Investors considering buying Australian property in mining towns have been urged to think carefully about their purchase and ensure it has a long-term future.
Chan and Naylor director Ken Raiss told Australian Property Investor there is a concern that purchasing residential infrastructure in mining towns could end up being a "flash in the pan", with sustainability substituted for short-term gains.
With the population of areas such as Queensland and Western Australia growing by ten per cent over the last five years, it is clear that investors can take advantage of increased rental yields.
However, the director urged buyers not to get carried away with the prospect of instant profits.
"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," Mr Raiss explained.
Property Council of South Australia executive director Nathan Paine recently told the Australian he expects demand in Adelaide to grow as the mining boom continues.
Posted by Craig Francis
