Property Investment Gold Coast
New apartments, home and house buyers information and property investment guide...
We’ve all heard the saying ‘as safe as houses’ and you can’t go wrong with buying ‘bricks and mortar’. Purchasing an investment property is a sound investment that builds wealth creation without the high risk of buying shares or stocks that may plummet overnight.
Dabbling on the stock exchange may potentially give you high returns but puts you at risk in a volatile market. Buying an investment property is a long term investment strategy that will bring a stable return and peace of mind.
Here are five reasons why you should buy an investment property and get a piece of ‘the great Australian dream’ that will still allow you to sleep at night.
Capital growth
Capital growth is the increase in the value of your property over time and is one of the main reasons why people invest in real estate. Your best chance of achieving capital growth is buying the right property, in the right place, and most importantly at the right price to maximise your returns.
Rental income and yield
Ensure high demand for your property by buying an investment property where the location is tenant friendly and close to amenities such as cafes, public transport and shops.
Taxation benefits
You may be able to claim a number of expenses related to the investment as deductions and depreciation. Any legitimate expense incurred in running your investment property should also be tax deductible. Depreciation schedules where possible are provided for each of our investment properties
Affordability of property investments
You do not need to be very wealthy to get into property investment. And that’s because many of the banks will lend up to 100% of the value of a residential property. As long as you have a steady job, regular income and good credit rating, you can afford to buy an investment property.
Greater degree of control
While the performance of any investment is not guaranteed, buying an investment property may provide you greater control than other assets. There is a lower return in purchasing property but potential high returns are forsaken for less risk and a stable return from property with a long term investment strategy.
Understanding the Gold Coast property investment market
The Gold Coast is Australia's sixth largest city and fastest growing regional centre and is experiencing strong population growth. The population of the Gold Coast was recorded at 518,178 in 2006 and will rise to 886,665 in 2031 according to the Queensland’s future population 2008 edition.
The Gold Coast is part of the South East Queensland which is Australia's fastest growing region. Its population will climb from 2.8 million in 2006 to 4.4 million in 2031 and 754,000 new homes will need to be built according to the State Government’s South-East Queensland’s Regional Plan.
The Gold Coast is a leading tourist destination attracting more than 10 million visitors a year and is renowned for its surf, sun and sandy beaches and quality standard of living. The city offers a great range of investment properties ranging from absolute beach front to hinterland acreage properties.
The laidback lifestyle together with planned infrastructure and urban renewal projects such as the development of the Coomera Town Centre and strong population growth makes the Gold Coast an attraction location to buy investment property.
Factors to consider when buying an investment property on the Gold Coast
- Location: Purchase an investment property in a location ideally close to one of Gold Coast’s many beaches, public transport, shopping centres and schools that will be easy to rent out, well sought after and experience price growth.
- Price: Analyse sales for similar properties in your desired location, the average annual yield, capital gains growth, rental expenses and maintenance costs offset by property affordability. While beachfront property may be popular, it may not be in your price range.
- Capital gains: Find out what capital gains growth similar properties in the area have experienced to estimate potential capital gains. The potential for capital growth in the Gold Coast is improved by the strong population growth and demand for property.
- Rental returns: Analyse the average rent for similar properties in the area. You also need to factor in the average vacancy rate.
- Planned developments: Investigate whether there are any planned developments such as new or upgraded public transport facilities, upgrades of main streets or shopping centres or development of a new highway. This may add value and demand for your investment property and the potential rent you can charge.
Find Investment Property take the guesswork out of finding hotspots in the Gold Coast. Following is a list of the Gold Coast locations that will outperform in 2009:
Useful resources for buying an investment property in Gold Coast
- Capital gains tax - Australian Tax Office - www.ato.gov.au
- Conveyancers - Australian Institute of Conveyancers - www.aicnational.com.au
- Rental reports – Residential Tenancies Authority - www.rta.qld.gov.au
- Property managers – Real Estate Institute of Queensland - www.dip.qld.gov.au
- Property managers – Real Estate Institute of Queensland - www.reiq.com.au
- Stamp duty - Office of State Revenue - www.osr.qld.gov.au
- Tenant disputes - Residential Tenancies Authority - www.rta.qld.gov.au
