Forum Replies Created
Hi Andy
Two possibilities your broker and solicitor have probably already considered but worth a mention…
If you can come up with more money to add to your deposit the banks may finance your settlement with a lower LVR. Some options may be too risky to consider, but think outside the square and scramble… the loss if you cannot settle far outways exorbitant short term interest rates.
As Terry points out if X is not done by Y… this could include your sunset clause if the development is not done by date specified in contract. The developer has outs for this such as inclement weather, but contesting could buy you valuable time.
Consider contacting Terryw or Richard Taylor directly. I get the impression that what they don't know about finance in Australia could be written on a needle point.
Cheers, Tony
Hi Andy
You mention you have other properties and have a development of your own underway. Although I realize that under normal circumstances cross collateralising is something to avoid, it may be possible to raise finance to settle if you are willing to go down that path. when you consider the potential loss you face if you fail to settle, the encumbrance on your other property might be the lesser of two evils.
Good luck
Tony
Unfortunately what were once considered to be "one in a hundred year events" are becoming the benchmark for more frequent severe storms. I've personally made it routine due diligence to to determine high water mark during the most extreme events, and then to focus on areas well above that. I purchased in Mackay shortly after the 2011 storms, and my first impression of the residential areas surrounding the CBD was that they were extremely low lying, and looked like flood plain to me. I looked for the nearest prominent hill and purchased there. Logically, in flood prone regions, the high ground should increase in value more rapidly, as demand for it should be higher than demand for the low ground. The current floods, following so closely on 2011, should make that apparent to an increasing number of people. I feel sorry for all those whose homes flood, and I am determined to never experience their despair first hand.
LOL A spotted rhino.
An impressive analysis of this over zealous announcement Freckle. I agree with Jack. Refreshing and frequently enlightening to read your comments. Still, an interesting discovery, but the environmental impacts you mention make me feel we'd be better off leaving the crap in the ground.
JT7 wrote …Not bad money if you'd bought in at $.50….
With the potential reserves of the discovery I can see why speculators are pushing the shares up. Today's price could look ridiculously cheap after the next round of drilling finishes.
You can currently purchase a cool, perpetually shady underground house for the morlocks, starting around $100,000 or above ground ovens starting around $75-$80,000, no mowing required (looks like nothing grows there).
I'm sure the freckle won't approve
In my previous post I said I couldn't define my goals as clearly as Jack. I do nonetheless have some clear life changing goals, and others which are dependent on factors subject to outside influences, which therefore necessitate that I remain flexible with my plans, and therefore the timelines of my goals.
Definites for 2013:
Settle on IP number 6, my first OTP, currently under construction in Emerald
Continue major renovations on PPOR, near completion
Add 2nd bathroom to IP no. 1, complementing recently completed 4th bedroom
Refinance IP no. 1
Finalize strategy for IP no. 7, partially dependent on equity available in IP no. 1
Plan for IP no. 8 and beyond
Keep learning
Fine tune long term plan which includes goal of 6 months p/y each in Oz and U.S.
Purchase new trailer for my boat and keep fishing…keep dreaming about quitting job working for the man
Hopeful for 2013
Purchase IP no. 7
Possibly move from PPOR, turn it into IP or sell and invest in better market area
Hi Jack
You mention positive movements in coal prices. Here is an update (looking good) on a link I copied which you previously supplied. I've had trouble finding any other sources for info on coal prices. Iron ore obviously grabs the limelight presently. Do you have any other info?
http://www.indexmundi.com/commodities/?commodity=coal-australian
Here's an interesting article which I missed when published Dec. 5th. I was previously aware of the proposal to build a railway linking Queensland's coal fields to WA's iron ore fields, but it's encouraging to note progress being made in the form of a feasibility study being commissioned. The mention of $30 million being committed to the study indicates that there is serious interest in the concept.
http://www.miningaustralia.com.au/news/can-we-build-a-$50-billion-link-between-qld-coal-a
I found this article in yesterdays Mackay news concerning proposed dredging at Abbot Point. It has been published as debate is occurring in Gladstone over the impacts of dredging there. I've attached an article concerning this from the Gladstone Observer.
http://www.dailymercury.com.au/news/dredge-spoil-to-be-dumped-in-great-barrier-reef-wa/1706770/
http://www.gladstoneobserver.com.au/news/report-accuses-dredges/1706828/
Freckle wrote:As a logistics coordinator for a few small transport operators I'm seeing things hit the wall rather quickly. Definitely faster than I thought. In the last 8 weeks the brakes went on big time. I dove tail in with many of the big transport operators and their stories are starting to get scary. We're all wondering if the current state of play is just a lull or a sign of things to come.One operator just dropped 5 subbies and parked up 4 of his own trucks. A few weeks ago they couldn't keep up. Two large construction companies we deal with are winding up in the Pilbara due to contracts finishing and one who has had 3 camp projects canned in the last 2 months.
Jan De Nul are pulling out of Hedland along with many other large operators. The work is starting to dry up and gas projects won't be enough to fill the gap I suspect.
I suspect the writing's on the wall and we'll simply see a continued slow down as projects complete or are canned.
Hi Freckle
Are you seeing any indications of an improvement in business conditions as a result of recent increases in iron ore prices? What about the Roy Hill project? Any indications of that reversing the downward trend, perhaps as the year progresses, assuming a stabilization of iron ore prices at or near current levels?
Hi Jack, it's good to see that you are making productive use of those sleepless nights! You've already gained a year on your portfolio goals! It's good to see your enthusiasm showing so clearly, mate. At the moment I can't define my goals so clearly, although I know I am very motivated to increase my property portfolio and ensure the financial security of my family's future, but your goals and mindset are indeed inspirational. I think an uncomplicated way to express my goals is that I hope to be able to keep pace with you!
Cheers Tony
Now the Chinese are planning a huge mine in the Galilee!
http://www.dailymercury.com.au/news/chinese-mining-company-plans-dwarf-cq-mines-5b-pla/1692079/
Wow! Very interesting analysis of the demand for coal. Funny how they mention the increased use of gas in the U.S. ends up creating a higher demand for coal. Go figure! The second article mentions plans for expansion of western ports in the U.S. to increase exports of coal. Those hoped for expansions are intended to take place in the states of Washington and Oregon. I just came back from there a few weeks ago. There is a lot of opposition to those plans, including all the heavily populated communities along the proposed rail lines. They want to transport from Dakota. I think it is highly unlikely that those plans will be realized.
You're probably right Jack, Gina possibly has all the water she needs locked up, but the other mines and support industries will require more. Somebody better start digging dams, or a water war is on the horizon. And the following article probably should go on a thread for the Hunter Valley, but I'll post it here, as it shows that the demand for coal is still high. Note that the article mentions Record shipments of thermal coal from the Hunter in the last few months, and the fact that increasing infrastructure is continuously being developed to transport even more coal is a healthy sign for the future of the industry.
http://www.miningaustralia.com.au/news/new-$110m-coal-train-facility-opens-in-the-hunter
Hi Fredo
I agree completely with you. Every time I hear similar comments from banks (rates should be lowered to stimulate the economy) I see the hypocrite behind the comment. They intend to profit from each rate drop by not passing it on in full. In the article which you posted a link to, the omission of a commitment to pass on future rate cuts in full was glaringly obvious.
It's good to see contracts being awarded. A very strong indication that the project will go forward. It will be interesting to see where the water for the mines will come from as things progress. Hopefully water can be sourced or retained without causing conflict with the local communities. Here's some bad Christmas news for coal miners near Moranbah…the region certainly needs some good news from the Galilee Basin to lift spirits. Maybe some of these earth movers could be employed digging some large dams to retain flood water.
http://www.dailymercury.com.au/news/more-100-miners-sacked-moranbah-mine-site/1688975/
There is a very high probability that a house with asbestos in the roof sheeting will have asbestos elsewhere. Eaves for example?
http://www.miningweekly.com/article/adani-publishes-eis-for-10bn-qld-coal-mine-2012-12-13
Hey Jack and Dubstep, the wheels are rolling on the Galilee projects. Here's a little more on the Carmichael EIS
Here's an interesting article about proposed changes to the coal contract system in China. The changes may take place before the annual contract conference, usually in early December, (which should be interesting with or without changes) The results may prove a positive for coal prices
