- shoooshoo wrote:i read on the forum that someone in blackwater was trying to sell their property for 12months and couldn't sell it.??
Who cares if the thing cost $8k to buy and the government forked out $7k of that? This person has bought themselves for a measley $1000…. an income stream that has gone up and up.
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
shoooshoo wrote:JaSin66 wrote:I bought in Blackwater in the early days, I was (still) employed with Utah now BMA, I bought the company house for $8000 which seemed somewhat ludicrous back then because everyone was renting off the company for $15 a week, I received my $7000 First Home Buyers Grant, sold it many years later for $220,000, $20,000 under market value (sold it to family member), that style of house is now selling for $300-$400,000 depending on upgrades/makeovers etc, I bought another house 4 years ago for $385,000 that had been extensively reno'ed (a bargain) it's now valued at $430-$450,000. I'm looking at 2 other properties here, 1st returns 10.1% gross,….2nd 10.4%i read on the forum that someone in blackwater was trying to sell their property for 12months and couldn't sell it.??
I would love to know the address, it's probably still all original or an original with the new kitchens & bathrooms BHP did years ago & a silly price attached or LEASE HOLD LAND that people are avoiding. I had seen a few empties & some were nothing short of disgraceful inside (not cleaned, peeling paint, dirty carpet, cockroach crap etc) and out (dead lawn of prickles, overgrown weed infested gardens etc) , but if your prepared to Reno a little and pretty up the yard they will sell ok I think, …. But I think renting them is the go … rentals are snapped up in a day! 1 in my very street had $950 a week (2-3 weeks ago) that had come up that day, it was gone the next. Workers from out of town are looking for rentals (in a share style, 1 room each) so they don't have to travel home to Emerald every shift, there like the golden egg – hard too find.
hi Jasin
i dont know the details unfortunatley. but thanks for the information. do you know what the LVR required borrowing amount is in blackwater/dysart?
shoooshoo wrote:hi Jasini dont know the details unfortunatley. but thanks for the information. do you know what the LVR required borrowing amount is in blackwater/dysart?
depends on the lender NAB is 20% for dysart,middlemount not sure of other lenders
Hi Shoooshoo
I'm currently applieing with ANZ for finance in Middlemount. Not finalised yet, but early indications are that existing customers may be able to obtain much higher LVR than others mentioned here. Also, as there have been warnings on these threads about long-term completion dates for off the plan purchases, you should look very closely at sunset clauses in your contract.
moxi10 wrote:Hi ShoooshooI'm currently applieing with ANZ for finance in Middlemount. Not finalised yet, but early indications are that existing customers may be able to obtain much higher LVR than others mentioned here. Also, as there have been warnings on these threads about long-term completion dates for off the plan purchases, you should look very closely at sunset clauses in your contract.
thanks very much for the info, i’m currently staying away from off-the plan stuff. the LVR info is intersting, what LVR are you getting wtih middlemount?
I'm not sure yet, still negotiating through broker. Will let you know how I go. It's Interesting following your comments and progress and the conversations you stimulate. I'm very interested in the Queensland mining regions myself. So much activity and so much temptation! We're spoilt for choice in the current environment.
moxi10 wrote:I'm not sure yet, still negotiating through broker. Will let you know how I go. It's Interesting following your comments and progress and the conversations you stimulate. I'm very interested in the Queensland mining regions myself. So much activity and so much temptation! We're spoilt for choice in the current environment.hi Moxi, i just spoke to my bank yesterday (bankwest), and asked what the LVR will be for Blackwater, Dysart and Emerald, he said Emerald 95%, the other two he will have to get back to me, will keep you posted.
Hi Shoo Shoo
I ended up having unresolved issues with my planned purchase in Middlemount, and after wasting about three valuable months dealing with people who tried to keep me hanging on a thread with vague reassurances and delaying tactics, I have pulled the pin. Three months delay in the booming Bowen Basin has obviously cost me some lost potential capital gains. However, there is always another new opportunity around the corner, and often they exceed the value of the first option. Moranbah has had another big increase in capital growth recently, as well as in rents. I'm looking at Dysardt and Blackwater again, which are the 2 towns I was focusing on before the unfortunate distraction of Middlemount. I;ve read that the Queensland government has supported local communities by ruling that 80% of Caval Ridge's emplyoees must live in the local region, so the mine must somehow provide accomadation for them. This should set a precedence for other mines throughout the region, and can only be good for the communities around the mines. Evidence of this is demonstrated by the latest surge in property values in Moranbah. As more mine employees and construction workers arrive in the other regional towns (such as Dysardt and Blackwater) we should see a corresponding capital growth increase in those towns as well.
Where did your search lead you? This thread has become quiet during your abscence, so I assume you"ve purchased somewhere?Did someone say the Hunter Valley!
Plenty of Mining, Great Wine, the most populated regional area of NSW & voted the 7th hottest city in the world for tourists!
a very diverse major mining town.
Mosqui wrote:I think this is not a real fair comment. You can not compare Ravensthorpe (where all this happened) with Karratha and Port Hedland. This is a clear difference with a mining town and a future mining town. The Ravensthorpe mine never worked. I can only talk for WA because is where I have all my experience and the pilbara and mid west is full of mines which will be here for many years. Two weeks ago BHP announced that they are investing 7 billions in WA, so Port Hedland has construction for the next 5 years and operations for another 10 to 15 easy. Karratha has Rio Tinto, Woodside, Dampier Salt and Burrup Fertalizers, so if all these industries go down, don't worry because all Australia stops anyway. I think it's fair to say that the risk on the north of WA is very low and the returns are very high, very uncommon, but real. I have a house in Karratha and looking into my second IP in Port Hedland at the moment. Also the people up there go for work, so the houses are usually kept pretty well. I was also looking into the Qld mining towns, very interesting as the properties are a lot cheaper. This is my point of view. Happy investing to everyone MosquiWhile a lot of discussion is centred on Qld – ignore WA at your own peril.
As Mosqui has previously stated Hedland and Karratha are anchored by big companies such as BHP, Rio, FMG, Shell, Chevron, Woodside et al. Alongside these companies are a number of smaller, yet significant operations working in the same area. Each of these companies is making major investment decisions in the area and all have long term contracts in place with ambitious plans to ramp up operations.
For example BHP want to triple output through Hedland in the next 4 years or so and FMG want to increase their operations by 5 times over the next five years. To complement BHPs plans they are now looking at constructing an outer port as the inner facility is at capacity.
In a previous post someone asked about investing in the Pilbara – rent returns in both are ~10%+ with significant capital growth to boot. Port Hedland has averaged 20.2%/annum over the last 10 yrs, Bulgarra (central Karratha) has averaged 16%/annum growth over the last 10 years and South Hedland has achieved 21.1%/annum over the last 10yrs.
Median HOUSE prices are very expensive and you wont get a lot of change out of $1.1m in Port Hedland and $750K in Bulgarra & South Hedland.
The State Government, through its Royalties for Regions policy is setting out to make Hedland and Karratha into NW cities with populations of 50,000 (big by WA standards) by 2030 (exact date escapes me atm) and some large scale developers are moving into Port Hedland and Karratha. The state government is working 'hard' (is that an oxymoron?) to release land in both towns to aid the growth process and supporting this initiative by building 'lifestyle features' in an effort to attract more people north.
There are zoning restrictions many parts of South Hedland but we have managed to locate a couple of blocks suitable for small scale, but highly profitable, developments in both South Hedland and Karratha which will realise great profits and high rent returns for our clients.
All in all – neglect WA at your own peril.
PS – noticed someone had a bad experience in Ravensthorpe. Ravensthorpe and the Pilbara are totally different and the surge in Ravensthorpe and neighbouring Hopetoun was always going to end in tears. Do a search on Hopetoun in the archives.
Was just reading the local mackay paper and they were reporting that rents have doubled in moranbah in the last 12 months, where people were paying 750 a week are now having to pay 1500 plus a week looks good for the investor out there
An update on plans for Karratha.
http://au.news.yahoo.com/thewest/a/-/wa/11743828/1-5b-plan-aims-to-make-karratha-city-of-50-000/
Looks like our Karratha investors will time things right.
We built our first house in Chinchilla, handover was in June 2010. We had it valued in Augest this year as we are in the process of building a second there, almost complete, and it has gone up by $50,000 just on the banks valuation. So I agree with ALF there has been a lot of capital gains over the recent years. Rents are moving slowly upwards to no where near Karratha though. My son rents a room in a 3 bed out there for $450 a week thats just a single room.
Hi all, can I ask your thoughts on Geraldton.
I guess previously its been considered a sleepy holiday town, but I've noticed of late rental pricing going up and availability coming down. I moved here a year ago from Karratha – and it feels like half of Karratha has moved with me. Every 5th car is a mine spec vehicle it seems, which isnt a lot I know but a year ago spotting a mine spec vehicle was rare.
My business – pest management related – is getting more and more enquiries from mining lots of projects seem to be on the go, even though Oakajee is still an unknown.
Thoughts?
Rickg wrote:Did someone say the Hunter Valley!Plenty of Mining, Great Wine, the most populated regional area of NSW & voted the 7th hottest city in the world for tourists!
a very diverse major mining town.
Yes – All of the above but the returns are nowhere near what you can get in Qld and WA – I have been doing projects up in the Hunter since 2003 and doing OK BUT my project in Central Qld earlier this year was so much more profitable.
cheers
ledgend80 wrote:Was just reading the local mackay paper and they were reporting that rents have doubled in moranbah in the last 12 months, where people were paying 750 a week are now having to pay 1500 plus a week looks good for the investor out thereLegend , Rents have skyrocketed in the last 12 mths – Rents are now over $2000 per week and property prices have gone up also. So if you owned a property up there its great if you are looking to buy – not so good at the moment.
Hi everyone,
Just came across a couple of articles that I wanted to sharehttp://www.hotspotting.com.au/article/2304-high-growth-high-returns-and-high-risk
http://www.brokernews.com.au/mpa/article/how-to-invest-in-mining-towns-126231.aspx
http://www.apimagazine.com.au/blog/2012/04/is-the-magic-of-moranbah-over-2/
There are a many more on my facebook page
Cheers
Hi Guys
Wondering if anyone has any thoughts on the Norwich Park Mine closure ? Anyone invested in Dysart with any Info?
http://www.dailymercury.com.au/story/2012/04/11/bhp-closes-norwich-park-mine/
Hi Christine,
I bought a property in Dysart CQ back in 2002 & have experienced outstanding capital growth. Rents were around $160.00 per/wk for a 4 bedroom home. Rents rose steadily & than sharply up to $1200.00per/wk as demand rose with the Lake Vermont Mine contruction. Once Thiess build their camp & the mine contruction was complete some rentals dropped back to $550.00 per/wk, but only a few were available & within a very short time around 3 mths they were back up to $900.00+ soaring up to the current average of $1400.00 Per/wk for a small 3 br, $1800.00 -4br & $2500.00+ for 5br. My property was just rent appraised at $2400.00-$3000.00 per/wk as it is a 5br, 2bthr home.
At present in Dysart there are quite a few homes for sale & available for rent with people due to retire from the mines & deciding to top up their retirement by selling & moving back to the coast while the house prices are high. The rent will fall back a little at the moment with the 18 mths of strike action taking it's toll on the community, however this is normal & has happened before, but once the BMA"s EBA is settled things will fire up again with the Lake Vermont extention & Saraji"s new mine being constructed will bring a load of new people to Dysart needing accommodation. I believe Norwich Park Mine will do what it did last time & we will see a weeding out of the workers they no longer wish to retain & they will re-open with some retained & some new workers. 300 of the current workers are being moved to Saraji & Peakdowns with contractors going to Blackwater or offered redundency packages. So I do not believe the media hype of doom & gloom. But still there will be a cause & effect with lenders pulling back their willingness to lend in these high risk area's. Rents may settle back to a realalistic level also if mining companies withdraw their subsidies.
Anyone cashed up to buy, would do well to buy properties that already have a good long lease in place at these high levels to ride out the current events. The days of high rental yelds we have seen may or may not return. So do your research & figures well. I agree there are added costs for maintenance, but once you ask aorund there is always someone looking to do extra on their days off usally a lot cheaper than a tradie from the coast. Face Book is a good place to ask.
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