Asia Based Investors Rustle Russell

It would seem a far cry from the distant hustle and bustle of Eastern Asia, ten thousand kilometres away, but Russell Island, on the Bay Islands, South East of Brisbane, has recently drawn a lot of international interest as an investment destination.

A much larger than usual number of sales in the last few months, and nearly all of them to either the head or associates of an Asia based investment group, highlights a growing trend for safe haven, growth investments in Australian property. Particularly Queensland property, with exceptional capital growth potential.

The group has investments across the globe in a number of asset classes.

So, why Russell Island? We put this question to Darren Ashenden of Ray White Russell Island, one of the region’s most progressive agents.

“Our client, who is originally from the Sunshine coast, saw Russell Island a few years ago on a day trip and really liked it but with the GFC and other distractions he never quite got around to doing anything about it”, said Darren.

That was until a few months ago when a relative, living nearby, visited Russell, saw what was going on, with the new shopping centre, infrastructure, entertainment venues, planned park areas and the clean green fresh “sea change” lifestyle Russell Island has to offer. He then called our client to report what he had seen.

The first of many contracts was signed within a week, the next two within a few days and it has continued on from there. All contracts have been unconditional and settle in one month or less.

“Obviously, this is an investor who knows a great deal when he sees one”, said Darren. “He completed a thorough due diligence on Russell Island, and when we got the call, he and his associates were straight to business and looking to buy”. “I knew successful investors were decisive and quick to move but this really got out of hand a few times” said Darren. “I shudder to think what our phone bill is going to be”.“All this combined with different time zones made for an exhausting few weeks”.

Property on Russell Island has seen substantial declines and sluggish sales in the last year and this is exactly what this group has been searching for. Russell Island matched all of their buying criteria and they know the prices of land will never be this low again. They are aggressively buying to ride the growth wave in the near term. “Some days I smile to myself and just think, how many people miss this kind of opportunity, then talk about the one that got away for the next ten years?” said Darren.

The group intends building houses on many of the properties in due course and either renting or selling, depending upon the market at that time. “They are in no hurry to sell at all”, said Darren, “This is a long term plan and will pay sweet rewards”. “Our client told me they use the famous Warren Buffet doctrine, “be fearful when others are greedy, and greedy when others are fearful”, to guide all investment decisions” said Darren. “Practically nobody is buying property right now so the big guys who have the experience and access to the best research, are starting to move, and fast”. “That should be a pretty clear sign for us all”.

And what of the guy who started all of this, the relative? Well, he and his wife have seen these people move rapidly into a new area a number of times before and immediately purchased property for themselves on Russell Island. “Too many times in the past, I have watched these guys make a fortune on smart property investments and thought, I wish I’d done that back then”. “Not this time” he said.“I’m going to be the guy who says, I DID”!