QLD Bowen Basin & Other Mining Towns - Comeback Time?

Hey guys,

I followed the hype and watched those that entered mining towns in 2012. I also followed the lows straight afterwards and know many people who went bankrupt, as well as those just holding on praying for the market to move, at least back to the size of their bankloan.

I've been following the amount of stock currently on the market, and noticed vacancies tightening in a lot of mining locations - I've also noticed a trend in that many towns have a lot less available stock on the market.

Knowing the vacancy risks and the way mining towns can swing from good to bad almost over night... and knowing they can also go the other way.... Is now the right time to buy?

Is anyone buying up at the moment?

Is anyone watching any particular towns?

What are you looking for and what are you avoiding?

Where are you seeing upward pressure on the market?

I'd love some thoughts around this!!!

 

The super cheap accom is being taken up by unemployed and centrelink dependant folk

 

Has another mining boom started? I must have missed that.

 

I personally like the look of Karratha as its one of the more diversified 'mining; towns.

 

There are certainly some towns that were hit very hard and had lots of stock on the market and huge vacancy rates... Which you now can't rent in as vacancies no longer exist, mining companies are desperately looking to house staff but can't find anything and prices have just started to move from the bottom.

I don't believe prices will swing up to the same extent as during the mining boom as there will still be a lot of fear. I also believe as prices start climbing there will be plenty of people exiting once their mortgages are no longer upside down.

I do believe there's some great opportunity for buy in at the bottom of the market, with good strong yields and potential for capital growth that will outweigh capital cities in the short term if you pick the right location with the right demand.

Will the market grow again? Yes - Will it tank again? Yes.

Will growth be short-lived... I don't know. That's my 2 cents anyway

 

Rising Yields



Falling Vacancy rates

 

Property prices still way below previous peaks

 

I haven't explored and WA mining to date. Will have to take a look at this

 

In a lot of these towns it's people returning from out of town as they moved when work dried up. Also plenty of workers that don't want to stay in the camps. There's plenty of camps that are now full in some of these areas...
The centrelink and unemployed are the ones that stayed - It's more likely they are in jobs now.

Not in all mining towns... Just in some where work is picking up