Yep read similar in the AFR this morning.

Certainly agree with you there zing, I've got a couple in Emerald myself. 

Might be a little bumpy in the short term mate but as my PM said be realistic with your rents and sit it out. Certainly no need to panic. Long term it's very promising. 

Yes Tony unbelievable isn't it. Talk about killing the goose that laid the golden egg!  

How much more of a beating can these coal miners take!

I spoke to my property manager today in Emerald and she obviously confirmed the redundancies and went on to say it's a time to be conservative in your decision making when it comes to rental expectations. I'm sure it's nothing the Emerald market hasn't seen before.   She obviously confirmed her faith in the Emerald market (as expected ) and reiterated there was certainly no need for investors to panic but I'm sure it'll dampen confidence in the short term. I wouldn't be surprised to see building activity drop off for a while.  

There's a lot of factors in play at the moment and I think we've just experienced a correction in the market. Iron ore looks like it may have reached it's floor and come back, China thinking about further stimulus, and the cycle rolls around again…….

Must admit though….bad timing from the Queensland State Government! 

Hi Noob,

My comments I’ll offer are general in nature so make what you will of them.

Be very cautious about any business that may have a vested interest in the products they are suggesting you purchase. There is always a commission involved.

Some of these businesses operate at a front cost of $10k, which may be the case with PRE. Good advice may come at a cost, and I’ve got no problems with that, but I’d certainly want to know exactly what I was getting for my hard earned dollars.

Some of these businesses operate seminars where the music is pumping and they excite and play on the emotions of punters with thoughts of riches and financial freedom. These mum and dad investors then run to the back of the room with their cheque books at the ready.

Be extremely cautious of businesses that have a slick package of OTP properties for you to purchase when you go along to their ‘support nights’. In this environment I would be very cautious about buying OTP unless you are extremely familiar with a market.

Building support networks is crucial just be careful about who you get into bed with, so to speak.

But does a true socialist economy described by Karl Marks with no ‘exploitation of others’ and ‘no ownership of production’ actually exist? I would argue strongly that it doesn’t. Many argue that socialism has infact failed.

My thoughts are, and I too have studied at a post graduate level (for what it’s worth……), is that socialism in its true form or corrupted form suffocates humanity. It encourages social welfare to the detriment of peoples ambition to improve themselves to the betterment of the social fabric. Socialism stifles entrepreneurship and business accruement. Socialism is the perfect vehicle to diminish free spirit and control the masses. My point in case…China and Russia.

I’m not saying that capitalism is the silver bullet, every system has its corruption but I’ll take the freedom that comes with capitalism any day over the oppressive model of socialism.

LOL! After our conversation tonight Richard I went and vented to the wife…….

Now she wants more kids!

Typical…….

I walked right into that one! LOL!

Jack

South Australia…….

It has great potential but frustrating at the same time……

I’ve got an IP down in Seaford purchased last year and at the moment everyone appears to be waiting for the thumbs up and go-a-head for the Olympic Dam Mine……

I believe it’ll go-a-head and SA will see some great wealth come out of the Woomera Prohibited Area but there’s a lot of mixed messages around. The unease in the global markets and complete uncertainty, nervousness and dissatisfaction with the federal government has everyone on tender hooks.

Yes, I think people don’t give China enough credit for their economic intelligence. The global economic community has little confidence at the moment and if you listen to the ups and downs of the market is very easy to get caught up in the negativity of it all. The fact remains the fundamentals remain very solid.

China’s global dominance and long term dynasties are historic……they’ve just had a couple of quiet centuries!

The Asian century? I think we’re in for a longer ride than that!

Yep…regarding these mining companies, and as Terry Ryder correctly says, it’s very much a case of watch what they do not what they say.

In relation to the current climate it’d be interesting to see where we’d be if we didn’t have this ridiculous government in Canberra! Campbell Newman looks like he’s a man on a mission….those Queenslanders are taking the federal government to the high court over the carbon tax on constitutional grounds. Gotta love those Queenslanders they’ve got some ticker!

Hi AVS,

there a many variables involved in investing in property.

It’s always a good time to enter the market and there are many many markets right around Australia moving in different cycles.

Deciding on where to buy will depend on what your end goal is and what strategy you intend to employ to get you to the end goal.

It makes the road easier if you’re first IP selection is successful and structured correctly.

I purchased a property west of commercial road in Seaford last year for CG and value add with a potential future renovation. The markets been flat over the past 12 months but there are a number of transport infrastructure projects nearing completion such as the southern expressway duplication and extension of the railway out to Seaford that should greatly improve access to the area.

You can be sure, they’re not making anymore land by the sea and some of these properties lend themselves to renovation to improve both yields and value. There are areas within the Onkaparinga Shire that have been rezoned to encourage medium density so land has some scarcity value. It has great lifestyle attributes and opportunity for baby boomers and FIFO miners.

There is a lot of talk about Adelaide benefitting from the opening of the Woomera Prohibited Area and BHP’s Olympic Dam Mine. Some are talking about SA taking off similar to WA and I suppose time will tell. At the end of the day, property is a long term investment and I don’t think you’ll loose buying into Adelaide and who knows maybe it will take off once all this mining comes on line. Happy days!

Jack

It's interesting to see these towns such as Emerald really start to expand off the back of what is happening in CQ at the moment and what is going to happen down the track. In relation to the staffing issue, Emerald being an established regional 'hub' isn't so exposed to the same issues as the smaller mining towns such as Moranbah and Dysart. Although, the cost of living is still high. The rental market in Emerald was booming along about 6 weeks ago but has softened in recent weeks. Should only be short term until demand soaks up supply. The projected population growth for Emerald and the whole region is staggering!