Why should you buy a Queensland investment property?
As any property investor will no doubt be aware, the market in Queensland has been favourable for quite some time.
Investors have descended on the area not only from other parts of Australia but also internationally, as Queensland investment property continues to reap strong returns.
So what exactly is it that attracts people to Queensland property? The state benefits from a number of factors that make it an excellent choice for anyone hoping to reap strong rewards.
The figures speak for themselves
Data released over the past few years shows just how strong the Queensland property market really is.
Unlike some parts of the country, Queensland has continued to offer strong returns to investors – and there is little sign of this trend slowing down any time soon.
In fact, the latest figures from the Real Estate Institute of Queensland show that more than 150 postcodes across the state have recorded rental yields of at least five per cent.
The top performers were identified as Miles, Russell and Macleay and Mount Morgan – although these are far from the only success stories.
Investors have recognised the opportunities available to them and entered the market in their droves.
Analysis of housing finance data from the Australian Bureau of Statistics showed that the number of investors who bought properties in February this year has risen more than ten per cent compared to the previous month.
Mining towns create property hot spots
The resources sector has undoubtedly had a positive impact on Queensland real estate, creating property hot spots throughout the region.
Areas within the Western Downs in particular have witnessed a surge in investor activity – among them is Chinchilla, which has seen a considerable rise in demand for rental property.
Miles – also found within the Western Downs – has experienced strong property price growth, while rental costs have increased considerably over the past few years.
Even once the mining boom enters its final stages, locations such as these will no doubt benefit from the infrastructure changes that have been made to accommodate the growing workforce.
Whereas some of these regional areas had previously been overlooked, developments have been made to ensure workers and their families have access to the facilities they need.
These will continue to serve the local community for generations, providing further incentive for buying an investment property in these areas.
Economic boom on the horizon?
All eyes are on Queensland's economy at the moment, with many experts predicting that a boom could soon be on the cards.
In fact, a number of top ASX company chief executive officers predicted last year that the next economic boom could happen as soon as 2014, with various sectors helping to ensure this happens.
Although the resources sector has undoubtedly helped to maintain strength over recent times, there are plenty of other industries operating within Queensland that will help it in the future.
As a result, an investment in Queensland property makes as much sense now as it did at the start of the resources boom.