By Terry Ryder, 17th September 2012
The importance of investing in locations with multi-faceted economies has been highlighted by recent events in the resources sector.
While many investors have enjoyed high capital growth from buying in mining towns, holding property in one-industry locations sits at the high-risk end of the property investment spectrum.
When mining entities like BHP Billiton and Xstrata react to falling commodity prices by shutting down mines or deferring proposed projects, the high price and rental levels in the relevant mining towns are vulnerable.
This emphasises the wisdom of focusing on locations with more diverse economies. The places that best fit the bill are regional centres that derive some benefit from the resources sector but do not depend it.
The new edition of the National Top 10 Boom Town Hotspots report features such places. (http://www.hotspotting.com.au/report/119-national-top-10-boom-town-hotspots)
Dubbo in New South Wales provides an example. This important regional centre is thriving, thanks to the multiple services it provides to the Orana district, notably in the health, education and retail sectors.
Dubbo is surrounded by important wine and agriculture country. It sits at the junction of major routes for road, rail and air transport. The Western Plains Zoo helps provide a healthy tourism industry.
It has a proactive and ambitious local council, which seeks to draw business and new residents to the area – always an important factor for property investment.
And, as a bonus, there is a growing mining presence in the Dubbo region.
Affordability is another attractive feature, with typical houses in the mid-$200,000s.
Select Your Report
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