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Thanks Ian, Another question to all, I read that the resources sector is cyclical, if so, where are we now in the cycle?? Also, here's an interesting site with some articles of interest: http://www.omegainvestments.com.au/free_articles_and_reports.html

Here's some interesting success stories from Crawford Realty, some of these guys have their entire portfolios in Port/South Hedland: http://www.crawfordrealty.com.au/content.aspx?page=Success_Stories

If you are a local or in the industry and/or have local contacts to reliable/reasonable/trusthworthy tradies then that's good, but if not, you may have to rely on a PM. Though I don't think that a PM will have keeping costs low for you as a priority for them, given how many other properties...

Good point, eliminating PM fees like that would be a good saving.

Thanks Seabreeze, that's making more sense now.

Great post Ian, very insightful and useful advice.

Hi Seabreeze, Appreciate your insights re. Hedland, just a question on this, what sort of issues make it so hard to increase housing supply there? Thanks.

Hi all, I didn't for intend this thread to attack a particular person or their views (which are already well known to most) or business, but to generate an interesting and constructive discussion... thanks for the intelligent postings so far...

Seebreaze, You're right, there is a lot of lack of understanding on this thread (myself included), but hopefully through some of the posts here we can all get a bit more enlightened... Re. what is a mining town? I don't really know... what do you consider a good mining town to invest in...

Good advice there Belbo. I agree, a big 4 bed house and newer is better, avoiding body corporate fees (especially for interstate buyers as you don't have to fly up for the meetings each year) and lower maintenance expenses, and catering to executives/managers.

That's true, there might be LMI to add on to the loan (???30-40k), and other initial costs eg. stamp duty (60k) etc... so maybe add another 100k to the borrowings and take away $6300 from the net income, giving $43,290 - $6300 = $36,990. 6.3% is approximately what's on offer for 3 year fixed...

Hi there, Some research on the incidence of cyclones in Port Hedland WA: http://www.bom.gov.au/cyclone/history/wa/pthed.shtml Sure there's insurance, but it's still disruptive isn't it with the potential damage and loss of rent? This would affect my SANF for sure!

Thanks Belbo, Good to hear from someone who has invested in this area. With your two purchases in South Hedland, what sort of net yield (gross rent MINUS all expenses eg. PM fees, repairs/maintenance allowance, land tax, council/water rates, insurance, owners corporation, travel/inspection...

Very well said matt.

Thanks for your post Ian, and that informative link. I think you're right in that we all need to do more research before making such broad-sweeping statements about all mining towns. I think for most people it is just easier to follow the stock standard advice of buying within 10kms or so...

Good point, does MY's commentary on mining towns apply to towns with a number of mines, from different large mining companies, for different commodities, LNG, and with town centres/retail/residential/commercial developments etc. going on... ? (Never seen the place myself, I so can't really...

Yes that's right, and not sure whether the PM fees are included in the outgoings or not, and all of these expenses sound like they are much higher than usual metro areas would be. That's true, if the option isn't exercised for whatever reason and you have extended vacancy looking for another...

Thanks for the replies so far. As an example, here is one property currently listed in Port Hedland WA: http://www.realestate.com.au/property-house-wa-port+hedland-108505836 The details are: A 4 x 2 x 2 (plus study and pool) house Built in 2002 748 sqm Asking price $1,300,000 Rent $9750 per...

Hi there, I invite comments on this article below by Michael Yardney on investing in mining towns... http://www.apimagazine.com.au/blog/2011/08/mining-boom-or-bust-avoid-property-investments-near-the-coalface/ In particular, any comments from people who have invested in areas like Port...