Advantages of Buying off the Plan Gold Coast(QLD)
Buying off the plan and property investment guide...
Shrewd property investors have long recognised that
buying off the plan in Gold Coast is a great investment opportunity. The Gold Coast is Australia’s sixth largest city and fastest growing region in Australia. Its laid back lifestyle coupled with an increased demand for beach side properties and a commitment to ongoing development and infrastructure has resulted in record capital growth. Here are seven good reasons why you should consider buying a property off the plan in Queensland as part of your long term investment strategy.
Tax breaks
Tax incentives are a major incentive of buying a Gold Coast off the plan investment property as new apartments usually provide a higher rate of depreciation than houses or existing buildings. We provide depreciation schedule for our
Gold Coast investment properties where possible. Any legitimate expense incurred in the running of your investment property such as property management fees, body corporate fees, landlord’s insurance, mortgage insurance and upkeep and maintenance are also tax deductible. You should always seek advice from a financial adviser or accountant before committing to an off the plan purchase in QLD.
Capital gains
With a delayed settlement, your investment property may increase its value before final settlement and you are even handed the keys. However, you are also at risk of a falling market and it’s important to research the location of the property; whether it is located in a tenant friendly area close to shops, public transport and major highways, how much rent you potentially receive for the property and what developments are planned for the region. When buying off the plan, there is also the option to resell your investment property before, during or after construction which gives you added flexibility in a falling market.
Savings
A big 'carrot' for many investors is the possibility that a property bought off the plan in the Gold Coast will grow in value before you settle and will therefore provide instant equity. Many smart investors have successfully managed to sell a property before settlement and achieve a healthy profit. Put simple, equity is the difference between what your home is worth and how much you owe on it. So if you purchase a property off the plan in the Gold Coast and it is worth $400,000 when you first purchased it but is valued at $470,000 upon completion, you have an instant $70,000 in equity. This equity can be used to create wealth and add to your existing investment portfolio.
Buying time
The attraction of buying a property at today’s prices is a strong lure for potential investors. Buying a property off the plan in the Gold Coast can give an investor more options. Investors have capitalised on their investment by securing the property with as little as 10% deposit and then sold the property before final settlement and made a substantial profit with little outlay. With the delayed settlement, you can save for a larger deposit or leverage buying another investment property with the increased equity in the property.
Flexibility
One of the greatest benefits of buying off the plan in Gold Coast is that you may be able to choose from a range of properties with beach views, a superior position, aspect and floor layout depending on what properties are available. Properties which have beach views, courtyards, private entrances, balconies or positioned on a higher floor can offer better potential for capital growth and maximise rental yields. You may also be able to choose from a range of high quality finishes, appliances or floor furnishings such as carpet, timber floorboards or tiles to make the property even more appealing to prospective tenants.
Lower maintenance costs
Buying a property off the plan in the Gold Coast will save you money on maintenance fees as the property as all the fittings, furnishings and appliances will be brand new. You will also not have to worry about larger maintenance costs such as painting of common property walls, replacing the carpets in stairwells or major landscaping until a few years when the property has depreciated. Newer properties also have increased insulation, energy-efficient heating and cooling equipment and use substantially less energy for heating, cooling, and hot water heating making the property tenant friendly and saving tenants money on utility bills.
Peace of mind
Buying a property off the plan in the Gold Coast can give you peace of mind as the building industry is heavily regulated for the protection of consumers in Queensland.
The Queensland Home Warranty Scheme ensures home warranty insurance must be taken out by the builder of a new home before construction. Once you have secured a deal and locked in a price for an investment property, this allows you time to save up for a deposit, organise tenant’s insurance, property managers to look after the property and plan your rental strategy to maximise rental returns and growth yield.
The Gold Coast has a proven investment record which is why off the plan Gold Coast properties are so sought after. An ongoing commitment to development and infrastructure coupled with a laid back lifestyle and close proximity to the beach has resulted in a huge demand for properties, high rental returns and gross yield and strong capital gains.
Find Investment Property has listings for some of the best off the plan properties currently available so start searching to find your next property deal and add a Gold Coast off the plan property to your investment portfolio.
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