Why this property investor bought three Gold Coast off the plan apartments in six months: Urban Buyer Q&A
"Buy now at today's prices and take advantage of tomorrow's gain."
That was the overarching view of experienced property investor Dale Boseley when he decided to secure three off the plan apartments in the Gold Coast recently.
"The best way to make money in a booming market is to utilize the time that is coming," Dale says.
Boseley, who hails from Victoria but has lived across the country, first looked at property in the Gold Coast in 2016, assisting his uncle when he was looking for an owner-occupier apartment.
He ended up buying in Rainbow Bay, off the plan. So when Dale decided to invest money into the Gold Coast market, that's where he started. After just a few short weeks of searching, he quickly turned to the off the plan market.
“We asked ourselves a question, ‘Where's the best place to make money in a rising market?’”
"We looked at off the plan, and sure there's always a risk in buying something, however, we found less of a risk after research and due diligence. The Gold Coast market not only attracts local buyers but also sees significant investment from Sydney and Melbourne. The demand-supply imbalance in the region appeared substantial, and we believed it was an opportunity we could capitalize on."
Like any good investor, Dale analysed various locations and the submarkets within those locations.
"We looked at the established market, however, we felt sellers were asking top dollar for really bottom quality product," Dale said.
"We got close to a few purchases, but one didn't go ahead due to concerns with the building and pest inspection, and the other didn't want to sell for the fear of it becoming an Airbnb."
Dale would go on to secure a completed apartment in Jewel Residences in Surfers Paradise, and off the plan in Sherpa's Perspective Nexus in Palm Beach, Harbour Shores in Biggera Waters by Lewis Land, and in Rainbow Bay's Radia by Paul Gedoun's S&S Projects.
"What is important as an investor first and foremost is that the numbers stack up," Dale said.
"It's all about yield, potential growth and how much the forecasted rental covers the mortgage. After that though, it became about investing in a tight-knit community, something which the Gold Coast has in spades."
It was this mantra that saw Dale reach out to Sherpa Property Group to buy an apartment at Perspective Nexus in Palm Beach.
"Sherpa's commitment to the community was someone we wanted to be a part of," Dale said.
"They go further than just creating luxury apartment buildings, they're clearly a part of the local fabric of Palm Beach and the Gold Coast, and that plays an important part in the off the plan buying process."
Sherpa is donating all the proceeds of a $1.2 million apartment in Perspective Nexus to charity Serving Our People. They've also recently revealed their new brand collection, Flourish, which will offer a more diverse range of housing options to cater for more than just the high-end downsizer. They have one, two and three-bedroom apartments in the building of 94 units on Sixth Avenue, with the one-bedrooms starting in the $600,000's.
Dale also secured an apartment in Harbour Shores in Biggera Waters, driven by the reputation of veteran developer Lewis Land.
"Lewis Land is another developer who you can hang your hat on to do the right thing by its buyers," Dale said.
"The masterplan they're putting together is unreplicable in the current land and built environment. When a product is scarce, the price goes up, and that's why we invested in Harbour Shores."
The reputation component was at play again with S&S Projects, as was the scarcity factor of available new apartments in Rainbow Bay.
"We're well and truly invested in the Gold Coast, both financially and physically, and we're excited to see all the new developments come to life."
Dale took part in Urban's Buyer Q&A series, which focuses on the driving factors behind buying off the plan property in Australia.
