Investment opportunities in the south
South Australia is gearing up for a revived resources sector, which could make owning investment properties in the state an even more attractive prospect.
Alongside the Reserve Bank of Australia's early June decision to hold the official cash rate at a record-low 2.5 per cent, obtaining a home loan at a favourable rate is also a perfectly realistic option.
Initiatives in the south
The 2014-15 South Australian budget includes an array of initiatives that will help propel the resources sector to the next level.
A further 35,000 jobs are expected to be created by energy and mineral companies based in the state over the next 15 years, according to Treasurer Tom Koutsantonis.
The recently announced initiatives will help push further development, making the state an even stronger player in Australia. The establishment of an ambitious resources precinct at Tonsley Park is hoped to be "world-class", according to a government statement.
"By accelerating development of unconventional gas resources alone, almost 4,000 jobs can be created and $2.8 billion a year invested in the state's economy," Mr Koutsantonis said in a June 16 release.
"That is why we are providing an additional $4 million over four years to expand and modernise our renowned Plan for Accelerated Exploration (PACE) scheme. Our investment in our home-grown PACE initiative has already provided an increase in state mining production of $2.4 billion since 2004 and positioned SA as a leader in stimulating exploration."
A further initiative directs its attention to royalty payments. These payments will be deferred for unconventional gas pursuits in order to boost investment in this area, not to mention job creation.
With more jobs projected for the state, investing in SA could be a wise option. A potential influx of skilled resources-sector workers will no doubt seek the right kind of living options, so investors may wish to make the most of the country's cheap home loans and grow their portfolio in the state.
Image credit: By Ikhwan Zailani yuslim | honestly lazy from Adelaide, South Australia (Adelaide Light Trail::HDR) [CC BY 2.0], via Wikimedia Commons