All Topics / General Property / Top 5 Mining Towns

Viewing 4 posts - 1 through 4 (of 4 total)
  • Profile photo of amcewinamcewin
    Join Date: 2011
    Post Count: 8

    I am just starting to research mining towns and was wondering what everyone thinks are the top 5 mining towns to invest in for 2011.

    I am looking for towns with a population greater than 10,000, price range between $300-450k, positive geared for a 5 year term.


    Profile photo of Joanna - New InvestorJoanna – B
    Join Date: 2011
    Post Count: 11

    I've just bought in Branxton, it's about 30km from the mining region in the Hunter Valley. Construction on a brand new expressway which will make for a quick commute to Sydney has also just started.

    The town itself is also considered Wine Country and Council is looking to redevelop it into more of a tourist destination rather than the current truck stop town it is now.

    Woolworthes have recently bought a plot and the new Huntlee development is planned to go ahead in East Braxton and will involve new schools, housing, shoping centre etc.  Rezoning is also in with State Government for approval. Cessnock/Singleton/Maitland are all within 20 minutes drive so while it is a small town, larger towns and accomanying infrustructure is near by.

    They are just about to open another few Coal mines in the area and they intend to be mining for another 30 years or so, so plenty of rental income. Huge shortages in current availability of rentals in the area. Vacancy rate is less than 1%.

    I researched it to death before investing. Property is around the $250 – $350K mark and may be worth looking into for you.

    Join Date: 2007
    Post Count: 574

    For rental return I would suggest Dysart based on this recommendation Currently a house bought for $400k will rent for $1,000 per week!! My investigations have confirmed they are on the money.

    Just be aware that if there is another downturn, last time they dropped rents significantly to as low as $450 per week to get tenants in. As long as China is going strong though, it is great cashflow.

    Profile photo of Property Investor 1Property Investor 1
    Join Date: 2011
    Post Count: 10

    Just buy Terry Ryders National Top 10 Boom Towns Report (May-Sep 2011) ….all your questions answered – in detail!
    Also check out demographics reports for the areas you are intersted in. They are a helpful source of information. Forecast population growth is a good stat to look for. Just ensure supply is limited though.

    But beware:
    After reading this report, I did further research into a few towns that took my fancy. One of them was Dalby (my example of why you need to be careful and not buy blindly because someone recommends it in a report). I thought Dalby was going to be a great investment – population growth is solid & there is continuing investment into new projects – based on these stats alone you would think it has all the indicators of a boom town (& Terry Ryder said it was…). But the supply is strong, keeping demand at bay (this is actually good policy by the council for long term affordability – but poor for investors). There are many land releases, and there is plenty of new stock for sale. Due to this, prices are steady and yields are staying pretty low (4.5%). Vacancy rates are creeping up (3%). Capital gains in the short term look unlikely. It may come to life once the supply runs out. Still a good long-term prospect….I just wouldn't buy here at this point in time. 

    Chinchilla on the other hand looks more promising. The market is diverse (though not as diverse as Dalby). Supply is limited. There is only one new development  – Sovereign Park Estate – the executive estate – price range for existing homes about $440k+  land $165k – $175k – if you want to build this is the estate – currently 3 blocks available which is unheard of – Stage 2 set to be released early next year with rumours H&L packages starting at $500k – good rents / good growth. But the $500k price point is right at the top of the local market….suggesting that the developer is pricing in future growth. The average house price in Chinchilla for new stock is about $400-440k – older stock around $350k (I like the older stock – brick late 80's/early 90's. Still in good nick. The yields are fantastic, and the % capital growth will be as good as the new areas). Rents have recently increased very significantly due to the lack of supply and influx of workers. Yields upward of 7-8% are very realistic now (but only 6-12 months ago only 5% was possible), and it looks like this upward trend will continue. And we all know, when the yields become attractive, and the market is underpinned by solid economic foundations, the property investors swoop, and capital gains go through the roof.  I belive Chinchilla is right on the cusp of another boom.

    If any of my stats are wrong – please post and let me know.


Viewing 4 posts - 1 through 4 (of 4 total)

You must be logged in to reply to this topic. If you don't have an account, you can register here.