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Investing in a personal goldmine

Investing in a personal goldmine

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Date Published : Wednesday, June 04, 2008

Investments have taken a bit of a pounding over the last few months. Uncertainty in the stock market has halted the growth in super funds, while the property market has been pummelled by high interest rates and slowing prices.

However, despite this, there may be some unexplored regions where investments can bring back dividends.

For those looking to invest their money short-term into property developments, mining towns and purpose built estate complexes are proving to be a hidden gem - reaping rewards for those who venture there.

According to figures from RP Property Data, those investing in property in Queensland mining regions like Mount Isa, Gladstone and Charters Towers are seeing good returns on their money as the industry grows rapidly. The northern regions of South Australia are also being favoured by investors.

RP Data research director Tim Lawless told news.com.au that pick and flick property investors are much like share market traders.

"Usually these people are well-versed in all aspects of property investment and keep a close eye on the pulse of the marketplace around Australia," he said.

He added that there is a risk attached to buying into a mining town - that the market is entirely dependent on a single industry.

However, as a recent report by the Minerals Council of Australia stated that another 90,000 mining jobs would be created across the country by 2020, it is not a sector that will be in decline any time soon.

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