Gold Coast Guide: 6 Tips on Purchasing an Investment Property
With the relaxing beaches, great weather conditions, exciting entertainment areas, and fast-growing economy, who wouldn't want to live on Gold Coast? Due to the increasing number of people who desire to settle in this city, it's definitely an ideal place to get an investment property. As time passes by and the property value increases, property investors also tend to experience capital growth.
Property investing is a good source of income. However, the purchase process, along with the maintenance, isn't easy. You'll have to make sure that everything goes smoothly and that you won't regret investing your hard-earned money afterwards.
If you need help on an investment property loan or purchase, we're here to provide you with some useful tips that every Gold Coast property buyer should keep in mind.
6 Things to Remember When Buying a Gold Coast Property
Many people have improved their lifestyles because of their investment properties. But to guarantee a good profit, you have to be wise about the whole purchase process as well as property management. Before buying an investment property on Gold Coast, here are the things you should consider:
1. Do Plenty of Research
If you seek professional advice, you will be given information about the best property to buy on Gold Coast. But of course, it would still be better to be knowledgeable and gather as many details as you can about the property market.
2. Get the Help of a Buyer's Agent
Unlike real estate agents who get commissions on sales, buyers agents focus on the client's interests and help them get the best property for their budget. They also represent buyers to make the process a lot more convenient. In choosing buyers agents on the Gold Coast, look for one that has expertise in the area and evaluate thoroughly during the interviews.
3. Know Your Budget
Before setting up an appointment with a few sellers, make sure that you already know your budget to avoid the hassle, especially if you will apply for a home loan. Even the smallest difference in the interest rates could cost you a lot. Besides your mortgage repayments, there are also other expenses to think about, such as the processing payment and strata fees to maintain your rental property.
As much as possible, consider gathering a larger amount of downpayment for property loans. It would be great if you could secure at least 20% of the total amount to avoid paying for lender insurance.
4. Find the Right Location
For those who will seek professional help, the experts will most likely tell you about the best options you should consider. However, you shouldn't only focus on the affordability of the offer; You should also analyze if the location is good enough and will give you a great amount of rental income. An ideal area is one close to universities, hospitals, grocery stores and has easy access to public transportation. Aside from that, you should also determine whether the area is prone to flooding or power outages. If it is, it won't give you a smooth cash flow and a good profit, no matter how great the offer is.
5. Invest in Landlord Insurance
Owning an investment property can be beneficial, especially if you have bought the right location and do the right maintenance. However, it also comes with challenges and responsibilities. So once you have purchased one on Gold Coast, consider getting not only homeowners insurance but also landlord insurance. It usually covers liability protection in case tenants or visitors get injured due to ongoing property maintenance.
In addition to that, landlord insurance also covers damages in property and lost rental income. To save more money on all the fees, there are insurance companies that have bundles for homeowners insurance and landlord insurance. Thus, contact several providers to get more details.
6. Hire Property Managers
Property investments don't only need maintenance costs; they also require time to look after everything. So if you're not up to being your own landlord, it would be great to hire a property manager who can handle the operation. The main responsibilities include collecting rents, filling vacancies for unoccupied units, and managing maintenance requests from tenants. Just keep in mind that you have to prepare for the property management fees if you can't personally handle such matters.
The constant growth of Gold Coast City makes it the perfect place to get an investment property. With more and more people who want to stay in the area, the value of the properties increases. But since just buying any property won't give you a large paycheck right away, it's important to make wise choices and avoid the catastrophic consequences of making wrong decisions. Be vigilant every step of the way and only work with a knowledgeable and experienced partner.