Regional development for Northern Territory township highlights investment potential
Purchasing investment property in the regional areas of the Northern Territory could be a great avenue to pursue in the coming months, with mining company Rio Tinto announcing plans to inject more than $500 million into the East Arnhem regional economy over the next five years during their bauxite operation.
This could could provide a wide range of opportunities for future community development in the area, with the company committing an additional $50 million to the local area to help support the growth and development of infrastructure.
This will help to fund training for business mentors, who will build up the capacity of indigenous business owners as well as support the development of new infrastructure in the local community. Furthermore, professional advisors will be available for community members, local businesses and residential property investors.
Chief Minister for the Northern Territory government Adam Giles said the new private sector entity will also take on the management of 250 surplus company houses in Nhulunbuy, with the hopes of attracting "new economic development" to them.
In addition to this, the state government will contribute $2 million to the Regional Economic Development Fund in order to drive further investment in the private sector, as well as helping to build essential pieces of infrastructure.
"Our commitment to the region includes expenditure of more than $1 billion on essential services including health, education and Police over the next five years. In 2013-14, the Territory government expects to spend $330 million in the region including $272 million on services, grants and infrastructure plus $58 million on public sector wages," said Mr Giles in a March 18 statement.
"As part of this annual spend, we have committed $66.5 million for local roads, $14.4 million in housing contracts, $7.3 million for new community facilities, and $5.46 million for education services."
The state government has also appealed to Prime Minister Tony Abbott about seeking $40 million funding to create boarding facilities for secondary students in the region.
This could present a great opportunity to secure some fantastic residential investment properties in the developing region. With a large amount of private sector investment - coupled with state government support - the local community is gearing up to become a hotspot for development.
Furthermore, the growth of Rio Tinto's bauxite operation could offer a number of great employment opportunities in the future. With this growth of the mining industry beginning to take off, there could be a wide range of chances for expansion over the next five years.