Houses in the mining towns

Try entering the name of the town into the search box on the top right and you will find 6 pages on Port Hedland. I suspect a search on Olympic Dam will return  a similar quantity of discussions.

Also more specific questions may drag some answers out.

While Gladstone is not a mining town my partner and I have experienced the rapid growth such a situation provides as investors and we think the process has been positive to date.

Regards
Nick

Entry level in Port & South Hedland is very high.

BHPs outer port construction has received final approval and will move into construction mode. Hedland council is currently undergoing a major zoning/planning review of all land in the South Hedland area.

Another article….

China’s waning commodities appetite puts miners’ fortunes at risk

http://uk.reuters.com/article/2012/07/19/uk-china-commodities-gdp-idUKLNE86I01820120719?feedType=RSS&feedName=stocksAndSharesNews

Hi there …I see “The Freckle” mentioned what I just observed on Foxtel regarding the Australian mining boom decreasing within 2 years. Also to consider the relevance of other info like the global demand for iron ore to produce steel – there is plenty of research available online for this subject which may be seen as good Due Diligence on an investors part. See http://www.miningweekly.com/article/global-production-of-iron-ore-decreases-2010-07-23

Also check out http://www.tandlnews.com.au/2012/06/12/article/australian-employment-market-continues-downward-trend/

Enjoy
Cheers

Here's a good article discussing the longevity of the "mining boom", or perhaps more appropriately the "resources revolution". There are two paragraphs in particular which appeal to my investing philosophy…

"As a nation, we need to stop moaning and start embracing the opportunities. It’s been four years since the onset of the GFC. Australia’s economy has been strong throughout, yet we persist with paranoia about Europe. Asia continues to boom, yet we continue to worry how long it will last. And the opportunities for our mining sector are enormous, yet we’re trying to predict how long it will last.

Those of us who naturally have aspirations for success look at problems and see solutions. Those of us who are naturally positive people don’t sit idle because of perceived risks; we look to mitigate and maximize opportunities. And those of us looking for confirmation don’t look towards governments or the media; we look at industry leaders and achievers."

The rest of the article is here:

http://www.propertyobserver.com.au/trends/decrying-the-end-to-the-mining-boom-hysteria-simon-pressley

It's good to see a few more positive articles finally emerging to counter the prevalence of negative articles, statements and comments which the media focuses on. To me, success depends on optimism. Pessimism sets us up for defeat before our first step is taken. I see a lot of opportunities in our property markets now. There are cycles within cycles, and although commodity prices are currently down compared to recent highs, investment is ongoing in the resource regions, at all-time high levels, and the benefits from this will continue for some time. I believe, as many analysts do, that a resurgence in demand and prices is inevitable, and the best time to position oneself for future success is now. And I am absolutely certain that I have nothing to gain by adopting a pessimistic outlook

Hi Freckle

You have as usual made some valid points worthy of consideration…

"It's irrelevant whether or not information is negative or positive. It's all just market information. What is important is how credible, useful and informative the info is. Markets ebb and flow on information. Investors live and die on the accuracy, credibility and timing of market intelligence"

I agree completely with the above statement. I suppose my issue with the prevalence of negativity in the media is the fact that a lot of it is based on opinion, incomplete or biased data or faulty analysis and presented as fact. And predictions of some "economists" are heralded by the press as though the Messiah has spoken.

While I also accept that a degree of it is accurate, and conditions for the mining sector of the economy have clearly changed, I believe there are still many opportunities available for property investors in regions supported by diverse industries, including mining. And as property investment is best entered into with a long-term outlook, I also believe that the mining cycle will again turn in favor of those invested in areas which have potential to benefit from resources. The investment in LNG and rail which is currently underway clearly demonstrates that some powerful corporations believe the same.

And if I allowed myself to be unduly influenced by the "doom sayers" I would bury my head in the barren sand and miss out on those opportunities. So my choice is to look for the positives on offer.

Cheers, Tony

"And there is of course the opposite to that position. Those who are prone to positive bias and jump in with both feet. I'm neither pro nor con most markets. They are either opportunities to be taken or avoided subject to risk reward trade-offs. The trick with most investing is try and stay objective without letting too much bias creep in from either way."

Hi Freckle

I have invested in other markets, but prefer the property market for a number of reasons, but most of all for the degree of control which I have over a property which i own. I have 20 years experience working as a carpenter watching, working with and learning from tradesmen efficient in every aspect of home construction. I still maintain my carpenter license, and am legally qualified to apply my skills to improve my properties, which are carefully selected for potential to manufacture equity. I buy houses in one of the most stable countries in the world, which has an economy that is currently envied by most of the world. One of the sectors of that economy which currently gives it such strength is mining, which is based on a diverse range of resources, including iron ore, gold, coal and gas, in large and widespread deposits which are also the envy of most of the world. These deposits are currently being extracted at a record pace, with record investment, yielding record profits. I factor the mining industry into my property investment strategy, currently focused primarily though not exclusively on "muscle towns" with diverse industries supporting the local economies. I read extensively, and do the best I can to analyze the endless amount of  information available, some of which is generously supplied by you,  which might be pertinent to my investment decisions. The research required to reduce the risk of a bad decision is very time consuming, requiring analysis of global, nationwide, regional and local influences. My decisions are never impetuous. My properties are all selected for a combination of cash flow and capital growth expectations, as well as features easily improved upon to manufacture equity which I can tap for additional deposits. I travel to inspect before I make offers. I am currently employed in the mining industry, and have a secure position with a good income, which would be capable of servicing my debts if my cash flow should reduce, a contingency which I am prepared for although I do not anticipate that it will eventuate.

  I have previously worked in the head office of a listed mining company, as I believe you have from previous mention. I have personally witnessed directors return from four and five hour sessions of drinking their lunch on the shareholders tab, and then making spontaneous phone calls to business associates while drunk, blind and stupid. I have also witnessed them cold stone sober planning the timing of announcements to the stock market to suit their own personal gain. I'm also aware of occasions when they have "beefed up" exploration results to increase the share price prior to rights issues. They've also delayed the announcement of good exploration results in order to allow themselves time to take up their entire entitlement to rights issues prior to an anticipated share price increase. With the knowledge that such abuses of the trust placed in them by shareholders occurs, my confidence in the security of the share market has been severely eroded. Even if I could control all of the external factors which make stocks risky investments, I would still be confident that property investment offers far greater personal control, thus resulting in less risk.

  Listing all the positives about property investment, and Australia's property market in particular, would be a waste of time and space, and I'm sure you're as well aware of them as I am, but I think you should be able to see that my positive bias has not led me to jump in with both feet. My motivation for continuing to invest in property is not to hang and be seen  with the pro property crowd. I have every intention of continuing to profit from my investments, and my confidence and positive outlook are based on a carefully thought out and implemented strategy.

I see that on the thread "recovery from 2012" Nooob has inquired about your investment strategy. I'm also curious what that might be.

____________________________________________________________________________________________________

Lost track of that post for some reason – shaking out the wrinkles in this new site might be the cause.

My investment strategy….

PM miners (silver) although that's taken a battering over the last 6 months  and business. I too like the control factor.

I don't really chase wealth anymore. Maybe I'm getting old but I hope to die in debt. The thought of going to all that trouble to earn it only to leave it behind irks me. Besides I want to one-up the banks and those corporate knuckleheads with their snouts in the trough before I turn my toes up.

I think we're too obsessed with wealth these days. I was reading this on ZeroHedge the other day. I think I need to re-examine my motives and philosophies in life..

• “Living here as a boy, I wasn’t any different than anybody else. First time I knew I was poor was when I went to Cleveland and went to school They taught me I was poor. I traded all this for a strip of green I saw when I walking the street. And I was poor? How ya gonna get a piece of green grass between the sidewalk and the street, and they gonna tell me I’m poor. I thought I was the luckiest kid in the world, with nature. I could walk through the forest. I could hear the animals. I could hear the woods talk to me. Everywhere I looked there was life. I could pick my own apples or cucumbers. I could eat the berries and pawpaws. I love pawpaws. And they gooseberries. Now there is no life there. Only dust. I had a pigeon and when I’d come out of the house, no matter where I went, he flew over my head or sat on my shoulder. I had a hawk I named Fred, I had a bobcat and a three-legged fox that got caught in a trap. I wouldn’t trade that childhood for all the fancy fire trucks and toys the other kids had.

​The book might well be worth the read I'm thinking.

I enjoyed your posts Moxi. Goodluck.

I ordered the book today. It's supposed to be a pretty depressing read and likened to The Grapes of Wrath

The land release thing I suspect is your typical local political BS. They prattled on about the same thing in Hedland when I was there. They take for ever to plan and finalise and then to infinity to actually let contracts and build the infrastructure to support more housing. Now that coal is on life support I think you've got 2 shows of more land releases within the next 2 – 5 years. 

• I know this place, Freckle. I grew up there. I hope to get back there one day

​Yep same. Best thing I ever did was give my lads the same semi country lifestyle upbringing I enjoyed as a kid