We have high quality house and land packages in the best estates in Mackay for around $500,000 that are cash flow positive for most investors. So they pay you money to own!! Not only that but the QLD govt currently give’s you $10K cash for the privilege.
If that $500K grows at just over 7% for the next 10 years you make $500,000. At 7% growth this would be lower than the national long term average for houses for the past 60 years. If you average 10%, which is around the nations long term average, you would make just under $800,000.
From the mining projects outlined in the article above Mackay is going to experience massive population growth. Before most of these unprecedented announcements the population was set to grow by 70% in 10 to 15 years. That’s almost like building another Mackay all over again!!
This population growth will come from well-paid miners, on incomes far higher than the national average. So there are no affordability issues like the majority of the countries property markets supposedly are under. It’s hard to see how supply of housing in Mackay can possibly meet demand. And that’s total supply. So what do you think will happen to the prices in the most desirable estates??
If you want more information about this call me, but don’t delay too long as land prices are rising right now.
What it further cements is that Mackay in QLD is about to boom due to its location and ability to service so many massive mining projects. I have attached the article, and please note on page 2 that a recruitment company predicts that 140,000 mining related jobs will be created in the next 2 years.
With the Christmas break only 1 week away, as you know everything will shut down for at least a week, but more likely 2 weeks. So if your client then pays a holding deposit on a QLD investment property in the second week of Jan, they need the builder to prepare and send the building contract, your clients to sign and return for the builder to counter sign before the end of January. While this is possible it rarely happens that quickly. So please send the word out.
The majority of you have seen what happened in Gladstone. When I started recommending investing there the house and land packages were selling for $420K and renting for $420 per week. As you probably now know this is now the hottest property market in the country and those $420K investments now sell for $550K and rent for $700 per week.
Well I have been banging on about it for around 6 months now property prices are on the move in Geraldton WA. Please see the following article from the local Geraldton paper yesterday;
I started selling investments in Seacrest estate in Geraldton at $450K with rent of $450 per week. A massive benefit to buying a house and land package in Geraldton is that the these $450K house and land packages sell for around $500K as a completed product. This dynamic didn’t exist in Gladstone.
There was a great article in The Australian that I wanted to share with you. It’s about Australia’s changing population shift from cities to booming regional centres. Please read when you have a moment.
If you don’t have time to read the article the following are a couple of sentences from it.
"It's lifestyle v commodities," says Tim Lawless, research director at RP Data property analysts. "And, yes, I do absolutely think there'll be a population move, especially to major regional service centres, like Mackay, which services the Bowen Basin coal reserve."
For Western Australia, Haratsis names the main growth areas as Karratha, Port Hedland, Geraldton, Newman and Kalgoorlie. Of these, Geraldton has the cheapest housing, something that will be only a memory once the $5 billion Oakajee port and rail project gets approval.
History has proven that when any of the above are in short supply for an extended period, prices are forced upwards. In almost every Australia newspaper there are articles about record levels of investment in the mining boom on a daily basis. These articles usually sit right alongside articles about how the rest of the economy is struggling.
Some people will make a fortune during these next few years of uncertainty, others will read about it years later and say “if only we had of……”.
Supply and demand!! Money doesn’t disappear, it flows like water. And its currently flowing like a flooded river from our traditionally strong major city housing markets into regional cities servicing the resources boom.
That article would sound very familiar to builders in most parts of our country, but not in central QLD and WA. In those areas there simply are not enough builders and laborer’s to meet demand. This problem is so critical that the WA and QLD governments are trying to poach skilled workers from each other and the other states. With an expected 170,000 workers needed in coming years in both states, where do you think there will be highest demand for housing? And this demand won’t come from people struggling to make ends meet, their incomes may well be double the national average.
So has there ever been a more predictable time for choosing regions that should have above average property price growth? Maybe there has, but I wasn’t aware of it. Those that have seen these signs before are either very wealth or are kicking themselves.
Great news for Geraldton investors today as Mitsubishi have decided to buy Murchison Metals 50% stake in the Oakajee Port and rail development project.
This is a huge sign of confidence from Mitsubishi that they will forge ahead with this project bringing massive economic benefit to not only Geraldton, the nation.
