Is Mackay one of Queensland’s property hot spots?
A good investor will understand the value inherent in purchasing investment property. It's a sound way of generating long-term wealth. The great investor, however, will be on the lookout for property hot spots, areas that are primed for growth and those all-important capital gains.
Queensland looks like it could be good for this in the coming years. After all, BIS Shrapnel's research forecasts that Brisbane, the Gold Coast and Sunshine Coast will be some of the only areas to experience price growth in the three years to 2018, while other markets slow down across the board. But what about other areas of Queensland? Let's see how Mackay is performing at the moment.
While price and value growth is great for now, it can also introduce some stark affordability pressures. Just look at Sydney, which the Commonwealth Bank of Australia's (CBA) Home Buyer Index shows is an extreme sellers' market. Incredible price growth has seen the market swing strongly in favour of sellers, with the Real Estate Institute of New South Wales noting earlier in the year that many essential workers couldn't afford to live in the capital any longer.
Queensland, on the other hand, has a lot of markets that work in the interests of buyers. With greater supply and fewer price pressures, it makes for more fertile conditions to facilitate an affordable purchase. Mackay, for example, is listed by the CBA as the sixth best buyers' market in the country.
This could create some excellent prospects for long-term wealth creation through property investment as cycles in the area fluctuate and grow.
A burgeoning hub
Despite an overall downturn in the resources sector, regional areas like Mackay still have a lot going on. The Mackay Regional Council recently noted that the area is becoming a strong hub for Australian horticulture, with a local member of the sector given Australia's highest honour recently.
People from Mackay have also won awards recently for water and sewerage work, while the sustainable development and maintenance of the nearby Galilee Basin provides a further growth point to keep an eye on.
You won't find extreme capital gains in every part of the country, which is why you need to pay careful attention to ongoing projects that can boost the growth of a town or region. With Mackay tilted steeply towards buyers at the moment, it might be worth looking at your potential capital gains in this region.