Would you be buying in Mining towns currently?

Just writing to get opinions of those in the know.

With Rudds brain snap recently and trying to tax mining company with his "super tax" and now Rio halting any further expansion in Iron ore in the North West of WA, would you be buying in Karratha, Port/South Hedland or Newman?

Is this likely to "blow over" or do you think there is a possibility of mining in coming to a crashing halt?

Interested in hearing opinions especially those who have invested in the area, thinking about, work for any of these companies, have any inside knowledge etc.

Cheers.
 
as long as the minerals and metals are still there, if Rio or any other mining company pull out, there will be other companies that will take their place. The question is what happen when all the metals and minerals have been mined out.
 
The government is taxing the "Super" profits. Not just the profits. So its not the 'millions' that the mining giants make, it is the 'billions' that will will be taxed at a higher slab.

Not met anyone who would not stop working just because they will be taxed. Nor have I met a bloke who would not ask a raise even though they move into the next tax slab!

Come on BIG mining corporates, quit fussing and just pay up. You know the Honey is in the jar :cool: :D
 
South Headland

We have been looking at South Headland for a while. A friend has just purchased a place for 600K and it is renting for $1,200 a week. Rather tempting when you see that sort of return. Is anyone seriously considering investing in this area at the moment?

I would be interested to hear your pros and cons on buying in the Pilbra. Our portfolio is negatively geared and a nice positively geared property would do wonders for our cashflow and borrowing capacity going forward.
 
It is important to remember that it is NEW mines at threat. I reckon that genuine, long term mining towns are possibly still better value than the cities. But I'm not a student of localities, just broad brush stuff.

Politically, the Big Tax is unlikely to get passed and if Rudd survives the next election, he won't the one after. It is bad policy.
 
We have been looking at South Headland for a while. A friend has just purchased a place for 600K and it is renting for $1,200 a week. Rather tempting when you see that sort of return. Is anyone seriously considering investing in this area at the moment?

I would be interested to hear your pros and cons on buying in the Pilbra. Our portfolio is negatively geared and a nice positively geared property would do wonders for our cashflow and borrowing capacity going forward.


They have just announced they are building another new port up there. I can't see it slowing down any time soon....
 
Mining Town Purchases

Never buy for capital growth in a single industry town. Look at Ravensthorpe - shut down in a hearbeat. BHP were having trouble getting workers in Roxby Downs as property prices were through the roof, so what did they do they trucked in some accommodation.

Australian miners are very adept at mothballing their operations, and, very quickly. If minerals prices tank then they will shut it down untill prices come back up.

Big risks in owning property in ghost towns!
 
Not met anyone who would not stop working just because they will be taxed. Nor have I met a bloke who would not ask a raise even though they move into the next tax slab!

Come on BIG mining corporates, quit fussing and just pay up. You know the Honey is in the jar :cool: :D


I must be quite a bit older than you. I remember the days when the top tax bracket was 60%.

Yes, LOTS of people refused to work overtime if it took them into the highest bracket because "it wasn't worth it - you are working for the Government, not for yourself".

Consider this - the Government charges an extra 40% tax on "super profits" from successful property investors. Would you take this into account when making investing decisions?
Marg
 
We have been looking at South Headland for a while. A friend has just purchased a place for 600K and it is renting for $1,200 a week. Rather tempting when you see that sort of return. Is anyone seriously considering investing in this area at the moment?

I would be interested to hear your pros and cons on buying in the Pilbra. Our portfolio is negatively geared and a nice positively geared property would do wonders for our cashflow and borrowing capacity going forward.

Hi younguns
I am just tracking this market and not too keen to jump in just yet.

What I am observing is properties are still getting snapped up, however no leases attached, that's a worry. Also $600K range harder to rent, especially if older style property with only 1 bathroom.

I suspect prices may pull back, am told has stabilised...

Cheers, MTR
 
Just writing to get opinions of those in the know.

With Rudds brain snap recently and trying to tax mining company with his "super tax" and now Rio halting any further expansion in Iron ore in the North West of WA, would you be buying in Karratha, Port/South Hedland or Newman?

Is this likely to "blow over" or do you think there is a possibility of mining in coming to a crashing halt?

Interested in hearing opinions especially those who have invested in the area, thinking about, work for any of these companies, have any inside knowledge etc.

Cheers.

Spoke to someone yesterday who owns a few houses rented out to larger companies in Moranbah, QLD, she believes that negative spin in papers has impacted on this particular mining town. Apparently 85 rental vacanices that is huge for this town.

Am also told that some of the smaller projects around Blackwater area not going ahead, this could also soften the market.

Cheers, MTR
 
karratha/hedland... gas co's already pay the higher taxes apparantly?? there are mutliple industries including dampier salt, burrup fertiliser etc. the yield is very attractive indeed. Outlook very good
 
Hi Aus
I like Karratha/Pt Hedland however I can't afford this, entry level is much higher unfortunately than Sth Hedland I think there may be a good reason for this. I also guess K/Pt H will outperform Sth Hedland.
Cheers, MTR
 
Hi there, im new....Asking for a little bit of advice, my partner wants to purchase a property in the Willows, Gemfields in Qld 45min west of Emerald for a very reasonable price, just wondering if this would be a wise move for the future, in regards to work in the area (general and mines) and making a profit on the property in the future...hope someone can advise...thanks...Also have teenage children, would it be a wise investment in regards to there future....
 
Last edited:
Have you ever been to the Willows? I'd recommend going for a drive before you signed anything! I bet it's not what you're expecting!

No town water, no infrastructure, only shop is in the caravan park and that could be classed as a corner store if you're clutching at straws!
As for future capitol growth, there has been nothing going on for as long as I have been around the CQ area (almost 10 years).
Also it'll be rather difficult to get a tenant in if it's an IP and last check, there are no other kids in town and it's a bit of a pain driving the hour into the shops in Emerald.

On the plus side, I guess it is close-ish to the proposed Alpha mine - as in close I'm talking 45 min - and there have been some good yellow sapphires found in the area!
Apart from that, houses in Sapphire/Rubyvale went up a little bit in price a couple of years back - but you'd better check if the land is freehold or leasehold.

I think that there are a LOT better places to buy, but with anything do your DD and if it fits in with your investing ideals then go for it!

I have a mate living in Willows and can pass you on his number if you want to hear things from the horse's mouth.
 
Top