It seems the call of Queensland is reaching investors, with recent data revealing the state has become the second-largest investor market in the country. According to money.com.au, Western Australia continues to lead the top investor markets, with 43% of investor loan numbers, followed by Queensland, Victoria and New South Wales.

Taking over from Victoria as the second largest investor market, Queensland, with 23.4% of Australia’s investor loans, emerged with nearly 700 more (0.4%) than Victoria.

While the reasoning behind the shift is not completely clear, one possible reason follows on from a series of changes to legislation affecting Victorian landlords, including the introduction of a flat-rate levy for property investors and additional taxes on landholders.

Queensland holds a number of strong investor markets, and, overall, the appeal of a generous population growth, migration trends, a strong local economy and ongoing infrastructure projects have the sunshine state set as an attractive investment destination. Outside of the state’s capital of Brisbane, there are a number of regional markets which are seeing good growth and potential for investors.

We all know location is important and that it impacts what type of property to purchase. So what goes into the decision about where to invest?

·         Infrastructure projects in the works, or future timelines. In some cases these may have a particularly positive influence on future property performance, and in some cases it may detract or deter tenants from an area.

·         Jobs/employment rate. Large projects bring jobs and people to an area, ongoing opportunities keep people there, and big closure move people on. Steady employment opportunity is fundamental to a strong economy.

·         While the climate may not be a defining factor, it is worth considering if the risk of extreme weather is considerable. Cost of insurances may differ as a direct result of location and structural integrity of the property is important to consider.

·         Who are your tenants? Ensuring the need for rentals is strong in your market is vital for a successful investment. Demographics play a key role and it’s important to consider how your property services the local community in which it is located.

·         Legislative changes for property investors and landlords are evolving. Understanding the regulations and laws in which your investment is located is important and can directly influence the decision to buy, expand or sell, and when to do so.

As markets shift, it is important to consider all factors about your current and future investments. Staying up to date with market trends, legislative changes and regularly reviewing insurances and finances is vital to ensure your property remains competitive in not only today’s market, but your long-term investment strategy.