Continued development of Northern Territory infrastructure offers investment potential
The importance of sustained infrastructure development cannot be overstated when looking for a suitable place to consider taking out a home loan and building an investment portfolio. After all, being able to maintain growth heading into the future is a major part of any investor's thought process - the need for value increase and the eventual sale of the real estate for a profit.
Therefore, it's always a good idea to investigate the current and future infrastructure projects planned for an area before committing to any investment purchases. For example, the Northern Territory government recently revealed that there have been more than $268 million worth of contracts given for infrastructure development across the state in the last six months alone, for projects essential to the sustained growth of the region.
Minister for Infrastructure Peter Styles said the creation of a prosperous economy needed to be supported by the building of infrastructure - as well as the emergence of new employment opportunities for residents living in residential properties across the state. He went on to say that 96 per cent of these contracts had been given to local businesses, helping to keep the finances within the local economies and aiding the overarching growth of the Northern Territory.
"The Regional Roads Productivity package delivers more than $106 million in road upgrades over four years, to six major Territory roads, which includes $30 million for parts of Santa Teresa Road and Port Keats Road which have already been awarded," said Mr Styles in a November 25 statement, highlighting the importance of developing the region's road infrastructure. As more people begin moving into the state, the necessity of strong travel options is an essential part of creating a cohesive living environment.
"Developing and building essential infrastructure to Territorians is part of our government's plan to provide economic benefits and jobs back into the community. With a record spend since May this year of more than $301 million, which includes $112 million on roads, and $189 million on Infrastructure, the Giles government is committed to delivering essential services to Territorians," said Mr Styles.
Some of these developments include $3.3 million reserved for the development of land in Alice Springs, $2 million for the Wurrumiyanga Barge Landing, $44.3 million for the development of land in Humpty Doo, Darwin and many more across the state.
This could be great news for the future development of the region, offering a number of investment opportunities in both metropolitan areas and regional property markets.
Rising home lending in Northern Territory
Furthermore, a Housing Industry Association (HIA) release from earlier this month (November 10) highlighted the rising commitment in new home lending across the Northern Territory. This could provide some incentive to make moves into the local market and secure finances for your property goals - whether it be buying existing real estate or taking out a construction home loan and beginning your own building projects in the state.
The number of loans for owner occupiers purchasing or constructing new homes in the Northern Territory rose to 72 during September 2014. This is up from 42 seen in September last year, and brings the total amount of loans seen over the September quarter up to 192.
HIA Executive Director for Northern Territory Robert Harding said sustained reforms would help to keep these figures on the up, which would be good news for the region as a whole.
"Today's figures are pointing to ongoing health in the Territory's residential construction sector in 2014," said Mr Harding.
"Very low lending rates are helping the situation, but Territory policy makers cannot rely on these temporary settings to do the heavy lifting for lasting change."
Now could be a great time to consider making your own moves into the Northern territory property market and securing real estate in the ever-growing state today.
Image credit: Daniel Lobo