Forum Replies Created
- ydr wrote:Hi There,
I’m a new investor and was looking at Blackwater & Emerald as the rental returns are very good. It worries me that these towns very much depend on the mining industry and I’m scared that if something goes wrong, they will end up being ghost towns. however I’ve noticed that Blackwater has a Woolworths which is a positive sign as Woolworths would not invest in a town if it wasn’t worth it.Has anyone outhere got any leaks on the future of these towns like projects that will be happening etc…
Thanks Yann
Hi Yann,
I have a property in Emerald. I’m very bullish on the Bowen Basin for a number of reasons however you are correct mining is a huge part of it. The projections of growth for this industry are immense of the back of the development of immerging economies such as China and India. If you immerse yourself in research into the fundamentals of this I’m sure you will appreciate the huge scale of what is about to occur.
An excellent source of information is The Australian Financial Review. When I talk about the underlying fundamentals I mean such things as the development of a middle class society in China and India demanding things that we take for granted. New housing, new cars, new shopping centres and the list goes on…and guess what? It all requires coal! Hard coking coal to make steel and thermal coal to create the power to make the steel! Where is the worlds premier source of coking coal? The Bowen Basin. And now thermal coal is going to be mined out in the Galilee Basin 160km west of Emerald in some of the biggest mining developments Australia has ever seen!
But that’s not all…soft commodities are now booming. Cotton, wheat, wool. Emerald farms both Cotton and wheat!
Understand the underlying fundamentals to an investment and with it brings confidence in your decisions.
JT
eilatan28 wrote:but we have done the second scenario ourselves – we rent out our entire PPOR while we choose to rent in another suburb. – The entire amount of interest charged is tax deductible, AND our PPOR remains CGT exempt while we continue to rent!! best of both worlds!!!
happy investing! hope that helpsHi Wattoette,
eilatan28 is on the money here.
We also use this strategy of renting out our PPOR and as eilatan28 correctly states the entire loss on that property is tax deductible. Our PPOR also remains CGT exempt for a period of 6 years. It’s a very useful strategy.
JT7
mpbajar wrote:Hi,I am a newbie in the property investing game- currently looking for a first investment. I would just like an educated opinion on the effect of the floodings in Queensland. I am looking at some spots in the mining hotspots, but now am having serious second thoughts.
What does the floodings mean? If the suburb that I was interested in was included- should I stop there and look at other suburbs?
Does it mean that the value will drastically drop in the next few years, or not rise at all?Thanks.
Hi mpbajar,
I have a property in Emerald. Before purchasing the property I realised through my research that flooding was a significant risk. As a result, I purchased in a specific area of the town that historically has not been affected by flooding. Conducting detailed and specific research is always wise and has in this case saved me alot of heart ache.
I have alot of faith in Emerald and I think it is in line for some fantastic oportunities in the very near future with the development of not only the Bowen Basin but in particular the Galilee Basin. Although the recent flooding is a set back I think Emerald will dust its self off as it has done in the past and It’ll be business as usual.
Ps. Property values in Emerald certainly didn’t drop after the once in a hundred year flood in 2008 and I don’t expect them to drop after the bigger than once in a hundred year flood in 2010/11.
Good luck with your journey mate,
JT
DWolfe wrote:Austy,This whole thread is a massive spruik. I'd be interested to see how much of this is genuine
D
AGREED!
This is a forum supporting a community of genuine property investors and shouldn’t be used by spruikers selling their wares! If you want to advertise your properties then perhaps you should pay for and use the usual avenues.
JT
austinvest wrote:Magic Mark wrote:Hi Austy,Hmmm…. Not sure how you knew that I worked for Atkinson Homes/Suncrest Homes Gladstone, as I had no intention of self promoting on this forum. I DO live here and things really are heating up.
It is is no big secret what is going on here in Gladstone at the moment with all the press about the HUGE LNG project approvals in recent week(s).
That being said, I am most happy to share with you (or anyone else that has an interest) in what is available in H & L packages.
I think best way to do so is to just email me directly from my profile on this site and I am happy to share all.Magic Mark
Ahh, you see that is the sceptic coming out in me!
A quick google search with the mobile number you posted up leads me straight to you.
You may have no intention of self promoting in an obvious way, but by providing your mobile number with the offer to call is, as far as i believe, self promoting.
Your first post suggests getting in on H & L packages now, and amazingly that is a service that the company you work for provides.
None to subtle.
I am however, interested in why you believe a new house and land package would be more beneficial than an existing house?
Do you think because Calliope is 20 mins away from Gladstone that it may lag slightly in capital growth, as it has in the past?
Looking forward to more discussion on Gladstone
Cheers
Austy
Arhh yes let me guess…because buying a shiny new house and land package provides both promoter and builder with premium returns after selling to a buyer at above market value! The unsuspecting buyer then has no option but to wait until the market rises to meet the over inflated price paid for the property.
Sound about right?
AntheaProperty wrote:I've never been in a position to need/take advantage of negative gearing. I went for a positive geared property. If you want cash flow go to the mining towns!This is a strategy I’ve employed in balancing out my portfolio. Cashflow is obviously important. Earlier this year and after extensive research I purchased a high yielding property in a regional hub in the Bowen Basin. My next purchase, for example, will be more orientated towards capital gain and will be more negatively geared.
My strategy hinges on both timing the market and time in the market with care taken to maintain my cashflow against capital gain. If I purchase property sensibly in a bottom/rising market (Australia wide) for example that shows potential for both rental increases and capital gain (purhaps in an area where new infrastucture is being developed in a more traditional market ie. capital city or large regional city)…after time my cashflow should come back to neutral. Then repeat…repeat…repeat.
Most important…do your research and have a go.
Hi Paul,
I got into Emerald earlier this year. Emerald is a regional hub and as minichick mentioned it has more going for it than just mining which I think is important. However, in saying that I am extremely bullish about the Bowen Basin in general and the prosperity of the resources industry. I have researched the area and the resource market extensively and can only see good things for the future.
The market in Emerald proved resilient through the GFC and the impact it had on the price of coal which is a sign of the markets strength. There are many exciting prospects on the horizon for this area including the development of the Galilee Basin which should have a positive impact on Emerald and Rockhampton. I think Emerald has just come off it’s bottom and is now beginning an upward trend so IMHO the time is now because when these types of markets hot up it is absolutely crazy and not for the faint hearted!
As always know what your getting into and complete your own DD. This market is very different to your bread and butter investments but can be extremely fruitful if you get your timing right.
Ben Kelleher wrote:In my opinion,Being on the ladder is what matters. if you have LMI to pay, depending on your strategy with that particular property you may not notice it long term eg: if you planned on holding the place for 10 years and LMI was 9 grand it isnt much in the scheme of things. i guess it just depends on how good that deal really is to your situation. I personally would cop LMI to get a good deal across the line if the numbers still worked.
Ben
Hi Mike,
I think Ben makes a valid point.
Depending on your investment strategy, timing of a particular market, and time in the market…LMI costs may prove to be insignificant compared to any growth you may be missing out on being out of the market just trying to save for a 20% deposit. Work out what risk level you are comfortable with before hand, your finance capabilities and serviceability. Getting into a particular market 6 months early before it starts to move may be an extremely valuable strategy on a 90LVR or even 95LVR IMHO.
JT
Catalyst wrote:Tasmania actually had declining population growth this year (admittedly only in the hundreds) but still a consideration.I like Sydney still. Or Adelaide is looking good (but be quick).
2nd that….Adelaide does look good.
Johnny1974 wrote:Confused?
Consider the ageing population? the masses of retiring/cashed up baby boomers with city/near city properties, looking to down size, free up some cash and escape the rat race you would think regional areas/coastal areas? Add to this growing crime rates? Global warming=hotter weather, I would have thought places like Tassie would be on everyones lips?
I have 2 IP’s in Tassie, both returning 8-9% and growth of close to 10%PA. Neither has ever been empty for more than two weeks and with lower purchase prices and lower stamp duty it seems the logical place to invest.
Am i wrong here?Hi Johnny1974,
I would agree with you in parts…Tassie does offer some great oportunities depending on the particular investors strategy. I think maybe there are some issues with population growth and the right demographic migrating to or staying in Tasmania (younger generation). I also agree with you about Tassie being an ideal spot to migrate to escape the hussle and bussle.
Perhaps now is not the right time for Tassie if your looking at timing the market or the economical wellbeing just at the moment….you or others may disagree. However I would certainly consider Tassie sometime in the future. All just my humble opinion.
JT7
Anyone got any thoughts about whats happening in Emerald at the moment?
JT7
shahabr wrote:north east not so good, but i bought in glenroi which is east of the station and getting a pretty good return. general discount is about 14% mine was advertised for 190 and negotiated to around 160, and took the rent up from $150 to $210so really does depend on what you are after, west of the station price goes up but so does quality, though not necessarily rental
Sounds like good buying Shahabr…I like those numbers! Would also agree with your general comments about East – West. I’m still flirting with the idea of buying a house on a >450sqm block and building a granny flat on the back…havn’t taken it further though…should make some inquiries with some PM’s about the market. I’ve been distracted lately!
longdd wrote:Hi
any one had a look or had any thought about Fairfield (2165), NSW?Hi longdd….I pretty sure Residex was recommending Fairfield in one of its recent Best Rents reports which predicts areas and products that produce both good capital growth and rental yields. Fairfield is a bit of a transport hub so good amenities. I’m sure there are good and bad spots but I wouldn’t let that put you off…most suburbs have both. 2 bed unit in a small pack with potential to add value close to transport sounds good IMHO.
shahabr wrote:have a look also at sqm research at the vacancy rates in the area and how low they have becomeYeah, rentals are getting pretty tight in Orange ATM. Some good buying closer to the centre and property seems to stay on the market for a while which can also lead to some good buying through negotiation….not sure about east of the rail line though? Thoughts?
shahabr wrote:Have a property in orange which is going great, good return and the area is growing.. definitely recommend itYeah Shahabr,
I really like Orange. I’ve been keeping a real close eye on it for a while now. I think you are right…the market is starting to pick up and could see some really good growth. The gold mine a real string to it’s bow. You could even say gold has replaced the US dollar as being a global currency…figure of speech but there is some truth to that statement I think. Orange also has thriving health and retail sectors and attract people from towns nearby. Positive cashflow too depending on your vehicle of choice.
JT
fredo_4305 wrote:Hi all what are peoples thoughts on which state to currently put your cash in to?IMHO I like NSW at the moment. I think Sydney is on a rising market although it has softened of late however, I do think it will pick up again early 2011. I think that there is also value out of town in some of the rural locations such as Orange and the Hunter Valley. However, NSW has been hampered by a state government that has simply failed it’s people when it comes to developing infrastructure….perhaps a change is needed after all these years?
However, I also think for some there maybe an opportunity to consider investing in areas influenced by the resources industry such as the Bowen basin, Surat basin, and Gladstone in Qld and areas of WA…..I think the money being invested in some of these areas is immense and demand from China, India and Indonesia in the short and in my opionion the long term is just as impressive but you must pick your mark and time your entry….perhaps the time is now? I have put my money where my mouth is on this one.
I also like Adelaide, especially south and think there is some growth to be had…just MHO.
I don’t mind deversifying my assets across the country although buying in a different state to which you live in can be daunting at first.
All of the above is just my opinion but hope it provides some thought to the conversation.
JT
yaldwyn wrote:I can tell you that I live in a mining town where rents are always strong and with good occupancy ratesHi Yaldwyn…
wouldn’t happen to be Emerald? Only asking because I have property up in Emerald.
JT
