The most important research resource for a property investor is the local council: Terry Ryder

ALL the successful investors I know have a common factor: commitment to research.

The best of them research continuously and copiously. They tune out media comment and tune into information. They end up making good choices about product and location.

But I suspect one factor many overlook is the most important research topic of all: the local council.

I would never buy in an area unless the local authority impressed me. The personality of the council leadership can be the difference between a region growing or stagnating.

I don’t mean pro-development. The Gold Coast has had a series of pro-developer regimes over the years, and it hasn’t done the real estate market a whole lot of good.

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I mean pro-community, pro-jobs and pro-prosperity. It’s not the same as being pro-development, nor does it mean being anti-heritage or anti-environment.

A council that’s forward-thinking and proactive in fostering a healthy business environment and a strong community ethic can do wonders for the local property market.

Cairns in north Queensland provides a current example. Twenty or so years ago Cairns was all the rage, driven by Japanese tourism and investment. When that waned, so did Cairns.

Townsville, once regarded as the poor relation of Cairns, overtook its northern rival and left it behind because it proactively and successfully generated a well-rounded economy with more than tourism in its arsenal.

Now Cairns is fighting back. The time is fast approaching when Cairns will be worthy of investor attention again.

Cairns Regional Council has offered to forego millions in revenue from developers to encourage business and local employment. The council is waiving fees and infrastructure charges, so long as developers use 80% local workers and suppliers, and finish their projects before the end of 2014.

It’s about generating economic activity and employment. That will translate, in time, to a stronger property market.

The councils that run the twin border cities of Albury (New South Wales) and Wodonga (Victoria) strike me as go-ahead as well. One current project is a plan to re-energise a rundown part of central Wodonga to create a new commercial heart. Around $26 million is being on infrastructure and renovation of features such as the railway station buildings, to attract businesses to invest in the area, with new retail, entertainment and commercial developments.

The general theme of Albury-Wodonga is one of growth and expansion.

The Goldfields town of Maryborough in Victoria has successfully re-invented and re-invigorated itself. Not so long ago the town was colloquially known as Scaryborough and had more than its share of issues. Local people with energy and good intentions decided to change it status and its image.

Much has changed. Maryborough has managed to combine a prosperous and expanding business community, particularly in manufacturing, with a particular emphasis on spotlighting the town’s many fine heritage buildings, including a railway station that put the legendary American author Mark Twain into raptures when he visited in 1895.

The town and the Central Goldfields Shire is going places and its median house saw double-digit growth in the past 12 months, while Melbourne down the road has been going backwards.

This factor, the energy and attitude of the local council, is one investors should not overlook. When I’m researching a location, I often call the mayor (the mobile phone number is usually on the council website). Most are happy to chat about their town or region and it’s helps to provide a feel about whether the location is moving forward or not.

Article written by Terry Ryder for PropertyObserver.com.au 

Thursday, 22 November 2012

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Peter Musso licensed real estate agent at Ray White Smithfield selling property in Cairns' beautiful northern beach suburbs including Trinity Beach, Kewarra Beach, Clifton Beach, Palm Cove, Trinity Park, Smithfield, Yorkeys Knob, Holloways Beach, Machans Beach, Caravonica, Kamerunga and surrounds.