Hi Josh

Firstly, thanx for taking the time to help out investors with information on the Mining Towns.

Your blog updates and forum posts have been great reading.

I have purchaed homes in the Bowen Basin, Surat Basin and in Kalgoorlie and  have experienced great capital growth and rental yields in all of them.

I love the Mining Towns and cant get enough of them

I am looking to purchase my next property and am currently looking at Emerald.

I see that you are a big fan of Emerald and have previousley lived in the town.  What are the better areas to be looking at buying.  

I am planning on making several calls to agents in the area tomorrow.

Thanx

Deb     

Hi

Try this site.   Its free too

http://www.onthehouse.com.au/

Deb

Hi Mel

Regarding Blackwater, I read last week that Anna Bligh has given the nod for 300 blocks of land to be released in blackwater within the next 12 months.

She has also done this for Moranbah in the Bowen Basin and Roma in the Surat.  This release of land is due to the impending demand on accomodation due to future mining projects.  She is trying to make accomodation more affordable in these towns.

I dont see this land release as a good thing – maybe for tenants but not landlords.  Just means more supply for the demand which could keep the rents down.

I have owned property in both moranbah and dysart which i purchased 2 and 3 years ago.  I have done VERY well out of both of these proerties both in terms of capital growth and rent returns.  I have since sold Dysart (panicked when the GFC hit) but kept Moranbah which is ticking away very nicley indeed.

I have just had a major Company sign a 2 year lease at $750 a week with 6 montly rent reviews.  The same Company were reluctant to sign anything more than a 6 month lease 12 months ago and refused to pay an increase in the rent which at the time was a modest $550.00 a week. Gotta be a good sign for the area when they did not hesitate to sign a 2 year lease.

Personally I would recommend Moranbah as a great place to invest as far as mining towns are concerned.  There are so many major projects on the drawing board there that the 300 blocks of land will make no difference to accomodation demand.

Check out the ABARE report for more information on these major projects.

I agree that the timing has to be right and getting a lease with a Major Company is a big bonus.

This of course is just my personal opinion and as with purchasing an investment property personal due diligence is required.

Happy investing

Fingerscrossed

Hi Kylie

I am also checking out Orange as a potential investment area.

Cadia mine is in the construction stages i understand and there is a shortage of rental accomodation.  There are extentions happening at the hospital as well.

Terry Ryder mentions Orange as a great place to invest – refering to it as a rock solid regional investment.

Serviced Apartments are popular with the workers from the mines and if you go this way you could end up with a decent return.  Pay $330,000 for a house and as long as it is fully self contained you can achieve around $600 – $650 a week rent.

Problem here is that you pay over 11% commission to have it managed as well as weekly cleaning, garden maintenance, power and water.  This all adds up and eats into your profit big time.  

Apparently there is no inbetween.  You either rent unfurnished or make it a serviced apartment.  From what I have been told, no agents will manage  a furnished property.

I am planning on doing some more "due diligance"  tomorrow.

Where are you located ?

fingerscrossed

Hi again Lefty

I am using Tess/Angela at Elders Real Estate.  I had each unit with a seperate agency with the incentive of whoever rented the 1st property they would secure management rights to both units.  Elders rented the first one.  Having said that – the potential tenant pulled out this morning due to her contract of sale on her PPR falling over

There is a new lady in town named Pam and she is starting up her own agency which she is calling Surat basin real estate.  She should be operational by the end of next week.  Her number is 07 4669 1790.

I built in Gaske Lane which is on the edge of Bottletree estate.

The tenant that was going to move in was an individual.  Not too many companys looking for accomodation at the moment.  Rentals are really quiet.  Hopefully the calm before the storm.

The rental return was way below what i was told i would get.  I have them listed for $320.  The depreciation should make them neautraly geared tho.  I am only prepared to take 6 month leases due to the impending increase in demand expected in around 3 – 6 months.

I too am having a good look at Miles and have an expression of interest  on a block of land there which i hope to build on.

hope this helps

debbie   

Hi Jackie

I saw these in Real Estate.com but only in the land for sale area.

Perhaps they could advertise in the property for sale area as well.

there is also a realestate.com commercial propery for sale site as well.

i would send you the link but am in a hurry to get to work

what is the occupancy rate of these sheds ?

Debbie

Hi Karenday

Thanx heaps for your input.  I am sure there are plenty out there needing some reassurance at this time.

Are you able to tell me if the BMA Cavill Ridge is still a goer and what is happening with the fertilizer plant ??

These are the 2 reasons i bought in Moranbah in the first place !!

Also, I dont understand why your Real Estae friend has adivised you to hold off purchasing in Moranbah until there are less houses for sale.

If you are confident that Moranbah is going to pick up again why wouldnt you purchase now while there are plenty for sale and more chance of negotiating a better deal ?

Thanx again for your help and input

Fingerscrossed

Dessyray

I too would like to thank you for taking the time to contribute to this post.

There are obviously a few concerned landlords out there, me included, and we really appreciate your inside information.

I own property in both Dysart and Moranbah.  I currently have them both on the market.  

I have just secured a new 12 month lease in dysart for $950 a week and have contacted my tenants in moranbah who are more than happy to re-new their lease at an increase of $200 a week in rent.

I believe that if you look after your tenants and don't be too greedy where the rent is concerned you should be ok.

who knows what the future will hold for the mining towns but I have decided to remove both of my properties from the market and to spend the rest of today shopping for my next purchase. 

good luck

fingerscrossed