Western Australia is currently undergoing something of a boom, which is largely due to its mining and gas industries, and this has led to substantial population growth from those looking to capitalize on employment opportunities. However this boom is creating its own problems as property and rental prices are on the increase.
Economic forecaster BIS Shrapnel is predicting annual investment in Australian mines will surpass AU$80 billion by 2015 due to projects in the oil, iron ore, gas coal and corporate sectors. Investment into these sectors briefly paused during 2009 and 2010 before increasing by 11% in 2010 and 2011. Growth is predicted to increase by another 66% by 2015 into 2016.
Property investment innovator, Rick Otton, says “Such growth in our mining sector has lifted work opportunities across the board for Australians willing to relocate, and the associated demand for housing in many areas has become unprecedented.”
Apparently some of the more remote mining areas recruit staff on a fly in/ fly out basis with their home base being in Perth. While this might have created pressure on the local housing markets it does create attractive opportunities for property investors. A search on property monitor real estate.com.au reveals the imbalance of property prices in Western Australia, with homes in remote areas such as Port Hedland and Karratha fetching considerably more than homes in major capital cities. The median house price in the capital city of Perth was $480,000 earlier this year, while the prices for homes in Port Hedland and Karratha were $750,000 and $795,000 respectively. These high prices put most homes way out of reach of most first-time buyers, but according to Otton there are enormous opportunities for creative property investors.
Otton has been regarded as something of an innovator in the property investment industry for the last 30 years. He has taught thousands of people, particularly those without a hefty deposit or who are self-employed, how to invest in property without having to approach traditional lenders. He is the founder and director of We Buy Houses Pty Ltd, a property enterprise which has successfully expanded to reach international markets in the USA, New Zealand, Australia and the United Kingdom.