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Is it time to fly in or out of Australia’s mining towns?
1.Hometrack Australia, Growth Decline Report, June 2015. 2. SQM Research, National Vacancy Rate Report, June 14 – June 15.
3. http://www.bhpbilliton.com/home/investors/news/Pages/Articles/Appin-Area-9-Project-Approval.aspx
^ Median values are calculated as the median valuation of properties in the area, using the Hometrack automated valuation model (AVM). Median value gives a more accurate read and is less volatile than median sale price series, which typically make little or no adjustment for the mix of properties that are transacted each period.
IS IT TIME TO FLY IN OR OUT OF AUSTRALIA’S MINING TOWNS?1
Contents
Introduction �� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �2
Taking a look back �� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �2
Mining Towns: Winners & Losers in 2015 �� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �3
Reducing risk and knowing when to bow out � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �7
Getting the best bang for your buck �� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 11
Summary �� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 12
Information provided in this document is general in nature and does not constitute financial advice. Information in this document can change without notice, and homesales.com.au does not guarantee the accuracy of information in the document, including information provided by third parties. Whilst homesales.com.au has used reasonable endeavours to ensure the accuracy of information in this document, you must not rely on this information to make a financial or investment decision. Before making an investment or financial decision, it is recommended to consult an independent financial adviser to take into account your particular investment objectives, financial situation and individual needs. Homesales.com.au does not give any warranty as to the accuracy, reliability or completeness of information which is contained in this document. Any forward looking statements in this presentation are not guarantees or predictions of future performance or the returns you may receive and involve risks and uncertainties and other factors. There is no assurance that actual outcomes will not differ materially from these forward looking statements. References to “homesales.com.au” shall mean carsales.com Limited, its directors, officers, employees, agents and contractors.
1.Hometrack Australia, Growth Decline Report, June 2015. 2. SQM Research, National Vacancy Rate Report, June 14 – June 15.
3. http://www.bhpbilliton.com/home/investors/news/Pages/Articles/Appin-Area-9-Project-Approval.aspx
^ Median values are calculated as the median valuation of properties in the area, using the Hometrack automated valuation model (AVM). Median value gives a more accurate read and is less volatile than median sale price series, which typically make little or no adjustment for the mix of properties that are transacted each period.
IS IT TIME TO FLY IN OR OUT OF AUSTRALIA’S MINING TOWNS?2
Australia’s housing market is driven predominantly
by investors and the construction of new units and
apartments, and compared to the rest of the world,
it is continuing to experience staggering growth�
However, when it comes to property investment,
the traditionally strong returns from mining towns
and regions have been feeling the effects of the
end of the mining boom for the last couple of years�
Real house prices, % change between Q1 2006 and Q4 2014
Source: The Economist (Australian Bureau of Statistics; OECD)
Over the past 10 years mining towns presented the
ultimate risk-return conundrum for property investors�
Whilst mining areas have had the highest capital
growth rates in Australia, as well as the highest
rental returns, they are also the riskiest options for
property investors; with single-industry economies
and often single-employer economies, and as
the country is now discovering, these areas are
vulnerable to economic factors outside investors’
control such as fluctuations (mainly down) in the
iron ore price� Many investors found out too late
that buying an investment property in a mining
town is not just about looking at the housing market
but also the global commodities market�
The end of Australia’s mining boom is having
notable impacts on all sections of the economy�
The risks and rewards of investing in property in
mining areas have been widely documented and
discussed in the media, but does this mean that
property investors should steer clear of mining areas
for good? Are there still good returns to be made in
Australia’s post-boom mining sector?
Data from homesales�com�au and Hometrack
Australia shows that Australia’s mining areas have
had mixed results over recent years�
Introduction
Taking a look back
Autralia
Ireland
Netherlands
Spain
UnitedStates
-40 -20 0 20 40
1.Hometrack Australia, Growth Decline Report, June 2015. 2. SQM Research, National Vacancy Rate Report, June 14 – June 15.
3. http://www.bhpbilliton.com/home/investors/news/Pages/Articles/Appin-Area-9-Project-Approval.aspx
^ Median values are calculated as the median valuation of properties in the area, using the Hometrack automated valuation model (AVM). Median value gives a more accurate read and is less volatile than median sale price series, which typically make little or no adjustment for the mix of properties that are transacted each period.
IS IT TIME TO FLY IN OR OUT OF AUSTRALIA’S MINING TOWNS?3
Appin on the ‘watch-list’
While investors have mainly been buying for capital
growth, there have been some major winners
and losers in mining towns over the past year� In
terms of annual growth, the suburb of Appin, NSW,
approximately 70 km south-west of Sydney, has
recorded strong growth for houses with an average
of 23�92%1 increase over the past 12 months, and a
low vacancy rate average of 1�5%2 in 2015�
In 2012 the BHP owned Illawarra Coal Mine in Appin
announced an investment of $833 million to open
a new mine known as “Area 9”� Whilst the Appin
mine has been in operation since 1962, the “Area
9” project is currently sitting at over 80% completion
and according to BHP3 is on track for full completion
in 2016� This coal mine accounts for over 2,200
employee and contractual jobs in the region�
Rhett Dallwitz, general manager of homesales�com�au
says “Looking deeper into the house price growth
trends for Appin, it still represents good value, strong
employment with low vacancy rates, only a 30
minute drive to Wollongong and 17 minute drive to
Campbelltown� We put Appin and the surrounding
suburbs on the ‘watch list’ as we believe it is still
likely to provide some good growth opportunities for
investors looking to invest in a mining area”�
Looking deeper into the house price growth trends for Appin, it still represents good value, strong employment with low vacancy rates…
“
Mining suburbs in decline – 12 months
Suburb Property Type
Value (May 14^)
Value (May 15^)
% Change YoY
Mining Classification
Appin, NSW House $521,871 $646,702 23�92% Mining - Metals/
Gems/Other
Muswellbrook, NSW Unit $209,358 $280,265 33�87% Mining -
Iron Ore/Coal
Mining Towns: Winners & Losers in 2015
”
1. Hometrack Australia, Growth Decline Report, June 2015. 2. SQM Research, National Vacancy Rate Report, June 14 – June 15. 3. http://www.bhpbilliton.com/home/investors/news/Pages/Articles/Appin-Area-9-Project-Approval.aspx
^ Median values are calculated as the median valuation of properties in the area, using the Hometrack automated valuation model (AVM). Median value gives a more accurate read and is less volatile than median sale price series, which typically make little or no adjustment for the mix of properties that are transacted each period.
Source: Hometrack Australia, Mining Town Growth/Decline Report, June 2015.
1.Hometrack Australia, Growth Decline Report, June 2015. 2. SQM Research, National Vacancy Rate Report, June 14 – June 15.
3. http://www.bhpbilliton.com/home/investors/news/Pages/Articles/Appin-Area-9-Project-Approval.aspx
^ Median values are calculated as the median valuation of properties in the area, using the Hometrack automated valuation model (AVM). Median value gives a more accurate read and is less volatile than median sale price series, which typically make little or no adjustment for the mix of properties that are transacted each period.
IS IT TIME TO FLY IN OR OUT OF AUSTRALIA’S MINING TOWNS?4
Moranbah: sell up or prepare for a loss
However, with the highs come the lows� Moranbah,
the former home to the Peak Downs Mine in the
Bowen Basin, is now proving to be an area of
largest capital loss for Australian investors of houses
(over 42%4), since transitioning to a 100% fly-in fly-out
(FIFO) mining town in early 2015� This recent decline
in capital growth shows that there is, more often
than not, a direct link between prosperity and
down times that mining brings to a community�
Similarly for investors in Ooralea, Bakers Creek, QLD
(west of Mackay), another iron ore mining town,
investors are experiencing losses in capital of more
than 43%5�
“Moranbah is a clear example that investors need to
have either an exit strategy or a diverse investment
property portfolio� With the current vacancy rate
around 7%5 for those ‘mum and dad’ or first time
investors, there will be very little choice – sell the
property with a potential loss or be prepared to
accept a lower rental income” Rhett Dallwitz said�
Appin NSW (Source: Google Maps) Muswellbrook NSW (Source: Google Maps)
4. Hometrack Australia, Growth Decline Report, June 2015. 5. SQM Research, National Vacancy Rate Report, June 14 – June 15.
^ Median values are calculated as the median valuation of properties in the area, using the Hometrack automated valuation model (AVM). Median value gives a more accurate read and is less volatile than median sale price series, which typically make little or no adjustment for the mix of properties that are transacted each period.
Mining suburbs in decline – 12 months
Suburb Property Type
Value (May 14^)
Value (May 15^)
% Change YoY
Mining Classification
Moranbah, QLD House $462,849 $267,433 -42�22% Mining - Iron Ore/Coal
Ooralea - Bakers Creek Unit $307,594 $173,928 -43�45% Mining -
Iron Ore/Coal
Source: Hometrack Australia, Mining Town Growth/Decline Report, June 2015.
1.Hometrack Australia, Growth Decline Report, June 2015. 2. SQM Research, National Vacancy Rate Report, June 14 – June 15.
3. http://www.bhpbilliton.com/home/investors/news/Pages/Articles/Appin-Area-9-Project-Approval.aspx
^ Median values are calculated as the median valuation of properties in the area, using the Hometrack automated valuation model (AVM). Median value gives a more accurate read and is less volatile than median sale price series, which typically make little or no adjustment for the mix of properties that are transacted each period.
IS IT TIME TO FLY IN OR OUT OF AUSTRALIA’S MINING TOWNS?5
Moranbah QLD (Source: Google Maps) Ooralea – Bakers, QLD Creek (Source: Google Maps)
Rental yields in decline
Whilst capital growth has been strong in specific
mining regions across Australia, for a majority of
investors it’s the year round rental yield which needs
to stack up�
In 2014, the average rental yield per annum for
houses and units was on par, 5�16%5 and 5�14%6
respectively, and this trend has continued into the
first quarter of 2015� However over the past four
years, rental yields have been in steady decline -
down by more than 1% per annum since 2011�
5. Hometrack Australia, SQM Research, Mining Town Rental Yield Report (Houses), June 2015. 6. Hometrack Australia, SQM Research, Mining Town Rental Yield Report (Units), June 2015.
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
2011 2012 2013 2014
Average Rental Yield (House) Average Rental Yield (Unit)
Source: Hometrack Australia, SQM Research, Mining Town Rental Yield Report, June 2015.
1.Hometrack Australia, Growth Decline Report, June 2015. 2. SQM Research, National Vacancy Rate Report, June 14 – June 15.
3. http://www.bhpbilliton.com/home/investors/news/Pages/Articles/Appin-Area-9-Project-Approval.aspx
^ Median values are calculated as the median valuation of properties in the area, using the Hometrack automated valuation model (AVM). Median value gives a more accurate read and is less volatile than median sale price series, which typically make little or no adjustment for the mix of properties that are transacted each period.
IS IT TIME TO FLY IN OR OUT OF AUSTRALIA’S MINING TOWNS?6
Whilst most investment properties are bought with
the intention of having paying tenants lowering the
mortgage or at least adding to a negative geared
tax break, those investing in mining towns must
consider the point at which a rental yield becomes
too low� Ask yourself the question, what vacancy
rate can you afford to live with?
Since 2011, the average yield for a house and unit
has declined by more than 1% - hovering around
5�12% per annum� Coupled with this, vacancy
rates have increased which has resulted in many
investment properties in formerly ‘booming’ mining
towns now gathering dust�
Whilst few investors may be able to keep a house
afloat with no tenants, you should consider:
- How low are you prepared to drop rents?
- Are you prepared to let your asset depreciate if the primary industry around you falters?
1.Hometrack Australia, Growth Decline Report, June 2015. 2. SQM Research, National Vacancy Rate Report, June 14 – June 15.
3. http://www.bhpbilliton.com/home/investors/news/Pages/Articles/Appin-Area-9-Project-Approval.aspx
^ Median values are calculated as the median valuation of properties in the area, using the Hometrack automated valuation model (AVM). Median value gives a more accurate read and is less volatile than median sale price series, which typically make little or no adjustment for the mix of properties that are transacted each period.
IS IT TIME TO FLY IN OR OUT OF AUSTRALIA’S MINING TOWNS?7
Buying a property, even if buying into a booming
market is a large investment and it pays to do
your research to ensure you aren’t purchasing
a ‘quick-win’�
The difference with investing in mining towns as
opposed to any other suburb across Australia is that
with any mining town the extreme highs come with
extreme lows�
Whether you’re investing yourself or enlisting the help
of someone who knows the game, it’s important
that some simple factors are identified and taken
into account before committing to any property (be
it an investment or not)� Identifying these tips will not
only help you reduce the risk of investing in a mining
town but will also enable you to develop an exit
strategy if the market goes pear shaped�
Considerations for reducing risk and developing an exit strategy
Changing rental yields
Changing rental yields are a good indicator of the
value of your property� If a rental yield changes
during the life of your investment, elements to
assess include occupancy rate, if expenses on your
property have increased, and if the value of the
postcode your property is in has depreciated�
Whilst the rental yield is generally not directly
manageable by a property’s owner, understanding
the signs and what a changing yield means will be
beneficial in assessing the immediate and long term
viability of your investment property�
Reducing risk and knowing when to bow out
A ‘rental yield’ is a measure of how much cash an income generating asset produces each year, as a percentage of that asset’s value. It’s calculated differently depending on the type of asset (i.e. property, shares, etc.) and is a useful measure for investors with a diversified portfolio to compare various asset classes and their performance
1.Hometrack Australia, Growth Decline Report, June 2015. 2. SQM Research, National Vacancy Rate Report, June 14 – June 15.
3. http://www.bhpbilliton.com/home/investors/news/Pages/Articles/Appin-Area-9-Project-Approval.aspx
^ Median values are calculated as the median valuation of properties in the area, using the Hometrack automated valuation model (AVM). Median value gives a more accurate read and is less volatile than median sale price series, which typically make little or no adjustment for the mix of properties that are transacted each period.
IS IT TIME TO FLY IN OR OUT OF AUSTRALIA’S MINING TOWNS?8
Corporate Leasing Agreements
Investing in a mining town means there are opportunities to lease your investment directly to the intended
tenant, or alternatively through a corporate structure where you don’t ever deal with your tenant directly�
Looking at the Census data we can see that there are pros and cons for leasing direct versus through a third party�
It’s clear that deciding whether to go private or corporate is a fine balancing act, and you’ll need to weigh
up the odds� Will the price you can afford to charge on a weekly basis ensure you continue to get tenants
through the door?
Corporate leasing: the Pros and Cons
Large companies have strong control
over the rental market in mining towns
which means aligning with them can
ensure a steady flow/changeover of tenants� The
census data shows there is a significant appetite
for corporate leasing, with approximately 35%6 of
people living in mining towns renting their home/
unit from an employer (government and non-
government employer)�
The average weekly rental price for
houses where the owner directly deals
with the tenant is significantly higher
versus dwellings managed through a company�
This difference is clearly visible in towns such
as Karatha (WA), where rentals are as high
as $1,200 a week, compared to a national
average of private versus corporate rental
management in non-mining towns of 2:17�
People buying and renting housing - August 2011 Median weekly rent paid for a separate house by who it was rented from - August 2011
6. ABS Census of Population and Housing, “People Buying and Renting Housing”, August 2011. 7. 2011 ABS Census of Population and Housing, “Median Weekly Rent Paid for a Separate House by who it was rented from”, August 2011.
Karratha
$1400
1200
1000
800
600
400
200
0Newman
MoranbahPort Hedland
(a) Comprises real estate agents, unrelated persons outside the household, and related persons outside the household.
(b) Comprises goverment employers (including the Defence Housing Authority) and non-goverment employers.
Source: ABS Census of Population nand Housing
DysartWeipa
Roxby DownsEmerald
ClermontMiddlemount
Australia
Private landlord(a)
Employer(b)
In a private dwellingowned outright
In a private dwellingbeing purchased (a)
In a private dwellingbeing rented(b) froma private landlord(c)
In a private dwellingbeing rented(b) from
an employer(d)
In a private dwellingbeing rented(b) froman other landlord(e)
%60
50
40
30
20
10
0
(a) Comprises peolpe staying in the listed location on Census Night in a private dwelling owned with a mortgage or a private dwelling purchased under a rent/buy scheme.
(b) Comprises people staying in the listed location on Census Night in a private dwelling being rented or a private dwelling being occupied rent-free
(c) A real estate agent, an unrelated person outside the household, or a related person outside the household.
(d) A government employer (including the Defence Housing Authority), or a non-goverment employer.
(e) A state or territory housing authority, a housing co-operative, a community group, a church group, a residential park, a caravan park or a marina.
Source: ABC Census of Population and Housing
High growth mining towns
Australia
1.Hometrack Australia, Growth Decline Report, June 2015. 2. SQM Research, National Vacancy Rate Report, June 14 – June 15.
3. http://www.bhpbilliton.com/home/investors/news/Pages/Articles/Appin-Area-9-Project-Approval.aspx
^ Median values are calculated as the median valuation of properties in the area, using the Hometrack automated valuation model (AVM). Median value gives a more accurate read and is less volatile than median sale price series, which typically make little or no adjustment for the mix of properties that are transacted each period.
IS IT TIME TO FLY IN OR OUT OF AUSTRALIA’S MINING TOWNS?9
Like any significant investment (property or another
commodity), taking the time to assess the pros and
cons of the decision plays a large factor in getting
it right�
Mines are extremely volatile commodities in terms
of their global market value, the perceived value
nationally, supply and demand requirements and
overall, the fact that they are at the mercy of nature
(more often than not)� Therefore, when investing in a
mining town, you should asses:
- What period in the cycle are you buying at?
- Has the area peaked?
- What phase of the mine development are you buying at?
Whilst simple in theory, these questions can be hard
to answer and an informed but calculated guess
sometimes has to suffice�
According to a whitepaper released by the Reserve
Bank of Australia in 2014, The Effect of the Mining
Boom on the Australian Economy8, Australia’s
decade of mining prosperity has caused overly
inflated effects on income levels� After hitting a high
in 2015, disposable income is and will continue to
slow down� Whether mines are reducing salaries or
taking on less staff, this change in the prosperity of
the industry at an individual level is set to affect the
viability of the industry and associated benefits�
As an investor you should review multiple resources
and speak with accredited advisors to effectively
forecast the viability of an investment property in an
Australian mining town�
Figure 4: Effects of the Mining Boom on Income
8. http://www.rba.gov.au/publications/rdp/2014/pdf/rdp2014-08.pdf 8. http://www.rba.gov.au/publications/rdp/2014/pdf/rdp2014-08.pdf
%
12
10
8
6
4
2
0
%
12
10
8
6
4
2
0In a private dwelling
owned outright
Note:
Sources:
Percentage deviation of baseline estimates from the no-mining-boom counterfactual
ABS; Authors’ calculations and AUS-M model database and simulations
Change in real household percapita disposable income
Purchasing power e�ect(trading gain)
Volume e�ect(change in real GDP)
1.Hometrack Australia, Growth Decline Report, June 2015. 2. SQM Research, National Vacancy Rate Report, June 14 – June 15.
3. http://www.bhpbilliton.com/home/investors/news/Pages/Articles/Appin-Area-9-Project-Approval.aspx
^ Median values are calculated as the median valuation of properties in the area, using the Hometrack automated valuation model (AVM). Median value gives a more accurate read and is less volatile than median sale price series, which typically make little or no adjustment for the mix of properties that are transacted each period.
IS IT TIME TO FLY IN OR OUT OF AUSTRALIA’S MINING TOWNS?10
What type of mining is involved?
Do you have an understanding of where this
commodity sits on the global commodities market?
Has it hit its peak and how large a player in Australia
is this particular mineral?
How many mines does the town have?
Whilst it may seem logical to purchase an investment
in a town that’s owned by one of Australia’s largest
mining companies, it’s also important to assess how
many mines are in that town and how different their
offering is� For example, you’ll need to be careful of
buying into a town with only one mine operator, as
if that mine goes out of business, then so does your
investment property� The more there are, the better
the odds are�
How much infrastructure spending is there for the local mine(s)?
It’s important to understand current, as well as
potential future plans for the mining industry in the
town you intend to invest in� If companies are putting
more money into their businesses, then it may be
a good indication that they intend to continue to
invest in that area�
Other considerations when investing in a property in a mining town:
1.Hometrack Australia, Growth Decline Report, June 2015. 2. SQM Research, National Vacancy Rate Report, June 14 – June 15.
3. http://www.bhpbilliton.com/home/investors/news/Pages/Articles/Appin-Area-9-Project-Approval.aspx
^ Median values are calculated as the median valuation of properties in the area, using the Hometrack automated valuation model (AVM). Median value gives a more accurate read and is less volatile than median sale price series, which typically make little or no adjustment for the mix of properties that are transacted each period.
IS IT TIME TO FLY IN OR OUT OF AUSTRALIA’S MINING TOWNS?11
The term “negative gearing” is certainly part of
today’s modern vocabulary for people of all ages
and income brackets, and for most part, this is for
good reason�
As housing affordability across Australia continues
to reach new heights in respect to annual CPI
and wage growth, the ability to offset the cost
of owning a property - including the interest
paid on a loan - against assessable incomes,
can make negative gearing an attractive strategy
in certain circumstances�
However, difficulties can arise in mining towns if
you choose a negative gearing strategy,
particularly for those towns at the middle to end of
their life cycle� As soon as the loan cost become
less than the rental income, or the price of the
investment generates significant capital growth
that it outweighs a reasonable rental return,
the negative soon becomes positive gearing
and the ball game changes�
So, whilst negative gearing can be considered a
tax strategy, it is important to assess a strategy that
includes all influencing factors to ensure buying into
a mining town can achieve your objectives� Whilst
buying into a buoyant mining town is a strategy that
benefits many ‘savvy investors’ who have been able
to successfully assess the cycle, the diversity and the
global commoditisation of that particular mining
industry, betting on capital gains from a property in
a time of political and economic uncertainty can be
a risky and in many ways, outdated strategy�
Getting the best bang for your buck
As soon as the loan cost becomes less than the rental income, or the price of the investment generates significant capital growth that it outweighs a reasonable rental return, the negative soon becomes positive gearing and the ball game changes.
“
”
Negatively Geared – Where the incomings
are less than your outgoings after all tax
deductions have been claimed� For example,
you receive rent on a property of $600 a
month, but your mortgage repayments are
$900 a month�
1.Hometrack Australia, Growth Decline Report, June 2015. 2. SQM Research, National Vacancy Rate Report, June 14 – June 15.
3. http://www.bhpbilliton.com/home/investors/news/Pages/Articles/Appin-Area-9-Project-Approval.aspx
^ Median values are calculated as the median valuation of properties in the area, using the Hometrack automated valuation model (AVM). Median value gives a more accurate read and is less volatile than median sale price series, which typically make little or no adjustment for the mix of properties that are transacted each period.
IS IT TIME TO FLY IN OR OUT OF AUSTRALIA’S MINING TOWNS?12
Making the right decision about property is as much
about making an informed decision as it is about
taking a calculated guess� And, whilst Australia’s
mining boom has seen prosperity for many
individuals across the country in terms of personal
finance and also investment strategy, it’s important
to remember that like any investment - be that a
global commodity or your first home - the market
can change at any time and in any direction�
By using data available to you, ascertaining a real
time account of the strengths and weaknesses of
Australia’s mining towns, their proven and predicated
performance, and the investment strategies
available to savvy and unsophisticated buyers,
buying an investment in an Australian mining town
should be no different to buying any other home�
Summary
1.Hometrack Australia, Growth Decline Report, June 2015. 2. SQM Research, National Vacancy Rate Report, June 14 – June 15.
3. http://www.bhpbilliton.com/home/investors/news/Pages/Articles/Appin-Area-9-Project-Approval.aspx
^ Median values are calculated as the median valuation of properties in the area, using the Hometrack automated valuation model (AVM). Median value gives a more accurate read and is less volatile than median sale price series, which typically make little or no adjustment for the mix of properties that are transacted each period.
IS IT TIME TO FLY IN OR OUT OF AUSTRALIA’S MINING TOWNS?13
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*homesales Internal Reporting, July 2015
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