Where is Queensland's major project growth going to come from?
As you've likely noticed, the mining boom has been on the out in the last few years, after huge levels of investment in Queensland that saw rising economic growth and benefits for people across a wide range of industries.
So now that this is weakening, with CommSec's State of the States report showing a decrease in economic activity over the last year, where can we look for new projects to boost the economy and highlight property hot spots?
Looking to the future
The Queensland Major Contractors Association (QMCA) has released its 2015 Major Projects Report, which looks to the future of large-scale construction in the state. This is particularly useful for identifying potential areas where growth could occur, as large projects tend to boost employment, the economy and the population – all factors that can help your property investment strategy.
Resources projects are on the way out, according to this report, but will see a big upswing in 2016/2017, especially once funding is made available for said projects. Mining investments such as the Galilee Basin and LNG projects are singled out as ones that will keep growth going through the next couple of years, so could be worth watching, as they're like to spur growth nearby.
Not worrying about the present
This report also notes that while resources investment has come down, it has come down from highs that have never been seen before, and this is simply a period of adjustment for Queensland. The QMCA wants government action to make sure there's enough money for roads and for investment in the private sector, so that they can continue with major projects that will benefit the wider state.
If this goes ahead, it could create ripe conditions for investment. Mining and resources projects bring the sort of growth that can see your investment property make great capital gains, if you select the right new home at the right time. Getting the appropriate property coaching can help you get into a great property that grows alongside these major projects.
Taking advantage of the now
In a report from the Queensland Valuer-General on the property market in 2015, it was noted that low borrowing costs and good rental yields were great factors for Queensland property at the moment. This could mean that buying a home now could see you reap the rewards down the line – especially if you buy in an area near the expected major projects upswing to come.