Hi everyone, this is my first post after lurking for a while. I will soon be entering the investment property arena so i am very green. I have been researching different areas for positive geared properties and Qlds Nth west seems ripe?. Cloncurry has an apparent shortage of rental properties available due to the copper mine, and there are, what seem good deals to be made by way of positive geared homes. One in particular was $70k with a rent return of $150 per week. hypothetically if you were to borrow 40k with 30k down the payments work out at approx $240 per month over 25yrs? at 6.5%
To those experienced investors is this the type that would qualify in your books. The tenant is long standing and continuing.[confused2]
How long are the reserves likely to last? Do some research in the local paper and company reports.
What’s likely to happen if the cost of mining the copper increases? (presumably they’re mining the most profitable sites first)
What’s going to happen if the Australian dollar rises?
If one or more mines close what will be the impact on the community population, jobs, economy?
Investment in mining areas needs a bit more due diligence than some other places as often if the mining stops or is put on hold, the population plummets.
Cloncurry might be an excellent investment, but you will need to base your information on more than the cost of housing and current rents.
Also look at your expenses of ownership – rates and insurance. Also if at some stage you need to sell your investment, it might take longer to find a buyer at your price.
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