Editor's Note: June 2012
Around this time last year API published an exclusive report on 16 suburbs that were undergoing rejuvenation and gunning for property price growth. One of those suburbs was Port Adelaide in South Australia (featured again last month). A year ago, Port Adelaide recorded a median house price of $420,000, according to Australian Property Monitors (APM). Twelve months on, APM puts its median house price at $461,000. That's an increase of $41,000, or 9.8 per cent.
A quick online comparison of term deposit interest rates shows the best rate being offered for a one-year term is 5.9 per cent. Not bad, but not as good as a median-priced house in Port Adelaide.
In March 2011, our cover story uncovered 20 hotspots that were set to benefit from major infrastructure projects.
Port Hedland, a mining town in Western Australia, was one of the areas predicted to do well. Back then the median house price, according to APM, was $825,000. Today the median house price has risen to $1.038 million. That's a $213,000 gain, or a 26 per cent increase. Can you think of another investment that could produce such a result in just over a year? Not a term deposit.
Another area to make this list was Gladstone in Queensland, a "no-brainer' one expert told API. And he was right. The mining and coastal boom town has seen phenomenal price growth in property values over the past year, growing by 25 per cent in 2011 alone, according to the Real Estate Institute of Queensland.
Some industry sources will tell you 25 per cent is a modest figure. In fact, one major national real estate group predicts its Gladstone office will steal the gong from its previously dominant Double Bay office in Sydney's eastern suburbs for the highest number of sales in 2011.
A blue-chip harbourside market challenged by a little-known mining city... who would have thought?
Sure, not all of the locations we feature will produce such impressive results this quickly, but this proves it's possible to make money from the property market even now when sentiment is low and regardless of whether you pursue a conservative investment such as the one in the Port Adelaide example, or a riskier strategy such as the Port Hedland and Gladstone mining town examples.
Everyday API gets to see how smart property investments are changing people's lives for the better and it inspires us to replicate some of their success in our own lives. I suspect this month's cover story will do the same for you. It's about investors who have defied a cool market to increase their wealth through various strategies and are now millionaires in their own right - and all of them achieved this before turning 40 years of age! Turn to page 36 for the full story.
Happy reading.
Eynas Brodie
Editor
