Gathering Gold with Gold Coast Property Investment
The Gold Coast has consistently been one of the fastest growing of all regional areas in this country. This makes Gold Coast property investment one of your best options if you are looking to invest in regional Australia.
The Gold Coast appeals to Australians for its weather, beach culture, lifestyle, lower costs of living and employment opportunities. It also offers an excellent education system, serious business and career prospects, and a strong family orientated culture. This creates an ongoing demand for domestic rental and sale options.
Many other factors also contribute to the fiercely growing population, such as the state government aiming to spend millions to further improve education outcomes through building tertiary educational institutions.
Consequently, population forecasts give no indication that growth may falter. This strong population growth will result in a consistently growing demand for residential dwellings.
Whilst Queensland property investment holds huge potential you still need to select the right site. Locations showing the greatest value increase may not be where you expect to find them.
As Michael Matusik from Brisbane’s Courier Mail says, “Regional shopping Centres, high streets and employment nodes also attract premiums and lead to stronger price growth.”
Matusik suggests the following as the assets that support greater premiums; good schools, close public transport, views, golf courses and beach proximity.
“In some instances residential prices close to commercial land use have risen by as much as 10% faster than similar homes some distance away.”
Gold Coast property investment can provide the capital growth needed to help you achieve your dreams of the stress free lifestyle and the financial security.
Using debt to your advantage
Generally when it comes to property investment you have three options for how you will finance the purchase.
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The first option is to spend $250,000 buying an asset. The home eventually doubles its value to $500, 000. Great, you’ve just made a 100% return on your investment.
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The second option is to spend $50,000 and borrow $200,000, for the same asset that doubles in value to $500,000. You have now just made $250,000 from using someone else’s money!
- The third option is to have the full amount financed by using your asset as equity, and using none of your personal savings
To be an effective investor you must understand what banks want and like. Banks seek security when borrowing and bricks and mortar investments are viewed positively by most financial institutions.
The reason why banks like residential investment property loans is because compared to other types of investments, investment properties offer the strongest potential for proven capital gain. This means, you can borrow often borrow more for a residential investment property loan than you can for other types of investment opportunities such as shares.
By leveraging your buying power through residential investment property loans, you also opening the door to other possible benefits, particularly tax deductions on the loan interest, depreciation, and set-up costs. These tax deductions mean money back in your bank account!
Tip of the month: Have a Plan!
Property investment is not an area that you want to go into without any thought or plan. This is your future we are talking about, so make sure you develop a long term strategy plan. This may very well change over time as your personal situation or the market changes, but at the very least you have something to refer back to for guidance.
Having a plan will mean that you can more effectively choose the right property for your portfolio, rather than mistakenly jumping on the first one that is persuasively offered
to you. Ask yourself some questions to get your plan ready.
Why are you buying – for capital growth or for cash for? What is your plan over the next 5, 10, even 20 years? Are you planning on renovating or do you want to hold the property for long term? The more information, the better. After all, once you know where you are heading, you can work out how to get there.
