28 September 2011
With the media continually telling us all how hard times are it’s no wonder the average Australian is being cautious. People are currently saving more than they have in decades and choosing not to upgrade their house or even enter the housing market. Building approvals are at record lows and the shortfall of houses is growing.
But is the sky really falling?
After a decade of continued economic growth and record company profits, we have become accustomed to higher than normal growth rates in living standards. Because a company doesn’t show increased profit its doesn’t necessarily mean it’s had a bad year. You cannot expect to return a record profit every year.
Sure there has been a large number of jobs losses in manufacturing, but in reality the government has been propping up this industry for years. How long can these companies continue to make a loss at tax payers’ expense? While it is terrible for those who lose their jobs, that number of people pales in comparison to the amount we need to employ in the resources sector. Its estimated that 140,000 people will need to fill jobs in central QLD alone in coming years. That is staggering!!
WA Boom brings $120M per day;
So while many other segments of the Australian economy falter, the resources boom continues to gain momentum;
Business investment is booming at rates never seen before, so if the economy is struggling that much why are interest rates above their historical average?
http://www.theage.com.au/business/rate-cut-hopes-fading-fast-20110901-1jnbb.html
Government gives environmental approval for $25Billon project;
Resources projects of unprecedented size are underway
http://au.news.yahoo.com/thewest/business/a/-/wa/10151443/chevron-inches-closer-to-wheatstone-fid
So do you listen to the media or invest in the biggest mining boom this country has ever seen?
The majority of Australia’s capital cities have had zero to negative growth in the past 12 months. But larger regional cities that service the resources sector continue to thrive and are set to grow at record pace. Gladstone house prices have grown by around 20% in the past 12 months and look set for plenty of growth to come. MacKay has a 0% vacancy rate as it well paid population grows at around 3% per annum, double the nations average. Geraldton will be the gateway from central WA to send iron ore out to the rest of the world. There is a window of opportunity open now to invest in this city before the boom arrives;
Follow the money, capex boom gathers pace;
http://www.smh.com.au/business/follow-the-money--capex-boom-gathers-pace...
RIO see big growth for iron ore;
RIO Tinto expects iron ore demand to increase by at least 800 million tons a year over the next eight years, which is more than the combined existing production of Australia and Brazil, the world's two biggest iron ore exporters. http://www.theaustralian.com.au/business/mining-energy/ore-demand-out-of-this-world-says-rio/story-e6frg9df-1226127659042
Boom times in WA housing shortfall;
HIA chief economist based in Sydney belives that WA will be the most adversly affected state from the lack of home building over recent years. This will lead to high price growth over the next decade of around 10% per annum;
http://au.news.yahoo.com/thewest/a/-/newshome/10169055/boom-time-in-housing-shortfall/
So the choice is there to listen to the doom and gloom in the media or to profit from the largest resources boom this county has ever seen. Thousands of people will make millions of dollars over the coming decade by investing now while others choose to wait until the media tell us how good things are. You know that when that happens it’s too late!!
While consumer confidence is down and the media largely report doom and gloom, Australia is in the midst of the biggest mining boom we have ever seen. You make the largest gains by going against what the majority are doing, which is sitting on their hands.
The following is an excellent article explaining how the massive mining boom we are entering will change the way many Australians live. Please take note of the line “There's a role for government to make it appealing for families to move to Gladstone or the northwest of WA," .http://www.theaustralian.com.au/national-affairs/decades-of-wealth-from-boom-as-commodities-exports-forecast-to-hit-480bn/story-fn59niix-1226132689353
Both Gladstone and MacKay in QLD, and Geraldton in WA are likely to be the cities that prosper most from this resources boom. Gladstone property prices are up 20% in the last 12 months with plenty to come and MacKay and Geraldton should soon to follow suit.
Congratulations to those of you who have chosen to invest on one or more of these locations. Your investment will provide you with a platform to accumulate large wealth over the coming decades.
