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    January 12, 2013 - 7:03 pm

    Thanks.

    If it were to be removed, would the effects happen at a portfolio or individual level?  What happened last time?

    Profile photo of stu_maccastu_macca
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    August 26, 2012 - 5:31 am

    Hi,

    I'm also looking at setting up a trust. Primary reasons are allow us to divert income to the lower income earner in the future (perhaps when we have more passive income and one can invest full time), asset protection and to be able to pass money in to the kids efficiently.

    I have recently been advised by my buyers agent that I will not be able to leverage my full borrowing capacity if bought through the trust. Further, my bank has said i will likely not be offered the same discounts I am getting. Has anyone else come across this? Did anyone decide not to use a trust as a result?

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    August 9, 2012 - 9:41 am

    Some great comments here.  I'm looking at getting a four bedder and converting it to an 8 bedder  and renting to students on separate leases – I am told this will make the property a boarding house whether I like it or not.

    I am interested to know:

     – what extra obligations I will take on as it's a boarding house?

     – more on the extra time required to manage

     – how much help are property managers?  The one I'm looking at specializes in this

     – What extra costs outside of the norm I would need to budget for?

    I am aware that you need to meet extra fire safety standards, and these have both upfront and ongoing costs.  This seems like something I would need to get my head around.

    Profile photo of stu_maccastu_macca
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    July 25, 2011 - 10:49 am

    Hi Michael,

    Thanks for your detailed response. 

    The place ticks boxes 2-7.

    Just want to check box number 1.  It's 48 sqm.  You're saying that should sell for $216K?

    Note it has a balcony (added to the 48 sqm) and a car space.

    Cheers,

    Profile photo of stu_maccastu_macca
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    July 25, 2011 - 7:31 am

    Hi,

    Thanks for the extra comment.  The debate continues…

    It's in Forest Lodge (adjacent to Glebe).

    A few of you have said location is the driver, but also referred to "CBD" which I guess Forest Lodge is not.

    Profile photo of stu_maccastu_macca
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    July 24, 2011 - 4:37 am

    Thanks very much.

    So in summary two of you have said cap growth will be an issue
    One liked the higher yields and said rentability was not an issue.

    Yield is just over 5%.  Not sure that's enough to make up for the lack of growth.

    Cheers all,

    Profile photo of stu_maccastu_macca
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    January 2, 2011 - 2:37 am

    Hi all,

    Any idea what sort of rental returns to expect in Gladstone? Or is this just a capital growth play? 

    Will the big companies be paying the rent for their employees like in Moranbah for instance?

    What sort of risk profile do the banks attribute to this area?

    Thanks in advance.  Great posts so far.

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    March 15, 2009 - 7:03 am

    Hi Finderscrossed  and Daedalus,

    Congrats on getting your rent increases.

    Are you guys using one of the big management agencies in the area?

    Profile photo of stu_maccastu_macca
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    January 21, 2009 - 8:08 pm

    Hi Steve,

    Thanks for the heads up.

    Any idea how far rents and prices could drop?

    I've got one in Moranbah in the Bowen Basin. Rent is currently $1300 p/w.  I could sustain $700 at current interest rates.

    There's already lot's for sale on Realestate.com.au and has been for past few months.  Very few houses made it as far as the website during Q1,2 and 3 last year.

    Thanks,

    Stuart

    P.S Enjoyed the book by the way.

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    October 26, 2008 - 6:20 am

    Thanks Rob.

    How would I go about checking for "small stock piles,reduced shift hours,poor up keep"

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    October 26, 2008 - 6:15 am

    Hi all,

    Good to see lot's of positive comments on the Bowen area.  I bought in Moranbah about 6 or 8 weeks ago.

    i must admit I have been a bit concerned since then given what has been happening in the financial markets.  I have been reading opinions saying that a slowdown would reduce the demand for steel, and then for coking coal (used for making steel).  In particular people are saying China would stop importing.  The worry of course being that BHP, Macarthur or Anglo might close their mines in the area, thus reducing (or nigh on eliminating) rental demand.

    I think that about 70% (ish) of coal coming comming from Moranbah is coking coal based on:  http://en.wikipedia.org/wiki/Coal_mining_in_Australia#Major_mines  + checking the websites of those mines where volumes or coal type is not shown.

    Is anyone else concerned about possible mine closures in the area?  If so, what research are you doing to try and establish if this might happen?

    Sorry to be the one to post something less postive.  To balance the arguement:  I have also read that demand for coking coal has increased a lot in India with no signs of closing. Also, China have reportedly been closing some of their mines down as they are not safe, preferring to import.

    Thanks,

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    October 14, 2008 - 9:26 am

    Hi again,

    Fingers crossed – thanks very much for that.  It's comforting to hear that someone else is in the same boat, and looking at this in a similar way.  I would be interested to hear how your thinking develops.  I'll keep checking in with my thoughts.

    ErikH – I had heard that there was gas near Moranbah.  A quick search yielded this:  http://www.arrowenergy.com.au/page/Worldwide/Australia/Moranbah_Gas_Project  Is that what you meant?

    Thanks also Newbi2 (or is that "not so newbi now"?). Will give it some thought, but probably not add to our complication right now (even if the banks would let us).  Best of luck with that one.

    Cheers,
    SM

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    October 8, 2008 - 8:13 pm

    Must admit that one confused me Scamp.  Just looks like a straight 30% margin gain.  Reduced demand for steel caused by a recession could be a worry though (lots of coal gets used in making steel).  Still, 80%+ of our energy generation comes from burning coal (unfortunately), and China still seems to have an insatiable appetite – no doubt enjoying the new price (in CNY) after seeing it double in such a short time.

    Rents are now $1500/week.  Similar houses selling for $600K.  On the market for about 5 seconds (so you need a buyers agent).

    Still no guarantees for the long term.  And yes I am more than the little nervous given what's in the news.  Will conclude that from discussions so far that mining's doing "quite alright". 

    Come on Scamp – I can take it! 

    Profile photo of stu_maccastu_macca
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    October 7, 2008 - 7:59 am

    Thanks to all who have replied so far.

    I was thinking of mentioning your name Scamp when baiting the criticism, but thought it wouldn't be necessary given your other posts.  I do value your opinion actually, and see others have agreed with you on a number of occasions.  If you could take a moment to elaborate on exactly why you think I am going to ruined (appreciating you have probably said it all before) then I'll certainly take the time to read.

    It was the intense demand that Kylie alludes to that lead me to make this purchase.  I also appreciate things could change quickly also, hence the post.  What I'm really looking for is more ways to track the what's going on in the mining world so I can time my exit.

    Again, all comments welcome.

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    July 28, 2008 - 10:45 am

    Sorry I don't now the answer RE NZ property.

    I have been trying to find out for Aus though.  All the banks have been saying I need to receive the bulk of my income from the foreign currency.

    Have you found a way around that?

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    April 7, 2007 - 3:40 am

    Thanks.  So it would be prudent to model using inflation?

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