QLD mining towns – a smart property investment?
Investing in the resource rich areas of Queensland has proved to be a smart property investment for financiers over the last ten years or so.
Gladstone in particular, saw dwelling prices rocket since the region’s humble beginnings a decade ago.
However, with mining growth being scaled back considerably, securing a profit in the Bowen and Surat Basins will pose more of a challenge heading toward the future.
With that being said, there is still billions of dollars worth of projects committed to the area, and several more in the pipeline.
The federal government this week (November 28) reported record spending on upcoming projects.
Resources are plentiful and capable of producing substantial output for many years, but as the resource and energy minister said, that does not guarantee success.
“In the face of lower commodity prices, the delivery of this pipeline of projects is contingent on keeping production costs down, providing access to skilled labour and increasing our productivity and efficiency.”
Minimising risk comes with real estate investment territory – in the Queensland mining regions, it will require you to walk a fine line but the opportunities are still there if you look for a smart property investment.
Property Observer last week (November 21) published RP Data figures illustrating suburbs that garner the highest rental yields on the east coast.
Moranbah, Boggabri and Blackwater top the list of 40, posting yields of 12.9, 11.7 and 11.3 per cent, respectively.
Queensland claimed 18 of the most profitable suburbs.
Investors looking to enter the regional market may wish to take advantage of the increase in affordability and comparatively low interest rates.
There is also talk of another cash rate cut to occur next week when the Reserve Bank of Australia meets for its monthly monetary policy meeting.