Property investing in the mining boom
Property investment in the booming mining regions of Western Australia and Queensland may not be as profitable as it looks, according to an analysis of the 2011 Census results.
The release of the data on June 21 showed that as the state economy surged ahead in the resource rich states of Queensland and Western Australia, the population followed suit with more than a ten per cent growth in each region.
However, according to national accounting firm and property investment specialist Chan & Taylor, with little residential infrastructure in these often remote areas, investing in mining regions may not be as wise as assumed.
Chan & Naylor director Ken Raiss said that the idea of purchasing property in lucrative mining areas was appealing to many, but people should be wary of mining industry's flippant nature to disappear quickly.
"First and foremost this is a new industry based on a boom and all booms eventually end, that is the cyclical nature of the beast," Mr Raiss explained.
It is still possible to capitalise on the surging sector with some key considerations and precautions to keep in mind, he added.
"If you do your due diligence then investing in these new markets can be profitable, but like any business you need to know your market and do fewer things well in order to reduce your exposure to capital loss."