Are the GOOD times retuning to the Gold Coast Property Market.
Well at least Gold Coast Mortgage Brokers are hopeful anyhow!!
So its been 8 long years since the GFC had a massive impact on world financial markets that ultimate led to the cooling off of property in major cities all across the globe.
And for property investors on the Gold Coast, the effects were felt hard.
…So much so property prices almost dropped to levels not seen for over 15 years.
Unprecedented price hikes in land values have been seen at over 25%
So is it time to make the leap of faith back into the Gold Coast property market?
We talked to Ben Fragar, Mortgage Broker Gold Coast region and he is optimistic the surge in property prices will continue on for a few more years yet.
…He expects to see them gradually increase well into 2018 as the city hosts the Commonwealth Games.
And we think Ben is quite within his rights to show his optimism
As Real Estate experts are cautious about providing commentary around property booms, those sitting on the data say Gold Coast property began to move in a positive direction late last year, with some of the best price movements across waterfront suburbs.
So what’s driving this unprecedented property value growth?
Several factors are always the ingredient to price surges, however key factors such as the desire for waterfront views and a lack of property stock helps to boost these areas, whilst also the growth in construction projects has lead to trades and businesses looking for short to medium term accommodation, which puts a premium on rental.
An article written by the Gold Coast Bulletin back in March reported a $3 billion construction boom.
…And this is great news for property investors as more construction means for labor looking for somewhere to live.
And if your looking to get finance for an investment property, who better to speak to than Ben Fragar from Blackbox Finance.
We asked Ben to help us out with his best tips for first time property investors seeking an investment loan.
- Let go of the emotion – One of the worst things property investors can do is make a buying decision based on what they like or how they expect a property to look.
Leave the emotional buying to when it comes to purchasing your primary residence.
Focus on the needs of your tenants. Research what tenant want in the Gold Coast area, and perhaps even in specific suburbs, so you can be sure your providing a place that will attract tenants.
Things like public transport, low maintenance yards and easy access to shopping centre’s & schools make perfect investment properties.
- Start small and work up – Your going to need a deposit for your investment loan, and the lower your Loan – Value – Ratio (LVR) is the closer you will be to having money in your pocket from the rental payments less expenses. Over extending yourself on the first purchase will lead to financial stress.
- Look at the potential capital growth in the area – Obviously as reported in many articles recently, the Gold Cost property market has seen unprecedented growth over the past 12 months, and you should take the time to research thoroughly whether or not the growth will be sustainable long term.
Analysts believe the Gold Coast property market is currently in a growth phase, and it’s not about to slow down any time soon!
The content in this article is for informational purposes only, and should not be used for any property or finance related decisions. Please seek the assistance of a professional and perform your own due-diligence.