Residential real estate investment has been the investment vehicle of choice for many Australians that just don’t trust the share market’s rollercoaster effect when they can have the security of land, bricks and mortar.
The Gold Coast is Australia’s most popular holiday destination and attracts over 3.4 million Australian visitors every years to its combination of theme parks, beaches, glitzy shopping and natural hinterland wonders.
The attractions of the city have been attractive to many and the city has sustained some amazing growth over the past decades and behind the tourist strip is a thriving modern city that is now Australia’s 6th largest behind Sydney, Melbourne, Brisbane, Perth and Adelaide.
Gold Coast real estate investment has provided exceptional returns for many from right around Australia but everything that glitters is not gold. Some marketeers have leveraged the Gold Coast’s high visibility, popularity, population growth statistics and increasing property values to market their own properties direct to the public through investment seminars around the country.
These seminars targeted inexperienced investors using hand picked statistics, far fetched forecasts and high pressure sales. They were combined with free flights and accommodation to the Gold Coast and rental guarantees to convince investors to seal the deal. In hindsight many of the investors sold on the their properties through these investment seminars have regretted the purchase with hindsight as the properties were often oversold and way over priced in comparison to local property values.
Like many Gold Coast real estate agents we have seen the after effects of this sort of investment and how it turns into a family’s financial nightmare. The marketeers excuse is that they asked a price and they were able to find people gullible enough to pay for it and since something is worth what another is prepared to pay for it, then they really sold it at market value.
One of the latest examples seen a developer sell townhouses in a new townhouse complex to out of town investors for around $1 million and more. These were certainly very nice townhouses but just 10 min research on the internet would have revealed dozens of luxury free standing houses in the Outlook Estate in Highland Park double the size and with better quality fittings and panoramic views of the Gold Coast for the same price or even less within 200m of the complex.
Within months of these properties settling many of them had been repossessed by the bank and re-sold for between $400,000 and $500,000 which was were many claimed their true value always laid.
These sales make up only a tiny fraction of all sales on the Gold Coast but because of the substantial losses some out of these out of town investors have sustained the stories gain publicity. A few have even made it to front page of major newspapers and feature articles on Today Tonight, A Current Affair and many other television programs.
Despite this the Gold Coast remains an exceptional opportunity to invest in residential real estate and the vast majority of investors never purchase property at inflated prices through these marketeers. Like all investments you need to do your own homework and you need to ensure you are paying fair market value and remember the golden rule, if it sounds to good to be true, it probably isnt.
One of the easiest ways to do this as an out of town investor is to research property through local real estate agency websites like Nerang First National‘s site www.nfn.com.au.
Nerang First National’s primary trade area includes Nerang, Highland Park, Carrara and Worongary which features some of the Gold Coast’s most popular suburbs for investment. These suburbs are centrally located, affordable and most importantly when considering an investment, they are popular amongst locals.
If your thinking of investing in residential real estate give one of the team at Nerang First National a call. The sales team can find you a perfect investment property to start or add to your portfolio and the Property Management team can help make that investment trouble free. Contact the team today on 07 55960055
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