Where is the right place to buy property?
Have you reserved your seat at the Big Returns property investment seminar?
If you haven’t already registered your interest in Ray White Maroochydore’s Big Returns property investment seminar, now is the time to do so. The seminar will be held at 6pm on 17 November 2010 at the m1 function rooms in Maroochydore.
Well-respected business operators will be providing information regarding:
• The right time to buy;
• How to read through the media hype to find facts and make the right decision;
• Financing your next purchase;
• How to navigate the contractual process and avoid common pitfalls for first time property
investors; and
• Ideas on how to fund your next property investment including how to make your super work for
you today.
Register your interest today!
Where to buy?
Welcome to the final instalment of our four part series on investing in property. While the previous three editions have focused on the ‘When’, ‘What’ and ‘How’ associated with buying property, this instalment will consider ‘Where’ to buy.
It has often been said ‘location, location, location’ is the key to buying property, and this assumption is not far from the mark. Investors who tap in to areas with high growth potential, superior positioning and close proximity to infrastructure are setting themselves up to secure sizeable capital gains.
This instalment will consider a variety of elements associated with location, including growth corridors in Australia, the importance of infrastructure and the hype surrounding urban renewal projects.
South East Queensland – Australia’s growth corridor
According to the Department of Infrastructure and Planning, South East Queensland is the fastest growing metropolitan region within Australia, even outstripping traditional growth corridors like Sydney. Its population is expected to almost double by 2031, with 4.4 million people predicted to call the region home.
RPData research director Tim Lawless says this strong population growth is great news for property investors as it indicates there will be a high demand for housing in the area for many years to come.
His thoughts are echoed by BIS Shrapnel senior analyst Angie Zigomanis who notes, “Queensland has got solid fundamentals – it’s got a diversified economy, the resources sector has picked up, so you’ve got all these things going for it." View the full article from Your Investment Property.
Results from a study conducted by the Local Government Association of Queensland also showed despite more housing becoming available in some areas to help manage the strong population growth, over-supply was certainly not an issue and housing prices remained strong for investors. View the full article.
Location and infrastructure
A recent survey conducted by Mortgage Choice indicated Queensland properties are tipped to have the largest capital growth potential over the next five years. According to the Property Council of Australia, this trend is underpinned by the local and state governments’ investment in infrastructure in the region.
Property Council of Australia Queensland Executive Director Steve Greenwood says, “History has shown us that investment in infrastructure delivers real increases in property values and local economic development opportunities.” View the full article.
In accordance, a recent article in The Age highlighted proximity to transport systems, the beach, community amenities and schools as key factors for investors to consider when expanding their investment portfolio.
The article was supported by Real Estate Institute of Australia president Noel Dyett who also claims, "What matters most is position, position, position. None of the fundamentals change regardless of whether interest rates are going up or down or bumping along." Read the full article.
Given the State Government’s pledge to provide the Sunshine Coast with $20.9 billion worth of infrastructure spending until 2031, the Sunshine Coast is likely to prove a hot-spot for savvy investors.
Urban renewal
An article released by the Property Council of Australia indicated urban renewal projects are becoming increasingly popular amongst property investors.
Urban development expert Andrew Borger attributed this type of development’s popularity to the strong demand from renters and owner-occupiers to live in locations with a city-like feel. View the full article.
In accordance, a study from Resolution Research - which considered median prices of apartments in urban renewal areas - showed properties which were part of urban renewal projects achieved above average return on investment, when compared to other properties in the same city. Read the full article from The Australian.
Maroochydore – a unique urban renewal case study
Maroochydore, which is tipped to follow in the footsteps of Docklands and other successful developments, is a unique urban renewal case study. ‘Urban renewal’ in capital cities refers to the redevelopment of industrial areas, whereas on the Sunshine Coast, this means the development of former farm land and in Maroochydore’s case, the Horton Park golf course.
The same benefits will be evident, especially due to the designation of Maroochydore as the Sunshine Coast’s Principal Activity Centre (PAC). This ensures Maroochydore will benefit from the best access to infrastructure, public transport and services, offer the best employment opportunities, provide the best entertainment offerings and become a leader in open space, pedestrian and bikeway planning.
Significant State Government investment into infrastructure servicing Maroochydore is already evident with the delivery of the Maroochy Boulevard, upgrades to Maroochydore Road, Sunshine Motorway and the Maroochy Bridge and improvements to the region’s connectivity to the Sunshine Coast Airport.
All these factors are key indicators that the urban renewal of Maroochydore will result in sizable capital gains for property investors.
To find out more about what is in store for the Maroochydore area, view the proposed Maroochydore Principal Activity Centre Structure Plan.
We hope you have found our four part investment series to be insightful and practical. If you have any questions about the information provided, or you would like to arrange a private viewing at the Emporio display centre in Maroochydore, do not hesitate to contact Nicholas Criss on 0403 001 992.
Until next time,
Carl Nancarrow - Manager of Development, Reed Property Group
Nicholas Criss - Emporio Sales Manager, Ray White Maroochydore
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