Some more worrying news!

Just received my rental statement from Moranbah. The usual stuff about increased rentals and also that news has filtered through that BMA are cancelling contracts and housing subsidies. At least 5 companies leaving the area.

Does anyone see a turnaround once the negotiations are complete?

Cheers,

Lee

Hi,

I have followed this informative thread with great interest over the last couple of months…Thank you to all the regular contributors. I notice it has gone a little quiet since BHP's announcement of job cuts in the area.

I currently own 1 property in Moranbah, and after a couple of months of planning am about to submit a DA for a second house on the block. Total cost should be approximately 250k. I must admit to feeling a little nervous over the last few weeks and especially since the BHP announcement.
 
My thoughts are that a new 4br house for 250k in Moranbah still represents excellent value. And my thoughts on the area in general (for what they're worth) are that  8+% yields will remain through what may be a lean time (comparitively) for the area. I think the prospects for investors are still very good particularly looking forward to mid 2010 and beyond due to what will continue to be a chronic shortage of housing.

I have been reading alot but am certainly no expert on investing or the Bowen Basin and would much appreciate any comment or opinion on any of the above.

Thanks again,

Lee