NSW State budget... Investors follow the money
With the recent announcement of the State Budget, a large focus has been on infrastructure and the rebuilding of NSW with a record $60 billion investment into infrastructure projects. Major financial investment in rail and road projects will ease the burden of congestion across the State and help rebuild NSW’s productivity.
Some of the major projects that the NSW Government are focused on include the North West Rail Link ($8.3B), WestConnex ($14.9B), NorthConnex ($3B), CBD and South East Light Rail ($1.6B), Western Sydney roads package to support Sydney’s second Airport ($3.5B) and South West Rail Link ($2B).
While the Government is throwing billions at these projects, tens of thousands of new jobs are being created and certain locales are becoming more attractive than they have ever been before. Families are following the infrastructure spend, the new jobs and the new communities to live a better life.
As a property investor you should be following the lead of the NSW Government and buying into areas where the Government has outlined a strategic growth plan for the next 10 to 20 years.
Take, for example, the South West Corridor, an area that the Government has focused on. The State Government has announced the $3.5B Road Package to support Sydney’s second airport, the $2B South West rail link and a $1.3B Hospital package to renovate and extend 4 hospitals in the state including Campbelltown Hospital in the South West.
The reason the NSW State Government has focused on the South West is simply because it is one area in NSW where the population is growing rapidly and Infrastructure is desperately needed to cope with the demand from the local residents. Population in NSW increases on average at 1.1% per year however in hotspots like Campbelltown, population growth is 36% higher! Affordable homes were originally the main reason for families to move into this corridor but as infrastructure has been developed over the last few decades, the South West Growth Corridor is now a major focus for the NSW State Government and will be for the coming decades as the Sydney population is set to explode to 8 million (that’s almost double our current population in Sydney at the moment!)
Infrastructure is one of the major factors we tend to focus on when analysing investment property opportunities. There are, of course, other important factors to consider too but as the infrastructure spend in Sydney in the last 10-15 years has been minimal compared with what is due to come, it’s important not to ignore where serious money is being spent; and, if investing in property isn’t for you, it’s at least good to see that your taxes are being better spent these days!
To find out more about the NSW State Government Budget for 2014/15 you can contact a property expert at iBuyNew on 1300 123 463
Published on 17th of September 2015 by Michelle Leftwich