There is plenty of work for such trades, what area does he want to move to?
I don't, but I think Bob does
Daedalus.
Thanks for replying.
He has heard a lot of building is happening around Emerald. He has made a few calls and he is not sure how certain that is and the phone calls he has made havent provided much information. He is really not fussed what area even if it is a mining or rural town but northern QLD is where he would like to go.
Any information would be appreciated.
Thanks for your help!
I read yesterday that Rio Tinto will be exhausting their current mine by 2011 / 2012 and they are beginning construction of a new mine set to commence production in 2010 which should have enough resources for the next 35+ years.
How does Clermont stack up against Dysart and Moranbah in comparison if anyone knows about that region ?
Also how difficult would it be for someone in Melbourne to invest in the region without actually going up there to close a deal and have their IP ready in order to get a decent positive cashflow ?
any feedback would be great.
Hi GlenNess,
When I visited Clermont, it didn't seem as gung-ho as Dysart and Moranbah, although I've read recently that there is some new major mine activity in the area. Clermont is also a rural centre, so you are a bit diversified. Having said that, the yields were lower when I was looking about 8 months ago.
With regard to investing from a distance, I bought both my properties up there sight unseen. You really just need to do your research and make sure you get building & pest inspections. I've since been up a couple of times to inspect and do maintenance, and the properties were in line with my expectations. I'm based in Sydney BTW.
Daedalus.
Daedalus,
Cheers for the feedback. Much appreciated.
If you are after mining towns why not try south from QLD and check this out. Iluka mining has requested expressions of interest for positions at the new mine intended to open in Northern Vic late 2008. The two towns closest still have property at around $70k. Maybe a bargain to be had?
http://www.iluka.com/?page=mbsexpressions
Kind regards,
JLJL wrote:If you are after mining towns why not try south from QLD and check this out. Iluka mining has requested expressions of interest for positions at the new mine intended to open in Northern Vic late 2008. The two towns closest still have property at around $70k. Maybe a bargain to be had?
http://www.iluka.com/?page=mbsexpressions
Kind regards,
JLGood hunting, but unfortunately these are too cheap for me. Having made some enquiries, the rates, insurance and maintenance conspire to be a rather large proportion of the gross income. So even though the gross yield is quite high (70K/100pw = 7.4%) the rates are about 16% of that. So the whole thing becomes pretty cash flow negative. Rental income would need to almost double to make it stack up on cash flow. This might be possible during the mine construction phase, but I doubt it would continue after that.
If you're into speculation though, you only need a modest increase in capital gain (and a buyer of course) to get a decent return on investment. The percentages could be big, but the dollar amounts are small. e.g. you could make 20% capital gain and you only end up with 14K before costs.
It was quite enjoyable to research though – thanks for the lead!
Deadalus.
Deadalus,
I know this is not for everyone, but hopefully I will look back on this post at the end of next year and say yep, you could have bought for $70k and now they are worth $250k with $400p/w rent as with some other mining towns. (I'll stop dreaming now).
Kind regards,
JLIndeed! That usually happens with speculations that I decide not to go with…
Daedalus
"You missed the boom" said the locals
"Coal prices will fall and the mines will put people off"
"I wouldnt buy in a small mine town"
"too risky"Well the place I bought in November just exchanged. Bought $252K, rent $460pw, paint reno and garden tidyup ($2200), increased rent to $490. Has potential to put in granny flat and increase yield. Sold for $340K, private sale so no agency fees.
Not conplaining here.
Mick
PS that doesnt mean I endorse going and buying anything. Considerable time and DD was conducted on these deals. You get back what you put in."You missed the boom" said the locals
"Coal prices will fall and the mines will put people off"
"I wouldnt buy in a small mine town"
"too risky"Well the place I bought in November just exchanged. Bought $252K, rent $460pw, paint reno and garden tidyup ($2200), increased rent to $490. Has potential to put in granny flat and increase yield. Sold for $340K, private sale so no agency fees.
Not conplaining here.
Mick
PS that doesnt mean I endorse going and buying anything. Considerable time and DD was conducted on these deals. You get back what you put in.Mick,
Where?
JLI feel Bowen is a hot contender with new mines towards Collinsville,Abbot Point Expansion, and now Chalco refinery
Hi JL,
Sorry, I didnt see your post.
Where? Moura. Also doing well in Biloela.
Major mine putting on over 200 people in the next few months, new mine progressing well. I think I will sit on my others for a while.Mick
Thanks Mick,
JLDaedalus I was speaking with United Group and Leightons about Dysart and they stated just a few weeks ago there was a number of houses that went to auction. The auction was for rent not sale and some houses fetched $1100 per week.
I never recalled seeing any houses that were worth $1100 or actually of any better value.
As you know they are all very similar …. if your lease is up I would consider a major increase!BuilderBob wrote:Daedalus I was speaking with United Group and Leightons about Dysart and they stated just a few weeks ago there was a number of houses that went to auction. The auction was for rent not sale and some houses fetched $1100 per week.
I never recalled seeing any houses that were worth $1100 or actually of any better value.
As you know they are all very similar …. if your lease is up I would consider a major increase!Giddyup!!! Thanks for the heads up Builder Bob, my lease renews in October. i hope the pressure keeps up.
Are you still working in the area?
Daedalus.
Daedalus , Vermont mine itself will not fire up until next year as construction has only started.
They are still advertising for men .The demand will only increase I'm sure and even more when the other two mines kick off .
They are trying to get me back out there , but I've just taken on a number or projects at Collinsville and Bowen then down to Hamilton island , Proserpine followed by a few months in Mackay , actually Hay Point area on a new power station upgrade.
Not enough time in the day!
P.S I suggest contact Thiess and put it to them in advanced and see what they are offering as you already have had a number of offers by others..lol
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