Forum Replies Created
- Qlds007 wrote:Whilst the Qld Govt might have approved the Alpha mine the Federal Govt have put a hold on it.
Be interesting to see how Campbell takes on the Feds to get this one over the line quick smart.
Cheers
Yours in Finance
Roll on the federal election Richard…..it can’t come soon enough IMHO!
I agree….7.5%-8% is pretty standard.
The issue is that it could be argued that if you bargain too hard with your property manager and screw them down in price then perhaps they may not provide the same level of service you would hope for because you've taken a margin from the management fee.
Why sweat the small stuff mate…..? And 3 bucks is small stuff!
It's all tax deductable and as you've pointed out they are good property managers so…….it's only fair to suggest you pay for good service don't you think? That's how capitalism works!
Just my 2c mate. Good luck.
Freckle wrote:JT this (see below) may inspire some confidence but I think it’s overly optimistic. Many of the current projects are scheduled to be in operation by 2014 with some running out to 2016. Whats not clear is how quickly the scale of the projects will wind down as they near completion and what might be behind them to fill the vacuum so to speak.http://www.theresourcechannel.com.au/blog/2012-australian-oil-gas-project-summary
I like what I’m reading because I intend to set up a labour hire biz out of Perth initially. The idea that we need to ramp up from 75k jobs to 250k by 2014 gives me hope but again I still think that’s way too optimistic. Another report I was reading though indicates staff TO (churn rate) is in the vicinity of 20%/YR. A stat I like given my job will be to supply replacements. I can here the cash register going flat out when I see these numbers.
Yep it makes for impressive reading Freckle.
I just don’t know how they got it so wrong over here on the east coast. It appears you blokes over in WA have an understanding of how to benefit from this shift.
No wonder whispers of secession never seem to fade…… And who could blame you.
Best of luck with that business mate…if those numbers come into fruition I’m sure you’ll do well.
gloveboxinvestor wrote:& here’s one that puts the brakes on Abbot point …It’s just good economic sense.
It’s been said the massive expansion was another ‘cash grab’ by a desperate and economically illiterate Labor government.
The expansion was ridiculous at this stage however the state government is still planning to construct 2 terminals with room for more further down the track. ‘The signficant scale, complexity and potential impacts of the proposed infrastructure are extensive and it wold be many years before the whole of the planned capacity wold be realistically warranted’ (Sweeny cited in The Weekend AFR, May 19-20, 2012, page 4).
With the global volatility at the moment the Federal Labor government is still persisting with $23 a tonne carbon tax?!? Work that one out!
Freckle wrote:JT7 wrote:It appears Vale doesn’t agree with some views expressed here.A plan that’s been on the drawing board for some time and makes sense to continue with even though global uncertainty is the theme of the day.
Mining will not stop. Construction of new mines will not stop.
What will change is the price of commodities and the volumes. Both will reduce and some commodities like coal and iron ore I expect to see a substantial drop in price and volume.
China’s virtually come to a grinding halt. Given that it takes 60% of seaborne ore that’s going to literally plunge in price and volume. Added to that is higher quality and a cheaper source being developed in Africa over the next few years. Competitiveness here will have to improve if AU is to retain it’s share.
Both India and China have stated aims to improve energy production outcomes in terms of efficiency and pollution. That’s morphing into a move towards gas as a progressive replacement (not totally) for coal. So coal prices and volumes will come under pressure going forward.
The upshot of all this is that given GFC v2 is just around the corner then the most likely scenario is a retracement back to early 00 prices and volumes.
I would expect to see resource based construction drop off by at least 80% over the next 3 years.
Boom over in my book.
Well it’s an interesting argument Freckle.
I agree that prices are and will come under pressure due to increasing competition from other resource producing countries such as Africa however, I’d question sovereign risk as a factor as to the stability of this stream of supply. Unfortunately the minority Federal Government is not evoking a lot of confidence from overseas investments and created a nervous environment to commit to large scale projects.
If you’re a believer in the emergence of a middle class society and the industrialisation and shift to a capitalist society of countries such as China and India, demand for resources will continue all-be-it at lower prices.
China is an interesting one. I don’t agree it is at a stand still although it has through self regulation slowed and there is an argument that if Europe sinks into a recession it will be able to stimulate it’s economy similar to 2008.
I guess as always time will tell.
JT7 wrote:It appears Vale doesn’t agree with some views expressed here.It appears Vale doesn’t agree with some views expressed here.
bardon wrote:All you coal town investors aint looking that bad when you look at the long term demand figures. Especially coking coal. India's demand for coal set to soar BY: ROBIN BROMBY From: The Australian April 30, 2012 12:00AM Increase Text Size Decrease Text Size Print FORGET coal price forecasts for 2013 in tonnes — think quadrillion British thermal units in 2035. The nation's burning need for coal will be a boon for local minersIt was a good article.
All comes down to the underlying fundamentals…..There will be ups and downs along the way but long term the prognosis looks good.
PM’d you mate.
Jack
St George and most recent through Fastlend – The loan product is ‘Performance Plus’. Both at 90% LVR.
Richard Taylor @ Taylored Financial Solutions is my MB. He is superb. My wife and I call him ‘Magic Man.’
Richard is also a regular contributor on this forum.
Jack
LOL! Yes I must admit I’ve been tempted by Wandoan also and other potential ‘Honeypots’. Was looking at Wandoan a couple of years ago when median prices were around $180k! Would have doubled my money in 2-3 years!
I agree with your general comments mate.
The fundamentals remain firm. Just need to drill down the DD!
bardon wrote:JT7 wrote:It’ll be interesting to see whether the plans of Aldani are adversely affected by this latest setback?What are these plans I am not aware of them but interested in finding out?
As far as I’m aware Aldani purchased a 99 year lease on Port Abbot. Aldani has massive interests in projects in the Galilee Basin and the rail infrastructure from the Galilee Basin back to the Port.
bardon wrote:I have just realised that some of those new projects that got the green light may be adversely affected by the Rio pull out. We may well be over the top of the boom now, given the high production costs, trade union militancy, red/green/black tape and government emailers.Indeed, this may well affect operations right down the chain into the Galilee Basin, the rail infrastructure and of course the port. This has the potential to strip billions of dollars off Queenslanders!
It’ll be interesting to see whether the plans of Aldani are adversely affected by this latest setback?
However, we (collective Australia) allowed this to happen!
The ‘people’ created this scandalous government and allowed the Greens power in the senate. What did we expect to happen in such a toxic environment?
We have no one to blame but ourselves!
Those are the facts!
I’d agree. Newman appears to be fiercely committed to getting Queensland back on track economically.
Similar to the WA state government they want a fair share of proceeds from mining being funneled back into the states coffers to benefit Queenslanders…and rightly so I think (I’m not a Queenslander by the way).
BHP have had similar discussions about it’s expansion plans for the Olympic Mine Dam down in SA although this is more an argument about pouring it’s available cashflow into huge expansion projects rather than giving funds back to its shareholders.
Someone needs to pick the ball up on this issue though and drive forwards…….
RIO PULLS OUT OF PORT (M, Ludlow & D, Hall, page 7 April 21-22 2012 edition, Australian Financial Review Weekend Edition)
‘Mining giant Rio Tinto has pulled out of the $6.2 billion expansion of Abbot Point coal terminal in north Queensland, blaming rising costs and delays in environmental approvals from the federal government’.
Just another example of Federal Labor killing the goose that lays the golden egg!
Strangling the mining industry to get back in the black at all costs after years of incompetence, economic mismanagement and being played for fools by the greens!
Well done!
michmich wrote:Hi Josh, my partner and I were about to purchase in Emerald however our insurance broker who deals in mining prop..around Qld advised us not to proceed with the purch. Insurance apparently is very high, and Emerald is extremely flood prone. Is this correct? Were you affected in the last floods? He did however say that he agreed that all the no's def. stack up in Emerald making it a very attractive invest. MichHi Mich,
IMHO I wouldn't make an investment decision based intirely on the advise provided by an insurance broker!
Emerald is susceptible to flooding but so are a number of other locations in Queensland and also right around Australia that are also prone to flooding, including some parts of Major capital cities…for example Brisbane.
There is a substantial part of the town in Emerald that doesn't flood. I have property in Emerald and the insurance cost is resonable considering.
The only thing I'd agree with your insurance broker about is that the numbers in Emerald do stack up…..
My suggestion is that you complete your own due diligence otherwise you may well miss out on an opportunity because of heeding the misinformed advice given by those who profess to know a market but infact know very little or want to steer towards a product they may have a vested interest in.
Hope this helps mate,
Jack
Hi Matt,
That is a very general sort of a question…..
There appears to be a lot to like about Bowen but vacancy rates are high at the moment….however its possible an OTP strategy may work out but I guess it all comes down to timing. I've used a similar strategy in a town situated in the Bowen Basin however, the market is on the rise and I've seen some value come into the property whilst it's been under construction. Get your timing wrong and you could have to deal with a vacant property until the construction force comes in and saturates the market. I remember reading some investors having a tough time of it sitting on vacant properties out in the Surat Basin in recent times waiting for the construction workers.I think it comes down to strategy in the end. The expansion of the port has been delayed to enable a report on the impact additional traffic would have on the reef but I think it'll go ahead.
Might be a case of wait and see?
NQ6 wrote:Last couple of weeks i’ve had renewed interest in buying after stopping for several years, theres some good deals out there with motivated sellers around .Negotiating a house purchase this week in Nth Qld. Good to be buying without the hype and frenzy we saw in the last property boom. With the change of govt in Qld and the carbon tax pushing up the price of new houses and land , its a safe bet buying positive cash flow renters right now. in my humble opinion. Any one else looking in the sunny Nth Qld???I’m hunting in Central Queensland…..and I agree Queensland has some great markets at the moment.
