An article in the Australian Newspaper over the weekend (Sept 9, 2011) titled ‘Decades of wealth from boom as commodities exports forecast to hit $480bn’ told an amazing tale of how Australia might benefit from the commodities boom over the next 20 years.
We have been preaching the rise and rise of the mining boom and it’s implications for property investors for some time.
The report revealed in the article highlights the significant opportunity that can be found in the decades of growth ahead of us. This ‘boom’ is still coming but, it has started and there is a long way still to run. The caution in this article though is that it’s not just blanket good news for all property, rather a call to action to be more diligent than ever. Why? Half of all property in Australia over the last 20 years failed to achieve a growth rate where it was able to hit the ‘magic’ doubling in 7-10 years and only just over a third was doing better than that (according to Rismark) The changes in our economy caused by the mining boom means the gap between the areas that perform and those that don’t will grow and the percentage that achieve an average annual growth rate above 10% will diminish.
For two years we have been preparing, hunting and researching those areas and opportunities in property that are positioned to ride the wave of the mining boom. For example, many of our existing clients have just bought properties in a mining region for circa $460,000 and they’ve been independently appraised to achieve $1200-1300 per week! Not only is the cash flow exceptional, we even met with a Valuer as part of our due diligence, who confirmed the rent appraisal, he was also very optimistic about the potential capital uplift in the short to medium term. A new experience to see a Valuer excited! (We do have a few left, but not many…) It’s important to note here though that while we see properties like these as a great investment opportunity, we always encourage our clients to create a ‘balanced’ property portfolio by also investing in properties in more mainstream growth areas of Queensland. The Sunshine Coast in particular is currently being touted as being a very desirable FIFO location into the future, with mining companies even considering establishing regular charter flights to and from the Coast to mining regions.
Take time to read this article and really digest it then, call us for the insight into where, when and how to make sure you are in that reducing portion of investors who ‘get lucky’.
Read the entire article here… ‘Decades of wealth from boom as commodities exports forecast to hit $480bn’
‘Getting lucky’ is a real and proactive choice… make it today!