Article By Katy Holliday
Thursday, October 3, 2019

Opportunities for growth – Think differently

Building a real estate portfolio in the Australian property market is often about thinking outside of the box, especially if you’re trying to get a foot on the ladder. It may seem like a safe move to aim for capital cities, but investing in regional localities is where you can make a smart move

Look wide

Across the country house prices have been falling, but there are still suburbs out there showing strong growth. Often they fall outside the capital cities in areas you may not have considered before. The regional towns and suburbs of Australia are providing great returns for well informed property investors.

Admittedly it can be more difficult to uncover these opportunities when the market is in decline. It means we need to do deeper research, to look harder and look wider, but with the right tools and great data analysis, there is gold in them thar hills!   

Identifying suburbs that are displaying strong indicators of growth is the first step. Once you have found them it is crucial to look at the fundamental growth drivers that are causing the indications. Chinchilla in southwest Queensland is a great example of a hot investment property opportunity.

Chinchilla is heating up

The peaceful town of Chinchilla has a rental market size that represents 46% of the local property market. With a rental yield of 4.8% (which is higher than the national average interest rate),  and an affordable median sales price of $215,000 (3 bedroom home), entry is easy to the investment property market with a house that has a great chance to produce a solid rate of return.

The fundamentals are good too. After a significant drop in median house prices over the last five years, the population projection is expected to continue to grow.

Source: Queensland Government Statistician’s Office and The University of Queensland
Key: UCL – Urban Centre and Locality (this is focused on the built up area of the town itself)
 SA2 – Statistical Area 2 (this is the whole area of the Chinchilla postcode 4413)

The outlook for Chinchilla is good.

The Queensland government has recently invested heavily in the area with coal mine expansion in Cameby Downs, Warrego Highway Chinchilla rail crossing upgrade, Kogan Creek power station overhaul, as well as a Brisbane rail link to Darling Downs — a 39-minute and a one-hour drive from Chinchilla, respectively.

“When investing in a town like Chinchilla, timing is everything.”

TUDI Hot-Spot for Chinchilla

How Chinchilla Can Work For You

Chinchilla is currently showing great potential on the TUDI 5 Indicator Hot-Spot and the growth drivers are also in place to support a strong move. It maintains a high volume of sales transactions over the last 12 months (126), which means buying a property now can give you some assurance when it comes time to sell. If you’re looking for an asset that will provide steady tenants and high return potential, Chinchilla may be the town for you.