Hi people,
What do you think of Mt Isa in general?
Do you think prices are overinflated?
I have an offer in on a prop there, but am not sure if the current rental value is going to hold for the long term.
Anyone invested there?
Cheers
I’ve been to Mt Isa on my way through to other places a number of times. It’s main economy appears to be mining. In the last 12 months, the price has been pushed up across the board a fair bit. I can only summise that this has been due to out of town investors. You may find some good deals around there still. But I think (and this is only my opinion) that the bird has flown the coop on that one!
Borg.
I see your point, but there seems to be many pos geared props still around, and the rental demand is strong.Also industry is booming and theres a new large company in town.
Rents are rediculously high tho, but apparently the average b4 tax is 100k. Hmm Curious!I’m uncomfortable with single industry towns.
I’ve seen people paying $80-$100K for older houses sitting on cheap blocks of land just because they provide a bit of cash flow.
Make sure you talk to other investors and agents about which parts of town to steer clear of.
ScottTax Depreciation Schedules
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http://www.depreciator.com.auI own a property in Mt Isa and I would urge caution.
I have posted on this in the past so do a search on it.
In summary
There is not such thing as good areas and bad areas generally speaking. There can be a good house next to a bad house.
Go and physically inspect a property before you buy it. I get the feeling some owners have a few drinks and decide it would be a good idea to tack on an extra room or two.
Several sales have fallen through in the past year or so because the banks’ valuers aren’t prepared to value the property at the asking price.
Only buy from local agents. The ones from Brisbane often haven’t seen the properties themselves and are overpricing them.
Beware the property managers. I am very disappointed with the job they do but only have a choice between two of them.
I wouldn’t buy there again. There are more important things than the numbers just stacking up.
Cheers
K
HiGuys,
V interesting to read people’s views, when they are not actually “Johnny on the spot”.
I moved to Mount Isa in Feb this year and even in that short time the market has lifted substantially. In the last 2 months or so, the market has slowed in that they are taking longer to sell and prices have leveled out.
Rents are high and getting higher,due to lack of available accomm. Especially for a nicely presented family type home. When I arrived we rented 4brm for $250pw. Any nicely presented landscaped place now would be pulling $280 to $350 pw on a new lease.
This could change late next year as the council has opened a new subdivision in Snob’s nob of 180 lots that should have some houses in place by Easter next year.
I’m dubious about the wisdom of this one. Some of us may have money, but that doesn’t necessarily mean we are prepared to pay coastal prices for a nice house in an inland mining town. These ones, won’t be going cheap. talk is $90 000 for a serviced building block, add a decent new home and see what else you can buy here for that money.
And yes there are some definite no go areas in this town!
The $100 000 av income? I wish!!! Yes if you work in the mine, then perhaps 70% of workers would be grossing $80 000+pa.
But remember that in a pop of over 20 000 only a small proportion of those are in the mine itself. There are also a lot of FIFO workers here on massive money, but they only spend that when they go home to Melb or whereever. We still have teachers, medical staff, and checkout chicks who need somewhere to live and their wage by comparison is pitiful.
Yes this town is in an economic boom, another company has taken over the mine and completely turned it around, as well as having the back up of a strong world metals market.
New businesses are opening up all around town and many of them are National Chain type stores that no doubt have done their research.
Myself, I would say that econmoncially the town will be strong for at least 6 years. Who will want to rent your IP beyond then, I wouldn’t want to guess.
At the end of the day, it is a one industry town, and it is subject to some huge cyclical depressions and highs.
hope this helps
rav
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