31 Jul Looking at Rural Areas

Looking at Rural Areas

There has been a lot of emphasis on the rural areas, particularly the mining areas in Australia and rural areas in New Zealand (although in New Zealand hardly anything is remote rural) if it is not very far out of the major cities and you have got a town. Nothing is very far away from each other so it has got a little bit of different dynamics. You also have to look at the bigger picture when you are looking at cash positives because a lot of the properties are found in those kinds of areas. You need to think, if you buy a property in those kinds of areas now what does it mean to you? What is happening in the market? We have had huge resource increases.  Our mining sector was booming.  For how long is that expected to continue? We have got a lot of mines that have opened up. Because of our increase in the mining sector; the price of gold and oil and coal and nickel and copper and all of these things have all gone up over the last few years which has made a lot of mines profitable that were not profitable previously, although this has now slowed somewhat.

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