I had a similar situation earlier this year, same telco even. I included an explanatory letter with my finance application (also to 80% LVR) and had no problems except a few sleepless nights in wonder.

~jo~

Of course it depends on the individual mining town, and the life of the mine, or mines that it supports, and the size supporting industries.

Ahh, Kalgoorlie, home of my student days and mis-spent youth (and mis-spent austudy allowance) its not so bad a place to live, I had the time of my life, some great memories and some very foggy ones… I lived in Kal for a couple of years about 10 years ago, and the area was in a bit of a lull at the end of a boom. Nonetheless, if you could find a liveable three bedroom house to rent back then under $250 you were doing well. It is probably the same situation now, in the middle (?) of a boom as when I was there in quieter times.

Nowadays, the resource sector is booming again, which one one logically assume that populations would be moving back into mining towns… I am not so sure myself. With a current labour shortage (good for me!) many mining companies are finding it very hard to attract employees to the regional centres. So many mining operations are on a fly in fly out basis and many people don’t like the idea of spending the weekend in a stinking hot dustbowl covered in flies when you can be flown back to Perth (or wherever) and sit on a stinking hot beach instead every couple of weeks or so.
That said, I have alot of friends and acquaintainces who currently live in/have lived in Kal, and other mining centres, some have been there for years and love it, and love that they can be home with their family every day, which a fly in fly out lifestyle does not afford. Some come and go, off and on over the years. I also know of some terrible terrible tenant stories. Miners (especially student ones) can be very rude crude and unsophisticated. Probably true of the general population everywhere else as well I suppose.

Kalgoorlie itself has a population over 32,000. There were 29,000 10 years ago. (and 26 pubs and three nightclubs) It also has an average household income of about 20-25% more than the rest of the state, and a high proportion of rental properties. There is naturally an itinerant population of workers that come and go with the fluctuating successes of the resource industry. There is also a student population, I think a bit less sizeable than when I was there years ago.(not sure on the numbers)For example When I was in first year, we used to pay $105 a week rent for a room in student housing, now they are offering the same housing free to first year students to try and get them up there.

There is also a large variation in the age, style, and appearance of homes in the area. Of course there are also the “good” and “bad” areas to live within the town, as there are in most towns and cities.

Rents are often susidised by the mining companies also. I think they had to do this to get people there and keep them, as rents have always been quite high in Kal. But then, how does this contribute to the ongoing high cost of rent? (I did know some people sharing a house and each of them claiming a rent subsidy from their company, hence making a profit each week – getting more in subsidy than they paid in rent – sneaky)
I know some people who have done very very well in real estate int he goldfields, and some who have been stung quite badly with all the hype in the middle of a boom.

I could go on and on…

But in general I think it definitely worth investigating, just manage the risks associated with the individual property, get as much info as you can on the region, population trends, and the long term plan for the mine, as you would if looking at any area you planned to invest in.

~Jo~

– mining for a third of my life now and planning an exit strategy –

PS – and take a trip there if you haven’t already. There is some good stuff to see, like sunrise over the headframes from the mount charlotte lookout on your way home from the pub!