GDay All,
I'm looking into buying an IP in either Kambalda or Kalgoorlie, WA. Prices are very low with good returns. Prop Management fees are 9.9% which is the area norm. Being a predominantly mining town with the big firms now steering away from FIFO / DIDO and making positions residential it does look like an attractive option. Has anyone got any opinions or advice they may be of value to me.
Hope you all have a great weekend.
SteveKambalda is too small and dependent on too few minerals for mine. You also need to find out how your lender appraises Kambalda – see if mortgage insurance is available on a property in Kambalda. Even though you may not be looking at a +80% loan this will give you a good indication of bank perception.
Know of someone who bought into Kambalda and then struggled to offload the property when he tried to sell.
If you do end up investing in Kambalda make sure you maintain an active hands on approach and keep close tabs on mining operations in the area.
i own two houses in kalgoorlie and one in kambalda and all three are rented out giving good returns.
kambalda is obviously smaller and more prone to been untenanted in a downturn in the economy,that been said there is lots of mining activity in the area and they will be mining there long after i'm dead and the town itself can't expand anymore because of mining lease land and native land so i'm glad i own a house there.I am a miner and have lived in both towns recently.
the trick with buying in a mining town is to offer what miners want and with kambalda buy a cheaper property with good construction .
kalgoorlie offers good bargains but same thing applies ,don't spend too much ,go for good returns creating income stream as opposed to huge capital gains.
if you buy right then there is money to be made,there are not too many investors in the area so not lots of compitition and well priced properties.I rent out one property fully furnished and found there is a demand for this.in kalgoorlie it is not wise to buy from behind a computer ,make sure you visit because checking the condition of the neighbours is critical ,not so much a problem in kambalda but be aware kambalda west floods alot causing problems.you could purchase a 2 bed duplex in kambalda for 86 k and if furnished at the moment 300 per week unfurnished 220$.
Kalgoorlie boulder can buy 3 bedroom house $150 upwards and returning $300 unfurnished.
good luck and any questions just ask.
Gday Steve,
I've been checking out properties around WA, and I have seen positive cashflow properties in Kambalda recently.
I suppose the economics of the area has its pros and cons. The pro being that you're more likely to find cheap properties that are positive cashflow, and would be in demand by the mining sector for a higher rental income. The con being that it is too dependent on the mines there.
In my personal opinion, I would only invest there if the returns are high enough for me to take on the risks. If yes, then I would go for it. If no, then I would move on. You'll have to determine what rewards you want to at least achieve. Also, you could also potentially suggest a lower price when negotiating due to those higher risks, which may make it a sweeter deal for you.
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