Hi,
I posted a question about investing in QLD's Surat Basin on Monday at the end of a large/active thread:
There is no response to it so I thought I might need to start a new thread to make it more visible. My question is
Does anyone have any experience or comments about investing in QLD towns such as Dalby and Chinchilla?
These towns are located north west of Toowoomba/Brisbane, in the Surat Basin. There are claims that there are large sums of investments going into there ($100bn worth of projects), and these towns will boom when these projects are implemented. The GEC/GFC may have delayed some of these projects (?) but as a clean energy centre and an area of signficant investment, these towns are promoted as property investment hotspots. I just wonder if anyone has real life experience to share.
Thanks.
I dont have experience investing there but my understanding is that Chinchilla has risen a lot in the past due to mining, and both Chinchilla and Dalby have substantial mining projects both underway and planned.
Personally I would be wary of small towns proped up by mines. If those towns have other major industries to support employment other than just mining then I'd consider the area.
There was an article in the courier mail,I think, last week saying the rental shortage has blown rents out to up to $650 pw.
Hi all,
We market homes in Chinchilla and have found there is a growing momentum in buyer confidence. The mining investment in the area is massive and we are getting tenants for our properties befire they are completed. Typically an average build is $350k-$370k and rent between $390-$400p/wk these days for brand new house with everything; air-con, dishwahser, fans etc… I know, hard to believe. My client who is a mojor builder has recently secured just over 250 blocks to roll out house & land packages. This came about after a lot of research.
A mate of mine owns a encing business and focuses on large industry jobs and they are flat out all over this area. Drinking in the pub you know things are happening becasue all the tradies are raving about how much work they have on.
Local agents used to say that their house would sit for months and they would only ever have a handful for sale and about a year ago one of the mining companies came in and cleaned them out of stock in one weekend – unreal.
Since then the land has gone (at an average of 800sqm) from $80k up to $100-$115k per block. This is what we are paying for them today (near town centre).
I think it will only keep moving up. The amount of natural resources has apparently around 25years of life span.
There are over $100 Billion of proposed future mining projects for petroleum, gas and coal – with huge international investment from companies such as Shell, Conoco Phillips, Xstarta, Arrow Energy, British Gas.
This doesn't happen by mistake or for a short term projection of operation.
It isn't everyones cup of tea but may ba consideration for investors that work only with a positive cash flow investment model.
Regards,
Brendan
[email protected]
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