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  • Profile photo of Manni82Manni82
    Member
    @manni82
    Join Date: 2009
    Post Count: 3
    January 20, 2009 - 8:17 am

    Thanks Daedalus,

    Once again appreciate your help! I would be interested to see your investment criteria? If you would like to share it please send me a PM.

    I am still sitting on the fence at the moment? With all the uncertainty in the air seems a little risky at the moment. However speaking to local agents in Blackwater rentals are scarce and they are not seeing any major slowdown across the local workforce, just yet. This could change though, will keep a close eye on the local mines in the area, this will indicate the future growth trend!

    Manni

    Profile photo of Manni82Manni82
    Member
    @manni82
    Join Date: 2009
    Post Count: 3
    January 14, 2009 - 10:28 am

    Thanks Andrew & Daedalus,

    Collinsville is only 45min from Bowen, I dont know if thats a good thing or bad thing? According to realestate agents there has been plenty of interest in the last month and they are expecting a flood of workers in the coming months. However returns are not as good as Blackwater which I am now leaning towards on further research. There are a couple of properties I am eyeing out….

    As for Wandoan there is over 1 Billion tonnes worth of thermal coal and a 30MT/Annum open cut mine is in the advanced stages of development, pre-feasibility as we speak. Check out these sites:

    http://www.wandoancoal.com.au/project_overview.cfm

    http://www.suratbasinrail.com.au/

    Just a few more questions if you don't mind?

    1) What are the monthly running costs involved in owning in a mining town? Can you list them?

    2) From past experience, when things do cool off whats the average drop in rental returns?

    Just doing some analysis around feasibility..!

    Once again appreciate your thoughts!

    Manni

    Profile photo of Manni82Manni82
    Member
    @manni82
    Join Date: 2009
    Post Count: 3
    January 13, 2009 - 10:28 am

    Hi Daedalus,

    Firstly I would like to thank you and other investors on this forum for sharing your vast wealth of knowledge, its been greatly appreciated.

    Well then…..

    I am looking at investing in the Bowen or Surat Basin, being new to mining town properties I am a little reluctant as the risks associated with mining towns are quite high as previously mentioned. I do agree its all about timing….!!

    I have narrowed my search down to two towns in the Bowen Basin (Collinsville and Blackwater) and One in the Surat Basin (Wandoan).

    My No. one preference at this stage is:

    Collinsville
    Recently there was an article in the Smart Investor regarding the town of Collinsville, its close proximity to important infrastructure projects (Major Power line Upgrade to Nebo, Coal Rail "Missing Link Project" and another Coalmine in the pipeline). The towns two major mines Sanoma and Collinsvile both produce high grade Coking and Thermal Coal, which is also another good sign as thermal coal is used locally in power generation. Speaking to agents in the area they are saying rentals are scarce with properties yielding $400-$600/week and you can still pick up a decent 3-4 Bedroom Houses for under $300k.

    Whats your thoughts on the area? Would my money be best spent elsewhere such as Blackwater?

    Also Whats your thoughts on Wandoan? I have heard there is plenty of private and public money being spent there, however its still in the early stages of development. Might be a good opportunity before demand picks up though?

    Any help or advise would be greatly appreciated!

    Cheers

    Manni

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