Michael Bailey Deputy editor

Michael has been a business journalist for 12 years. He has extensive experience editing magazines covering funds management, commercial property and the travel industry. In 2011 he won a Citi Excellence in Financial Journalism award for a BRW cover story on economic indicators.

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Stand on solid rock

Published 17 May 2012 05:10, Updated 17 May 2012 09:36

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Investment in true mining boom towns – those supported by no other industry – is recommended only for seasoned property investors who own several other properties and who can absorb a sudden big loss.

The best opportunities for property development are in the construction of new houses for executives. Be aware that local councils are short staffed and development applications are subject to delay.

Would-be investors should be wary of towns like Moranbah and Port Hedland where most of the big capital gains have already been made. Terry Ryder from Hotspotting recommends investors look at places like Blackwater and Emerald, further west in the Bowen Basin, which are feeder towns to mining projects earlier in their development cycle.

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