Narrowing Down My Property Focus
My property research continues…..
I have been searching high and low for the best opportunities Australia wide. For various reasons, but mainly the continuing economic stimulus from the mining sector and rent yields I have narrowed my focus to Qld. I will revisit WA in the near future.
So narrowing down options in Qld – I have been looking for options other than the much talked about area of Gladstone. I keep coming back to Mackay. As you may know, Gladstone has seen massive growth over the last year or so. Mackay on the other hand has not experienced such a large growth. When looking for opportunities, I am assessing many things, but one stand out factor is increasing rent demand without a similar increase in property values. Gladstone saw this happen prior to and in the early phases of it’s “boom”. Mackay is seeing this happening now. In other words, as more people move to the area, more accommodation is required. If there is an accommodation shortage then the rents increase. As rents increase – rent yields increase. Then property prices increase as more investors are attracted to invest for yield and renters buy instead of paying large rents. Rental demand and rental yields increasing often proceed a property price rise. This is what happened in Gladstone and is what is happening now in Mackay.
Further, the well known “ripple” effect. As one area, such as Gladstone increases and becomes out of reach of many buyers and investors, the surrounding areas start to look more and more attractive. This is another factor indicating Mackay as a high potential investment area. However, for those who prefer to be closer to the CBD, I am closely examining growing areas within 30 mins of Brisbane.
So where to from here….
If I was the traditional “sales” person I would be shoving opportunities down your throat by now. But because I am a property advisor, coach, Accountant and all that other gumph I am not yet ready to do that. So please be patient.
I have a field trip planned to Mackay and Brisbane in a few weeks. I would prefer to see the areas and properties first hand. I will be continuing my research until then and will have some definite options out to you as soon as I return with first hand, on the ground, knowledge of the areas, the estates, the developers, and hence the opportunities.
If you would like to view potential properties prior to this, please let me know and we can catch up to discuss.