It is essential to note that property investments are not a quick win. Typically, there is a cycle of seven to ten years with highs, lows, and steady stints in between. Therefore, finding the right investment home loan on the Gold Coast is critical to ensure that you can manage your investment right from the outset.
Investing in property on the Gold Coast comes with significant potential returns. The city boasts beautiful beaches, world-class attractions, and a trendy nightlife that attracts thousands of tourists annually, making housing a top commodity. Purchasing an investment property in this location could set you off on a path of long-term wealth accumulation.
At Digilend, we can help you find the right investment home loan on the Gold Coast tailored to your unique needs and goals. With our knowledge and expertise, we will help you navigate the market to make a sound investment decision. Whether you are an experienced property investor or just starting, we strive to offer exceptional services and expert guidance every step of the way.
Contact us today to see how we can help you kick-start your property investment journey.
The Process
Step 1: Initial Consultation
Our expert broker will analyse your financial situation, investment goals, and the Gold Coast property market to determine the right loan solution for you.
Step 2: Loan Pre-Approval
We assist you in obtaining a pre-approval for your investment home loan in Gold Coast. This not only sets your budget but also enhances your credibility with sellers, making your offers more competitive.
Step 3: Property Search
With your pre-approval in hand, start your search for the perfect Gold Coast property. Our team can offer insights into lucrative areas and assist you in identifying investment opportunities.
Step 4: Loan Application
Once you’ve found the ideal property, we’ll guide you through the application process for your investment home loan in Gold Coast. Our experts ensure your application is comprehensive and stands out.
Step 5: Loan Approval
We’ll work diligently to secure approval for your investment home loan in Gold Coast, ensuring you get the best terms and rates.
Step 6: Settlement and Beyond
After approval, we’ll oversee the settlement and continue to support you in managing your investment home loan, providing expert advice throughout your investment journey on the Gold Coast.
The Advantages of Using a Broker for Investment Home Loans in the Gold Coast
Local Expertise: A broker specialised in investment home loans on the Gold Coast possesses an intimate knowledge of the area’s property market, ensuring you make informed investment decisions.
Access to Exclusive Deals: Brokers have access to a vast network of lenders and can secure exclusive rates and offers for investment home loans on the Gold Coast.
Time and Cost Savings: Brokers streamline the loan application process, saving you time and potentially reducing costs associated with loan origination.
Tailored Solutions: Brokers work closely with you to understand your unique financial situation and investment goals, crafting a loan solution that aligns perfectly with your needs.
Negotiation Skills: With their negotiation skills, brokers can often secure more favourable terms and conditions for investment home loans, ultimately maximising your returns on the Gold Coast property investment.
Why Choose Us for Investment Home Loans in the Gold Coast
- Expertise: Benefit from our deep knowledge of the Gold Coast property market and investment home loans.
- Tailored Solutions: We offer customised loan options to fit your investment goals and financial situation.
- Competitive Rates: Access competitive interest rates to maximise your investment returns.
- Local Insights: Our team understands the local market trends, ensuring your investment decisions are well-informed.
Your dream home on the Gold Coast is just a click away! Contact us today at 1300 344 453!
Tips To Help You Find The Right Property And Reap The Most Rewards
Unit or house?
When it comes to finding the perfect rental property, there are many factors to consider. One of the most significant yet confusing decisions you’ll need to make is whether to invest in a unit or house. While a house may offer more potential for capital gain over time, it also comes with added responsibility for maintenance, including gardening and lawns.
On the other hand, a unit or townhouse may provide a more manageable option with lower maintenance and potentially easier rental prospects. For those interested in investing in a rental property, it’s important to consider the location. For example, the Gold Coast offers a highly sought-after market for investment home loans, with beautiful beachside properties attracting high demand from both renters and holidaymakers.
Location
For those considering investment home loans on the Gold Coast, location is everything. Proximity to highly sought-after amenities such as schools, shopping centres, and public transport can significantly increase the convenience and appeal of a rental property.
It is crucial to extensively research the local market, including recent property price fluctuations, rental vacancy rates, and proposed infrastructure improvements. To gain a comprehensive understanding, scout the area as a potential renter. These efforts can greatly assist in ensuring that an investment home loan is placed in the right area on the Gold Coast and will provide a worthwhile return.
Remove the emotion
Buying an investment property is a highly emotional experience. It is important to remain conscious of the fact that these decisions should be based on facts and not feelings. To be successful, one must constantly assess what will give them the most return in the long term instead of focusing on how they believe an area may look or feel in the future.
This kind of research and analysis will help to ensure that an investment home loan is placed in the right area on the Gold Coast.
Don’t forget the extras
Be sure to research any additional costs associated with the investment property. These include stamp duty, legal fees, transfer fees, conveyancing expenses and insurance premiums. It is also important to factor in any potential costs for repairs or renovations that may be necessary over the life of the loan.
Taking the time to research and assess all of these factors will help ensure you get the best return on your investment in the long term.
Cover your investment
As a property owner on the Gold Coast, it’s crucial to safeguard your investment with comprehensive landlord insurance that covers damages caused by tenants and rent defaults. Protect your investment home loan on the Gold Coast from all risks, including fire and natural disasters.
Investing in a strata title property on the Gold Coast can be a wise investment choice with the right investment home loans. However, ensure that the body corporate has adequate building insurance covering the cost of rebuilding the complex at current market prices. Keep in mind everything from the wall paint inward is your responsibility, while the body corporate is responsible for everything outside those walls.
Any interest?
If you’re looking to invest in property on the Gold Coast, an investment home loan is a viable option. Interest-only loans are popular among investors because the interest payments are tax-deductible. But it’s important to remember that this strategy is best suited for high-income earners who are taking advantage of negative gearing. If you choose to gear your investment positively, a principal and interest loan might be a better fit, allowing you to use the rental income to decrease the principal.
Remember, any income from your investment on the Gold Coast will be subject to tax, so it’s essential to consult with an accountant about your specific tax situation to ensure you’re making the most informed decision possible.
Manage your investment
Investing in a property is a smart move; however, managing it can be time-consuming and challenging. This is why seeking professional property management services is highly recommended, especially if you have limited time and energy. A reputable property manager can handle tasks such as advertising the rental, screening tenants, collecting rent, coordinating maintenance and repairs, and managing disputes. It’s best to get referrals from other landlords in the area to ensure that you work with a reliable company.
As an investment property owner on the Gold Coast, it’s crucial to conduct twice-yearly inspections to ensure that everything is in order. Fortunately, the associated costs, such as travel and accommodation, are tax-deductible. However, if you decide to self-manage, you must know the tenancy laws and prepare to handle repairs, including after-hours emergencies.
At Digilend, we understand that managing a rental property can be complex. That’s why we work with lenders who are willing to negotiate on your behalf, especially if you’re seeking investment home loans on the Gold Coast.
Appreciate depreciation
The Australian Taxation Office allows investors to claim a deduction for the wear and tear on their property through depreciation. This can result in a significant reduction in your tax bill. To make the most of this tax advantage, it’s recommended to hire a professional quantity surveyor to assess your property and complete a Tax Depreciation Schedule.
By doing so, you’ll have all the necessary documentation to provide your accountant and claim maximum deductions on your investment home loan in Gold Coast.
Taking ownership
If you need both incomes to be considered in the lending equation, speak with us to get the right advice on the best ownership equation for your circumstances.
A General List of Investing FAQ
One of the most striking facts about Australians is that they are highly enthusiastic property investors. In fact, the figures speak for themselves – according to recent studies, one in every three new mortgages granted every month are arranged specifically for investment purposes. And the majority of these investors aren’t wealthy tycoons but ordinary people with regular jobs and average incomes.
But why do Australians find property investment so compelling?
Capital growth: A wise investment in a property can lead to capital growth, resulting in an increase in its value over time. In Australia, the long-term average growth rate for residential property stands at 9% annually. However, property markets are known to fluctuate, causing values to stagnate or even dip. Therefore, it’s essential to adopt a minimum 10-year investment view to ride out market cycles successfully. For instance, if you invest in a property with an investment home loan in Gold Coast and enjoy an annual growth of 7.5%, you can double your investment’s value in a decade.
Rental income: One important factor to consider when purchasing an investment property is its rental income, also known as yield. This refers to the amount of rent that the property can generate. It can be calculated by dividing the annual rental income by the purchase price of the property and multiplying it by 100 to produce a percentage figure. However, it’s important to note that more expensive properties often have lower yields than moderately priced ones. As an aspiring property investor looking for investment home loans on the Gold Coast, it’s essential to strike a balance between rental income and long-term capital growth prospects.
Tax benefits: As an investor in property, you can make use of a handy tax perk offered by the Australian Federal Government. This perk allows you to offset any losses from owning an investment property against your taxable income. Let’s say you have an investment home loan on the Gold Coast. If the cost of servicing your mortgage and associated rates, water and other fees exceed the rent income you receive by $5,000; you can add that loss to the income on which you don’t have to pay tax. This means you’ll receive a refund from the ATO after the end of the financial year if you’re an employee with income tax automatically deducted from your pay.
Low volatility: Investors often prefer investing in property values over stocks due to their stability, bringing calm to their minds. An investment home loan in Gold Coast is a wise decision for long-term financial growth.
Leverage: Investing in property can offer leverage that surpasses other investments. With just $100,000 in savings, it is possible to buy a property worth $500,000 by obtaining a mortgage for $400,000. This is a lower amount than what one would need to purchase the property outright. If the property value were to increase by 10% over a year, the property would be worth $550,000, translating to a gain of $50,000.
It is not necessary to have a high salary to invest in property. Lenders consider rental income and personal income when assessing eligibility for property investment loans. Those who already own a home with equity can use it as a deposit, making it possible to purchase an investment property without providing additional cash. Investing in property can serve as a stepping stone towards owning a home. The returns on investment, coupled with the continuous growth in property value, make property investment a lucrative option for those considering long-term financial growth.
Every individual has distinct financial and borrowing requirements. Our Home Loan Quote calculates your borrowing potential in just 30 seconds. Alternatively, contact us to receive a tailored assessment based on your specific circumstances.
With a wide variety of over a hundred home loans, our expert consultants can assist you in finding the most suitable one for you. Contact us today for more information.
The deposit required for a property usually ranges from 5% to 10% of its value and is paid upon signing the Contract of Sale. We offer various options to help you finance your deposit, including borrowing against the equity in your existing home or investment property. Contact us to learn more.
Use our Repayment Calculator to get an idea of your payments. Our experts are available to discuss the latest deals and customise a loan package specific to your needs. Reach out to us today.
Lenders often provide repayment flexibility that can align with your pay cycle, such as weekly or fortnightly repayments. Opting for these options can result in additional payments throughout the year, ultimately reducing the length and cost of your loan.
There are several fees involved when buying a property. To avoid any surprises, the list below sets out all of the usual costs:
- Stamp Duty — Stamp Duty is a significant expense that homebuyers must consider when purchasing a property. It’s a tax that varies according to the value of the property and your location. Some state and territory governments have different rates. Additionally, Stamp Duty might also be charged on your mortgage. Use our Stamp Duty Calculator to determine your total Stamp Duty costs.
- Legal/conveyancing fees — Real estate transactions incur various legal costs, ranging from $1,000 to $1,500, covering expenses such as title searches and other required legal proceedings.
- Building inspection — A structural inspection is a crucial step in buying a property. It is recommended that a professional, such as a structural engineer, inspect before finalising the purchase. The good news is that you can opt out of the contract without financial penalties if any structural issues arise. The cost of a building inspection and the subsequent report can range up to $1,000, depending on the property’s size. Your conveyancer will arrange for the inspection, and you can settle the payment as part of their invoice. Ensure that you get this inspection done to avoid any unpleasant surprises and financial losses.
- Pest inspection — Pest inspections are a critical step before purchasing a property to ensure that it is free of any unwanted crawlies or pests, such as white ants. To avoid incurring any significant financial penalties, it is advisable to include a pest inspection clause in the Contract of Sale. The inspection cost may vary depending on the property’s size, ranging up to $500. Your conveyancer or real estate agent may arrange this inspection, and the charges will typically be included in their total invoice at settlement, along with their conveyancing fees. It’s always better to be safe than sorry!
- Lender costs — Lenders commonly impose establishment fees in order to recover the expenses incurred from their valuation and administration procedures. To avoid any confusion, we will notify you about the fee amount, which usually ranges between $600 to $800.
- Moving costs — It’s important to consider the expense of hiring a professional mover when planning a move.
- Mortgage Insurance costs — Purchasing a property with a loan over 80% of the price incurs the additional cost of Lender Mortgage Insurance. Optional Mortgage Protection Insurance is also available. Strata title properties require payment of regular strata fees for maintenance of communal areas.
- Ongoing costs — When calculating the actual cost of owning a property, factor in additional expenses beyond the regular loan repayments. These include council and water rates, building insurance and contents insurance. Lenders often require a certain level of building insurance to cover the loan, but it is crucial to ensure that the sum insured is sufficient to cover the actual cost of rebuilding. Similarly, contents insurance should provide enough coverage to replace all possessions in the event of a worst-case scenario. It’s vital not to overlook these necessary expenses when budgeting for homeownership.
Negative gearing is when your rental income is less than your property expenses. The shortfall can be used to reduce your taxable income, potentially resulting in a lower tax liability.
While incentives and grants can change over time, it’s advisable to stay informed about any schemes or benefits available for property investors. Local government websites and property investment associations are good resources to explore.
Yes, it’s possible to invest with a limited budget. Some suburbs offer more affordable properties. Additionally, working with a broker can help you find loan options that match your budget.
The return on investment in property can vary, but it’s often a long-term endeavour. On the Gold Coast, a cycle of seven to ten years is common, with highs, lows, and steady periods in between.
