QLD mining towns – a smart property investment?

There has been plenty of talk recently about shifting trends, in terms of the best place for a smart property investment in Australian real estate.

Many people are concerned that the mining boom has lost its impact, and demand and profit are beginning to recede in some of the regional resource areas.

While this is true and should not be ignored, there is plenty of business continuing to flow to Queensland’s mining towns.

Deciding where to focus your energy will likely be a matter of research, educated forecasts and instinct.

As the savvy investor knows, the biggest gains are achieved when you get in early and watch the area rapidly expand around you.

Gladstone is a great example – early investors saw values increase exponentially over the ten years from when the boom began.

The regional hot spot is still a beacon of activity, with the recent approval of a new shipping channel and a slew of liquefied natural gas projects in various stages of development.

Gladstone continues to attract foreign investment and offers a higher degree of longevity in comparison to some of the other mining towns in Queensland.

While you will likely not experience the kind of value increases seen by the early financiers, there is still plenty of opportunity in this area.

The Bowen and Surat Basins are also attractive in terms of commercial investment.

State deputy premier Jeff Seeney and treasurer Tim Nicholls recently welcomed an agreement between China National Offshore Oil Corporation (CNOOC) with BG Group and spoke of the potential for the Coal Seam Gas (CSG) and Liquefied Natural Gas (LNG) industries in the region.

“Queensland currently has more than $50 billion worth of LNG projects under construction,” Mr Seeney said in a statement issued November 1.

“LNG is set to become Queensland second largest export industry behind coal.”

Mr Nicholls also expressed his confidence in the state: “With forecast growth of four per cent and business investment of 19.75 per cent in 2012-13, Queensland makes a smart property investment, where it is also a safe and secure place to invest.”

By Steve McKnight

Steve McKnight, the founder of PropertyInvesting.com, is a respected property investing authority as well as Australia's #1 best-selling business author.