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Hi stu_macca
I know exactly how you are feeling !!
I recently purchased a property in Moranbah and also bought one in Dysart at the end of January.
I have done extremley well out of both of these properties in terms of both growth and in rents.
I too keep thinking that it is all too easy and too good to be true. I always said that if things looked a bit shakey i would be outa there in a flash. I actually rang an agent last friday to list them but changed my mind a couple of hours later and withdrew them!!
Im still there but have been keeping a very close eye on the market.
A property was lited in moranbah last wednesday for $450,000 and sold within 24 hours for $465,000.
A rental property yesterday had already received 13 applications at $1,000.00 a week for your basic lowrise 3 bedder and it was only mid arvo.
A friend of mine who bought a 5 bedroom highrise in Dysart 4 months ago rang one of the larger mining companies yesterday to see if they were interested in renting his property (already has tenants, he was just trying to get a feel for how things are going). They were happy to sign up on a 3 year lease for $1,400.00 a week.
Nothing seems to be slowing down in the Bowen from what I can see.
BMA are still spending big up there and another company just bought a 1.4mill block of land.
I know that this could all change at any time. But I have decided to ride out the storm and hopefully not regret it.
Thats today anyway
Good luck
Fingerscrossed
Hi again
I just rang an agent at Moranbah Real Estate and asked him if there were any available rentals and he answered no and told me he had a waiting list of 80 people.
I was told the same by Elders.
I suggest that if anyone is serious about buying property in Moranbah that they make a few calls to suss out the area themselves.
I see it going the same way that Dysart has gone and thats UP. Rent and house prices. I have just increased the rent on a house i bought in Dysart less than 6 months ago from $650 to $950. Not one complaint !!
I'm loving the Bowen basin
Yes, its all true what the agents are saying about property in moranbah.
Do your reseach and you will see that there is HEAPS going on up there with much more to come.
There are no houses for sale and there are no houses for rent – supply and demand kicks in and rents go through the roof. Property prices follow.
Houses are selling within days and prices are not very negotiable.
I reckon Moranbah is a great place to invest – but be quick, i reckon prices are going up overnight !! I believe the high rise property that I bought a month ago (settled last week) is now worth $30,000 more.
Good idea to contact the agents directly. If you wait for them to reach the internet they are usually already gone.
As for Mt Isa – I dont know. I am too excited about the Bowen Basin. Surat Basin is worth a look too
Keenas
Hi Damian
I have recently done extensive reseach into the Bowen Basin.
I bought a property in Dysart 6 months ago and the capital growth has been fantastic as have the rents.
I also have a deposit down on an off the plan unit in Middlemount at a place called Prince Place. The expected rent on these units is expected to be around $900 + a week and this is achievable I believe. Its all about supply and demand and they are screaming out for more accomodation.
Middlemount has 2 major projects in the pipleline. German Creek mine is expanding and the construction of Lake Lindsay Mine.
The worry that I have with Middlemount is that there is a lot of construction going on up there. One of the big mining Companies have committed to spending $85Mil on developing the town to make it more appealing for the miners – a nicer place to live. Some of this 85mil is apparently going to be spent on easing the accomodation crisis. I heard they were going to build duplex's.
The block of land next door to Prince Place has been sold to a developer who I understand is going to build a block of units.
So, not sure how long the supply and demand will last. The prices of the units did seem a little inflated but the yields and depreciation are great for now.
My Moranbah property settles tomorrow. I think that Moranbah is a safe bet with BHP looking at a new mine 10klm out of town, a fertilization plant and explosives plant all in the pipeline. Rents are good and on there way up. Hopfully prices will follow.
Maintenance is an issue in the older places. It can be VERY expensive for labor.
I live in Victoria and have bought all properties sight unseen.
I could babble on here for ages Damian, but if you are serious about investing in the Bowen I would suggest you ring the QLD Mines and Enery Department and ask them to send some information on the projected mines for the area.
I did this and they sent me 4 huge maps with all the information that I could ever need.
Also, do searches on the ABC News websites and check out the BHP, Anglo Coal and Xtrata websites. The information you get from these is invaluable.
Good luck with the investing and the new baby
If I can be of any help just ask away.
Keenas
Thanks Richard, I will give Leonie a call now.
have a nice day
To esnam
Thank you so much for your post.
You put my thoughts into words perfectly
I looked at it like swapping properties too.
Property goes through cycles and I thought that it was a wise move to buy at the bottom of the market then sell at the top.
I realize that this is not always advisable if you have invested in an area that has slow continual growth.
But the growth that we have just had in the west has been exceptional and it may be another 10 years before it does anything again.
Ben made a good point by pointing out that Perth may be slowing down, but the regional area may still have a little way to go – the old “domino affect”.
My investment there was always only going to be a short term investment. I think that there is always an element of risk associated with purchasing property in a mining town. It was a bit like gambling I thought – now I think that I should quit while I’m in front.
My property is under both mine and my husbands name. His tax bracket is only 31.5% and because i don’t earn an income my share is at the lowest tax rate. We would walk away with around $60,000 net profit.
That would go along way towards enabling me to purchase two positive cashflow properties in growth areas.
We are always limited to the amount of neg properties that we can afford to buy.
I am still confused.
We have just set up a Line Of Credit, interest only equity loan. This should free up some more funds.
Would love to know what you decide to do with your South Hedland property.
And Ben
my 7-12% yield were calculated against purchase price 2 years ago. Kalgoorlie Boulder have several properties for around 6 and 7% yields. Mine might be one of them soon
Cheers
and thanks for you responses. I love this forum
Debbie
