Kalgoorlie Property (mining centres)

Hey all,

I follow the property forum weekly and always find it interesting mulling over peoples thoughts and views of the market. I personally think that the current debt levels on housing in Australia is alarming and will be corrected in time. I am looking to buy in Perth in the coming years, with a baby on the way this may force my hand quicker!

I moved from the UK to Kalgoorlie in 2012 and quickly caught the mining bug, working for one of the residential local employers for 4 years. The gold price slipped heavily toward 2013 and the town house prices and boom slid away. I decided to buy at that time, as I was living in Kalgoorlie and had strong job security. The house prices had already slid by a factor of 30% when I bought in late 2013.

I still hold this house which is currently being let for around 4.5% yield, which is no mean figure. I have subsequently moved to a FIFO role as my partner is working in Perth.

My main question here after all that blurb is what are peoples opinion on mining towns like Kalgoorlie? Where do people see them headed in the next 2-3 years? Currently if I sold my property I would take a 10-15% loss on the purchase price and this process may be long and drawn out, as there are many properties on the market.

I do believe that Gold and therefore Kalgoorlie are generally counter cyclical and I have been discussing housing and the possible tanking of the Eastern States markets for some time with fellow mining professionals. My opinion is that if the major cities over East fail, then mining centers like Kalgoorlie/Mount Isa/Newman etc. could in fact see a welcome return of workers looking for high paying low skilled roles, therefore increasing population and demand for housing. As a property owner in one such location do you think this is fanciful thinking, or could in fact be reality if carnage unfolds in the Capital cities?

Im interested to hear peoples views and thoughts on these isolated markets and any tales of the cycle washing through these towns in the past.

Thanks,
Jake