Just buy Terry Ryders National Top 10 Boom Towns Report (May-Sep 2011) ….all your questions answered – in detail!
Also check out demographics reports for the areas you are intersted in. They are a helpful source of information. Forecast population growth is a good stat to look for. Just ensure supply is limited though.

But beware:
After reading this report, I did further research into a few towns that took my fancy. One of them was Dalby (my example of why you need to be careful and not buy blindly because someone recommends it in a report). I thought Dalby was going to be a great investment – population growth is solid & there is continuing investment into new projects – based on these stats alone you would think it has all the indicators of a boom town (& Terry Ryder said it was…). But the supply is strong, keeping demand at bay (this is actually good policy by the council for long term affordability – but poor for investors). There are many land releases, and there is plenty of new stock for sale. Due to this, prices are steady and yields are staying pretty low (4.5%). Vacancy rates are creeping up (3%). Capital gains in the short term look unlikely. It may come to life once the supply runs out. Still a good long-term prospect….I just wouldn't buy here at this point in time. 

Chinchilla on the other hand looks more promising. The market is diverse (though not as diverse as Dalby). Supply is limited. There is only one new development  – Sovereign Park Estate – the executive estate – price range for existing homes about $440k+  land $165k – $175k – if you want to build this is the estate – currently 3 blocks available which is unheard of – Stage 2 set to be released early next year with rumours H&L packages starting at $500k – good rents / good growth. But the $500k price point is right at the top of the local market….suggesting that the developer is pricing in future growth. The average house price in Chinchilla for new stock is about $400-440k – older stock around $350k (I like the older stock – brick late 80's/early 90's. Still in good nick. The yields are fantastic, and the % capital growth will be as good as the new areas). Rents have recently increased very significantly due to the lack of supply and influx of workers. Yields upward of 7-8% are very realistic now (but only 6-12 months ago only 5% was possible), and it looks like this upward trend will continue. And we all know, when the yields become attractive, and the market is underpinned by solid economic foundations, the property investors swoop, and capital gains go through the roof.  I belive Chinchilla is right on the cusp of another boom.

If any of my stats are wrong – please post and let me know.

Regards,
P.I.1.

Hi Sherry,

I would recommend Dysart. My property out there is currently yielding at a staggering 14%, and the property has increased in value by $100,000 in the past year.

I personally continuing to invest in Dysart (I have another purchase in the pipeline now) as it has all the drivers to make for a great property investment for the following reasons:

1. Demand significantly outstrips supply (the perfect equation).
2. Vacancy rate is 0.2% (proof of the above statement).
3. Yields are currently 14% (normal for Dysart is 9-10%) – and capital gain always follows yields, so prices will rapidly rise (and they are!).
4. New mining investment in area (over $60 billion) that will last over 20 years. This means more workers, and continued demand.
5. Dysart is a service centre, so is not reliant on only one mine (it has mines to the north, south and west), which means it is not as prone failure due to a mining disaster (but it is prone to a failure of the mining sector).
6. Its highly cash flow positive. A property can be now be bought for $500k (last year for $400k), and rent for $1200-1400/wk (last year $600-900/wk), meaning you are cashflow positive up to $600/wk. This assists you to reinvest and grow your portfolio quickly. Buy four houses, and you have a passive income of $2400/wk (that has to be good investing…).

I consider Dysart to be the best investment in Australia right now, but it wont be in 12-18 months time, as the prices will have caught up, and yields will be back to 9-10%, and capital gains will start to diminish. Then it will be time to find the next big thing.

Use mining towns as a means by which to turbo charge your portfolio. Then branch out into other areas, and property types. Just remember, dont put all your eggs in the one basket…Just put them into the Dysart basket right now (if you can get a place – you will have to join the queue!).