- JT7 wrote:Portfolio PI wrote:moxi10 wrote:Rents in Blackwater are quite high already, you will see demand increase in Emerald more so as three of the largest coal mines in emerald plan to get into gear just 150km west of Emerald. I am an ex local to the area, am in the area every two weeks for my clients and have 15 IP’s in central Qld.
If you need any more info feel free to PM me.
Josh
Future development in the Galilee Basin could potentially result in some big upside to not only the whole region but Emerald in particular. It’s going to be an interesting ride I’m sure. In relation to rental yields, Emerald is some ways behind Blackwater and certainly those towns further north such as Dysart and Moranbah. Any thoughts from the forum on just how rents could go in Emerald given the huge investment to the west?
Jack
You Wont see an immediate influx I believe from the Galilee Basin developments however it is always the case that fly in fly out workers make a shift to moving to the closest regional centre. This will be Emerald for these projects. You will see solid long term growth. Also a lot of the infrastructure will come from Emerald (ie contractors etc).
As for rents…well we will see as only time will tell. They have risen about 10% so far this year
Yes Josh I’d have to agree with you in relation to the Galilee Basin. Emerald should develop into a regional powerhouse supplying infrastructure out to those mining sites but also provide housing for some mining families that choose to live in the area.
Interesting to see what will happen further south in the ‘Golden Triangle’. I know there is some discontent amongst the farmers down that way in relation to what Bandana Energy is trying to implement and establish. I can certainly empathize with them. Although if the mining does go ahead I think it will again strengthen Emerald’s position as a regional centre.
Also agree on the 10% rise in yields. Happy days!
Jack
there is a lot of development happening within emerald currently, woolworths are spending $120m on the largest shopping centre for the town, Harvey norman have confirmed a site, bunnings still shopping etc.
Do you have property there Jack?
Josh
Portfolio PI wrote:there is a lot of development happening within emerald currently, woolworths are spending $120m on the largest shopping centre for the town, Harvey norman have confirmed a site, bunnings still shopping etc.Do you have property there Jack?
Josh
Hi Josh,
Yes I do have property in Emerald and I’m seriously considering increasing my holding.
I think Emerald has a strong future considering the deep underlying fundamentals which ultimately derive from the huge demand for high quality coal, both hard coking and to a lesser extent thermal, by emerging nations such as China, India and other developing Asian countries.
I think these fundamentals are going to underpin our economy in the short to medium term, and perhaps further. Some of these towns in the Bowen Basin are going to be prosperous for those who understand what is about to occur.
Jack
On the subject of the Gallilee Basin development, obviously the fly in fly out option will be utilised by the mining companies, and will be a big influence on the prosperity and development or lack thereof on nearby centres. If I were employed on a mine site in the Gallilee Basin on a fly-in fly-out basis, I would prefer to fly right past Emerald on my way to the coast. However, I agree that Emerald is in a good position to benefit in many ways from the expansion of existing nearby mines, and the development of mining in the Gallilee Basin, especially as a regional provider of services, and no doubt as a base for miners and construction crews involved in the development.
Bhp Billiton Mitsubishi Alliance have been reported (July 9th) to have officially asked the Queensland government to allow an entirely fly-in fly-out workforce at their Caval Ridge mine near Moranbah. Has anyone heard of any more recent developments concerning this application? Or is anyone in a position to accurately estimate how long it might take for a decision to be reached on this application?moxi10 wrote:On the subject of the Gallilee Basin development, obviously the fly in fly out option will be utilised by the mining companies, and will be a big influence on the prosperity and development or lack thereof on nearby centres. If I were employed on a mine site in the Gallilee Basin on a fly-in fly-out basis, I would prefer to fly right past Emerald on my way to the coast. However, I agree that Emerald is in a good position to benefit in many ways from the expansion of existing nearby mines, and the development of mining in the Gallilee Basin, especially as a regional provider of services, and no doubt as a base for miners and construction crews involved in the development.I’d probably agree with you there however, I’m sure we will see some movement into Emerald from Galilee Basin mining workers and their families. In relation to the coast and FIFO miners It’ll be interesting to see how Yeppoon fairs over the coming decade.
I know there has been talk from mining companies around Blackwater and Emerald to not encourage FIFO workers and instead house them in the community. Time will tell I guess.
Jack
hi people , the Queensland coal mines have been mentioned in a news article in the age.com.au website, what are peoples thoughts? the article was about the interest rate.
http://www.theage.com.au/business/rbas-new-normal-on-interest-rates-20110719-1hmof.html
here is a portion of it :
And with that view, the RBA doesn’t see anything that looks like an interest rate cut. The dampening effect of our exchange rate, the flattening out of employment growth, the longer time required for some Queensland coal mines to get back into production, the supply chain delays caused by Japan’s disasters, the caution of consumers all add up to creating time for the RBA to consider the eventual inflationary impacts of the commodities and capex booms – not a reason to consider cutting rates.
Shooshoo…
This is in direct reference to the coal production affected by floods at the start of this year. It does not reflect any long term positions by coal mining and isnt really an article that would affect property investment either negatively or positively really.
The coal mines are still catching up to lost production during and post floods which is hindering bottom line profits obviously, however it is nothing to be concerned about. Albeit lost money, it is not even an issue for these companies in terms of finances etc.
Hope this helps
Front page of the Gold Coast Bulletin today. Will be interesting to see what happens. Better cross fingers Liberals get back in…..unless of course you have invested on the Gold Coast where they desperatley need some good news!
http://www.goldcoast.com.au/article/2011/07/20/333891_gold-coast-business.html
Hi All, i’m new to this site, and new to investing in regional/mining towns. Over the last week, i have read this entire blog, all 350+ posts spanning 3years worth! I have cut and pasted many sections from it. It is very interesting to see peoples thoughts and what actually eventuated over this coarse of time. I have messaged Property Investor 1, and she has kindly replied to my questions very quickly, no doubt i’m accessing years of experience, so i’m thankful to her and to everyone here.
So you might wonder what brought me to this site? to cut the story short, a couple of years ago i made a few bad investment decisions (nothing that costed, just didn’t capitalize on the opportunities) and it has fuelled my soul to seek the truth on how to do things better. So i subscribed to the Australian Property Investor magazine for 3 years, i have been reading it now for the last six months. My ultimate goal is to have a good size portfolio, and from what i kept readying is that the investors who achieve this, usually do it by the following means. 1.they start really young, or 2.are developers, sell some and keep some, or 3, they buy, renovate to achieve a greater rental yield and hold . or 4, they purchase positively geared properties. SInce i’m in the capital city of Melbourne , which has the worst rental yield of 4.2%, this is pretty much almost impossible to find. Before readying the magazine, i never considered purchasing interstate, but after discovering the opportunities in the mining and regional towns, specially with the very attractive yeilds obtainable, I have gone crazy, trying to find every piece of information i can get! I’m not sure if i’m gutsy enough to go for a full on 100% mining dependant town (as i have a small portfolio of 3 properties) i find the prospects in purchasing in Emerald or chinchilla the way to go so far, but i have alot of studying still to do. So if anyone has any more information they can provide me, please notify me, thanks very much!
Portfolio PI wrote:Shooshoo…This is in direct reference to the coal production affected by floods at the start of this year. It does not reflect any long term positions by coal mining and isnt really an article that would affect property investment either negatively or positively really.
The coal mines are still catching up to lost production during and post floods which is hindering bottom line profits obviously, however it is nothing to be concerned about. Albeit lost money, it is not even an issue for these companies in terms of finances etc.
Hope this helps
thanks Josh!
shoooshoo wrote:Hi All, i’m new to this site, and new to investing in regional/mining towns. Over the last week, i have read this entire blog, all 350+ posts spanning 3years worth! I have cut and pasted many sections from it. It is very interesting to see peoples thoughts and what actually eventuated over this coarse of time. I have messaged Property Investor 1, and she has kindly replied to my questions very quickly, no doubt i’m accessing years of experience, so i’m thankful to her and to everyone here.So you might wonder what brought me to this site? to cut the story short, a couple of years ago i made a few bad investment decisions (nothing that costed, just didn’t capitalize on the opportunities) and it has fuelled my soul to seek the truth on how to do things better. So i subscribed to the Australian Property Investor magazine for 3 years, i have been reading it now for the last six months. My ultimate goal is to have a good size portfolio, and from what i kept readying is that the investors who achieve this, usually do it by the following means. 1.they start really young, or 2.are developers, sell some and keep some, or 3, they buy, renovate to achieve a greater rental yield and hold . or 4, they purchase positively geared properties. SInce i’m in the capital city of Melbourne , which has the worst rental yield of 4.2%, this is pretty much almost impossible to find. Before readying the magazine, i never considered purchasing interstate, but after discovering the opportunities in the mining and regional towns, specially with the very attractive yeilds obtainable, I have gone crazy, trying to find every piece of information i can get! I’m not sure if i’m gutsy enough to go for a full on 100% mining dependant town (as i have a small portfolio of 3 properties) i find the prospects in purchasing in Emerald or chinchilla the way to go so far, but i have alot of studying still to do. So if anyone has any more information they can provide me, please notify me, thanks very much!
Hi Shoooshoo,
I have property in Emerald. It’s a great town with a huge upside in the very near future. You are more than welcome to my research I’ve accumulated. PM me if you like.
Jack
how do banks go lending in emerald with the recent floods? does this affect the lvr if the property is n a flood zone? are parts of emerald flood proof?
coalstar wrote:how do banks go lending in emerald with the recent floods? does this affect the lvr if the property is n a flood zone? are parts of emerald flood proof?Hi Coalstar,
Banks are fine with Emerald, In fact the banks LOVE IT! I have Westpac offering to fly anywhere in the country with me when i do seminars on Emerald/CQ. LVR does not get affected from my experience (banks may differ but in general). What does get affected is the valuation.
As for “floodproof”…one would call Toowoomba at the top of a range flood proof but this was proven wrong this year too! I say that as i think it is not possible to call anything flood proof any more. However, in regards to the rivers rising etc, against many people belief, a lot of Emerald did not get flooded! and i mean a LOT!
I build most of my stuff in an estate that is the highest part of the township so I would consider it to be “floodproof” in my own terms but we never know what mother nature can throw at us!
have you been to Emerald before coalstar?
Hi,
never been to Emerald, good to hear that the majority of the town didn’t get flooded. If the town has high parts within then they wouldn’t get floooded. Moura is a good example of this where the dawson river is about 10km away. As you head east from the river towards the river and start heading upwards you notice the town is built high up.
why all the fuss about Emerald? I have to say though it would be a safer option than other towns as its diversified
coalstar wrote:why all the fuss about Emerald? I have to say though it would be a safer option than other towns as its diversifiedExactly!
coalstar wrote:Hi,never been to Emerald, good to hear that the majority of the town didn’t get flooded. If the town has high parts within then they wouldn’t get floooded. Moura is a good example of this where the dawson river is about 10km away. As you head east from the river towards the river and start heading upwards you notice the town is built high up.
why all the fuss about Emerald? I have to say though it would be a safer option than other towns as its diversified
For me it’s a personal favorite, I made my first 1m there so am a bit biased but fir good reason. Diversification is the key when it comes to regional Qld, there were some mining towns that went dead during the GFC, whilst Emerald glided through very smoothly, it is in fact, in real terms, one of the only diversified industry townships that fared well in Qld during the GFC.
I also have businesses there and it literally gets busier by the day! Its quite phenomenal really. There are some great investments there, PM me if you would like any assistance with regional Qld.
Cheers
The new pub here in emerald is really good, Its called the Irish Bar, Best pub I have been too
one question i keep wondering, is how can you tell if an area is going to be supply constricted? apart from looking at the current rental availability, and ringing the council to see what land releases are going to take forth in the future.
shoooshoo wrote:one question i keep wondering, is how can you tell if an area is going to be supply constricted? apart from looking at the current rental availability, and ringing the council to see what land releases are going to take forth in the future.Hi Shooshoo,
You need to look at the following factors:
1. Approved projects/investment for an area
2. Study the EIS (environmental impact statement) of each project. This will tell you a) construction workforce b) long term workforce c) life expectancy of the project d) accommodation requirements for project
3. Above 2 points for proposed projects
4. If that all points to growth in employees living in a region/town on a long term basis the continue your research to…
5. Then look at the town that the projects will affect, the accommodation in the area, the land available, the land coming up (council or real estate agents should help here). From there you should be able to have a rough idea if demand will severely outweigh supply.That’s all summed up pretty short, it can take a lot of research to get all the info if your looking at dropping 500k into an area but that’s the basic starting point to know whether a long term investment is viable and profitable.
Cheers,
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