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New Apartments Gold Coast | Property Investment


What to consider when buying a new apartment in Gold Coast as an investment

The Gold Coast has a proven investment record. It is Australia's sixth largest city and fastest growing regional centre. Strong population growth in the Gold Coast coupled with an increased demand for beach side apartments and a commitment to development and infrastructure have resulted in record capital growth. Here are the important factors to consider when buying a new apartment for investment purpose in the Gold Coast.

Location

Gold Coast’s beautiful beaches, laidback lifestyle, attractions and nightlife is a popular drawcard for apartment living. Traditionally, new apartment developments are located in areas that have a high rental demand. It is important to research your desired Gold Coast region and find out:

  • whether major developments or infrastructure planned for the Gold Coast location will affect your property
  • the rate of population growth and the demographics of the location
  • what is the capital growth of the area you wish to buy a new apartment in and
  • what the average rent and yield of similar new apartments in the area.

Remember investing in property is a long term strategy and the property market is a cyclical market so make sure you check previous reports as well as current reports and projected planning reports for the area.

Rental income and yield for your new apartment

Check rental reports in the Gold Coast region you wish to buy an investment property in and find out how other similar apartments in the area are performing so you can find out the potential rent you can charge for your investment apartment. Desirable locations to tenants include the following:

  • close proximity to one of many Gold Coast beaches
  • within 10kms of the Gold Coast CBD
  • located near restaurants and cafes
  • within a short distance to one of Gold Coast’s many popular shopping strips
  • access to nearby schools or universities such as Bond University, Griffith University or Gold Coast TAFE
  • near to public transport and highways and
  • in a region with a diverse industry and employer base.

Buying a new apartment for investment purposes that checks most of these boxes will result in a low vacancy rate, higher gross rental yields and strong capital growth.

Capital growth

There are major developments and infrastructure planned for the Gold Coast to accommodate the rising population rate. This can increase demand for your new apartment and the potential for capital growth. For example, the completion of the Tugun Bypass is having an impact on apartments in Tweed and the development of the Coomera Town Centre is driving up prices and capital growth in Coomera and surrounding areas. Other factors affecting capital growth in the Gold Coast are as follows:

  • If the apartment is bought off the plan and there is a long settlement period, there may also be potential for capital growth when the property is finally completed.
  • The location of the property. Historically, the best performing apartments in terms of capital growth have always been beach side properties or within 10km of the Gold Coast.
  • Demographic changes such as population growth and increased popularity for beach side apartments or inner city apartment living.
  • Future lack of affordability in the Gold Coast and over supply of apartments may affect potential capital growth.

It’s important to research the capital growth potential of the area that you are planning to buy in as capital growth is the one of the main reasons why people purchase new apartments as investment properties.

Tax advantages

One of the major drawcards for buying a new apartment off the plan in the Gold Coast is that there are considerable tax benefits and savings. Any legitimate expense incurred in running your investment property should also be tax deductible against your overall income. These can include:

  • loan interest and related bank fees;
  • repairs and maintenance of fixture and fittings;
  • insurances;
  • property management fees;
  • depreciation – the ability to claim the cost of replacing fixtures and fittings such as carpets, curtains and so forth in advance of actual replacement; new apartments usually provide a higher rate of depreciation than houses or existing buildings.
  • any legitimate expense incurred in running your investment property;

Consult your accountant before buying an investment property to find out all the possible tax deductions you may receive.

Expenses

Expenses to factor in your budget when buying an apartment investment property include:

  • stamp duty and other relevant taxes
  • conveyancing
  • fees
  • loan application and valuation fees
  • mortgage insurance (if applicable)
  • body corporate fees
  • a tax depreciation report and
  • contents insurance as only the building will be insured under the strata plan.

Other ongoing expenses include council and water rates, property management fees and landlord’s insurance.

While the attractive tax benefits of buying new apartments as investment properties remains a strong incentive to buy, financial independence is usually achieved through capital gains growth, that is increases in the value of the property, and not normally just through tax savings. Buying an investment property should always be a long term strategy and if you do your research and buy a property in the right location at a good price, the capital gains growth almost always follow.

Find Investment Property is the best property investment resource online and features the latest new apartments and off the plan investment properties. Whether you are looking to buy investment property or looking for the best property investment research, Find Investment Property has the real estate investment properties you need.