Hi all,
This is my first post and am relatively new to the investing arena. Has anyone got an opinion on the hunter Valley as a developing hot spot? I have heard and researched a bit about musswelbrook and the infrastructure going in and the increasing production planned for the mining sector etc and it all sounds positive.
Ant thoughts would be appreciated. Thanks
I heard a similar thing, but havent investigated
davebeth wrote:Hi all,This is my first post and am relatively new to the investing arena. Has anyone got an opinion on the hunter Valley as a developing hot spot? I have heard and researched a bit about musswelbrook and the infrastructure going in and the increasing production planned for the mining sector etc and it all sounds positive.
Ant thoughts would be appreciated. Thanks
I must admit – Musswelbrook has been popping up quite a bit these days. I think Terry Ryder gave it a mention recently in one of his many reports.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
We built a 4B, IP in Muswellbrook a few years ago. It's never been empty and the rent has risen very rapidly. Wish I had a couple more……
Musswelbrook has been an interesting proposition for many years. It obviously has a strong mining industry but with a carbon tax in the wind, overpriced commodities, strong AUD etc it makes the future reasonably uncertain. This is basically a one industry town, so another level of risk however it is not a small town by any means & also a major distribution hub.
Likewise, Singleton has similar characteristics.
Thanks for the input. Keep on researching eh!!
Hi davebeth and other forum contributors
I'm a fairly new member to the forum, and although I've contributed little to date, I've been reading the posts for some time and find the shared information on this site invaluable, and so I would like to offer my contribution.
I've had two investment properties, both houses, in Musswellbrook for about a year now. Both properties have rented quickly and continuously with high yields. I also work at one of the mines there, staying during my shifts and commute to the central coast when not working.
I monitor all proposed developments closely by reading local newspapers, keeping in touch with local real estate agencies, contacting coucil, and conversing with locals and co-workers. A new rail line is being constructed to feed coal to the new terminals in Newcastle, a lot of the mines between Muswellbrook and Newcastle have applied for 20% to 30% increases in production, a new coal mine at Mangoola is currently producing, with expansion underway and more employees hired on an on-going basis. Mt Arthur, near Muswellbrook, is currently undergoing a major expansion. Ravensworth mine, mid-way between Mbrk and Singleton is beginning a major expansion, first requiring a road to be moved before major construcion starts sometime around September. I've been told that approximately 1000 workers will be required for 2-3 years during the construction phase.
Another new mine, Mt Pleasant, just a few kilometres west of Mbrk.,is rapidly approaching it's startup date. Although official announcements regarding this mine have been scarce, my unofficial sources indicate that it is expected to commence construction in the first quarter next year.
During the construction of Mangoola, approximately 500 workers required accomadation. There was a waiting list at the two local caravan parks, and rental properties became scarace. Properties for sale were in high demand this time last year, and the available stock declined quickly. In the last twelve months, rental yields have increased by approximately 18%, and house prices rose approximately 11%.
The local newspaper, The Muswellbrook Chronicle, always has pages of adds for jobs, many of them high-paying positions in the mines.
There is obviously a lot of money being invested in the mines, the rail and the new export terminals in Newcastle. It seems as though the mining companies (Bhp, Xstrata, Rio Tinto and others) don't intend to stop production any time soon. regardless of proposed resource tax and carbon tax.
I can personally varify that the construction workers and the miners all have good incomes, and require accomadation. They also require a lot of support industry. I believe my positively geared properties will continue to grow in value over the next few years.Hey Moxi10,
Thanks for that extensive answer to my question. It sounds as though what i have been reading is correct. theer is a lot of other fairly major industries to back up the mining such as the power, equine, wine industries which gives a bit more comfort. I have secured a block in the eastbrooks link estate and will start building shortly. Do you think there is a high demand for fully furnished properties?
What do you feel a new 4 bedroom house would rent for?Thanks for your help.
talk to the local property managers – they will tell you what they have the most demand for. Families who relocate don’t need furnishing, fly-in fly-outs don’t bring their family.
I purchased a run down property in Muswellbrook earlier this year and did a renovation.
The market is strange, I can confirm I couldnt even find a room in a dodgy pub for lease whilst I was with my builders helping out. When it came to finding a tenant though the market retracted and there was a glut of furnished properties.
I see potential for this region, however take agents advices on furnish or unfurnished with all DD in place.
Goodluck!
A friend of mine works at one of the mines near muswellbrook, not sure which one. He told me to put a 20c piece in the middle of a dinner plate. The 20c piece is how much coal they are mining at the moment. The rest of the dinner plate is what's left to mine in the future. Rest assured there will be work in the hunter valley areas for many many years to come. Fly in fly outs don't tend to apply to these areas either; most employees are found between central coast and Newcastle. Muswellbrook and surrounding areas show strong future prospects.
Hi again, davebeth
There is no all encompassing answer to your question about furnishing rental properties in Muswellbrook. Nathan Birch made the point that demand for furnished properties fluctuates. This is largely due to the fact that demand is primarily influenced by short-term tenents involved in construction projects at the mines. Many of them get a tax-free living away from home allowance and frequently share a house with mates. Some of them prefer not to invest the time and expense of supplieing their own furniture, When construction of Mangoola began, there was high demand for furnished properties to cater for these short-term workers. Rents for furnished properties were on average $150-$200 p/wk higher than unfurnished. These high yields attracted more investors to furnish properties. When the construction workforce left Mangoola, there were a lot of furnished properties released onto the market all at once. As furnished properties by nature target a much smaller market, many owners found they could no longer attract tenents. As a result, a lot of investors chose to remove their furniture, and then generally found it easy to rent their properties. Obviously, removal and storage ,or selling new? furniture at a loss, comes at a price, both in time and finance. Overall, if you are lucky enough to attract long-term tenents to a furnished property, your yields are increased substantially, but obviously it adds another complication to the management of your property, and should be considered carefully.
As to the question of potential rents achievable on your house, there are also variables which will influence this. But with the projects currently underway and due for start-up, I expect a high demand for rental properties in Muswellbrook for the forseeable future. I have noticed, however, that there are a number of residential developments underway in town. This indicates confidence that developers expect good demand, but also will create competition for existing properties. As Scott No Mates noted, your property manager will know what rents are achievable when your property becomes available.
In my previous post I didn't mention the extension of the F3, which is another positive for the region.For anyone interested, Terry Ryder (and some REA) talking about the Hunter Valley – http://www.hotspotting.com.au/media/audio/Phil-Lawlor-LJH-Muswellbrook.mp3
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Hey Davebeth.. you would get $450 tomorrow for a 4 bedder in Eastbrook estate. ( we own one there)
However once yours is finished…..
We havent needed to furnish ours, its never empty long enough.
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