Hello,
Am researching the Surat Basin in Qld, and more closely the town of Chinchilla. Basically for its location nearby to a multitude of future mining related projects, and for its infrastruture being just large enough to sustain a high influx of Gas + Coal Industry related workers in the coming years.It seems the town is growing from speaking to council, new Retra Vision store just built, expanding the IGA, 4 new housing estate developments, Woollies keen for suitable land.
Median rental yields are on 6%+ on average house price of $240K.
Low rental vacancy rate after speaking to property managers, rents and sale prices on the slow rise.
Keeping an eye on the media, theres been a high degree of very recent foriegn investment into the area. Being done amidst the gloom of a post 10th Oct 08 financial world makes me wonder why tens of billions of dollars are being pumped into the Surat Basin area now by big overseas companies such as Shell, Conoco Phillips, Xstarta, Arrow Energy, British Gas.All the boxes are being ticked for good future growth and rent return,
thats if the world doesnt go too economically pear shaped in 09/10.Does anyone have any words or imfo to share on the investment potential of the area?
Cheers.
There a several areas which are still rocketing ahead – it may pay to check out some of the websites of the miners eg Woodside etc (those that you have listed). Many are committed to long-term projects and subsequently will need facilities for the long term, not just for the next year or so. Unlike some of the other mining locations, Chinchilla is not as remote as say the Pilbara so finding suitable land and getting a prebuilt house delivered from SE Qld will be alot easier than sourcing local tradies.
Many miners are already tied into long-term supply agreements, exploration has been completed, EIS undertaken and construction of facilities commenced (hence investment by retailers – if Woolies are looking, then that will mean families moving to the area, schools etc not just itinerate workers moving taking up residence).
An operating facility requires less staff to operate than a plant which is under construction so in that sense demand may taper off when the building phase is over likewise rents may drop as there will be an abundance of housing (having said that, many of these miners will still require hundreds of houses both within their compound and in the township for 10-20 years).
Thanx IP,
The area is mentioned in last Sat Fin Review, that the jobs lost in the Qld coal sector ie;Mcaurther Coal.., will being headed to the Gas fields in Surat and Bowen Basins, were all the large foriegn energy companys I talked of in first posting, are all mentioned in the article as keenly investing in the area.
Gladestone is up and running with construction of the Gas processing plant.(sorry my knowledge of Gladstone is a bit vague) I realise its being built as the export port for all the surat and bowen basin resourses.So the fact the article says construction is comencing say alot for the whole area.
The Chinchilla area seems near centre to majority of most future mining projects.Have recieved mining maps from local council of the area and if only half take off then the zone should do very well, considering the lack of supply of rental housing in the town at present, 22 rentals available at now in whole town. If any half decent rise in demand should push prices + rents up.
Hopefully in the same vain as Moranbah in Bowen basin. Where $450K 3 bed houses are renting for $1100+ p/week. Only about 9 houses for rent in whole town there now.May try and get into Chinchilla early now for the below $250K range, while are still there. With 6% rent yield.
Hopefully with all the investment in the area it will only go up. Spose just how quickly is the question!Thanx for the advice.
Cheers.
Beamsseker, The LNG plant(s) in Gladstone have not yet had final approval. Most of the proponents are curently in the FEED phase now and the first Final Investment Desicion (FID) for LNG plant in Gladstone will be by QGC in Oct 09. Until then the projects are not guaranteed.
I think and hope they will fly but you need to know that it is not definite at the moment.
My question is can you AFFORD to speculate and risk your money in a casino … are you looking to get rich quick … read other threads and watch the news in my opinion unless you are a current millionaire go and look for some thing safer in your own suburb.
In Beaudesert Queensland they have just granted the upgrade to a major train station for heavy industry and this is part of a major link in the Australian Government big picture bla!
Summary: why are you still focusing on coal in small towns in the middle of no where.
D … good luck
Thanks for the cruel but fair advice W4L,
Affordability is the word…as not being a millionairre.
I have one as my P.P.R. and think I just bought another of the same properties youre advising me to look at, in my local area. Your cliche' safe neg geared, slow steady grower, good infrastructure, ameninties, location, and as you say …bla.
So as to not throw all the eggies in one basket am looking to diversify, for some high yields, subdivisions, small developments, etc. Not to get rich quick, just attempting to bring all properties closer to pos geared …. as you do.
Thus Chinchilla equals Affordabilty.
Being aware of the obvious high risk you mention in mining town investment for the rewards, extensive due dilligence is paramount, which required daily reseach of the Surat Basin for many mths. Meeting with local council, town planners, most agents and developers, contacting mining cos, viewing all properties of interest, bla.. bla…..
Then cross checking all thier bla with all the bla that have been monitoring in the press , PDS Live and RPData, and make a decision.
I understand, respect and practice youre preference for the safe low risk, slow grower.
If you are the type for a calculated risk and/or diversification, then from the due dilligence and this town being in the heart of a growing cleaner fuel Coal Seam Gas industry, beyond the doom and into the gloom Chinchilla maybe a means to one day affording the secure bluer chip, safety houses you talk of. Thats the long term plan anyway.Cheers …
Thanx for previous comment Bardon,
Good helpful advice.
If possible may I ask your source for the dates and imfo on the Gladstone plant pls ?
Cheers.Beamseeker, I work in the industry and speak regularly with the management of the various proponents. In fact I spoke to someone yesterday and he said all good for Oct 09 only problem would be oil going sub $30pb otherwise Briitish Gas are very focussed on delivering LNG plant as are Santos, Arrow, Origin and their respective epartners. Its just that BG/QGC will be the first to commit.
Hi Beamseeker
I have invested in Chinchilla myself 2 years ago and have not done too bad. I also investigated the town thoroughly and believe it has so much more potential.
However, I am currently renovating my home and strap for cash right now and therefore am forced to sell my investment in a prime estate in a prime position in Chinchilla.
Email me on [email protected] if your interested.
Umit
Subdividable rural land situated in and around the areas of QGC and Linc would be a good long tern investment, especially if you can get an tax advantge from primary production income in the meantime……
Anyone know which companies are sniffing around the Bowen/Ary Basin areas?
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