I currently have 2 IP in Moranbah which are performing well,9.8% and 10.7% yields. Have also seen good capital growth in the 8 months I have owned them. I think there are currently 13 new mines on the drawing board and a huge shortage of housing which is keeping the rents high. There is a lot of land availble for development that is being held back by the council due to the lack of water to supprot new residences.
n speed
Hi everyone, I’m new here. And new to investing in property. I’ve been investing in the stockmarket for years now and have a nice yet small amount saved up.
I thought I might post in here rather than start a new thread as I’m wondering if any others have had any experience in Coober Pedy. I know it’s a tiny town, but it seems to have a lot of cheap properties, and still has good yields. I’m still a student and only working part time/casual so i can’t get that much from the banks, so very cheap properties is where I have to start. If any one else has had any experience investing here or considered it, I’d appreciate your thoughts. Cheers. Hopefully I’ll eventually be able to contribute more here too.
hi investingracer
you make a good point if land value goes up as its said to do,
how does the houses in cooper pedy go,
as the are under the ground and do they have positive or negative growth rate.
I have not look at this market at all myself but interested what are the growth rates for a hole in the ground and whats the return compaired to build.
as a developer excavation is very expensive so thes would have high costs but unlike brick or building materials not sure how you depreciate a hole.
maybe depreciator can give some insighthere to help
“…not sure how you depreciate a hole.”
Too funny, GR!!!
But I am curious too!
I also wonder how much you would insure a dugout for- I mean, say that there’s a fire- it will merely be black and will need cleaning and interior walls rebuilt…I suppose.
But the cave will still remain?
If there’s a cave-in (if that’s possible) then you’d have to start all over again in a new area to dig out a new dugout…I suppose.[blink]Celivia
you couldn’t depreciate a hole the longer the age is it like a wine that it goes up in value and if you had a cave in then technically you haven’t excavated as the whole is full again.
I’d like to see the insurance policy and the terms and conditionshere to help
I bet the ATO has never been asked about depreciating a hole in the ground, so it would require a Private Ruling. They’re not hard to get – I think you can do it on-line.
Depreciation on buildings is there because the structure deteriorates over time. The ATO logic would probably be that a hole doesn’t constitute a ‘structure’ i.e. it’s a negative space. Of course, there would some electical wiring, plumbing and wall/floor treatments that could be depreciated. Plus no doubt a ladder.
I wonder how many people rent a hole anyway? And of those locals who perhaps rent a hole to someone else, I wonder if they’re paying tax – I suspect the cash economy is alive and well in places like Coober Pedy.
ScottTax Depreciation Schedules
Australia wide service
1300 660033
[email protected]
http://www.depreciator.com.auI would assume it is treated similarily to a normal house. I doubt it is simply a hole in the ground with a tarp over the top. There would be some kind of structure to keep the hole reinforced. Also there are semi-underground houses too, and many above ground houses in Coober Pedy. But has anyone here know what the current situation is over there? For instance, has anyone invested there before and think it is a worthwhile place to have IPs? Any bad experiences there etc.?
Hopefully Frodo Baggins will get back to us shortly with the answers everyone is looking for!
Sparky
Speaking of mining towns ….. I’ve heard that some investor group / club whatever from Albany has bought about 20 residential properties around Kalgoorlie in the last month or so . Does anyone know anything about this ?
Cheers ,
StJAMLV
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