Look Before You Leap
A warning has been sounded to small investors to take precautions when investing in residential real estate if associated with the mining boom. While there are big opportunities for “mum and dad” style investors to capitalise on the boom and enter into a new mortgage, the Chief Operating Officer of Surat Basin Property Group said there are numerous factors to consider, including local representation.
“There are a number of operators active nationally who are marketing property in the mining areas, but in many instances they have no local representation,” Jason van Hooft said. He said they often have no maintenance teams on the ground to deal with warranty issues and don’t have leasing and rental management capabilities. Potential investors should do their homework and make sure they look at the quality of construction and design, the true location of the property and local representation of the development company that is marketing the investment in question.