There is a lot of talk of Whyalla as a hotspot. Olympic dam is one of the major reason. Wanted to get others opinion on Whyalla?
BHP’s capital commitment to Olympic Dam has been broadly estimated at between $20 billion and $30 billion. If it proceeds at the lower level of investment, mining stimulus to SA multiplies over fifteen fold. The flow on effects will stimulate most sectors of the economy, including residential property.
whyalla does seem to be an interesting spot… i've mostly found maisonettes and duplexes there though.. many only can be bought by owner occupiers
I have been investing in whyalla since 2003, there have been great opportunities over this time, there are great opportunities right now. As with any location you invest there are good and bad areas, do your home work and you will find some gems in whyalla. There are a number of mines opening around whyalla other than the olympic dam project which should contribute to increased demands in the future.
mattsta wrote:whyalla does seem to be an interesting spot… i've mostly found maisonettes and duplexes there though.. many only can be bought by owner occupiersSouth Australia…….
It has great potential but frustrating at the same time……
I’ve got an IP down in Seaford purchased last year and at the moment everyone appears to be waiting for the thumbs up and go-a-head for the Olympic Dam Mine……
I believe it’ll go-a-head and SA will see some great wealth come out of the Woomera Prohibited Area but there’s a lot of mixed messages around. The unease in the global markets and complete uncertainty, nervousness and dissatisfaction with the federal government has everyone on tender hooks.
Whyalla is certainly looking to be a hotspot, however it would seem as though this is relying on the success of Olympic Dam. Personally, i would find this high risk based on one project.
I too have been watching this very closely, has anyone seen the latest news? Apparently the word from BHP’s chief is of a minimum two year delay, however the $1.2b in pre mining projects will be completed. However there seems to be a lot of heresay and conjecture floating around and very few facts…
hmmm..think it will be a good option if all goes ahead…this out just today ( but dont believe everything you read
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http://www.skynews.com.au/topstories/article.aspx?id=776871&vId=3421577So what's happening in Whyalla now that the project has been sidelined?
Are the speculators who bought holding on and hoping?
I don't hold property there, but if I did I wouldn't sell it. Whyalla's story is not over yet.
moxi10 wrote:I don't hold property there, but if I did I wouldn't sell it. Whyalla's story is not over yet.I agree Tony I'd just sit and hold. The Whyalla story is certainly not over yet……
Arrium (ex One Steel) is probably the Saviour for Whyalla. Reopening the old Iron Baron mine plus it's proposed growth strategy should see the town at least tick over at a reasonable pace for a few years yet.
Given the current resource sector downturn I wouldn't plan on anything too extravagant happening to Whyalla for a decade or two. If the price of ore drops further and stays down then that operation becomes questionable. This kind of uncertainty and perceived risk is likely to suppress any growth over the next few years.
If you have a property their and its 1/10 then you could afford to leave it and take a punt on it making a good dollar somewhere down the track but if its 1/1 or 1/3 then you're better off quitting it and moving your $$$'s somewhere more predictable. The last thing you want is a non performer dragging on your portfolio or acting as a brake on your growth opportunities.
BHP have applied for an extension until 2016 on approval decision for Olympic Dam. Very long time frame.
http://www.miningweekly.com/article/bhp-requests-extension-on-olympic-dam-deadline-2012-09-26
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