29 August 2023

The Gold Coast region continues to reign as far as real estate investment is concerned. The area attracts both families and tourists looking for a wonderful place to stay. The motivation behind it is the outstanding lifestyle and the rising investment opportunities.

Real estate experts continue to praise the Gold Coast property market, considering it ripe for investors. The rental crisis is said to add even more fuel to the demand for housing in this area. The experts believe that the Gold Coast is neither a buyer’s nor seller’s market but a hotspot for investors.

This article helps in unlocking property investment potential on the Gold Coast region. We offer a deeper understanding of the Gold Coast property investment and how you can maximise your return on investment.

Why Invest in the Gold Coast Property Market
The Gold Coast property market has shown quite impressive growth thanks to the movement from the city to the regional areas. The affordable cost of living and the drive to achieve work-life balance are the great motivations behind population growth. Areas like the Gold Coast have seen increased demand for housing, strong property growth, and high yields in rental income.

But is it a wise decision to invest in the Gold Coast property market? Well, here are some Gold Coast property secrets revealed to potential investors.

Ever Growing Economy
The Gold Coast ranks as the sixth-largest city in Australia, with the fastest economic growth. 2020 Data reveals that the Gold Coast makes up 10% of Queensland’s GDP. The region continues to experience a stunning lifestyle that fuels population and economic growth.

The growth has also captured the government’s attention, resulting in an increase in investment in capital projects. Up to 320 million dollars have been invested in projects such as sports and community development. These developments have highly benefited the construction and resource sectors.

Residential developments in the city have risen to up to $2.4 billion. These developments have not only made the place more lively but also improved the living conditions of the residents. worth of residential developments.

Both interstate and foreign investors are attracted to the Gold Coast thanks to the lifestyle and affordability of the region. There’s no denying that the Gold Coast will continue to see a rise in its economic growth in the coming years.

Attractive Lifestyle
Many investors easily get attracted to an area that portrays an attractive lifestyle, such as a laid back and warm culture. The stunning beaches, scenic environment, and perfect weather are what everyone covets in a place they look forward to calling home.

People from capital cities such as Melbourne and Sydney are leaving these places in search of the laid-back beach lifestyle characterised by the beauty of nature. Being a high sought after destination, the Gold Coast shows great potential as it will continue to attract tenants over time.

The high economic growth has also seen the region see a rise in employment opportunities, readily available public transportation, and leading educational institutions. In addition, Gold Coast offers easy access to airports such as Brisbane and Gold Coast Airport. This will surely attract tourists and workers who need to travel to other cities.

The Gold Coast is generally a safe place to live, both for young families and retirees. Anyone looking for a place to raise a family, grow their career, or retire peacefully is sure to find a haven on the Gold Coast. For property investors, this is a jackpot.

High Rental Yields
Property investors are guaranteed a return on investment as the Gold Coast market promises high rental yields. Apartments and units are good options on the Gold Coast, thanks to their high demand. As south-east Queensland continues to experience an increase in interstate migration, there’s undoubtedly a high demand for cheap long-term rentals.

The year 2020 recorded a 30% rise in Gold Coast rental prices. It was also characterised by high rental demand, low vacancy rates, and high building costs.
2023 has seen things get better for renters as investors become more and more interested in apartment units. Investors are finding units to be more affordable entry points. They offer more investment choices, the possibility to buy more units, good rental income, and fewer risks.

According to SQM Research, apartments and units on the Gold Coast produce a rental yield of 5.9%. This percentage is way above the capital cities, such as Sydney and Melbourne, which command 4.1% and 4.0%, respectively. Factors such as high rental yields and low vacancy rates continue to attract investors to the Gold Coast.

How to Maximize Your ROI With Gold Coast Property Investment
While Gold Coast is very promising for investors, it doesn’t guarantee a high ROI if you don’t do your part. So, how do you ensure your investment pays off? Here is your guide to unlocking Gold Coast property investment secrets.

Do Your Research and Plan
Before you put your money down and sign any papers, you must research various aspects of the market. Ensure there are no things that might reduce the property’s value, such as environmental factors. Check the average sale price of the same properties near you and the future ROI.

After comprehensive research, it’s time to put down your plan. You need to map out your investment plan with clear goals. Decide whether you want apartments or units and what you plan to achieve with this investment in the coming years.

Consider whether you can sell it in the future or convert it into a family home. A good plan will give you directions on how to go about your investment.

Understand the Local Market Trends
One thing about the property market is that it’s ever-evolving. The changes can affect investors either positively or negatively. The market you thought was booming today might not remain the same in the next three or five years.

When you understand the trends in the market, you’ll be better prepared to protect your investment and handle all the changes that might arise. Dedicate most of your time to studying the Gold Coast market and the impact it may have on your investment.

Know the trend’s movement over a certain period before putting your money down. Identify the areas that are likely to record good growth potential and will perform better even with changes in the market.

Consider All the Costs Involved
Calculate all the potential costs you need to put down on your ideal investment property on the Gold Coast. Compare what you get as the estimated cost with your actual budget.
The purchase price, together with other expenses such as agent fees, legal fees, and interest, should all be factored into your cost estimate. Include this amount in your budget to see whether it’s still within what you planned to spend. The cost should not exceed your budget, indicating that you can’t afford the property.

Factor in all the costs, including those that might arise in the future. You can consult your financial advisor or real estate agent and get their input on the costs versus your budget.

Secure Your Financing
You already understand the market, have identified your ideal property, and understand all the costs involved. Now you need to secure funding for your property investment Gold Coast. Find out all the available options and only go for what you can comfortably afford.

Financing for your Gold Coast property investment is available from banks and other financial institutions. If you go with a bank, prepare an upfront cost of at least 20% of the total property price. You can also put down equity in your home.

When getting your financing, don’t forget to consider additional fees such as legal fees, inspection fees, and stamp duty. Understand how much you’re getting and the amount you’ll need to pay back. A real estate agent can help you identify loan options and give you insights into different areas, such as interest rates, fees, and any other funding aspects.

Get Your Property
Congratulations on making it to this point. Now it’s time to hit the road and get your investment property in Gold Coast. While you might be tempted to go about the hunt yourself to avoid paying additional fees, working with a real estate agent can give you better results.

Real estate agents understand the local market better and receive daily updates about available properties, sales prices, and legal requirements. They can be a good source of information and insights about the Gold Coast market and properties.

A professional real estate agent will give valuable insights on everything from inspections to all the paperwork needed. An agent will negotiate with your seller to ensure you get the best price. You can also consider local listings to find your ideal property.

This step is the most crucial one, and due diligence is important. A good decision at this stage will determine whether you get a good ROI or not.

Final Thoughts
Investors from different parts of the world are flocking to the Gold Coast property market thanks to its growth and the potential to give a good ROI. The region has experienced increased demand for rental homes, high rental yields, and low vacancy rates. All these are factors that are sure to attract investors to a property market.

However, not every booming market ensures a good ROI. Your return on investment is completely dependent on how you handle your investment. Working with professionals will help you gain insights into the market and make an informed decision.

Our experts are here to help you understand everything about market trends and property investment opportunities in Gold Coast. Get in touch today and let our experts help you make an informed property investment on the Gold Coast.

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