Gladstone property market still has sound diversity
THE advice is simple when it comes to investing in property in resource areas - do your homework.
PRDNationwide research director Aaron Maskrey said he agrees that to invest in resource areas people need to get as much information as they can.
"The benefits of investing in property in resource are a tireless kind of reward," he said.
"They do offer great yields and capital value gains, however there are several cases in Australia where it's gone bust."
Mr Maskrey said many mines had gone away and owners were left with large mortgages to pay off.
In terms of Gladstone investing, Mr Maskrey said he thinks it had come off the boil over the past six months.
"However, I still think Gladstone being at the size it is, still has sound diversity in the economy," he said.
"It's not as high risk as your Dysart and Moranbah."
For those looking at investing in high resource regions, Mr Maskrey's advice is essential.
"Look at the diversity of resource mines and the location.
"Whether the town is just reliant on the one or if there are multiple mines.
"Obviously the largest towns offer the lowest risk and the higher the population, the lower the risk in purchase."
Mr Maskrey said the Gladstone region really picked up, in terms of property investment, over the second half of 2010 and started to come down in the first half of 2012.
Harcourts Agnes Water real estate principal Gordon Christian said one of the best things about investing in resource areas was the solid or increasing property prices, Mr Christian said.
"The high levels of gross that we're at," he said.
"Where there is gross there's demand."