Across the southern Gold Coast and in northern New South Wales there are opportunities for investors and owner occupiers to purchase property in the $500,000 price range. The areas with the greatest demand are Burleigh Waters, Miami, Palm Beach, Elanora, Salt and Casuarina. These suburbs are well located close to amenities and the beach. The areas should offer reasonable growth if held for the long term. An example of short term growth is a property located at 7 Kelburn Close, Banora Point which sold in March 2014 for $527,000 in below average condition. The dwelling has been partly renovated since sale date (new bathroom and general tidy up works completed) and is currently under contract for $665,000 as at May 2015.
Perhaps you’re looking for return on your investment like so many interstate investors of late. In the southern Logan market around Beenleigh and Eagleby, for a lazy $500,000 you can buy yourself not one but two investment properties.
Here are a couple of very recent examples:
43 Temma Street, Eagleby is under contract as at June 2015 for $240,000 in fair condition. Property comprises a basic, on ground, circa 1984, brick and metal roof dwelling with 3-bedrooms, 1-bathroom and 1-car carport with a tenant currently paying $310 per week.
25 Chapman Drive, Beenleigh sold in May 2015 at auction for $250,000 in fair condition. Property comprises a basic, on ground, circa 1984, brick and metal roof dwelling with 3-bedrooms, 1-bathroom and 1-car carport. Agent advises tenant will happily pay $320 per week.
For a total purchase price of $490,000 you get a gross yield of 6.68%. Not bad!
Recent market activity has seen some suburbs which may have previously been overlooked for some owner occupiers, increase in value to figures above 2007/2008 price levels. For example 61 Macquarie Avenue, Molendinar was purchased for $550,000 in November 2008 and has recently gone under contract for $610,000 in largely the same condition. Other similar suburbs that have recently seen a jump in entry level prices include Coombabah and Helensvale, with first home buyers (in most cases) having been pushed further out, away from more central and coastal suburbs.
Another example of market movement can be seen in the recent sale (under contract) of 8110 Magnolia Gardens Court, Hope Island, being an attached townhouse with golf course frontage, for $478,000 having last sold in September 2013 for $425,000 with only some light refurbishment in between.
Local agents are consistently reporting having more potential purchasers than properties to sell, which poses the question… Where to next for first home buyers? Eagleby perhaps.
Labrador offers good opportunity for investors with some 2-bedroom, 1-bathroom walk-up style units selling in the early to mid $200,000 range and being let for over $300 per week, often in original condition and within walking distance of the Broadwater.
There has been considerable improvement in property values for residential property in the more central areas of the Gold Coast over the past 12 months. With this firming in the market, the opportunities to buy a freestanding dwelling on 500 square metres of land for around $500,000 or less within well-located suburbs such as Benowa, Mermaid Waters and Robina are now becoming extremely limited. Local real estate agents are still reporting strong levels of demand for this type of residential property and stock levels are very low which has inevitably put upward pressure on property prices. Investing in entry level detached housing in this price range in the central suburbs of the Gold Coast has always been a solid option.
Examples of detached housing which have sold for $500,000 or less in the past couple of months include:
1 Chadstone Place, Robina sold in March for $500,000. Comprises a single storey, circa 1990, brick 3-bedroom, 2-bathroom dwelling with 2-car garage. Updated bathroom and pool. Land area of 482 square metres. Previously sold in September 2012 for $425,000;
10 Piccabeen Close, Robina sold in March 2015 for $490,000. Comprises a single storey, circa 2001, rendered brick 3-bedroom, 2-bathroom dwelling with double lock-up garage. Land area of 517 square metres. Previously sold in January 2013 for $415,500.
135 Bamboo Avenue, Benowa sold in May 2015 for $425,000. Comprises a small, single storey, circa 1980, brick 3-bedroom, 1-bathroom dwelling with 1-car carport. Original kitchen and bathroom. Land area of 598 square metres.
With increasingly limited reasonably priced opportunities available for detached housing in the central areas, buyers will be required to negotiate quickly or will be forced to look into a different property type such as a townhouse or villa.
Townhouse units or villas in the central parts of the Gold Coast are still considered to be good options provided that the associated body corporate costs are relatively low. Local agents advise that these properties are also in good demand and stick levels are relatively low, but buyers will likely find it much easier to find an opportunity at less than $500,000, which still offers good capital growth potential and a sound rental return.
Examples of townhouses or villas which have sold for $500,000 or less in the past couple of months include:
23/103 Salerno Street, Surfers Paradise sold in February 2015 for $407,000. Subject property comprises a two level, circa 2000, 3-bedroom, 2-bathroom townhouse and 1-car garage and 1-car carport. This is a gated complex with various facilities. Previously sold in June 2009 for $420,000.
56/7 Elliott Street, Surfers Paradise sold in January 2015 for $435,000. Comprises a two level, circa 2001 4-bedroom, 3-bathroom townhouse with 1-car garage. This is a gated complex with various facilities. Previously sold in December 2012 for $395,000.
28/34 Albicore Street, Mermaid Waters sold in February 2015 for $490,000. Comprises a single storey, circa 2000, 3-bedroom, 2-bathroom villa with 2-car garage. This is a gated complex with common swimming pool.
Overall it is quite clear that market confidence has picked up again and with interest rates still predicted to remain low, property investment on the Gold Coast should provide a solid option for those owner occupiers or investors willing to spend a lazy half million.
DISCLAIMER: The information contained in this article is correct at the time of publishing and is subject to change. It is intended to be of a general nature only. It has been prepared without taking into account any person’s objectives, financial situation or needs. Before acting on this information, Smartline recommends that you consider whether it is appropriate for your circumstances. Smartline recommends that you seek independent legal, financial, and taxation advice before acting on any information in this article.