offer some good buying
opportunities under $500,000. It is now possible to buy
a 20 year old renovator, within 1 kilometre from the
Broadwater under $500,000. These areas are typically
seen as lifestyle locations with appeal to both the owner
occupier, investor or buy/renovate/sell purchaser.
On the central Gold Coast a purchase of $500,000 in
Southport or Ashmore would potentially acquire a
part renovated 10-20 year old house close to local
infrastructure. Southport, Ashmore and even Benowa
are seen as good medium to long term investments given
their proximity to local schools, shops and being situated
within 10 kilometres of the beach.
Their are currently some good opportunities for buyers
who are looking for a green change to acquire some
small lot acreage in the hinterland areas of the Gold
Coast. The suburbs where this is possible are Worongary,
Mudgeeraba and Bonogin. These areas are close to the
Pacific Motorway and the Robina Town Centre. Whilst
$500,000 will not buy a palatial house on a level block, it
will buy a 10-15 year old house on a 3000-8000sqm block
of land. These “secondary” acreage locations are seen as
good medium to long term propositions as it is not likely
that any broad scale rural residential subdivision will
occur in these areas in the next 5 years.
At the southern end of the Gold Coast, apart from areas
mentioned in the June 2008 review, Palm Beach density
sites are now under $500,000 and seen as good holding
propositions. Whilst the holding income on these
properties will not cover the mortgage, the holding
proposition for future development is seen as an incentive
to buy now. In the number avenues at Palm Beach (1st,
2nd, etc) older houses on 450-600sqm blocks of land are
seen as the best choices. Those properties zoned “Res
Choice” provide a development opportunity in the future,
however make sure that the size of the block does not
restrict what you can develop on the block.
The Gold Coast still provides some good medium to
long term holding propositions if a buyer has $500,000
to spend. Established older homes close to good local
infrastructure appear to be the best bet, however if a
purchaser would like a more modern home, some of the
newer subdivisions in the northern corridor of the Gold
Coast would be worth a look.
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