Tag Archives: mining boom

Buying Investment Property | How to safely profit from Australian resources boom?

Buying Investment Property 

Buying investment property? Are you a property investor you’re looking for opportunities before other investors hear about them, right? Want a high yield positive cash flow property?

Press the play button to watch this video, please watch and listen closely because the booming mining sector is offering you the greatest property investments opportunity in Australia today…

Buying investment property – Gladstone has always been an industrial powerhouse, although the queue of mega-­projects dwarfs most other infrastructure hotspots. There are two massive projects that have received the go ahead from companies concerned, LNG and Origin Energy.

In addition there’s a list of finance, personal investing ideas and strategies with colossal projects almost too big for this special real estate report, briefly these include an Alumina refinery, gas pipelines, coal port expansions and much more.

In fact, its big business with investments in coal seam gas to LNG industry which is the biggest with thousands of extra employees needed for ongoing operations and more during construction.

Buying investment property; here’s how to get instant access to your exclusive insider-only special report revealing why profits are set to soar. If you’re ready to take full advantage click here to buy right now for ONLY $495.00!

positive cashflow property
Positive Cash Flow Property - Buying investment property with goals of renting it out, the right location is key.

Want to find out why mining is supercharging the Australian economy? Keep reading because here are the investment rental property facts and why some regional areas are being targeted by savvy property investors:

  • Global organisations and government are investing heavily.
  • Properties located in this specific mining area are in prime position to benefit from billions of dollars pouring into this region
  • Demand is creating chronic under-supply of dwellings
  • Families, workers and new businesses are targeting mining areas to relocate, more accommodation is urgently needed to satisfy demand
  • Ready to go land is in short supply, putting upside pressure on property prices
  • Increase bottom line by adding additional safe revenue streams
  • Experience extreme rental returns of up to 15% and higher…

Get instant access to detailed report prepared by leading Australian Property Analyst. Simply
tell us where to send you this sought after Buying Investment Property Resource Pack (vaued at
$495.00), which can be yours today FREE!

Grab your special report commissioned by one of the four big Banks: 

  • Find out why banks describe the resources and commodities boom as one of the greatest economic opportunities in Australia’s history…
  • QLD Government report revealing the true extent of mining boom in coming decades and hard to find details allowing you to laser focus with pinpoint accuracy on areas set to profit

You’d agree a savvy property investors primary reason for buying investment property is to get capital growth over time and positive cash flow to increase their property wealth. Gladstone or Calliope is it right for you?

Calliope has a population of over 4,000 and Gladstone has a combined current population of 60,000. Gladstone is Queensland’s busiest harbour with $80 billion of estimated resource projects either under construction or in advanced feasibility stages.

In addition substantial investment is planned for more infrastructure, which means a substantial inflow of new jobs to the Gladstone region is expected to reach 10,000.

Queensland’s Department of Infrastructure and Planning estimate the workforce required to implement these projects can easily grow the local population in Gladstone region by 31% in first 5 years alone and more than double in size in 20 years.

Gladstone rental and residential sales markets have so much activity and resource investment in
the region this could be your opportunity to invest for long term growth, which Gladstone should
be able to deliver.

If you’re buying investment property with goals of renting it out, location is key. Homes in high-rent or highly populated areas are ideal. Gladstone, Mackay and Toowoomba are expected to experiance growth in 2012 due to the mining areas.

The Gladstone median house price increased 10.5% to $440,000 as recorded in Q3 2011.

Buying Investment Property: Mining, tourism and agriculture, are three major industries. Queensland accounts for 24 per cent of the total Australian mining production, 37 per cent of Australia’s beef production, and almost all of Australia’s sugar production…

Buying Investment Property  

How to Not Lose Your Shirt Investing In Mining Towns?

Investing In Mining Towns?

Investing in mining towns isn’t for everyone because you need to be prepared to accept a certain level of risk and to take steps to actively manage those risks…

There’s no question a great return can potentially be made buying property in a mining town, everyone wants a piece of the action. You’ve got to jump out of the way to avoid the stampede of investors racing to these one-horse towns for their piece of investing gold.

Investing in mining towns, no form of investing is without risk. The name of the game is managing risks and risk mitigation because if you’re looking for an absolutely safe investment strategy, where there’s no risk of anything going wrong, you wouldn’t be investing in property at all.

Investing in mining towns present the ultimate risk-return conundrum for property investors. Its so hard for property investors to resist because of the highest capital growth rates in Australia with highest rental returns.

Mining towns are the riskiest options for property investors. Why? Because some mining towns are basically single industry economies and sometimes single employers which are vulnerable to downturns in the lone industry.

Investing in mining towns, there’s a misplaced confidence which comes from a bank valuation. Especially when the bank agrees to lend you money. It’s almost like saying its a tick of approval for your decision. Of course, banks know what they’re doing, right?

Please allow me to explain…

Investing in a town based solely on only one industry carries a risk which is greater than actually buying property in an area where industry is diversified. Where an entire area extracts its income and employment from one industry or related industries (for example retail and hospitality), a closure of one industry can quickly have devastating effects on property owners.

An investor may go quickly from having a property with a high value and exceptional rental returns to one with no tenant and no buyers. Done right, investing in mining towns from a property investment perspective can be lucrative and may fit with an investor’s financial goals…

investing in mining towns
Investing in mining towns…the lure of the mining towns offering highest rental yields in the nation. Many are double-digit rental returns…

Here are the top 10 rules for investing in mining towns:

Choose a town with multiple resource companies and varied industries, in order to reduce reliance on the demand for a single commodity.

Find areas with scarce land and/or high building costs, keeping vacancies low and rents high…

Secure a long term lease (e.g. 3+ years) directly with an established large company or government institution in the town, rather than renting property to transient contract workers. Why?

Because you want to minimise the risk of vacancy and position yourself in a much better or somewhat stronger position from variations in the industry.

Choose a house with land rather than a unit as this avoids body corporate costs and opens up future redevelopment potential, which may mean property outperforms on capital growth over time.

Buy on net returns, not gross rental yield. Take the time to research and confirm all anticipated ongoing costs involved in holding the property and deduct these from rent to assess actual cash flow (positive or negative)  the property generates…

Buy for short-medium term, not for the long term. While there may still be a significant lift or run in current mining boom, eventually house prices and rents in mining towns can fall back…either due to increasing housing supply or falling demand for resources.

Never buy site unseen because you don’t know what you are getting into, right? The only time you might consider breaking this rule is if you already have a strong relationship with someone credible, which can be trusted on the ground, and if you first get full detailed reports on the property.

Investing in mining towns provides a false sense of security around property buying and removes any common sense many investors might otherwise use when choosing an appropriate investment that sits nicely within their risk profile.

Investing In Mining Towns