Tap into Queensland’s increasing confidence
There are many factors that need to be taken into consideration when purchasing an investment property – its location, rental returns and transport links are just a few examples.
However, the people you are targeting with your property need to be in the best possible mind-set. The global financial crisis gave some people's confidence a knock, making it particularly difficult for market rental properties.
Queensland was in some parts unaffected by the crisis, making it one of the most lucrative places to purchase an investment property in the country.
Knowing that your target market has the confidence to spend can be a real boost for investors, which might help explain why returns on Queensland rental property have largely bucked the national trend.
Confidence on the up
One of the most highly regarded gauges of consumer confidence is a monthly survey released by Westpac and the Melbourne Institute.
The Consumer Sentiment Index for September 2013 showed just how positive Queenslanders are about economic conditions, which bodes well for anyone thinking about property investing.
The index increased 3.9 per cent compared to the previous month, which makes the state's results much more impressive than those on a national scale.
Across Australia as a whole, the index experienced a 2.1 per cent decline – while the rest of the country is struggling, Queensland has posted its strongest result since August 2010.
Reasons for optimism
Commenting on the figures, Queensland state treasurer Tim Nicholls explained there are plenty of reasons for people to be confident at the moment.
Firstly, he emphasised that retail sales and approvals for housing finance have been growing faster than the national average.
"Retail turnover in Queensland grew at four per cent in 2012-13, more than double the national average and there's been business investment of $60 billion in this state in the year to March," the treasurer continued.
"Our economy is set to grow at around four per cent over the next three years and our employment growth of 2.25 per cent in 2013-14 is double the national growth rate."
These sentiments were recently echoed in a report from Deloitte, which indicated that there are plenty of industries well positioned to boost the Queensland economy over the coming years.
There is much debate over the future of the resources sector at the moment, but Deloitte believes that it will continue to thrive, as other industries start to become more prominent.
Agribusiness and tourism were identified as two potential leaders over the coming years, which will work alongside resources to further strengthen the Queensland economy.
As Mr Nicholls noted, there is no better time to "invest, employ and grow" in the sunshine state.