The Gold Coast has long been a hotspot for property investors, thanks to its stunning beaches, vibrant lifestyle, and ongoing infrastructure developments. While many investors are familiar with the appeal of established homes, newly built properties offer unique advantages that can enhance rental returns and investment stability. Todd Madgwick, Kollosche Head of Property Management, explores the benefits of investing in newly built properties for rental income.

Maintenance and Repairs

One of the significant advantages of newly built properties is their low maintenance and repair costs. With modern construction techniques and materials, these properties are designed to be durable and energy-efficient, minimising the likelihood of immediate repairs. In addition, new homes come with warranties that cover structural issues for several years, which can save investors substantial amounts in unexpected costs.

“Having a newly built property reduces concerns about wear and tear,” says Todd. “Investors can enjoy peace of mind knowing that the property is up to current building standards, which translates to lower maintenance costs and fewer tenant complaints.”

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Appeal and Vacancy Rates

Newly built properties on the Gold Coast are highly appealing to tenants, particularly young professionals and families seeking modern living environments. Features such as open-plan designs, contemporary kitchens, energy-efficient appliances, and air conditioning are standard in new builds, which cater to the lifestyle aspirations of today’s renters. Properties that offer these conveniences typically experience lower vacancy rates and higher rental demand.

“Tenants are increasingly looking for properties that provide comfort, convenience, and lower utility costs,” Todd notes. “New builds tick all of these boxes, making them highly desirable. This demand often translates into shorter vacancy periods and stable rental income for landlords.”

Tax and Depreciation 

Newly built properties offer attractive tax benefits, particularly through depreciation deductions. Investors can claim depreciation on both the building structure and the fixtures and fittings, resulting in significant tax savings. These deductions can improve cash flow and make new builds a more cost-effective investment option.

“Depreciation benefits are a huge plus for investors,” says Todd. “Taking advantage of these tax deductions can enhance the profitability of your investment. It’s a smart way to offset some of the initial purchase costs.”

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Regulatory Compliance

New properties are built to meet the latest building codes and safety regulations, ensuring compliance with fire safety, energy efficiency, and accessibility standards. This is especially important for landlords, as non-compliance can lead to costly fines and mandatory upgrades in older properties.

“Investing in new builds means you’re already compliant with the latest standards, reducing the risk of future legal issues,” Todd advises. 

Yields and Returns

The combination of high tenant demand, low vacancy rates, and tax benefits often results in strong rental yields for newly built properties. Suburbs like Coomera, Pimpama, and Southport are experiencing significant growth, driven by new developments and infrastructure projects. These areas offer excellent opportunities for investors to achieve competitive rental returns.

“On the Gold Coast, certain areas are expanding rapidly, creating hotspots for rental properties,” Todd explains. “Investing in new builds in these growth corridors allows investors to capitalise on the rising demand for quality rental housing, often resulting in better rental yields compared to older properties.”

Growth Potential

New developments are often strategically located in areas with planned infrastructure, such as new shopping centres, schools, and transport links. These developments enhance the appeal of the area, leading to increased property values and rental demand over time. Investors who purchase new builds in these burgeoning areas can benefit from both immediate rental returns and long-term capital growth.

“Suburbs along the Light Rail route are seeing substantial investment in infrastructure, making them prime spots for future growth,” says Todd. “By investing in newly built properties now, landlords can position themselves to benefit from both rental income and capital appreciation as these communities continue to develop.”

Reach out to the team to learn more about optimal rental investments on the Gold Coast.