Renting and the mining industry - are prices too high?
According to RP Data, mining towns had some of Australia's most expensive rental properties in 2012.
According to RP Data, mining towns had some of Australia’s most expensive rental properties in 2012. And plenty of mining towns also showed house price rises of more than 100% in the past five years.
Is it true? I just did a quick search onwww.domain.com.au and the most expensive rental properties in, for example, Port Hedland are all more than $2K a week! That beats Perth, where the average rent is about $400 a week, depending on where you look.
Kalgoorlie is more respectable than Port Hedland, but still more expensive than many parts of Perth. Housing research also shows that Perth has the tightest capital city rental market in Australia, with a vacancy rate of less than 1%.
So, what are your experiences?
Have you felt the rental squeeze?
Has it been harder to get a foot into the property market where you live?
Have you even been lucky enough to cash in on local conditions?
I guess there’s nothing wrong with cashing in on the boom if you can. Who are we to question the economics of supply and demand?
Although, we also see plenty of news in the papers about locals having to move out as miners move in and rents go up – another ‘social cost of mining’ angle that the media loves to point out. The flip side of that argument is that mining stimulates local economies and helps small businesses, an angle that the mining industry likewise loves to push.
I suppose this all raises another good point, and one that the community at large doesn’t always appreciate. You might earn a good wage in the mining industry, but you work hard for it and probably pay for it with lifestyle compromises and higher living costs.
Tell us what it’s like in your neck of the woods …