Wave of investors crashing Gold Coast auctions: Buyer's agent

Strong investor and home buyer interest are behind increased attendances at Gold Coast auctions, according to Gold Coast buyer’s agent Tony Coughran.

With more investors turning their attention to the coast’s affordable opportunities, Coughran said that there’s no doubt the market is heating up.

“Interstate investors have finally taken their hands out of their pockets and are coming up in droves.

“Many are diversifying their portfolios as they move away from the affordability issues, poor returns and peaked out growth in strong Sydney and Melbourne markets,” he said.

He noted that some are investing now to get ahead of future growth, with plans to move in within a five-year time frame.

“Some are seeing value in lifestyle units, purchasing as an investment to be used partially for family getaways and then renting through peak periods for premium holiday returns,” he said.

However, high end houses are also in demand. He noted the sale of six bedroom waterfront 122 Tallebudgera Drive, Palm Beach which went to auction in early September securing a result of $1.35 million.

“At a recent auction I attended, one buyer hardly even got a shot in with two bidders in a room of 80 battling it out with their hearts and ultimately paying in excess of more than $90,000,” he said.

“The duplex had a fair market value of $720,000 but sold under the hammer for an astonishing $817,000.”

He warned investors to keep their emotions in check with these sorts of auctions to become more common, noting that his criteria for a property is 5% to 7% minimum gross yield, low vacancy rates and little or low body corporate fees.

“Locations close to the beach or outdoor attractions and infrastructure are preferable as are properties in sought after school areas,” he said.

“I also look for properties that have a point of difference – a second bathroom, extra car accommodation or side access, and those that offer opportunities to maximise depreciation benefits, if you can.”