Five tips to beat the Gold Coast property market heat: Tony Coughran
GUEST OBSERVATION
With the Gold Coast tipped to be one of the hotspot property markets of 2015, I thought I would share my tips to buying well on the glitter strip.
Investors should target property areas in and around planned infrastructure developments if they are looking to capitalize on the growth potential the Gold Coast offers.
The Gold Coast’s lifestyle market is fast becoming a more viable option for not only entry level investors, but those who may have capped out in the southern states and are looking to diversify their portfolios as South East Queensland gets set to boom.
The Southport CBD has been earmarked as a priority development area with key projects including a Chinatown precinct, redevelopment of the old Gold Coast Hospital site and the Broadwater Parklands
which is already in the final stages and includes the new Gold Coast Aquatic centre.
On the retail front, Broadbeach is already taking off with the $670 million dollar transformation of Pacific Fair which will make it the largest shopping centre in Queensland and the fourth largest in Australia.
Coomera at the Northern end of the Gold Coast can also look forward to a $500 million Westfield development which has just been given the green light after 18 years in the pipeline.
All of these developments will largely contribute to the Gold Coast’s thriving economy over the next 10 years and will certainly result in continued growth in property values in and around any of these developments.
In the past year, capital growth figures show the city has been performing well with strong growth predicted to continue.
With a high demand for quality rentals and tenants prepared to pay premium rents, the coast can expect to see high yields continue in 2015.
While the Gold Coast had a lot going for it, not every investment opportunity was a good one and investors needed to buy well.
The Gold Coast is a lifestyle property market and investors need to tread carefully.
If you’re looking to invest, engage the services of a qualified and accredited buyer’s agent.
They can educate you on the current state of the market enabling you to make informed decisions and save you thousands in the long run.
Always consider how qualified the advice you’re listening to is and what their motives may be – this includes selling agents.
Remember, if they’re not getting paid by you they’re not working for you.
Here are my five tips for buying well in 2015:
- Get pre-approved
In a fast moving market, buyers need to act quickly. There is nothing more powerful in the negotiation process than a buyer with pre-approved finance and the ability to negotiate on good terms. - Do your homework
The key to buying well is knowing a good deal when you see it. As laborious as the task may seem, the more research you do and the more open homes you attend, the better you educate yourself in the market to be able to differentiate between a buy you should hotly pursue and one you should walk away from. - Talk to as many agents as you can
As much as you might avoid talking to selling agents, in the current market climate it’s important that you speak to as many as you can on a regular basis so that you don’t miss out on any new listings coming onto the market. Remember though that they are working to get top dollar for the seller so they are not out to do you any favours. - Don’t be afraid to buy before the election
Some of our best buys have been leading up to an election when many weary investors keep their hands in their pockets. - Get a fair market valuation prior to finalising negotiations
It’s important to know the difference between a fair market valuation and a bank valuation. A bank valuation is carried out once you have agreed on a price and signed a contract so essentially the deal is already done and just because a bank valuation stacks up doesn’t mean you nabbed yourself a bargain.
Getting a fair market valuation prior to commencing any negotiation enables you to negotiate confidently and it also gives you the insight to know when to walk away.
TONY COUGHRAN is a buyer's agent and certified practising valuer with the Gold Coast-based VFM Property Advisors.
