Buying new would probably increase the liklihood of leaseing to a mining company. The new developments are a little further from the amenities and the popular night life, which make them a bit less appealing to the workers, but I doubt if the mine managers are concerned by that aspect..

A big percentage of the current demand for rental accomadation is from those employed on the expansion of Mt. Arthur, with many more contractors expected late August and early Septemeber to work at the Ravensworth expansion. They are more likely to try to lease a property near the CBD.

The miners themselves are likely to purchase their own house, due to the fact that their incomes allow them to do this fairly easily. Many of them are from the local region anyway, as this is a preference in the selection process applied by the mines. However, about 20% of those employed at Mangoola, the newest mine,  are from outside the region, and some are definitely buying homes in Muswellbrook. As the workforce required for the expansions and proposed new mines will exceed the skilled labour available, a higher percentage is likely to. be sourced from outside the region in the future, increasing demand for more housing.There are a couple of new mines planned at Denman, near Muswellbrook, as well as Mt. Pleasant, just outside Muswellbrook.

I chose established houses with recent renovations, which allowed me to claim depreciation. Both my houses also offer opportunities for further improvements. I have converted a rumpus room in one into a fifth bedroom, which has made it attractive to contracting companies.

My leases in both houses will expire soon, and my realestate agent advises that demand is high, and increaseing, allowing for a rental increase.

One established area to avoid is on the northwest of town, near Wollombi road. This is a housing commision area, and there is a disproportionately high crime rate there. Part of the area on the southeast of town is apparently undermined, and subsidience may be an issue. My properties are near Coles and Aldi, on the southwest,  which is the direction in which the town is expanding, and the properties there are generally newer and in good condition.

The general new versus old rules apply, with old having established sales history and closer proximity to CBD and potentially greater long term land value etc. My personal preference is for good quality established.

Hopefully that helps your research

Moxi10

http://www.theaustralian.com.au/national-affairs/from-pit-to-port-indias-10bn-coal-export-plan/story-fn59niix-1226118491805

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.

http://www.miningweekly.com/article/carbon-tax-will-hurt-jobs-in-coal-mining-report-2011-06-14

http://www.news.com.au/business/markets/market-falls-almost-1-per-cent-at-open-as-carbon-tax-sets-in-eurozone-debt-fears-spread/story-e6frfm30-1226092946883

<moderator:  I have deleted the pasted text of the article.  Please use link to see the article> 

http://www.kenodowd.com.au/LatestNews/MediaReleases/tabid/74/articleType/ArticleView/articleId/101/New-report-backs-claims-on-coal-jobs-threat.aspx

9 contracts have pulled out last time Rudd tried a similar tactic jobs were lost and the reigns given to Juliar would be nice to be wrong as I was considering investing in some towns such as Blackwater/Emerald dysart/middlemount are just to risky for my SANF

Hi Jack,

Alpha is on the map, especially with so much about to happen out there with 3 potential mega mines, i really want to find out where that will impact as its up in the air still with local councils. I’ll get on the ground out there and see what’s really happening.

In regards to aircons…in emerald Fujitsu are the best for that climate however they are twice the price as what I have used a lot which is Kelvinator…very good brand, no problems and cost effective. However I am building 4 units in Emerald at the moment and the builders electrician is using a different brand which comes out of the Kelvinator factory called TECO. A bit better on the hip pocket again but very smooth running and reliable. Being a bit cold there now i would imagine you aren’t in a hurry to get this installed? I can ask the electrician and plumber that will be doing mine if they can do yours while they are there if you would like? If the timing suits and they are happy to I’ll pass their details on to you.

Cheers,