First time investor – looking at positively geared props in a couple of mining towns west of Mackay qld.Selling around $200K – returning $320-$350 per week. Realise it is subject to world demand on coal – an this is an inherent risk – but they do seem to be worthwhile looking at further. Has anyone else done any due diligence on Moranbah / Dysart etc??
Cheers
PC[blink]
Hi Movingforward,
I haven’t done the DD in QLD but I am doing the same in WA atm. Mining Towns have great rental returns but the CG is far less impressive (varies from Town to Town). Main issues to look out for is a transient population! Do a lot of research on vacancy rates and market rental rates! Make a plan for when rents are good so that you can afford to ride out the bad times. Look into Towns that are developing or soon to develop as the rental reutrn usually goes silly for a couple of years as contractors are scrambeling to find places to rent. This’ll allow you to store up extra repayments (I believe the best place is an off-set account) for times when rentsd go back to normal or even (due to increased competition) below average. Do your research though!!!!!Best wishes
Cheers
C@34Our greatest weakness lies in giving up. The most certain way to succeed is to always try something one more time.
– Thomas Edisonthanks C…i guess i am concerned about the cyclic nature of when it is great – fantastic returns…but in a lot of cases the gov couldn’t give the props away for $25K 4 years ago – now they are at $200K – so without a crystal ball – is the trend gonna continue for the life of the mine – or crash when BHP decides to downsize because of world prices or something…a good return – but high risk!
PC[cigar]
I think you need to look into the actual Towns! What is hapening there? That is what should guyde you. I know more or less what is going to happen here for the next 7 odd years and plan to catch ride the wave. I wont expect a great deal of CG, but at this stage for me that is secondary. My plan is to work hard during this time to earn the construction $$ and plow that into the houses to free up more income, etc. For CG I will look else where like Perth. Time will tell.
You’d have to do the same. spend time on the phone and the internet and check out what is happening. RIng the local newspaper, talk to the local REAs, ask in this forum if anybody lives there or knows anything about the Towns (you started already), the more you know the lower your risk. It wont prevent bad things from happening but it’ll reduce the impact it will have on you and your business.
What is your strategy? Buy and hold or one of the selling strategies? This, too, will affect your decision top buy there. The longer I learn the more refined my plan becomes (and more complex), I just wish that the money would keep up with the plan! LOLSeek and ye shal find, knock and the door shal be opened. No just means that person can’t help you, go to the next one!
Keep us informed. It wouldbe interesting to see how you go over there. PM or emial me if there is something else that I might be able to assit you with.
Cheers
C@34Our greatest weakness lies in giving up. The most certain way to succeed is to always try something one more time.
– Thomas Edison
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