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.
Property Investment Gold Coast
Property Investment on the Gold Coast
Are you considering a Gold Coast property investment loan? If so, you’re not alone! As one of the most rapidly expanding cities in Australia, the Gold Coast remains an appealing location for both seasoned and first-time property investors. And it’s easy to understand why! Post COVID-19, South East Queensland has seen an influx of interstate arrivals seeking warmer weather, fewer lockdowns and more affordable housing options (particularly from costly southern cities like Melbourne and Sydney). This has led to increased demand for rental properties in and around the Gold Coast, with lower vacancy rates and high rental yields. And with interest rates at historically low levels, investors can potentially obtain a great deal on an investment loan for Gold Coast properties.
Assisting with A Gold Coast Property Investment Loan
The Benefits of Using a Broker for A Gold Coast Investment Loan
The team at Professional Lending Solutions can streamline the process of obtaining a Gold Coast investment loan for you. This is because we:
Book appointments for a time that is most convenient for you (even if this is outside of standard office hours).
Take care of all the preliminary research and loan comparisons (saving you significant time and stress).
Provide impartial and expert advice on which loan product will be the best match for your circumstances and objectives (so you don’t have to worry about whether you’re missing out on a better deal).
Carefully review your application and specific lender criteria to ensure you’re not applying for a home loan you’re unlikely to get (protecting your credit rating for the future).
Handle the entire application process, including pre-approval, paperwork, lodgement and any necessary follow-ups (freeing you up to start property searching).
Won’t charge you a thing for our services (saving you from having to pay a fee or commission).
Where are the Best Suburbs to Buy an Investment Property on the Gold Coast?
“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:
Jacobs Well – 4208
At 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.
Tamborine – 4270
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.
Worongary – 4213
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.
Surfers Paradise – 4217
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.
Miami – 4220
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).
Frequently Asked Questions About a Property Investment Loan for Gold Coast Buyers
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.