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Jeffrey Hutton is a Morningstar contributor.

When Morag Lowe first bought the Port Hedland First National property agency six years ago, her friends thought she was losing her mind. Not only was Lowe not sure where Port Hedland was, many people thought the mining boom taking place would be short-lived.

Since then, Lowe has more than doubled to 30 the number of staff at the agency, which she first bought for $800,000. Now she reckons the agency is worth many times that, helped by a white hot property market where good-sized bungalows can fetch millions, with their time on the market measured in days.

"My friends thought I was losing my marbles," Lowe, a Scottish native, recalls.

"This is the best-performing property market in the country and nothing I can see in the near future will change that."

For rural communities on the front lines of the scramble for Australian minerals and energy, the impact has been skyrocketing property values and an even faster boom in rent, agents say. For prospective buyers, usually from the country's biggest cities, the trick is not only to have the money to make the investment but also to arm themselves with information and be prepared to make quick decisions.

"There are a lot savvy investors out there who know about the residential situation here," Lowe says.

"There are very few listings and they don't last long."

At stake is an investment that will likely return 10 per cent or 11 per cent capital growth, Lowe says. Last week, her agency rented out a five-bedroom house for $3600 a week. Two years ago it would have likely fetched rates closer to $1500 a week, Lowe says, estimating the property may be worth about $2 million.

In Drysart, Queensland, west of Mackay, the scramble for accommodation is no less intense. Megan Tabae is representing a newly renovated four-bedroom home that has been listed for $515,000.

The modest bungalow, which includes newly installed air conditioning, kitchen and bathroom, the property has been appraised for rental income of as much as $1700 a week. Late last week, she had an offer on the place from a local owner-occupier.

"The coal miners are struggling for accommodation," Tabae says.

Lowe, in Port Hedland, says local knowledge and homework makes the difference for investors who usually buy properties sight unseen. If something goes wrong it can be expensive and tricky to fix. In Port Hedland, for example, it can cost $400 for a plumber to fix a toilet.

About two-thirds of properties that come up for sale in Port Hedland are investment properties. Prospective investors should get in touch with the current building manager to get a history of the building, Lowe recommends.

Investors should also "build a picture for themselves" of the locality, Lowe says, recommending careful study of websites of statutory bodies such as the port authority, town council and tourism boards.