EPI 059 | Mining Towns: Boom or Bust?

Everyday property investing - podcast episode

Mining Towns: Boom or Bust?

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(0:55:59 min)

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Things we talk about

  • Why invest in mining towns?
    – Growth
    -Cash Flow
  • Types of mining town investments
    -Mining town
    -Larger and more established mining town
    -Larger regional centres with flow on effects
  • Risks of mining town investments
    -Projects close down or don’t go ahead — meaning that vacanies increase, rental yield drops and values drop.
    -This is a real possibility—projects do close down, reduce capacity or they are postponed or shelved.  It’s difficult to know that this will happen.  Media speculation often comes after decisions are actually made.  Decisions are made in big company board rooms everyday.
  • What can you do about it?


Quick Tip and Action

  • Think about your investing strategy and risk profile to determine if mining town investment is for you – and if so, what sort of mining town would be right for you (e.g. small/high risk/high return, large regional centre lower risk/lower return)
  • Research the mining locations that you are interested in including the specific mining companies and projects that impact upon that area
Need some help with investing in mining town locations?

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