Hi guys,
the bug has bit – for years ive been reading, early last year i bought a place in preston vic – 420k, just had a bank eval done at 575k, with a few clever bits and pieces, i have converted a back garage and put a self contained unit and split the backyard – front house gets 400 pw rent and back apartment gets 220 p.w rent – so almost pays for itself!!im looking for a small investment property for now – looking at country vic – In particluar Ouyen. -as i wanto spend under 100k.
basically – massive mine site 20 k from ouyen about to commence..The Iluka mining company is setting up operations 30km’s from Ouyen within 8 months, and plans to mine mineral sands at this site.
what do you guys thinK? i want a low risk, low investment – that il hang onto. average price is 80k.. rentals are around 130pw – but anticipate this to go up if the mine works out.
what do you guys think?
Im eagerly awaiting some comments from seasoned investors on this site maybe even Steve himself, its always good to read his comments! There you go Steve Ive set you a challenge!
I look forward to Steve's comments on this. Go on Steve!
Mike
Email MeHave you been to Ouyen? I haven't been there for many a year – but it is very dry wheat country. Could be worth a trip?
hmmm .. falls in value around 23% since construction phase finished … there is some good info on relevant company website .. now going to production … a windback in Muchea .. reduction in Capel .. expansion 30ks – as you say – outside Ouyen .. some will not finance in the town – others will seek larger % equity up front … some investment/development in area already with newly constructed brick and tile in offering … so is in the lull following construction pre growth as workforce arrives .. I've left it alone – but is just me
.. others may have a different view … Riverina up the road growing fast .. and little infrastructure in a depressed town … for those interested .. there is one set of partly renoed units … being from WA, struck me as a Mt Magnet with more grass .. appeals to some who invest in single industry, low SEI, poor infrastructure towns … notwithstanding all that – the mine appear to have a good future – and will return a significant amount to Iluka given the quality of the material returned .. there would appear to be further commodities beyond the min sands …if it fit your strategy and feel right for you … go with that
.. but there be plenty about to look at in terms of research material should u be unsure ..be well
I know I am a bit late. I got onto this Illuka thing late last year and went up to Ouyen for an Auction. The town is nice. I spoke with many, including the girls at the bank, the bakery, the supermarket and even high jacked the unemployed single mother walking the streets etc. I could not find a person who did not like living their. So I went to the Auction and to my surprised was the only one to turn up to bid. I got the property very cheap. I settled at end of January. Had it rented the next day. That tenant stayed 6 months and I just signed a lease for 12 months with 5 days vacancy.
I would say that prices over the past few months have gone up considerably – around 40% in the last 12 months I think. I'm not sure how accurate a reflection this is of the market though as only 17 have been sold, and this includes mine well below your 80k mark and a newly built brick home that had been listed for 250K. The town was very busy, lots of people in the street going about their lives. I personnally believe this is a great buy, because even if the mine workers don't stay in town, there will be an increase need for others in town.
So good luck in finding one for sale these days, but if you can, I say go for it.
I do have a word of caution, the agent fees are high and maintenance fees are high.
JL
This is my opinion only, so please do your own research.…and as a point of trivia:
http://www.ouyenvanillaslice.com.au/index.htm
Today:
The Great Australian Vanilla Slice Triumph
5 September 2008
benmelbs,
Have you bought in Ouyen. I notice that a set of 5 x 1units have come on the market for 180-220k. If you could hold until the mine opens, it could be a very profitable purchase?
JLJL wrote:benmelbs,
Have you bought in Ouyen. I notice that a set of 5 x 1units have come on the market for 180-220k. If you could hold until the mine opens, it could be a very profitable purchase?
JLtheyve been on the market for over a year
So, it's happening. Check this link for the media report.
http://www.bananasinpyjamas.com/news/stories/2009/01/09/2462242.htmI haven't spoken to my agent yet, but it will be interesting to follow the property now.
JL
.. others may have a different view … Riverina up the road growing fast .. and little infrastructure in a depressed town … for those interested .. there is one set of partly renoed units … being from WA, struck me as a Mt Magnet with more grass 
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