Every single self-help book ever written about wealth-building has always advised renters to do one thing. Don’t Rent! Own! Renting is not a good way to get rich, especially if you find yourself looking for a place to live in the middle of a rent crisis and competing for your dream home with people who are willing to hand property managers an extra large security deposit or months of rent in advance. Whenever you are in a rent crisis, it is much better to be an owner, than a renter!
Every investment expert from Donald Trump (The Art of the Deal) to David Chilton (The Wealthy Barber) to Robert Doyen (who wrote “Make Millions for Dummies) stress how important it is not to be “stuck renting.” Aside from not being able to get rich from your investment you could get stuck in a similar situation as renters on the Gold Coast and in Tweed. Many prospective tenants are “couch surfing”, commuting from miles away or staying in appropriately tiny or expensive places because of high rents and low vacancy rates! People who do rent are also spending half of their income on rent, just to have a roof over their head.
It is no secret that places for rent are scarce in the Gold Coast, especially in Paradise, Southport, Benowa, Broadbeach and Ashmore; woeful tales about ripped-off renters and landlords being unable to cope with crowds of people visiting one flat are in the headlines in the local newspapers.
Just how bad is it? In Broadbeach many places have less than a two percent vacancy. It is especially hard to find a family home with two or more bedrooms. Even rarer finds are family homes that are considered ideal for living the coveted and relaxed Gold Coast lifestyle – these would be homes that have a pool, that are located on the water and that are priced under $1000.
There is a popular saying in real estate and that is that “there is opportunity in chaos.” Even though the rent crisis on the Gold Coast is not such good news for renters, it is wonderful news for those who are planning to buy new homes or build new homes. Anyone who is planning to build a new home can strategise it as an investment property because there is such a shortage of housing in the area right now. The situation is so dire that buyers can obtain a special Queensland Building Boost Grant that will practically help your investment pay for itself for the first year. Furthermore, the bigger and more glamorous the homes are the better because the most sought after properties are those with several bedrooms, a pool and a view. This is because most renters who come to the beautiful Gold Coast area want to have a lifestyle that is luxurious, yet family-oriented at the same time. The next new wave of wealthy investors in the Gold Coast area are going to be those who take advantage of lucrative government grants to build larger homes with the amenities expected of Australia’s “Riviera” style community.