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So, what sort of properties does a Gold Coast buyers agent personally Buy?

Posted By Nicole Marsh - Buyers Agent  
28/11/2018
10:00 AM

For me, Give me land anyday!

The way I see it, God isn’t creating any more land, but he is creating more people - and funny enough, they all mostly want to live in the same place, so for me I like big land parcels - I believe these will attract a premium in the future - as more and more infill developments take place and big land parcels become more scarce.

 

I personally like something with some future redevelopment potential or to have some way to force value in the future.

 

Typically a 1980's built house where everything was done on a larger scale - bigger bedrooms and living areas. While not to everyones taste, its amazing what you can do with a coat of paint and some modernisation.

 

As an example, this is one of our properties we purchased back in early 2015 for under $400,000 in a family friendly, Gold Coast suburb.

 

I actually saw the agent putting the For Sale sign up so stopped for a quick chat and saw the property the same day.

Gold Coast Renovation project 

BEFORE

 

Elevated 850m2 corner block with views to the mountains. This property needed some ‘love’ after having been tenanted for a number of years - no major structural work needed, but definitely in need of a cosmetic renovation.

 

It also had some termite damage to the internal walls of the garage - which on further invasive investigations, was a risk we were prepared to take on. There was no live termites found, and the damage they estimated was over 10 years old - but the current owner was totally unaware of it as she purchased the property at auction, and took the pest and building inspection report supplied by the sellers on face value, and of course, they neglected to highlight this…..(this is why you should always have your own independent inspections done!!)

 

Naturally, I used this to our advantage and re-negotiated the price substantially - meaning we ended up with zero of our own money in the purchase, and in fact got a cheque from the bank for the difference at settlement!

 

It was our intention to live in the property while we renovated it - which took longer than expected, as business was really busy and I couldn’t be as hands on to manage the renovation project as I would have liked - so progress was slow, very slow…..

 

Two years on, we’ve finished the renovation project - looks a bit different now!

  

Gold Coast Renovator property  

AFTER 

We’ve just had it revalued and it has had a significant upswing in value. Of course, we had the renovations undertaken at near cost (it's not what you know, but who you know sometimes ;-)  so they cost approximately $40,000.

 

We had the property rendered, and both bathrooms replaced, installed a new front fence to give it privacy and new floor coverings installed. We did a lot of the prep work ourselves and repainted the property inside and out. 

 

Being our Principal Place of Residence, means that this upswing is tax free too for now if we decide to sell in the future - so really all this property cost us is just shy of $50,000 in renovation costs, transfer duty, pest and building inspections and legal fees.

 

We actually decided to keep this property to add to our portfolio, so we’ve moved to our next project and have put tenants in on a long term lease paying $610 per week. For us, this means this property is cash flow positive by $300 per month nett.

 

With some major infrastructure projects nearing completion nearby, we are expecting the capital growth will escalate substantially over the coming years as I think this particular suburb is still undervalued by comparison.

 

With recent changes to the Gold Coast Council Town Plan at the beginning of 2017, this property now has the potential to be subdivided and have a second dwelling built on it down the track if we decide to head down this path.

 

We will hold this property for a few years yet and then consider our options…..Sell? Hold? Redevelop?

 

In the same suburb, there is a new land development just being released. Inferior location in my opinion as its backing onto a train line, bound by a river on one side (flood risk) and has a wetlands area nearby which is renowned for being a ‘mozzie pit’ …..(I think there’s going to be some very unhappy owners when they move in!) 

 

Land parcels of 350m2 - 400m2 are selling for close to $400,000 in this estate - and house and land packages are selling for between $700,000 and $800,000.

YES, these are two separate houses! Don't know about you but I dont like hearing my neighbours in the toilet!!

 Photo courtesy of one of our clients, Grahame

 


This in an example of what buyers could expect in this estate -

 

To me - thinking logically, it's a no brainer to purchase in the older part of this suburb, with twice the amount of land, undertake a major renovation on the house - and still come out far better off cost wise with a superior property. There is no other direction for it to go but up in value!

 

*Of course, this example given is specific to our situation, risk tolerances and desired outcomes and there is no guarantee that what worked for us will work for you as every purchase is unique and market conditions vary daily. This is general in nature and not deemed to be advice.

 

While this scenario is specific to our situation, find out what a professional Gold Coast Buyers Agent can do for you. Call us today on 1300 520062 or find out more about our services