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Is Gold Coast real estate your financial guardian angel?

By Andrew Bell

While there are so many things to love about living on the Gold Coast, one of the great parts about being a resident in the region is the support from state and local government that businesses are receiving.

That's only going to increase after a boost to the Advance Queensland fund was announced last week. However, with the Real Estate Institute of Australia (REIA) suggesting there's a downturn to retirement nest eggs on the way with negative gearing changes, how are you going to shore up your finances? Why not buy a house on the Gold Coast? It's an easy way to get into a fantastic lifestyle, while also opening up the potential for some serious capital gains down the track.

And that's what buying for the purposes of financial stability is all about – making sure you earn money in the long-term. To sit alongside that, bringing a small-business or start-up along with you is going to open up the business landscape in the region as well, giving you far more freedom with the money you're earning to plan for a luxurious retirement.

Why is your retirement fund at risk?

According to Neville Sanders, the president of the REIA, a proposed government policy to limit negative gearing to only newly-built homes is going to do nothing to help existing investors.

"With negative gearing only available for investment in newly-built residential property, existing investors will find it more difficult to sell their properties as other investors will show little interest in existing property with inevitable falls in value to follow," he stated in a 14 June media release.

"These falls in value will, in time, translate to a lower standard of living in retirement as many 'mum and dad' investors have purchased property as a means to improve their retirement living as independently funded retirees."

To combat the risk of this affecting your retirement fund, clearing out your portfolio now and investing it in a fabulous Gold Coast property is going to give you more security when those falls in value eventuate. The Gold Coast is a region on the up in terms of median dwelling value, as the CoreLogic RP Data monthly indices show a current figure of $539,160 having increased by 7.46 per cent over the past 12 months.

That sort of increase is something that you will be able to capitalise on, but only if you do own a piece of property in the state!

Worried about leaving your business behind?

As a small-business owner, you might be worried about packing up and leaving the company you built from the ground up in someone else' hands. That is, if you don't want to expand your operations into the Sunshine State.

And that's being made much more realistic with recent increases to small-business funding in the most recent State Budget.

"In respect to the state's fiscal position, the Chamber of Commerce and Industry Queensland (CCIQ) is very supportive of the operating surpluses of $152million in 2015-16 and $867million in 2016-17," said CCIQ director of advocacy Nick Behrens.

"Queensland needed a budget that doubled down on efforts to help the Sunshine State transition from the resources boom to a more diversified economy. The government's commitment to ensuring innovation remains a key priority for Queensland will see us keep pace with our competitors and boost productivity. The additional $225million allocated in the budget is a significant and positive step towards transitioning Queensland's economy post the resources boom."

There's no reason to leave your business behind as you move into a gorgeous new residence – especially with this sort of funding available. Expanding operations into the Gold Coast as you move will boost revenue as well, so couple that with your property purchase in the beautiful region, and your retirement nest egg will be safe and sound, regardless of proposed government changes.

Talk to Ray White Surfers Paradise today about getting into a patch of your own.

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