Broaden Your Horizon| Find Investment Property

By Helen Collier-Kogtevs | www.realwealthaustralia.com.au | November 08

Apparently, everyone wants to live in the Sunshine state!

The cluster of cities and suburbs that comprise the South East Queensland (SEQ) corner are perennial winners whenever fresh population growth statistics are released – and this month is no exception. New ABS statistics have revealed that one million residents will move to SEQ in the next 18 years – an average of 55,500 new residents each year – with the region set to reach a population of around four million people by 2026.

So what does this mean to property investors?

Firstly, this kind of population growth will directly impact the value of properties in SEQ, as one million new residents will generate demand for roughly 575,000 new dwellings and 425,000 new jobs, as well as supporting infrastructure and services.

And secondly, as an investor, this demonstrates how important it is to be aware of investment opportunities situated outside of your own backyard.

Don't discount a suburb or city just because it’s in another state – we certainly haven't! We live in Melbourne but own real estate throughout WA, Victoria and NSW – including some properties that we've never even seen!

The key to a healthy property portfolio is diversification, and this includes different dwelling types and various locations. Each state experiences unique economic conditions and is affected by property supply and demand drivers at different levels; the real estate market in Adelaide, for example, could be booming in the same month that Melbourne CBD properties experience flat growth.

For this reason, it’s vital that you acquire property assets in different states and different cities, so that you don’t have all of your eggs in one basket. It allows you to cultivate a more balanced and protected portfolio, so you can ride out a slowing market with confidence.

Right now, there are plenty of affordable buying opportunities in various markets throughout Australia; in regional Queensland, for instance, the three most affordable suburbs in several regions all had median house prices under $300,000, according to the June Real Estate Institute of Queensland (REIQ) sales data. The REIQ figures also show that 35% of all house sales in Queensland in the June quarter were sold for less than $350,000, and 75% of all sales were for less than $500,000.

While Queensland isn’t the only state facing phenomenal population growth – the Australian population as a whole is expected to swell to 28.2 million by 2051, up from around 20.6 million in 2006 – it is an investment location that offers a potent combination of strong population growth, government investment in infrastructure, and relatively affordable property prices.

Whether you’re a Queenslander or, like me, you live south of the border, it’s obvious that the sunshine state offers some solid buying opportunities. To take advantage of the best property market across the country, it’s simply a matter of stepping out of your comfort zone and investigating the best deals available, wherever they happen to be.