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Also, just because the Mining industry isn't booming, does mean there is no money to be made!
Hi Guys
Thanks for the feedback, as is my understanding land is extremely tight in Newman, this is sustaining rental rates, Newman is apparently in the centre of several mining operations and its population is set to rise significantly and with only moderate land releases coming on-line I believe its a fairly safe bet, the entry price can be high but I believe the returns justify the prices.
The local hotels are "Perma-booked" to mining companies, we stayed 18k out of town in a 3.2 transportable hotel on blocks for $180 a night, so the $3,000 per rent is comparatively cheap to pay.
The council is rezoning several sections of the local town to maximise the amount of redevelopment, I see this as one of the better options as land is in such short supply.
Newman and Onslow in WA are towns with plenty of potential, easily earning over $2,000 per week in rent for a decent 4 bedroom house. Houses are generally sold based on an 11% return and capital gains in Newman particularly have been substantial.
Often the best way to increase return (as land can be hard to get a hold of) is to demolish the existing house and build multiple dwellings or dual key premises.
