Northern Territory is a large, expansive area located in the central part of northern Australia. There are several small settlements throughout the entire territory, but a significant portion of the 233,300 residents live near the Stuart Highway, a single paved road known as “the track” that connects Darwin to South Australia.
The territory’s economy is heavily based on mining and tourism, and the mining industry is responsible for creating hundreds of jobs each year that bring new residents to the area. Whether they come to Northern Territory to work or to enjoy the wide open spaces and wildlife, new residents need places to live. As a result, Australia’s least populated region is actually one of the best new places to invest in real estate. Consider these five reasons that you should think about areas like Darwin or Palmerston for your next investment property.
1. Growing Employment Opportunities
At the beginning of 2013, Northern Territory had the second-lowest unemployment rate in Australia with just 4.8 percent of residents searching for jobs. Northern Territory consistently has low unemployment rates because of the vast number of mining industry jobs. New projects at Limmen National Park and Limmen Bight Marine Park are expected to bring more workers and homebuyers to Northern Territory over the next several years. Additionally, four new suburbs in Palmerston will bring extra jobs and residents as 3,000 residential properties will be built. If you’re looking to invest in an area with a growing population, Northern Territory’s increasing employment opportunities will continue to bring people to the region.
2. Spacious Area
New properties are built in Northern Territory all the time, and the area still has plenty of room left for further expansion. There is so much undeveloped land and a wide range of untapped resources in the area that investors can expect to see continued growth over the next few decades. In the meantime, a number of residents are migrating to the area because they want to get away from the hectic pace of daily life in big cities like Sydney, Brisbane and Melbourne. Northern Territory is a peaceful getaway and a welcome change for Australian residents who crave less populated cities.
3. Good Pricing
Northern Territory has a wide range of properties available at different price points. Some properties are more expensive than comparable homes in other areas because the demand is so high in Northern Territory. As an investor, you can easily make a profit by finding a well-priced property and renting it for a moderate rate. If you’re looking to invest in your own home, this is the best time to buy because property values are only expected to increase over the next several years as more residents and workers come to the region.
4. Government Incentives
The Australian government has offered several different types of incentives, grants and benefits to workers and residents who move to Northern Territory in an effort to boost the economy and population. Some of these incentives have included bonuses for first-time homebuyers, business owners developing new companies and migrant workers. Investors looking for the best new properties in Australia could save substantially by taking advantage of these offers while they’re still available.
5. Areas with Low Rental Vacancy Rates
Because the demand for property in Northern Territory is high, rental vacancy rates are typically very low. For example, Darwin’s rental vacancy rates generally averaged below 2 percent for much of 2012. If you’re considering renting your Northern Territory property, you have a good chance of finding a qualified, reliable renter who will be willing to pay your asking price.