Investing in property has historically been an excellent and stable investment choice. And with the Gold Coast consistently adding approximately 20,000 people every year, and this shows no sign of letting up. The Gold Coast is predicted too see the most growth of any city in Australia over the next five years with an increase of over 100,000 people! (see government report here).
What this means is that there will be both more home buyers AND home renters bringing a great demand for housing and units on the Gold Coast. The perfect market for a beginner or experienced property developer to make a great return.
Some benefits you may gain as a residential developer include:
- Capital Growth (if you plan on keeping the development over a period of time and perhaps renting in the interim) you will likely see an increase in value over time.
- Passive Income (if the property is positively geared, not only will you gain capital growth over time, but you will also gain a passive income from the rent).
- Immediate Return on Investment (if you plan on selling you development/units at a profit immediately after the completion of construction)
- Equity (if you have a mortgage for your investment this is when the value of your property becomes more than what you owe on the mortgage – this difference in value is then potentially usable for another investment)
Remember: if you’re investing in property that’s not your principal place of residence and earning a profit (whether by capital growth or immediate return) you may be subject to capital gains tax when you sell. It’s advisable to speak with your financial advisor or accountant about the tax implications of your development BEFORE you start. If you are unsure of who to speak to, the Highlife Homes team can give you some information, advice and recommend professionals to help you make an informed investment decision.