Hi JD,

Thanks for explaining the NRAS a bit more, I try to have my head around as much as I can but there is just so much to know about! It relieves my nerves knowing that you can sell outside of NRAS. My other question is, being an NRAS development, would this mean that an entire complex is occupied by tenants on low income?

Thats is the best way to get your head around an area by going and spending some time there. I can help in Gladstone to an extent, I only deal with next properties and am doing my best to get these at great prices with builders rates etc, however this limits what I have available to new stock only. one opportunity that may be of interest is a land development that wont be available until next march, however in the first stage the developer has 2 300sqm lots left for $165,000-$170,000. it is small but you will still get a good house around the 170sqm on it which will get you great rent on it. You will definitely get a good house and land package for under $400,000 here. You just need to accept the fact that it is a small block. However, your rent will still be the same if it was on a bigger block that you would pay an extra $100,000 for.

This might help?

Hi Shooshoo,

Don’t worry I think everyone wishes investing in the right area was easy but it’s just not! We all hear the good stories but there are a lot of bad stories out there which aren’t heard as much which just proves the need for in depth due-diligence for everything!

The article was in the Courier Mail on Friday (i cant find it online but here’s a Toowoomba paper exert) http://www.thechronicle.com.au/story/2011/08/16/57m-deal-boosts-job-market-toowoomba/

my direct mobile is 0438 593 603

cheers

Hi Shooshoo, there are 4 mines currently all at different stages of planning for the Galillee Basin / Alpha and yes this is one of them. they will all have current initial output of 30mtpa which is quite significant in comparison.

Also in relation to the surat Basin, there was a small report yesterday that a building company in Brisbane has just secured a $57m contract with Qld Gas Company to build 1300 transportable accommodation facilities. Something you may want to include in your due-diligence if you are still looking at the Surat Basin area.

Hi Banz,

from my experience with building some of my own properties in Emerald, they built about 10 houses in the same street surrounding my properties and they all looked the same (with minor changes). The locals on the street were all fairly upset as there street appeal had been reduced significantly, even to the fact that local agents were telling people that its a bad street. the houses were tiny and attracted a different demographic of people which was not where the street was heading. What was a great street has been significantly negatively impacted until the homes are one day purchased by owner occupiers in hope that they can lift the appeal of the blocks.

I am not out to knock anyone for the sake of it, but when I went to sell my home in that street my sale price was significantly impacted due to these properties being built. As this thread is about helping people invest in regional areas I feel that it was important to mention this. I am sure that if more care was taken with the end result of all of these properties than the street appeal could have been increased.

Hi,

I am definitely interested in finding out about that market/region, however time restricts me currently to do so whilst my focus and core business is throughout QLD. I am keen to hear the underlying fundamentals of what is happening there though.

Thanks!

also the town has grown a lot since 2006. over 400 blocks have been released, sold and occupied. over 150 units built and occupied. the town is unrecognizable from 2006. you are talking about less than 1% of existing houses being for sale in reality, I would love to be in that market!

hi shooshoo,

I can’t view the whole document as it asks me to pay for it and I’m not keen to do that. what initially shows up are properties that are infact just a local agent trying to sell house plans for the builder. maguires real estate had these on for years even when I was living there. don’t forget that parts of emerald flooded, I wouldn’t expect these properties rush out the door! no matter where you go there is a certain time that properties are on the market for on average. Even Gladstone, Australias hottest market currently, has properties that sit there. remember people buy houses, not just areas. most of the time if a property isn’t selling don’t dismiss the area, have a look at the property also. is or was it overpriced, is there any problems with the property etc.

also remember that in Qld, especially regional, there are a LOT of open listings, that is, more than one agent has the property for sale. this happens a lot from the start of a marketing campaign. currently, Emerald has a higher owner occupier purchasingrate than Gladstone, Dysart, Chinchilla, Moranbah etc. this means potentially a bit more time on the market as investors aren’t inflating prices so much that the region becomes unsustainable for families to buy and live in an area. Emeralds not a “boom” townthis year, it was in 05′, 06′ & 07′. and will see great growth in the future. however I don’t believe, and I hope, that emerald will be like Moranbah etc, it is to diverse and secure for that and that would also ruin what is becoming a great regional city in it’s own right.

shooshoo, the writings on the wall for most of regional Qld in this mining boom, theres an array of different areas with different outcomes but as far as finding the next moranbah as such, you need to find an area that no one wants to live and put up with a bumpy road until the area you choose becomes it. and in most cases, you will have sold out before it takes off too! 3 years ago you were crazy to go to Moranbah…so you will need to find an area that everyone thinks you’re crazy for investing in and back yourself the entire journey in hope that youve made the right move.

Hi Katmat,

Gladstone should provide some good growth for people there is no doubt about that, just watch the market carefully as you invest there. In regards to packages that we are putting together in Gladstone, there are some large 3 bed units that would come under the $500k mark, I am also negotiating with a number of land developers at present in regards to land that will be released over the next twelve months or so. I am hoping to have some released by the end of December, however this is taking time for the developer to confirm. In regards to build prices, I will be able to have costs hopefully under the $1300 per square metre mark.

I have two blocks available which will be released in February/March 2012 which are only 300m2 (small but cost effective). you will still fit a small 4 bedroom house on this and have a package for under $400,000. If you furnished it you will still achieve a similar rent as a 4 bedroom house on a 700m2 block. (approx $800 – $ 1000 per week) The peak workforce will be starting by the end of next year, just in time to ride the premium rents.

Hi Jack,

late reply here… I am quite bullish on emerald more for the fact of its security rather than rental yields. I never chase properties for cash flow as I just don’t need to whereas some people do to even out there portfolio with losses made elsewhere. I always go new, mainly due to my relationships with builders, deprecation, and I really don’t like buying other peoples mistakes basically. Also as i really don’t want to spend my days calling tradies to get things fixed. This is okay to do if you only have one or two properties in your portfolio but if you have more it can be quite a hassle.

In Emerald units or houses are both fairly sought after. 2 bed units are popular, however i always build three bed as there are more buyers in the market for 3 bed units. In saying that, I have a developer doing 2 bedroom units in Emerald, I would furnish these if it was me buying one. These units are good as they are around the $300k mark with good rent so its a great lower entry point.

A new, quality, 4 bedroom house will always rent the best in my experience. not the lower level typical investment that some builders pump out all in a row, but a nice, 4 bedroom home with 2 good living areas in a good, semi quite street with quality neighbours rents the best. In a mining town you get people doing shift work, so the positioning of the house and the rooms within it can be quite important I believe.

the houses and duplex units only need 2 bathrooms, you will most likely attract a young couple or a family in Emerald. So furnishing and having extra bathrooms like some other towns wont pay off. This will see less wear and tear on your property also.

If you have Facebook have a look at our page, I pasted an article there today about the Alpha mines. People overlook Emerald, which to me is great for now while I am quite bullish on it and holding more and more properties there. In three years time people will be wishing they got in now, that’s my belief anyway.