Your Investment Property forum is the place for positive industry interaction and welcomes your professional and informed opinion.

How investors really get screwed in mining towns

Notify me of new replies via email
Your Investment Property | 06 Nov 2012, 12:00 AM Agree 0
It’s no secret that mining towns are risky, but not for many of the reasons property investors commonly think
  • Jane Slack-Smith | 06 Nov 2012, 08:45 PM Agree 0
    Patrick this is an excellent article targeting the issues of buying in mining towns and the opportunities. It is all about analysing the risk and knowing what they are and how to minimise these risks. Your article is a great resource for would-be investors - I will be definitely sharing this link with my clients.
  • Andrew Thom | 06 Nov 2012, 09:30 PM Agree 0
    I am a builder working in a mining area in Nth Qld.I have been there for the past 12 months and have found that if you can build a quality product in the right area your long term returns will be greater than building a sub standard house that may need constant maintenance.In these towns there are plently of individuals who are making a lot of money and are crying out for a quality home to rent or purchase and are willing to pay for quality,not just a mass project house from project builders.Your articles are very interesting and sums up what i have seen since working in the area.I will keep reading with interest
  • Goodo | 07 Nov 2012, 09:46 AM Agree 0

    One item that you have forgotten on your list is the level of industrial dispute between the mine and its workers. This was one of the major casues of the mine closure at Dysart earlier this year. The fact that the mine had been involved in ongoing industrial disputes with its workers for 2 years should have sent warning signals to investors, however, many still bought into the hype and some have now got stuck with over priced property, no available tennants and no sale options without significant capital loss.
  • Patrick | 13 Nov 2012, 06:42 PM Agree 0
    Goodo, good point you raised and quite valid. I'm sure there are other isues too that have been over looked that others have knoweledge of and have experienced.
  • Patrick | 13 Nov 2012, 06:45 PM Agree 0
    thanks - and glad you got something out of it.
  • Patrick | 13 Nov 2012, 07:06 PM Agree 0
    Agreed. As an investor you want to have a maintenance free/issue free house as it (dealing with issues) chews up money and time, reducing your return and increasing your work.
    As a builder your reputation is built on the quality of build and ability to deliver what the customer wants so you'll benefit in the long run for sure. I wish you well and thanks for the comments.
Post a reply