Forum Replies Created
- simple wrote:Interesting stats, as long as you know how data is calculated.
Say, if we have more high end properties sales recently, it will indicate that house prices grow for this period:)Very different story on the streets, people loosing jobs, even QUT in Brisbane just shed a lot of people who are long therm (over 10 years there). We dismissed over 15% from our manufacturing facility in last 12 months.
Who is buying in 2012 ?
For investors yield is too low, bank give higher return in interest rates.I can’t get into properties fast enough!
Yield’s are high! Much higher than the return on the Banks interest rates.
One particular property has given me 35% CG in the last 24 months and rents on a 9.3% yield…..I’m buying in 2012!
schmoo wrote:Has anyone bought recently in Emerald? How are the bank valuations going there when it comes to getting finance? Are they valuing the houses much lower like they were in more high risk areas like Moranbah?Hi Schmoo,
I’ve got a couple in Emerald including one purchased recently and had no problems with finance and the banks at all………..
Jack
PISTORE wrote:I'm sorry to say, but the ship has well and truly sailed on Moranbah.
I wouldn't touch it with a 10 ft pole now as ALL the signs are saying that it's maxed out and is now on it's way back down to a more realistic position in the market.Forget Moranbah, start looking at locations that are going to be the NEXT Moranbah. That's where there money to be made.
Emerald has plenty of potential and is still very affordable to get into. Don't make the mistake of looking at the past, look to the future and what it has in stall.
I think that’s a good read of the market up in Moranbah at the moment it seems.
Good place to be if you got in before the recent CG over the past couple of years and now looking at sub division and developments.
Emerald is also a good call.
Nicely placed to benefit from what’s about to occur in the Galilee Basin and further south towards Springsure.
Rents have recently ramped up and values have probably jumped $20k-$30k in the first quarter of 2012.
Jack
popelich wrote:Hi,
for those that have purchased recently in Emerald or are in the process of purchasing is there much discounting on purchase priceCheers
Short answer….No!
The market is starting to run hot.
Unless you have done your DD and know exactly what you are negotiating on…..there is little room for any discounting.
Vacancies are incredibly tight already and we haven’t even experienced the flow-on expected from the massive development in the Galilee Basin.
IMHO the market is turning fast. As with every investment…know exactly what you want and don’t hesitate when you find it.
bandwagon wrote:JT7 – we are currently awaiting a contract for purchase of a new villa in Emerald – have read all your posts & wondering if you mind if I PM you with regard to flooding & street we’re proposing to buy in – have received a bit of conflicting info ?Sure mate. No dramas.
elemist wrote:Just been doing some reading into Emerald and it looks promising.That said – if its so promising how can they be asking only such a small amount for a place like this?
http://www.realestate.com.au/property-house-qld-emerald-109981781
I mean its so cash flow postitive it’s not funny?
Because it got wet in the floods!
Another in the same complex was listed at $328k and sold in February 2012 (last month). Potentially a $30k-$35k gain in one month.
The markets starting to run hot!
coalstar wrote:India is also a country with ppl
japan and also all of south east asia, China is only part of the story, then you have american consumers; and 500mml chinese moving from third world to middle class citizens in the next few years.Buy well and at a discount, increase your yield and you'll do well in mining towns;
Moranbah though is way too expensive for me but prices won't drop off too much as theres not much land around it as its got mining leases all around it. if i was to buy in moranbah i'd only buy a house with enough land on the back to put a another house etc
Agree. Interesting situation with Japan. Because of the nuclear situation last year Japan has shut down all but 2 of it’s nuclear reactors therefore this assures the need for thermal coal to use as an alternative for energy production. Japan is also still our biggest customer in relation to hard coking coal.
PM’d you.
Hi taxdiva,
I don’t want to sound flippant but why not mitigate the risk and purchase in a non flood part of town. I’ve 2 in Emerald but made sure before I purchased both properties we’re going to be high and dry. Survived 2010 floods. The market has bounced back and is now rising fast! Excuse the pun!
Certainly makes sleeping at nights easier.
Jack
Hi Kennychlorine,
What’s the hurry to spend $600K!?!?
The market’s aren’t going anywhere and you sound like you could do with some time to educate yourself.
I’m not convinced from an economic perspective Tasmania is the best place to put $600k.
You’ve received some really valuable advice on this thread. There are many many considerations to contemplate before choosing an area to invest in.
Personally I don’t agree with one view expressed on ‘mining towns’ but that’s investing. I have been investing in regional hubs that are heavily influenced by mining but also diversified and have been enjoying both CF and CG. But, my research gives me the confidence to put money in these towns and I think that maybe confidence might be what you are lacking. Confidence comes with knowledge.
Why not get both CF and CG?
It may not be rocket science but it does take some effort. Don’t rely on others to tell you where to invest, research and put the time in yourself and invest with confidence.
Hope this helps a bit mate.
Jack
Update on Emerald – Rents are starting to go ballistic!
trickeymickey wrote:Aviator77 wrote:Has anyone had a look at property in Emerald of late? Its almost impossible to get any decent investments there. Its like the demand has outstripped the supply and they are not producing enough residential housing to accommodate this demand. Your thoughts on this situation Josh?I have just got finance approved for a unit in Emerald at Hillcrest Villas, one of 26 units that have just started construction at Riverview estate which I purchased through Josh. The next stage of Mayfair Ridge, (Stage 7), is also selling but apart from these, there's not a lot coming up for Emerald, which is why the market is so tight and why I chose Emerald over other areas.
Going back a few pages, there were posts about finance approval at high rates of LVR in mining areas….DO NOT USE SUNCORP, as my application was denied due to LVR being over 80%. I ended up having to purchase the unit for an extra $5000 after the finance date lapsed because Suncorp was too slow and I didn't have enough time to apply for finance elsewhere. Since Suncorp cost me $5000, I have lodged an official complaint with them, so do not use them for both reasons of inefficiency and LVR.
I can't wait for the unit to be completed so I can see what the market does in the next 6 months,
Hi trickeymickey,
it appears we have something in common. I too purchased one of these villas in the Hillcrest development.
I think it was a good buy considering the market and where it is headed. Rentals are incredibly tight and I can’t see this easing in the near future. There is also some exciting projects happening in the region including further west in the Galilee Basin but also just south of Emerald near Springsure, Bandana Energy is planning a $1.1 billion dollar project. Ensham’s $1 billion dollar expansion.
With yield’s really starting to ramp up…it’ll be a very interesting 6 months till completion. Be nice to see a bit of equity!
Aviator77 wrote:Has anyone had a look at property in Emerald of late? Its almost impossible to get any decent investments there. Its like the demand has outstripped the supply and they are not producing enough residential housing to accommodate this demand.
Your thoughts on this situation Josh?Yep its really starting to ramp up in Emerald. You’re right about the tight demand to supply ratio. Rents are rising fast and CG is coming on.
Derek wrote:JT7 wrote:With the industrialisation of China and India, the development of a more capitalist society and a rapid shift away from socialism not to mention a growing middle class demanding 'stuff'Hi JT,
I recall an article about 10 months ago discussing the impact of urbanisation on Australia's mining industry. The article (memory cannot provide which paper) spoke about the ongoing urbanisation of China and India but also predicted the next biggies would be places like Indonesia, Vietnam, Thailand and a host of South African countries who are also on the cusp of urbanisation.
Many people seem to overlook the next tier of countries who will progress and therefore be buyers of resourcs materials.
Totally agree Derek.
I’ve read a couple of articles within the last 3 months in the Australian Financial Review which have examined this shift.
Even the RBA appears very confident about the long term future of this shift.
Again in today’s AFR, an interesting article on page 25 by Darrie Dunstan discussing the long term prosperity of the Australian economy off the back of a burgeoning resources sector despite the bumbling approach by our politicians.
In relation to the huge investment and development of the resources industry in this country, and these fundamental shifts were are witnessing in these developing countries, I’ve heard it many times referred to as not a ‘once in a life time event’ but a ‘once ever event.’
Jack
Nigel Kibel wrote:The quicker we can get rid of these fools the better. Let us get a liberal government as soon as possibleMost of them (Politicians) are idiots but I agree the ALP is an absolute and diabolical shambles.
They’ve stumbled from one blunder to the next yet people still vote for them!
Not much of a choice is it?
Could you trust either one?
Yep. I read an interesting article in the AFR this week about Xstrata being held up yet again in Wandoan.
Agree with primoHCC on this one. Those underlying fundamentals in relation to hard coking coal in the Bowen Basin are solid.
With the industrialisation of China and India, the development of a more capitalist society and a rapid shift away from socialism not to mention a growing middle class demanding ‘stuff’ I think the demand for not only hard coking coal but thermal coal looks strong into the future.
Looking further west, India’s Aldani has already moved to secure the thermal coal in the Galilee Basin and port on the coast, and now trying to get the rail access to the port. Their even suggesting FIFO semi skilled foreign workers on 747s!
Hi dancody,
I’d have to agree with Nigel here. There are a number of financial considerations to take into account when deciding what to do with a property. I’m also tend to agree with Nigel that many mining areas will see significant gains in the coming years depending on there location and fundamentals.
I don’t have property in Moranbah but do have property in the Bowen Basin in another location and intend to add to and strengthen my portfolio with more.
The amount of future investment in the immediate area surrounding Moranbah is massive and if you’re already in the market it may be prudent to not sell. Rents and values have risen significantly in Moranbah recently. I think the only threat may be 100% FIFO so keep your finger on the pulse with this one.
Jack
Yep agree Tony.
I think we’ll see investor targeted property developments pop up around Alpha offering some pretty tempting returns.
Higher risk higher returns. Be a case of time in time out perhaps but again it depends on what happens with this new FIFO development.
I’ll stick with those regional hubs me thinks!
moxi10 wrote:There is a new twist to the FIFO approach by the mining companies, with several companies, Adani in particular, pushing for approvals to FIFO overseas mine workers. Clearly not a plan which would be beneficial to Australia, and local mining communities in particular. http://www.cqnews.com.au/story/2012/02/15/extreme-fifo-plan-strikes-fear-in-region/ So Adani want to fly in their workers to rip out the Australian coal, put the coal on their trains on their railroad, load it on their ships at their terminals and send it all to their power plants in their country. And so if we don't have a pathetic little watered down mineral resource rent tax, just what is their in this plan for Australia?Well it appears we certainly can’t rely on the Federal Government to look after our best interests! They’re busy selling all our arable land to the Chinese to secure future food security in China! It’s hard to imagine 747’s packed full of Indian nations working on Australian soil! Or is it!…..it’s reasonable to suggest that after buying the mines, rail and ports this would be the next step.
Well worth considering when developing your investing strategy. I’m a big believer in investing in regional hubs when it comes to a mining play. Towns like Emerald, Mackay, Gladstone, Toowoomba and Muswellbrook which service a number of mines and are home to the supporting industry would help mitigate against these types of FIFO arrangements.
Jack
japan and also all of south east asia, China is only part of the story, then you have american consumers; and 500mml chinese moving from third world to middle class citizens in the next few years.
