Forum Replies Created
Hi Josh
I have a house in Kin Kora and monitor developments in Gladstone with keen interest. I noticed on another thread that you said you think the "window of opportunity" in Gladstone is closing. I've noticed that in spite of the high demand for properties in Gladstone, the supply seems to have kept pace. Are you suggesting that the supply is becoming exhausted, and therefore a more rapid escalation in prices is imminent? I'm hoping to purchase there again soon so I'll be interested in your assessment of the area.
Thanks, Tony
Hi Josh, and thanks for this offer to share information. I am currently investing in the Bowen Basin, and have been progressing on a contract for an off-the-plan unit in a development in Middlemount due for completion late September. I am planning to purchase two more suitable properties in the near future, with a preference for new properties which will qualify for the Queensland builder's boost. I will check out your blog and follow your progress with interest.
On the subject of the Gallilee Basin development, obviously the fly in fly out option will be utilised by the mining companies, and will be a big influence on the prosperity and development or lack thereof on nearby centres. If I were employed on a mine site in the Gallilee Basin on a fly-in fly-out basis, I would prefer to fly right past Emerald on my way to the coast. However, I agree that Emerald is in a good position to benefit in many ways from the expansion of existing nearby mines, and the development of mining in the Gallilee Basin, especially as a regional provider of services, and no doubt as a base for miners and construction crews involved in the development.
Bhp Billiton Mitsubishi Alliance have been reported (July 9th) to have officially asked the Queensland government to allow an entirely fly-in fly-out workforce at their Caval Ridge mine near Moranbah. Has anyone heard of any more recent developments concerning this application? Or is anyone in a position to accurately estimate how long it might take for a decision to be reached on this application?Hi everyone on this thread. I've been researching my next property investment, and have found this particular thread interesting, so I'll add my question to it. Does Blaclwater flood?? Coalstar, if you're out there, I have noted your interest and apparent knowledge on the subject, so perhaps you can reply? I work in a coal mine myself, in the Hunter Valley Nsw, have a couple of IPS there, and another in Gladstone. I note that propeties for sale in Moranbah and Dysart are very scarace, pricey. but achieving fantastic yields. As Coalstar has suggested in the past, I think Blackwater may play catchup to some extent, but in any case, properties there are currently returning very attractive yields. There are also more properties available, and at lower ask prices than it's northerly neighbors. I realise that there are more mines on the doorsteps of Dysart, and particularly Moranbah to push their prices up, but there is still a lot of activity around Blackwater, and so I have set my sights there. I personally feel fairly confident about the continuation of the current mining boom, and the Surat and Bowen Basins are also in line to benefit from significant international interest in LNG, so I see potential for capital gains and a continuation of high yields. I have talked to some agents and developers on the phone who assure me that Blackwater does not flood, but i would appreciate confirmation of this advice from anyone who can varify.
Hi again, davebeth
There is no all encompassing answer to your question about furnishing rental properties in Muswellbrook. Nathan Birch made the point that demand for furnished properties fluctuates. This is largely due to the fact that demand is primarily influenced by short-term tenents involved in construction projects at the mines. Many of them get a tax-free living away from home allowance and frequently share a house with mates. Some of them prefer not to invest the time and expense of supplieing their own furniture, When construction of Mangoola began, there was high demand for furnished properties to cater for these short-term workers. Rents for furnished properties were on average $150-$200 p/wk higher than unfurnished. These high yields attracted more investors to furnish properties. When the construction workforce left Mangoola, there were a lot of furnished properties released onto the market all at once. As furnished properties by nature target a much smaller market, many owners found they could no longer attract tenents. As a result, a lot of investors chose to remove their furniture, and then generally found it easy to rent their properties. Obviously, removal and storage ,or selling new? furniture at a loss, comes at a price, both in time and finance. Overall, if you are lucky enough to attract long-term tenents to a furnished property, your yields are increased substantially, but obviously it adds another complication to the management of your property, and should be considered carefully.
As to the question of potential rents achievable on your house, there are also variables which will influence this. But with the projects currently underway and due for start-up, I expect a high demand for rental properties in Muswellbrook for the forseeable future. I have noticed, however, that there are a number of residential developments underway in town. This indicates confidence that developers expect good demand, but also will create competition for existing properties. As Scott No Mates noted, your property manager will know what rents are achievable when your property becomes available.
In my previous post I didn't mention the extension of the F3, which is another positive for the region.Hi davebeth and other forum contributors
I'm a fairly new member to the forum, and although I've contributed little to date, I've been reading the posts for some time and find the shared information on this site invaluable, and so I would like to offer my contribution.
I've had two investment properties, both houses, in Musswellbrook for about a year now. Both properties have rented quickly and continuously with high yields. I also work at one of the mines there, staying during my shifts and commute to the central coast when not working.
I monitor all proposed developments closely by reading local newspapers, keeping in touch with local real estate agencies, contacting coucil, and conversing with locals and co-workers. A new rail line is being constructed to feed coal to the new terminals in Newcastle, a lot of the mines between Muswellbrook and Newcastle have applied for 20% to 30% increases in production, a new coal mine at Mangoola is currently producing, with expansion underway and more employees hired on an on-going basis. Mt Arthur, near Muswellbrook, is currently undergoing a major expansion. Ravensworth mine, mid-way between Mbrk and Singleton is beginning a major expansion, first requiring a road to be moved before major construcion starts sometime around September. I've been told that approximately 1000 workers will be required for 2-3 years during the construction phase.
Another new mine, Mt Pleasant, just a few kilometres west of Mbrk.,is rapidly approaching it's startup date. Although official announcements regarding this mine have been scarce, my unofficial sources indicate that it is expected to commence construction in the first quarter next year.
During the construction of Mangoola, approximately 500 workers required accomadation. There was a waiting list at the two local caravan parks, and rental properties became scarace. Properties for sale were in high demand this time last year, and the available stock declined quickly. In the last twelve months, rental yields have increased by approximately 18%, and house prices rose approximately 11%.
The local newspaper, The Muswellbrook Chronicle, always has pages of adds for jobs, many of them high-paying positions in the mines.
There is obviously a lot of money being invested in the mines, the rail and the new export terminals in Newcastle. It seems as though the mining companies (Bhp, Xstrata, Rio Tinto and others) don't intend to stop production any time soon. regardless of proposed resource tax and carbon tax.
I can personally varify that the construction workers and the miners all have good incomes, and require accomadation. They also require a lot of support industry. I believe my positively geared properties will continue to grow in value over the next few years.Thanks Jamie M and Qlds007 for your information.
