Why Queensland?

Population growth rate highest in Australia
Employment
Lower taxes
Lower living costs

A study of population trends in Australia, New Zealand and the US, by accounting firm KPMG, found the Brisbane- Gold Coast corridor in Queensland was beaten by only one, in terms of population growth being Phoenix, Arizona in the USA.

Research compiled by PRDnationwide's Gold Coast Office in Queensland:

"The city needs 129 new dwellings a week to cope with the present population growth."

The following are key points to Consider:

Residential property is one of the safest investments.
Since the beginning of time man has wanted to own land.
This is a fact which never alters.
It is not guided by fad or fashion.
Australia today has over 100 years of recorded statistics showing property values double nearly every 10 years.

1) Economy of Area

It is imperative to establish which state or region has the best economy. Australia has 6 states, 2 territories and the Federal Government. Infrastructure such as roads, hospitals, schools etc are provided by the Government of the state or region. So determine which state is capable of providing this infrastructure.

Also determine what debt each state has as to clear state debts the local Government imposes taxes on the people. Queensland is the lowest tax state and has the lowest cost of living.

2) Development money and Infrastructure

A major key to successful property investment is in choosing areas which have major infrastructure and to know what money is being spent in the area. What infrastructure is in place. New roads, rail or public transport, hotels, hospitals, schools - all signs that the development is for long term and not for a "one off event" such as Olympics. Development money coming in also produces JOBS, JOBS, JOBS.

3) Employment Situation

Employment is one of the major motivators for people in any area. The Treasury Department shows that Qld created 141,800 new jobs since December 2004 whilst the rest of Australia created 16,500.

Western Australia has the greatest shortage of skilled labour and there are major Training programs being implemented to solve this problem Wages are at a premium in this area and welders are being paid $70 an hour as one example Rental demand is greater when employment opportunity exists in the area.

4) Population Growth

PEOPLE MAKE PROFIT

Regardless if it is the best property in the world without PEOPLE NO PROFIT. It is essential we take heed of the demographics in the area we are investing in. Where the growth is coming from, is it natural growth, overseas migration, local migration and what consistency is there in the area.

The area with the greatest population growth for interstate migration in Australia is Gold Coast in South East Queensland with 3 times higher than the national Growth rate.

The area with the greatest movement from international migration is that of Western Australia. Melbourne in Victoria and Adelaide in South Australia, have Pockets Experiencing unprecedented growth due to these state governments offering offshore migrants sponsorship when they are short of federal points.

5) Supply vs Demand in the Area

If the price of any product or commodity goes up or comes down is entirely Dependant upon one factor - SUPPLY V THE DEMAND for it.
If there is a supply for something but little demand the price goes down.
If there is a demand but not enough supply the price goes up.
If there has been a mild winter and there is an abundance of winter clothes left in the stores or warehouses then the price comes down.
If vegetables are in short supply the price goes up.
Smart Investors in property study the supply & balance it with the demand.

6) Cycles in the Area

From the human heartbeat to the movement of the planet all things in life are cyclical. Stock markets, commodities and property all have a cycle. The ability to predict these cycles makes the job for the Investor less risky and more profitable. Property cycles will be in one of 4 places

The Downturn
The Uptrend
The Peak
The Correction

No Point buying at the downturn because without the crystal ball you don't know how low it is going to go.
No point buying at the Peak, because you pay the high prices

BEST TO BUY AT THE UPTREND when the market has proved That the bottom has been reached and the upswing has started.

The difference between buying at the peak and the uptrend is with the former you will watch your property price fall away over the first few years and with the latter you will watch it rise.

7) Mindset of People in the Area

From one area to another the demand changes and it is imperative to be educated in the difference in various "types" of properties sought after-in other words the Mind set of the people in the area you are investing in. The greatest mistake made by investors is to confuse their buying motive and therefore not buying for the "right" reasons.

Often foreign investors think about what is popular in their country and make the mistake of buying similar for investment in the off shore area.

Factors such as what number on the door, which direction the property faces etc have no bearing on the profit potential in Australia.

Often people miss great capital gain because they want to "drive past and see their property" which leads them to buying into areas which will have little capital gain, no rental growth and consequently they are not maximising the buying Power of their dollar.

8) Rental Management

Property should be like any other investment and there should be no need for any personal involvement in it. To select a property which has strong demand is only one side of the coin. If the property does not have an on site Manager then one needs to identify how often inspections are done by the off site managers and also the commission reporting system.

Determine where the tenant supply is coming from, eg is it likely to be university students, single people, families etc. Best to purchase from a group, which will have a vested interest in keeping your property full.

9) Timing

96% of all Millionaires in Australia have made their money through property.

They have one common philosophy. They also are not led by personal preference or by other people's opinions.

Whilst the property market has cooled in some areas, there are always areas going against the trend., PR Australian Properties ongoing research ensures that our clients are capable of achieving maximum profit potential at all times, not just during peak periods.

In Australia it is an historical fact the property surges after a share market boom and the recent events in that market has led people to invest in the property market more than ever before. The increased equity that Australians have in their own homes since the property boom in the past 5 years, allows them to take advantage of this to increase their property portfolio and at the same time reduce tax they pay and building a solid retirement plan.

10) Financing the Investment

Have a careful look at financing options when investing. There are many ways to leverage your investment. Structure the loan to make the property geared to best suit your own circumstances. Take advantage of Interest only loans when possible due to the effects of amortisation.

Do not make the mistake of basing a 20 year plus investment loan on a 12-month benefit such as a cheap honeymoon rate. PR Australian Properties will ensure that the mortgage facility is structured in such a way that clients can be more flexible with better product and taxation benefits.

11) Buying Motives

Investment in real estate can be an exciting and rewarding experience providing you bear in mind it is an investment and not a speculative opportunity. Be prepared to hold your investment for a number of years and eventually take advantage of the increased capital value or use it as an income stream in your Retirement. You will receive substantial tax benefits if you structure it correctly.