Mining Towns back on the Radar?

After the Government has seemingly found a solution to the Resources Super Profits Tax (RSPT), is now the time to consider an investment in a mining or resource driven town?

Investing in a mining town could be described as the property equivalent of investing in a high risk stock. The returns can be significant however, there is also significant downside risk which is why timing and market knowledge is everything.

Now that the Government and the resources sector seem to have come up with an amiable solution to the Resource Super Profit Tax a greater level of certainty is likely to improve market conditions in the mining and resource intensive areas. For this reason it may be a good time to consider investing in resource markets.

With commodity prices making a strong resurgence it is clear that demand for commodities is ramping up. Given this, there is likely to be a higher level of demand for Australian mines to pull resources out of the ground at a more rapid pace. That means more workers and more demand for housing in what are generally chronically undersupplied markets.

A number of regions appear to have stronger prospects than others based on current demand for Australian minerals.

Source: RPDATA Property Pulse

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