What are some of the key things buyers should look for when buying an investment property?

The property investment landscape has long been regarded as an opportunity to grow wealth, particularly when it comes to the booming Gold Coast apartment market. With a number of benefits, such as tax advantages, financial security, and long-term wealth creation, it’s no wonder that property investment remains a popular choice among investors.

This blog post focuses specifically on the Gold Coast apartment market and the key factors to consider when looking to buy an investment property.

Location
The Gold Coast is an attractive destination for property investment due to its affordability relative to capital cities including Melbourne and Sydney, temperate climate, and tight rental vacancy rates. When considering the capital growth potential and rental yield of an investment property, the right location is crucial. It is important to consider areas with steady and consistent growth, low vacancy rates, new infrastructure and proposed town planning changes that may affect property prices in the future.

Property Features
When investing in an apartment, first identify properties with features that appeal to renters such as a second bathroom, garage, and proximity to schools, shops, and transport. These will ensure that it is attractive to prospective tenants even if vacancy rates climb in future and there is heightened competition in the market.

Market Research
You must do your own research prior to purchasing, which means keeping an eye on suburb trends, and any potential challenges that may impact rental demand and property prices. Factors such as rising interest rates, stock levels, and demand across Queensland can influence your investment strategy.

Risk Assessment
Successful real estate investors have the same approach to property – they conduct thorough research, take calculated risks, and constantly assess the value of their portfolio. The first step is to set out your investment goals and strategy, such as whether you want to generate a new income stream, create long-term capital growth, or turn around quick profit through renovation projects.

Costs and Expenses
It is important to remember that property investment comes with costs, such as stamp duty, legal fees, agent fees, as well as ongoing expenses like council and water rates, insurance, and maintenance costs. Before buying, ensure you have a clear understanding of all the costs involved in buying, managing, and selling an investment property, and factor these aspects into your investment plan.

Financing
Be prepared for fluctuations in interest rates and rental income. You also can’t rely solely on rental income to cover your mortgage payments, as there may be times when your property is vacant. Consider the long-term implications of interest-only loans, as repayments will increase once the interest-only period ends.

Diversification
To minimize risk, diversify your investments beyond the property market. The maxim of not keeping all your eggs in one basket is a truism that it is best to obey. Spreading your investments across various markets can help to balance out your portfolio and help lead you to long-term financial success.

A final word
The Gold Coast apartment market offers opportunities for savvy property investors who keep an eye on market trends, conduct thorough research, and carefully consider factors such as location, property features, and costs. If you tick all the above boxes, you can position yourself for success in this competitive industry.

If you’re interested in exploring the Gold Coast’s property investment opportunities, reach out to Pezet Matheson to inquire about their current projects and new apartments for sale. With a team of experienced property developers and off-the-plan specialists, they can help guide you on your investment journey and ensure you make the most of your property investment on the Gold Coast.