A Gold Coast investment property has never looked so good. The Gold Coast is Australia’s sixth largest metropolitan city. It has a population of just over half a million and growing, with close to 11,000 new residents moving in each year. So, for every five people on the Gold Coast today, there will be eight people within 25 years. Wow!!
The Gold Coast investment property market CORRECTION has now well and truly surpassed us. This reset was well needed, as the Gold Coast had overheated in terms of price and even rents in the mid to late 2000’s. Gold Coast investment property values had appreciated by about 165% between 2001 and 2008. So what will occur this time? Michael Matusik says “values are expected to increase, but mildly in comparison”. Potentially, house values could rise by another 9% and Gold Coast investment property values by as much as 11%. When the Gold Coast market will actually peak, will depend on interest rates, local employment trends and supply and demand. During the next decade this underlying demand is expected to increase to 5,225 new houses required per annum. Forecasts indicate that each year between now and 2021 there will be the need for:
Investors should look at a gold coast investment property priced up to $500,000 – $600,000 for new house and land packages or townhouses. A gold coast investment property at this price point should generate a strong rental demand.
The Gold Coast property cycle this time around has an undersupply of new stock and a very tight rental market.
There are areas of the Gold Coast that really stand out! Buy near the employment nodes, in Queensland areas such as Carrara, Nerang, Mudgeeraba, Arundel, Ashmore, Robina, Varsity Lakes, Coomera, Pimpama and Ormeau. And buy in an inland suburb. There is a real buzz of prosperity around the Gold Coast, and the gold coast investment property market has been amplified by the Commonwealth Games. With a land supply shortage on the southern and central parts of the coast, all development and growth is being experienced in the Northern suburbs of Coomera, Pimpama and Ormeau. The distinct undersupply of rental properties in the these areas has resulted in vacancies of under 2% and an increase in rents. Higher yields for investment properties in this region, makes for an extremely attractive investment opportunity.
Investors should buy an affordable, mainstream rental property, not lifestyle orientated stock that comes with emotional attachments.
Key drivers and infrastructure are creating an even more sound case to purchase a gold coast investment property:
Take note too of the quality new residential developments that are occurring in these locations. Don’t overlook the opportunity to purchase a house and land package, townhouse or villa located in one of these key new estates located near all the major facilities and services. Suburbs like Coomera and Pimpama located in the Northern Gold Coast Corridor are currently skyrocketing!!!
Estates include: Fox well Rise, Coomera Grand, Norman Springs, The Meadows, Karingal Drive, all located very near the new upcoming 60 HA Coomera Town Centre.