With all the talk once again of flattening markets in Australian cities astute property investors are looking to regional Australia, Queensland in particular, and with good reason.

There are plenty of opportunities to be found in regional Australia particularly in the resource rich state of Queensland where the mining boom is being re-born in towns where property values are still affordable.

I seriously think we might be staring at another Karratha in the Darling Downs and around service ports like Gladstone. Karratha is a mining town in northern WA wher the property market soared almost overnight due to the intense mining boom of the last decade. Average properties became million dollar hotspots and rents went from average to exorbitant in a short space of time.

The best part of the Darling Downs and Surat Basin area is that property prices are still reasonable and the large projects for the region are starting .It is a case of strike while the iron is hot and this one is hot.

The government and private sector have committed to investing over $10bn in infrastructure which will on its own create significant demand for housing and rental accommodation.

We mentioned in the last newsletter that the largest company to company deal Australia has ever seen has been signed between a Chinese resource company and an British mining company based in Queensland that will see Liquid Natural Gas exported from the Surat Basin to China over the next 20 years.

Putting the Darling Downs aside there’s Gladstone, and surrounding local region, already a strong infrastructure hub set to receive billions of dollars of investment on top of that invested in the last few years in new industry, mining and infrastructure.

Coming back to something more predictable are the growth spots in SE Brisbane. Brisbane and the Gold Coast is the fastest growing population centre in Australia. Areas such as Coomera north west on the Gold Coast Hinterland is a great investment.

Portfolios has investment properties available in all these areas, ask us about places like Chinchilla, Dalby, Kingaroy or Gladstone, Calliope or Coomera. Properties like these ones present a great investment opportunity to enhance any portfolio. We already have clients snapping up these properties sometimes multiples of them.

You can see some of these properties in our Featured Properties section or ask us about other opportunities for you.

The team look forward to working with you to… Make it Happen

Here’s a question for you?

Do you know who will look after your assets if the unthinkable happens to you?

A large percentage of property investors are under insured personally meaning that if they were unable to continue servicing the loans due to death or disablement  they would leave a considerable debt – sometimes un-servicable for their family to pick up.

Peter Bentley, trusted advisor with Portfolios says;

“Protecting yourself and your family is a vital part of a successful property investment strategy. If you were to suffer in an accident or be unable to repay your investment loans through disability or death would your family be able to support your portfolio?”

So what kind of legacy will you leave?

Protecting yourself is one of the greatest gifts you can give to your loved ones if you should be unable to support them.

If you feel you are under insured and want some advice go to the website and through our insurance providers check out one or all of the following insurance products:

• Life Insurance
• Accident Insurance
• Income Protection Insurance
• Temporary Or Permanent Disability

Dont leave a nightmare for your family – manage the risk for them and for yourself.

How Are You Placed?

For me the game of property investment comes down to Sound Structure ,Strategy, Finance, Your Team and of course You.

A really key consideration first and foremost is available funds. Your funds need to be what we call Strategic Equity Usage and allocated upfront to ensure your whole plan and other factors are catered for.On the point of available funds, you should be aware that as the RBA and lenders increase rates the amount of money they will lend you on your current income reduces, in some cases dramatically.

Allocations should consider loan equity, purchase costs, updated portfolio shortfalls, renovation costs, deal hold costs, living expenses and then importantly the buffers.

The most important addition to any property investment strategy is what I call ‘3 lines of defence‘.

The first is the way we calculate the portfolio shortfall numbers, nett rent and interest rate increase allowances.

The second we make allowances as if all equity has been used, leaving you paying maximum interest.

Thirdly, and important personally, is what we call sleep@night, where YOU allocate 2 amounts that ensures emotionally you are sound.

The two parts of the sleep@night allowance includes:

• How long you need to have the portfolio self sustain, and
• How much extra over you need for that rainy day and/or personal use.

Once all factors are considered and the real numbers allowed, you have a great foundation and plan for you to deliver from.

Any quality strategy needs to allow for personal factors, and there can be many, unique to each person. Looking at your current team how’s your relationship with them going? Have they allowed for YOU?

If you had ever thought of working through your property investment plan, now is the best time.

As money access tightens having the maximum amount of funds allocated to deliver your plan gives you the edge.

At Portfolios we are property people not just providers of finance, we understand all the ins and outs of property investment, complex deals and hold strategies.

How are you placed , do you need a hand to get it all together to make it happen?

Paul Pritchett – Founder Portfolios