Commercial and retail property on the Gold Coast is now reaching a new level of attractiveness from an investment perspective. Owning, upgrading, or expanding property portfolios over the coming 12 months is a good idea where opportunities can be found or exist. When you compare the commercial property market to other forms of investment in today’s terms (2020), the positives are easily seen.
What’s happening locally? The Gold Coast is now a large and diverse property market. Increasing population growth is a further leverage point for the property market and those that like to participate in it.
Why is this? The existing growth of the community and population on the Gold Coast has ignited fresh enquiry for quality assets. Here are the known facts that impact and enhance property on the Gold Coast:
- Beenleigh is now becoming a ‘hub’ of activity midway between Brisbane and the Gold Coast. It is also a key part of the integration into the rail network through the corridor. This marks the start of the greater South East Queensland community growth and expansion into the northern Gold Coast. Suburbs south from that point include Yatala, Ormeau, and Coomera, all of which are growing with infrastructure, industry, and community zones.
- Northern Gold Coast suburbs such as Coomera, Ormeau, Arundel and all those in between are growing comprehensively with new residential developments and infrastructure projects.
- Shopping Centres and business precincts are taking shape and or exist in all the new suburbs to the north of the Gold Coast.
- The M1 Freeway carries hundreds of thousands of cars daily to and from the Gold Coast region; it will only get busier. The Springwood freeway interchange is now taking shape and will soon direct more people through the region and integrate well with fast transport networks such as buses.
Growth and Change
So the south side of Brisbane is showing considerable growth and change; it is the ‘gateway’ to the Gold Coast. If you are an investor in the region or would like to be, then think about these ideas in your property decisions and focus:
- Quality Properties – choose your next investments based on quality in either location or improvements or both. A good quality property can be defined by a number of categories.
- Capital Works and Improvements – some properties will be in need of maintenance of a minor or major nature. You can review those facts in a due diligence period prior to settlement or completion. The question you must ask yourself is whether you have the budget for the maintenance activities that are required in the property.
- Upside or Opportunities – some investment properties have ‘untapped’ advantages that can boost occupancy, income, or value over time. A quantity surveyor and or valuer can give you an idea of those facts before you purchase an investment property.
- Top Locations – some suburbs are already locations of priority and business activity in the region. Some suburbs to look at initially would be Southport, Robina, Helensvale, Ashmore, Surfers Paradise, Broadbeach, and Tweed Heads.
- Property Spend – how much are you prepared to spend on your next property purchase? Look at the loan value ratio offered by your preferred lenders and then relate that to your price range.
- Stability of Income – it is always good to have a stable income from a tenant mix with low or no vacancies. The property can be assessed for those things. Purchase your property with a preference for occupancy, yields, and returns over time.
- Documentation – every investment property will have a selection and variety of lease documentation reflecting the tenants in occupancy. Have your solicitor review the leases and the terms and conditions of each. Look for risk factors in leases or ‘weak’ documentation where critical dates may have been overlooked or could be too close in time for effective implementation. A solicitor can review those documents comprehensively before you settle on a new property purchase.
So, all of these things can take you forward in property investment and your decisions with your property portfolio.
Gather your facts and information before you finalize the next property purchase on the Gold Coast. Of course, there will be other things as well that you can add to the list based on your property types and or improvements.