6 ways to size up a mining town
Thinking of buying property in a mining town? Here’s some things you may not have thought about:
Investors should only be getting into a market before there is a surge in the growth of property prices and rents. Once the market is booming, it is usually too late.
2. Number of mines
The impact of a mine closure or workforce reduction on a one-mine town can be devastating. Only consider towns with multiple mines.
3. Development phase
It normally takes a larger workforce to open a mine than it does to run it. This often equates to a contraction in the local property market once extraction actually begins, unless other projects are in the pipeline.
A good investment prospect will have a diversity of industry and not be supported by just mining. It will also have enough in the way of amenities and infrastructure to offer a different lifestyle.
If most of the workers are fly-in, fly-out (FIFO) employees, the town is unlikely to achieve enough of a critical mass of people to make it a desirable place to live in the long term.
6. Lifespan of the mine(s)
You would want to know the forecast longevity of the mines in the area. This is determined by the size and quality of the resource deposits, as well as their profitability.
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