Are you looking to invest in a Gold Coast property? At Professional Lending Solutions, we specialise in helping clients like you navigate the complex world of investment property strategy and finance. With our expertise and personalised approach, we can guide you through the entire process, from finding the right property to securing the ideal loan. Let us be a property investment advisor and help you turn your investment dreams into a reality.
Are you considering a Gold Coast property investment? Our free, downloadable guide offers valuable insights into the investment process, the benefits of property ownership and frequently asked questions about investment mortgages. Whether you’re a first-time investor or an experienced property owner, our guide will provide you with the information you need to make informed decisions.
Your next step is to book a consultation to discuss your specific goals and explore your financing options. Our team of mortgage experts is committed to helping you find the right investment property and secure the most competitive loan terms to help you succeed.
When you take out an investment property loan, you’ll pay interest on the amount borrowed. Interest rates can fluctuate over time, so it’s important to understand how changes in interest rates can affect your monthly repayments. This applies to all loans, however, when it comes to investment property loans, you need to balance your costs of owning the property with what income you can earn from renting it. The different types of loans and how interest rates are determined vary.
With an interest-only loan, you only pay the interest on the loan for a specified period. This means your monthly repayments will be lower initially. However, at the end of the interest-only period, you’ll need to start repaying both the principal (the amount you borrowed) and the interest.
With a principal and interest loan, you repay both the principal and interest on the loan each month. This means your monthly repayments will be higher than with an interest-only loan, but you’ll pay off the loan more quickly.
A line of credit loan is a flexible loan that allows you to borrow up to a certain amount of money. You only pay interest on the amount you borrow and you can repay the loan at your own pace. Line of credit loans can be a good option for investors who need access to funds for unexpected expenses or short-term cash flow needs.
Negative gearing is a tax strategy that allows investors to offset rental income with deductions for expenses related to their investment property, such as interest payments, depreciation and maintenance costs. If your expenses exceed your rental income, you may be able to claim a tax deduction. Importantly, you are liable for the costs of maintaining your property as required throughout the year. It is at tax-time that you can then claim those expenses as deductions to qualify for negative gearing.
When you sell an investment property, you may need to pay capital gains tax on any profit you make. However, there are certain exemptions and discounts available to help reduce your tax liability.
It’s important to consult with a tax professional to understand how tax laws apply to your specific situation and to ensure you’re taking advantage of all available tax benefits.
Are you considering a Gold Coast property investment loan? With Australia’s continued population growth and the ongoing appeal of the Gold Coast lifestyle, now might be an ideal time. Despite recent interest rate hikes, the Gold Coast property market remains strong, driven by factors such as:
While interest rates have risen from their historic lows, they remain relatively low compared to historical averages. With careful planning and the right investment strategy, you can still find attractive opportunities in the Gold Coast property market.
“Surely any property on the Gold Coast would make a good investment…after all, everyone loves the Gold Coast!”
While it’s true that the Gold Coast enjoys enduring popularity, this doesn’t necessarily mean that any property would make a good investment property. Before you can identify the right property, you first need to decide how you’re going to use the property. For example, do you plan to rent the property out to tenants, or will you use it as a short term holiday rental? This will affect what areas you should start looking in and what features will offer the most value to prospective renters. You’ll also need to factor in current property prices, long term growth trends and anticipated rental yield. The following Gold Coast suburbs have all been performing well in these areas in recent years, making them a good place for investment buyers to start researching:
t the Southern end of Moreton Bay, Jacobs Well is a popular location for families and couples, who make up almost 55% of the demographic. The average price for a 3-bedroom house is just $570,000, while the average rental yield is 4.59%. This makes Jacobs Well an attractive and affordable suburb for property investors on the Gold Coast.
Just under an hour from the CBD, Tamborine is ideal for people looking to get away from the city. Over 60% of the residents are established, maturing or older couples and families, so it’s no surprise that units aren’t very popular in Tamborine. But with a median house price of $735,000 and a rental yield of 4.61%, Tamborine could be a good location for investors seeking settled tenants.
This mostly residential suburb (on the western side of the M1) is favoured by professionals and families who crave a bit of peace and quiet. While there are no real opportunities for unit investment in Worongary, the median house price is just over $719,000, with an average rental price of $640 per week. This suburb has also seen a year-on-year increase in value of 16%, with signs of ongoing growth over the next few years.
Close to the CBD and the beach, Surfers Paradise has seen an average growth rate of 5.3% for houses, which has resulted in an eye-watering average cost of $1.75 million. However, units in Surfers Paradise are currently much more affordable, with an average cost of only $425,000 and a rental yield of 5.1%. This makes Surfers Paradise an attractive choice for investors looking to buy a unit.
Property prices in Miami are still quite high compared to some other suburbs, but at just 10km from the CBD, the cost to buy a house is almost $700,000 less than what you’d be paying in Surfers Paradise. The rental yield for houses here is also higher (4.2%), and Miami has seen a 5-year compound growth rate of over 11% for houses (which could be a good indication of continued growth).
Before you start your property investment journey, it’s essential to assess your financial situation. This involves:
Once you have a clear financial plan, you can start searching for the right property. Here are some tips:
The settlement process is the final stage of buying a property. It involves:
Loan approval: Once you’ve found a property, your lender will conduct a final assessment and approve your loan.
Contract signing: You’ll sign a contract of sale, which outlines the terms of the purchase.
Property inspection: A final inspection is conducted to ensure the property is in the agreed-upon condition.
Settlement: On the settlement day, the property ownership is transferred from the seller to the buyer. This involves exchanging the keys, paying the balance of the purchase price and settling any outstanding debts.
Throughout the settlement process, it’s important to work closely with your real estate agent, solicitor and lender to ensure everything goes smoothly. An experienced mortgage broker can liaise on your behalf with your lender to ensure a smooth settlement.
At Professional Lending Solutions, we understand how a Gold Coast investment loan differs from a standard owner-occupied home loan. So, whether you already have an investment property and you’d like to add to your portfolio, or you’ve only just started wondering about the possibility of investing, we can provide you with the answers you’re looking for. We take the time to gain a thorough understanding of your current situation and future financial goals so we can provide tailored advice that is right for you. With industry experience, an extensive panel of lenders and a commitment to always acting in your best interests, our team of mortgage brokers can help you to find the right property investment loan for Gold Coast real estate purchases.
Real estate has long been a preferred form of investment for Australians since there is the potential for long-term asset growth with minimal risks (compared to other more volatile forms of investment like cryptocurrency or the stock market). Investing in real estate on the Gold Coast has the potential to deliver capital growth, tax benefits and an added income stream through rent revenue. Of course, just like with any investment, it’s important to seek expert advice and do thorough research to ensure you’re making a sound investment.
There can be benefits to purchasing an investment property in the suburb where you live. After all, you’re familiar with the area, you know the demographics, and it’s easy to find information on housing prices and rental yield. However, just because you think your suburb is great, that doesn’t necessarily mean it’s a good location for an investment property. You’ll still need to consider real estate market values, the potential for capital growth and likely rental yields. If you discover that investment opportunities appear more lucrative a little further afield, talk to a local property manager to find out more about the area. You can also ask them about the costs involved in having the property managed independently by a local real estate agency (saving you from having to travel out to the property for routine inspections).
There’s no requirement that you pay your first mortgage off in full before you can obtain finance for a Gold Coast investment loan. Many investors will use the equity in their existing home to gain finance for an investment property. For example, if your current home has a value of $450,000, with a mortgage value of $200,000, then this means you have $250,000 in equity. Rather than saving up a cash deposit for your investment property, you can use your available equity instead.
Most lenders will factor in a percentage of the rental yield when assessing your application, but the percentage may vary. This variability will usually be due to the lender’s own criteria and also what kind of investment property you’re planning to purchase. For example, some lenders will include 80% of the rental yield when assessing a loan for a residential home but only 60% for a commercial investment property.
Rent-vesting is a term used to describe someone who chooses to buy an investment property while they continue renting somewhere else. This may seem counterproductive (why not just buy a house to live in?), but with property prices increasing, some people can’t currently afford to buy in the suburb where they want to live. Rent-vesting allows you to get into the property market and start paying off an asset without having to compromise on where you personally want to live.
While the answer to this question will vary depending on each individual, buying an investment property can often be more affordable than many people think. Start by researching average property prices and potential rental yields in the suburbs that you’re considering. If you can rent out your investment property for an amount that is on-par (or even greater) than the cost of your repayments, you may find you can get an investment loan on the Gold Coast without having to make significant lifestyle sacrifices.
Negative gearing occurs when you are making a loss on your investment property. In other words, the total cost of owning the investment property (including the interest charged on your mortgage, council rates, maintenance, etc.) adds up to more than the money you make from renting out the property. If your investment property is negatively geared, then you may be eligible for some tax concessions. To find out if you’d be able to claim negative gearing on your proposed investment property, talk to a tax professional.
When it comes to securing the right lending solutions for your financial needs, trust only the best. At Professional Lending Solutions, we are dedicated to providing exceptional services tailored to the unique requirements of our valued clients.
Whether you’re a first-time homebuyer, property investor or seeking to refinance, our home loan brokers are here to guide you every step of the way. You can rely on our extensive knowledge of the Gold Coast market and established relationships with reputable lenders to ensure you get the best possible finance solution.
We are passionate about helping you achieve your goals and will always go the extra mile to provide personalised attention, transparent communication and expert advice. Experience the difference of working with a Gold Coast mortgage broker who always puts your needs and best interests first.
Contact us today to discover how we can assist you in achieving your financial aspirations.
