Australian Farm Prices Holding Up

There are two bright spots in the Australian economy at the moment: gold and farming. So in terms of property investing: Kalgoorlie is about the only mining town I'd even consider investing in at the moment! As an established gold mining center with great proven reserves it has a bright century or so ahead.

Farm sales are holding up well - at least in those parts of Australia outside of the drought-stricken Murray Darling catchment.  Grain crops are returning good international prices, and are further helped by the fall in the Australian dollar. The long-term outlook for wheat and similar crops are excellent too - its unlikely that the world is going to give up eating anytime soon!

In fact broadacre farming land is going to become more and more valuable as the same land is also suitable for the newly fashionable farming of alternative fuel sources.

In fact in Western Australia, where you can't give away multi-million dollar beach-side mansions , expensive farming properties are selling. An Esperance property sold for $21 million, and  two Three Springs properties sold for $16 million.  Distressed Queen Street farmers (that's Australian for yuppies who drive large SUV's who never go off-road), have little chance chance of cashing out of their mansions to down-size and retire, or even just pay off their margin calls.

Ironically its the farmers who have done it hard for a number of years with low commodity prices and a high Australian dollar who suddenly can cash out and head into retirement comfortably -  I should think that they will be in a great bargaining position when they buy that seaside retirement house.

Broadacre Farmland, Western Australia

Photo Credit: Australia News