Sorry MY I’m not too sure how you would approach a company. Maybe through the realestate office? I would think most properties are rented by the mining companies which would be a company lease? Freehold would be the way to go as with leasehold you don’t actually own the property as far as I understand.

Andrew

Hey JKF,  I'm in for the long term in the Bowen Basin, so I think if worse comes to worse and you can service your loan without a tenant for a couple of years we should be in for another mining boom (only my opinion obviously)
If your LVR is very high and you will be in deep trouble if your tenant leaves then the answer would be sell up if you can.
This year will be very tough but if you ride it out you should come out on top in a very good position.  That's what I will do but I only have one property in the bowen basin with another in Weipa.  The rest are in Brisbane so I'm not too dependant on the mining town ones.

Bomis,  I believe that to be true.  You own 50% so you can claim only 50% of deductions.  The other half will need to be claimed by your wife and without an income will not be relevant i guess.  We went through the same thing but are using a trust now as I have setup a business as well.

Hi Manni, I purchased in Blackwater only a few weeks ago. Very good Rental Yields. Price $235,000 and $470/wk rent with long term corporate lease (2yrs). Rental Vacancy 0%. Long term future looks good, but who knows what can happen. Might be a bit risky at the moment in my opinion but I factored that in when I bought the house. I can still afford repayments without a tenant so I’m willing to ride it out if things go bad and the rent will pay it off nicely in the meantime.

House prices haven’t moved much over the years in Blackwater and the people I bought the house from sold it after one year for a loss. I have hope in China and their need for more coking coal in the future

Andrew

I totally agree with acowl9. Just because I Mining Company like OZminerals close to administration doesn’t mean the mines are going to shut down. Another company is going to buy and keep the mines running as there is still a need for resources and still lots of profit to be made for years to come. There might be a slow down but there will be no ghost towns.

Hi,  Just wondering how everyones property in Blackwater is going?  I was lucky and mine didnt get any damage in the storms.  Still rented out a getting a great return.

Thanks
Andrew