Queensland maintains strength for real estate investing
As the owner of a real estate investment, strong growth in the economy and a rising workforce are two factors that should be on the top of your mind when you're looking to expand your property portfolio. These things matter because a strong economy is an attractive feature for businesses to invest in, while significant rises in job opportunities lead to more people shifting to the area for employment.
From vacancy rates to demand for housing, all of these can be affected simply by the number of people living in a certain area - and what brings people to an area more than employment?
Fortunately, recent research from CommSec has found that the state of Queensland is ripe for both business and property investment.
Queensland a top performer again
An April 2014 CommSec report identified Queensland currently has the fourth strongest economy in the country. But that doesn't mean that it didn't rank highly in certain sectors. Queensland was the second-highest performer for business investment, with equipment investment currently 17.5 per cent above decade-average levels.This is likely due to the high level of construction work currently underway throughout the state, coupled with a strong resource sector.
At the same time, the state has seen a strong rise in the number of new houses under construction, signalling a strong real estate market and buyer activity. More people building houses in the state not only indicates confidence in the property market, but that a higher number of people are investing their money and living there, too.
Job creation highest in the country
A strong economy and high level of business investment leads to more job creation, which will only benefit investment property owners. Encouragingly, Queensland led the way in Australia for job creation over March this year and created more jobs than any other state. Trend employment has been rising for 11 months straight, which points toward a strong workforce and growing business strength. More importantly, the higher number of jobs available, the more people will want to move to the state.
Queensland is one state that has seen a lot of investment in infrastructure development in recent years, turning into more jobs and improved facilities for local residents. A recent example of this has been seen in Toowoomba, where development and investment has been high for some time. The Wellcamp Airport has been one major project underway in the area and is nearing completion. While it has provided many jobs during the construction phase, it's expected to give even more to the community once completed and functioning.
By 2015, Deloitte predicts that Queensland will have the fastest growing state economy in the country, showing a positive forecast for investment now and in the future. Whether it's your first, second or fifth property, it pays to do your research and get assistance from a wealth coach to ensure your portfolio will help you reach your goals.