In today’s show Tony Coughran from Gold Coast Property Advisors points out the areas on the Gold Coast he thinks are going to boom next.
Kevin: Every investor I’ve ever spoken to always wants to get ahead of the curve, to get on the wave, to work out where that wave is going to be. The recent wave that we saw in Sydney, well, that’s one that every investor would love to have been on and known about well before it happened.
But Sydney is not the only place in Australia where we get those big peaks. Take the Gold Coast as an example. In the latest Australian Property Investor magazine, Tony Coughran from Gold Coast Property Advisors points out the areas on the Gold Coast he thinks are going to boom next. He joins us.
Hi, Tony. Thanks for your time.
Tony: No problems. You’re always welcome. Thank you.
Kevin: Tony, what are the areas that you’re watching most on the Gold Coast right now?
Tony: We’re taking particular interest in the lifestyle suburbs of Burleigh Heads, Nobby Beach – that’s located at Mermaid Beach – Paradise Point (a Broadwater suburb), and Chirn Park in Labrador.
Kevin: What specifically do you like about those areas?
Tony: Absolutely love the huge shift in demographics. They were once tightly held areas, and now things are changing for the baby boomers, and it’s giving great opportunities for the next generation.
Kevin: Those areas that you talk about, are they areas where you could actually go in and enhance the value of the property by making some changes, some renovations to it?
Tony: Absolutely. A lot of those homes were built in the 1960s and 1970s, so there’s actually a huge amount of construction work happening in these areas right now, whether they be knock-downs, full renovations, or just a comfortable budget renovation.
Kevin: What gains are you expecting in those areas, Tony?
Tony: Let’s take a look back to late 2012 where the market had lost a lot of traction at the Gold Coast. Right now, the market has gained great momentum and is performing very well. For example, in Burleigh, on average, we’ve seen almost 15% growth in median prices, as opposed to 5% across the coast. If you buy right and you’re well informed, you could get another 10% or 15% capital growth over the next 12 to 24 months.
Kevin: Some of those suburbs you mentioned there are fairly well established – Mermaid Beach as an example. Do you think those suburbs are going to achieve better than what we’ve seen in Queensland in recent times, averaging each year around about 6%? Do you think we can get better than that?
Tony: It certainly does come down to knowing the values and being well informed. If you’re buying well, then you can curve greater growth than the average punter.
Kevin: What would you be looking for in those areas, what type of properties?
Tony: I’d be looking for properties that you could knock down and rebuild, build that lifestyle home and see some significant growth, or I’d be looking at buying and holding for a couple of years, waiting for the market to pendulum even further in your favor, and then doing your renovations and prosper.
Kevin: How’s the Gold Coast faring overall?
Tony: Due to our demand here in the Gold Coast, stock has certainly tightened up over the last 12 months. We do have a lot of frustrated buyers that are lining up to secure properties. We’re big advocates for houses and duplexes that don’t have those body corporate fees. They’re the best capital growth generators.
We do hope to see a shift in the New Year of 2016, seeing more vendors looking at putting their properties on the market.
Kevin: What about the forthcoming Commonwealth Games? Are you hearing much in the market about that? Is that having any impact at this point in time?
Tony: Most definitely. We’re seeing big dollars being spent on the coast – city infrastructure, new sporting facilities, the upgrades to major retail centers. New high rises are popping up all over town. The new light rail is in operation. Good news, we have the green light for the second extension, which connects to the heavy rail.
Look, the economy is alive and well. There are more jobs, more people coming to the coast and creating a greater demand here on the coast.
Kevin: Yes, good news there out of the Gold Coast. I’ve been talking to Tony Coughran from Gold Coast Property Advisors.
Tony, thanks for your time.
Tony: No worries. Thank you, Kevin.