Hi there, looking at investing in some “mining towns” as we know us mining CUBS ( cashed up bogans) have loads of excess money to spend on rent etc. Does anyone have any infomation on minesites that are ready to boom or towns to pay attention too, or for that matter ones to stay away from. Thankyou
Give Mount Isa a look at, billions of projects in the pipeline and shortage of rental properties, has gone up approx 30% in the last year and no signs of slowing for years. Have properties in Isa and get local daily paper delivered to Brisbane, plus talk to locals. Still some properties with good yield if you look.
You might want to look at Karratha WA , this town is booming and there is so much work coming up with the extra train and talk aready of another. Companies such as Woodside ,Monadelphos are employing on a fly in fly out basis as theres a lack of rental properties.
A freind of mine is getting $850 a week rent there for a average 4×2 that he paid $220,000 for 2 years ago. The average rent there is app $650 for 3×1 /4×1 and around $400-$550 for a unit.
A good site to subscribe to is MiningNews.net they send out a free daily newsletter which is quite informative. Keep an eye on projects that are on the drawing board (in feasability stage) and where they are located. It is too late in some of the existing mining towns. White Range up near Cloncurry is coming up and a few others around the Cloncurry/Mt Isa area.
I’ve spoken before on Kambalda in the WA Goldfields. I have been buying and selling there for about 12 months now. I have just returned from my monthly trip from there. I bought another 3 this week. The market has tightened rapidly. A good place to check it out is http://www.realestate.com.au also on a search engine type in “Diggers and Dealers”. This conference was in Kalgoorlie last week. The plans for the area were revealed. Consolidated Minerals are trebling their nickel output over the next 12 months just as a snippet. Check out the announcemnts on the asx site for Mincor mcr and sally malay smy that’s how I monitor my buying and selling in Kambalda.
Happy prospecting to all those who venture into the mining towns in search of extra wealth. Did you know the resource boom is creating wealth at an unbelievable rate in WA at the present?
I am not endorsing kambalda but I am investing there and loving it!!!
My only concern with investing in places like these is that these towns have populations of less than 5000 (or even 1000), is there enough demand in the long term to make it worthwhile buying property in these small mining towns? What is the vacancy rates in these towns and why are people selling if there cashflow positive? These questions need to be considered before buying in these towns mentioned above.
i’m a professional in the mining industry. Personally, i wouldn’t buy a property in a mining town for all the tea in china. Way too cyclical. When the worm turns in the mining industry, its usually pretty quick.
Your absolutely correct. I’ve been in the industry for a few years now. If the coal bottoms out in Queensland the market is going to bottom very quickly. Personally I wouldn’t buy in mining towns like Moranbah etc. The rentals might be great at the moment but for the long term the property prices are already too high. Inevitably they will go down, and quickly
Its inevitable that prices will plumet once the workers move on and re-locate to another area so ive always thought of it not as a longterm investment but one of timing you need the knowledge to buy and sell at the right times!
I have bought in the Banana Shire, largest underground mine to go online soon. Prices have increase significantly since my purchase. New infrastructure going in, all looks positive for a while yet. I dont believe the mines would spend this amount on infrastructure without a good reason. Mick
Just looked up "Moranbah" on realestate.com. $350K+ for a house I wouldn't buy there either! $150k in a mining town is my limit! Cheers Mikey P
Looks like you won't be buying soon in any viable mining towns, you will be lucky to find a bit of land for 150k
When considering mining areas you need to look at the life of the mine , how long they estimate the coal mining will continue on that area. Mines usually have a set life life expectancy example 25 yrs, 15,50 ect There is not much point buying into an area that is ending that time, unless a new mine is about to start or existing mines have discovered more.
There are calls for the Queensland Government to step in as the population and housing prices in Moranbah continue to rise with the mining boom
The manager of the Emergency and Long-Term Accommodation Service, Kel McKenzie, says house prices have jumped by 600 per cent over the past five years and the population has doubled to about 9,000 permanent and transient residents. Ms McKenzie says many homes are out of reach for average earners. "About five or six years ago you could pick up a house between $50,000 to $60,000, now they average between $300,000 to $400,000, which has then led to an increase in rents," she said. "Rents are now up around the $400 to $600 per week mark, there's only four properties to rent at the moment in Moranbah."
The Bowen Basin is already looking forward to 55 new coal mining projects, with 33 of those in the Mackay district. Only three of those are expansions: Kestrel, Carborough Downs and Isaac Plains. Some are still waiting on government approval.
Rather than mining towns have you considered investing in the regional centres that serve these towns. With competition for staff in the mining industry getting harder a lot of mines are offering roster work on a commute basis (Either fly in, drive in or bus in from a major center). I'm thinking of places in Queensland like Townsville, Cairns, Mackay or the Capricorn Coast.
If you were to invest in types of property that are attractive roster workers (Newer low maintaince units close to all the action of the centre). While the rents may not be as high as the mining towns you a certainly better protected from a downturn in the resources boom (And it will happen eventually).
Hi Just a bit more on Karratha prices for a 4 x 2 house are now around 850K and up. A 3 x 1 you'd be looking at 500K up. If you are looking for good return and long term I'd buy in Karratha I intend to buy there. To build a house it is a 2 years (at least) waiting list and nowhere near enough rentals. With Rio Tinto, Woodside and Dampier Salt these guys aren't going anywhere and I reckon there is at least 50 years work up there before any slowdown. Well that's my opinion anyway Steve