The Resource Super Profits Tax had a lot of people wondering whether mining in Australia would continue to operate at the level it has been over recent years, but with the hopes that the Government addresses these issues, the mining industry could certainly hold firm. This could reap big rewards for property investors.
We’ve touched on the topic before of the mining industry bringing workers into towns, increasing the demand for housing. If you’re an investor, or looking to start a property portfolio, you have to recognise the potential for capitalising on demand for rental housing.
It is something not to be taken lightly however, so we advise doing your homework. Find out as much as you can about what the mining commodity is, how long it could be mined for, how many residents it could bring to the community and what the demand is going to be. You also need to consider what type of property is going to be in demand, how long you’re going to hold onto your investment and what future financial returns might be when you do decide to sell.