This 3 bedroom, 1 bathroom house in Port Augusta, a mining town in South Australia, approx. 322km from Adelaide CBD is on sale at an affordable $139,950.  SQM records show it has been on the market since January 2016 and was last sold for $27,000 in October 1995. 
 
Built in 1950, the property has a land size of 651 sqm and a floor size of 124 sqm, with good size bedrooms, a big kitchen with ample bench space and a walk-in pantry, a backyard for kids to play in, an undercover area for BBQs and carport for 2 cars plus a shed for the handyman.  This home would suit a family and would make a perfect first home or investment.
 
There are reports that mining towns like Port Augusta SA are currently high yield suburbs and are delivering good cash flow for investors.   A resurgence in the mining industry could be a key factor in boosting investor confidence and attracting investors back to the region.   
 
The 2019–20 SA State Budget handed down in June 2019, has committed $10 million through the Accelerated Discovery Fund (ADF) towards the exploration of South Australia’s untapped mineral resources to grow jobs and investment in the state’s economy. 

“South Australia has vast reserves of valuable resources yet to be identified and this $10 million investment in exploration, data and innovative technology will help unlock these resources.  Opening new mines with significant deposits of copper, gold, and other strategic minerals such as uranium and cobalt will deliver new investment, jobs and increased royalties to finance South Australia’s health, education and transport systems,” said Minister for Energy & Mining, Dan van Holst Pellekaan.
 
Mining currently accounts for 35% of South Australia’s exports of traded goods and accelerating new mines has the potential to deliver a major stream of revenue to the State Budget.  Now may be a good time to consider mining towns like Port Augusta. 
 
Port Augusta is situated at the foothills of the Flinders Ranges, where the desert meets the sea and is considered the 'back door' to the great Australian Outback.  The population of Port Augusta in 2011 was 7,334 people. By 2016 the population declined to 6,562, showing an annualised population decline of 1.1% in the area.  Renters account for 42% of occupant type according to 2016 Census.
 
Of course, you need to be selective in your purchase so you can attract good tenants.  The agent says this property has a great rental history of $200 per week.
 
Weekly rents can range from $224 to $245 for houses and whilst there has been a 6.8% rents increase over 12 months for houses, over the last month, there has been a decline of 6.0% over the last month.
 
Weekly Asking Prices index shows houses prices can range from $200,000 to $222,000 in postcode 5700 but has been declining 1.9% over the month, after a 3 year decline of 3.5%.  Units however, increased a huge 50.4% over 3 years, 48.5% increase over 12 months and over the month, a 9.3% increase.
 
Vacancy Rates are high at 4.0% in the area.  Current gross rental yield is 5.8% for 3-bedroom houses and units can achieve a similar 5.29% yield.  Currently there are 307 houses and 33 units listed for sale in postcode 5700.
 
Caution needs to be used when interpreting quarterly and monthly movements for regional markets. The small size of these markets and low number of sales can lead to volatile results.

If you want to investigate what opportunities this region can bring, check out SQM Research’s free property data at SQM’s website. Also consider the Property Valuation product for more in-depth data and property price estimator.