Mining towns

Why invest in a mining town?

View of a mining town from the airProperty investors who buy in the right mining town can make big short-term capital gains and receive outstanding rental returns. The only question is which town to invest in?

The commodities boom has in turn caused many housing booms all through regional Queensland as well as coastal areas of Western Australia such as Bunbury, Geraldton and Karratha.

How much can you borrow?

First home buyer: 95% of the property value (restrictions apply).

Investor: 95% of the property value.

Low doc: 80% of the property value.

Discounts: Competitive professional package and basic loan discounts are available.

Note: Location restrictions are particularly conservative for mining towns that have populations of under 10,000 people so many lenders restrict your loan to 80% of the property value. We work with banks with no location restrictions, and an open minded view of investment loans used to buy in a mining town.

Why are the banks so conservative?

Traveling to a mining townBanks tend to be very conservative when assessing a loan with a property in a mining town as security. They think in very long time frames, and worry about the possible risk of the boom ending and the town being deserted.

Remember that although the price may be skyrocketing now, banks do not share your profit from these capital gains, but they do share your risk if the property decreases in value!

Please be careful to properly research the area you are buying in to ensure that the mining is ongoing or that the town is economically viable without the mine. If need be, seek independent financial advice before proceeding with your investment.

Which mining towns can be financed?

As a general rule we can finance houses in any town in Australia as long as there is demand for housing.

Some common mining areas we finance are:

  • Hunter Valley NSW
  • Bowen Basin QLD
  • La Trobe Valley VIC
  • Goldfields WA
  • Pilbara WA
  • The West Coast of TAS

Some specific mining towns we receive applications to finance are:

  • Singleton NSW
  • Muswellbrook NSW
  • Hay Point QLD
  • Gladstone QLD
  • Mount Isa QLD
  • Moranbah QLD
  • Dysart QLD
  • Middlemount QLD
  • Blackwater QLD
  • Emerald QLD
  • Capella QLD
  • Clermont QLD
  • Biloela QLD
  • Moura QLD
  • Baralaba QLD
  • Karratha WA
  • Geraldton WA
  • Port Hedland WA
  • Dundas TAS
  • Zeehan TAS

Please remember that we can finance almost all areas in Australia. Please contact us if you are not sure about your location.