- StevieC wrote:Hi Josh,
you are doing what I'd love to be doing myself if I had the time. I've been thinking about investing in either the Bowen Basin or Surat Valley now for almost a year and I'm ready to do something. There are possibilities for buying properties off the plan in Middlemount and Dysart that would give a 10 to 11% rental yield. The only draw back is that there is a body corporate.
The development in Dysart is for 24 appartments.Which do you think is the best investment location in these regions? In Surat Basin I've been investigating Roma and Chinchilla. Roma has a better rental yield but some people are saying Chinchilla has much more potential for capital growth.
In your opinion, which is the best location to buy in either the Surat or Bowen Basin areas taking both rental yield and capital growth into account? It seems that the Surat Basin has much more potential for capital growth than the Bowen Basin. One thing that has made me a bit reluctant to invest in property at this time is the belief that we face a major stock market crash before the end of the year. If that happened, I'm wondering how that would affect investments in these regions.Steve
I would be careful about the Dysart units. I was offered these by a property website at $425k & found them in the paper up there for $415k. Like most of these projects the developer has to sell so many off the plan before the banks will lend the money & I have heard he is not flush with funds.If he doesnt sell all those units he wont be doing the shopping centre upgrade….I'm assuming these are the units you mean?
Regards Max147
according to realestate.com.au there are currently about 300 houses for sale in Emerald, and the 2006 census states there are 4500 private dwellings. we have to wait for the 2011 census, but with those figures 6% seems a bit high of available houses for sale, considering the sqm data as well. I’m no expert, if someone can clarify this info, i would appreciate it,
thanksshoooshoo wrote:according to SQMresearch, there are 122 properties that have been on the market for sale for more than 2months in Emerald. there are some that have been on since 31st of March 2009!!! what is going on?hi shooshoo,
I can’t view the whole document as it asks me to pay for it and I’m not keen to do that. what initially shows up are properties that are infact just a local agent trying to sell house plans for the builder. maguires real estate had these on for years even when I was living there. don’t forget that parts of emerald flooded, I wouldn’t expect these properties rush out the door! no matter where you go there is a certain time that properties are on the market for on average. Even Gladstone, Australias hottest market currently, has properties that sit there. remember people buy houses, not just areas. most of the time if a property isn’t selling don’t dismiss the area, have a look at the property also. is or was it overpriced, is there any problems with the property etc.
also remember that in Qld, especially regional, there are a LOT of open listings, that is, more than one agent has the property for sale. this happens a lot from the start of a marketing campaign. currently, Emerald has a higher owner occupier purchasingrate than Gladstone, Dysart, Chinchilla, Moranbah etc. this means potentially a bit more time on the market as investors aren’t inflating prices so much that the region becomes unsustainable for families to buy and live in an area. Emeralds not a “boom” townthis year, it was in 05′, 06′ & 07′. and will see great growth in the future. however I don’t believe, and I hope, that emerald will be like Moranbah etc, it is to diverse and secure for that and that would also ruin what is becoming a great regional city in it’s own right.
shooshoo, the writings on the wall for most of regional Qld in this mining boom, theres an array of different areas with different outcomes but as far as finding the next moranbah as such, you need to find an area that no one wants to live and put up with a bumpy road until the area you choose becomes it. and in most cases, you will have sold out before it takes off too! 3 years ago you were crazy to go to Moranbah…so you will need to find an area that everyone thinks you’re crazy for investing in and back yourself the entire journey in hope that youve made the right move.
shoooshoo wrote:according to realestate.com.au there are currently about 300 houses for sale in Emerald, and the 2006 census states there are 4500 private dwellings. we have to wait for the 2011 census, but with those figures 6% seems a bit high of available houses for sale, considering the sqm data as well. I’m no expert, if someone can clarify this info, i would appreciate it,
thanksI did this for a client the other day, there were 146 properties that were salable without problems, ready and available to move into within the next 3 months. this has taken into account over 30 properties listed with a marketing firm for an estate which is approximately 12 months away from even being done, overpriced properties by more than 15%, flooded properties, multiple listings, properties already under contract, as well as people just trying to sell house plans, industrial and rural properties etc. realestate.com is in no way an accurate measure to assess any town. I would recommend paying for an rpdata subscription which will give you true and accurate information.
also the town has grown a lot since 2006. over 400 blocks have been released, sold and occupied. over 150 units built and occupied. the town is unrecognizable from 2006. you are talking about less than 1% of existing houses being for sale in reality, I would love to be in that market!
Hi Josh,
Ive been reading your travels, and I was wondering whether will be expanding your areas of expertise to other mining areas.
I for one have been looking very closely at the Oaklands Basis and am thinking this could be a place to sneak in on the ground floor.
Do you know much about this area?
thanks josh for the info.
max147 wrote:StevieC wrote:I would be careful about the Dysart units. I was offered these by a property website at $425k & found them in the paper up there for $415k. Like most of these projects the developer has to sell so many off the plan before the banks will lend the money & I have heard he is not flush with funds.If he doesnt sell all those units he wont be doing the shopping centre upgrade….I'm assuming these are the units you mean?Regards Max147
Last time I checked, two-tiered marketing was illegal in QLD, its amazing people get away with this!
Lucky I Guess wrote:Hi Josh,Ive been reading your travels, and I was wondering whether will be expanding your areas of expertise to other mining areas.
I for one have been looking very closely at the Oaklands Basis and am thinking this could be a place to sneak in on the ground floor.
Do you know much about this area?
Hi,
I am definitely interested in finding out about that market/region, however time restricts me currently to do so whilst my focus and core business is throughout QLD. I am keen to hear the underlying fundamentals of what is happening there though.
Thanks!
Portfolio PI wrote:Lucky I Guess wrote:Hi Josh,Ive been reading your travels, and I was wondering whether will be expanding your areas of expertise to other mining areas.
I for one have been looking very closely at the Oaklands Basis and am thinking this could be a place to sneak in on the ground floor.
Do you know much about this area?
Hi, I am definitely interested in finding out about that market/region, however time restricts me currently to do so whilst my focus and core business is throughout QLD. I am keen to hear the underlying fundamentals of what is happening there though. Thanks!
Hi Josh,
In the Oaklands Basin there is a Coal and Allied tenement they have had for years, holding about 1.4billion in thermal coal. They had a price on it of about $880mil but got no takers, so they are thinking about developing to enhance the opportunities to sell it.The main player is Coalworks. Floated a couple of years ago as its major project, 822million tonnes of thermal coal with plans for a coal-to-liquids plant to produce 6% of Australias fuel consumption there from it.
All looks very strong, I hold some real estate there, I was curious as to what the experts think.
I felt it was worth a strong look out due to it being in its infancy the pricing and opportunities are so cheap.
DYOR of course.
Cheers,
Lucky.Hi Josh,
I’ve been keenly reading through all of the threads and your updates, as well as doing some of my own research and I must say that the most interesting area for me constantly comes back to Gladstone. Although prices seem to have already spiked I am keen to get in still (and sooner rather than later). What can you offer to potential investors like me as I dont see any house and land packages under at least $520K for around 600 sqrs and although the rental returns are huge for that outlay I still want to make sure I am protected in terms rental securing and medium to long term capital growth potential. What do you have available to offer for an investor and how long before your stock is ready to buy…… if indeed you have any?
KatmatJosh,
I am planning on buying a 3×2 Brand New Townhouse on Fowler St (West Gladstone) being managed by Elders real estate. Did you have a look at these town houses what would be your recommendations for buying one of these properties . i.e. location, construction of homes, rentability etc etc
Investingnovice wrote:Josh,I am planning on buying a 3×2 Brand New Townhouse on Fowler St (West Gladstone) being managed by Elders real estate. Did you have a look at these town houses what would be your recommendations for buying one of these properties . i.e. location, construction of homes, rentability etc etc
Hi Wendy,
any chance of a link to them on the net? I think I know the ones you are talking about, the white looking ones?
What is the rental appraisal?
Portfolio PI wrote:GLADSTONE CENTRAL QUEENSLAND….. Okay here's what I think of Gladstone… Prices are a bit everywhere at face value (realestate.com, agents etc) which is synonymous with many regional centers in QLD. However when you dig that bit deeper you can see the consistency. There are a few areas of interest: 1. Barney point and South: I looked at two blocks there yesterday. One had just sold, it was approved for 4 x 3 bedroom units. It sold for 410k and still had 100k of headworks to pay! That's nearly the same price I can buy a house block in other towns for which will receive great growth also. What greeted me immediately in Barney point was a group of locals drinking on the beach at 1pm! The council still own a lot of land obviously as they had commission housing in the area. I think it's a great place for High density units (a lot of it is classified as high density already) however for houses I think that people will continue out west in the newer estates with all the new services and shops etc. The only agent that said that the demographics are changing in Barney point is a guy who owns a house there. None the less, in the long term I think Barney point demographics could change. 2. CBD: There are a lot of 2 bedroom units in 4/5 story buildigns being constructed with high volumes of sales around the $450,000 mark furnished. Rental returns of approx $650- low $700 are the estimates for these new ones. There are many more approved sites for developments like these and another 4 in council currently at an advanced stage. Western suburbs: this is where all the new estates are and are still going, a new woolworths is going right on the edge of town also. The shopping out there is good (approx 10 mins drive from CBD) however if you don't work in the CBD you don't need to come in to it all the time. New house and land starts at $500,000 however the standards of these homes are very poor in my opinion. It seems to be around the $550,000 range for a good package which is Val/ market value still. Many people who are spruikng the $500k packages are saying you are getting it for $50,000 less. You're just getting $50,000 of less house and or land. A $550,000 house will achieve approx $650 per week rent currently, whilst furnishing it seems to be the way to go and achieving $800-$1000. Even up to $1200 if you want to get creative and spend another $50,000 – $ 70,000. some builders are really bad! Especially Vantage homes, they are terrible here and even the real estate agents here warn against them. I feel sorry for the people that have bought some homes based on hype, when they need to resell on the local market the agents don't even like the house so what hope do they have to get the best return! I am concerned about the construction workforce still. It has always been my concern and it still is to be honest. In 5 years many employees may not be here. CSG has a very large construction workforce and a significantly lower long term workforce. And the reality is that a lot of people here are a construction workforce. Gladstone has had many peaks and troughs in history as influxes of construction workforces has coke and gone. However, of course it has always gone up in the long term. There is a lot more land coming on the market, there are currently 4 large unit sites (40+) for public comment with council. I don't have a doubt they will all rent out. But in 5 years? I don't know and I don't think I trust it yet personally for a long term hold. Land has risen from $180,000 last year to $250-$280 currently. The main shortage or residential land is NOW. Which means that land prices could be at or near their ceiling. The mining companies won't currently rent a house that is older than 5 or 6 years. This is the first time I have seen this as it seems to be unique with the Coal Seam Gas industries. I was also interested in buying an old house and subdividing the block and battle axing. However with strict council zoning for smaller developments this seems harder than previously thought. In light of this, not all rents will soar, only new houses or units. Yes I am sure they will all go up, but it won't be port headland where you buy a 3 bedroom dump and rent it out for $1000 +. this seems to only come with the new properties.Hi Josh,
You mention some builders are really bad, especially Vantage homes.
Care to mention why and who are they?Quote:Hi Josh,
You mention some builders are really bad, especially Vantage homes.
Care to mention why and who are they?Hi Banz,
from my experience with building some of my own properties in Emerald, they built about 10 houses in the same street surrounding my properties and they all looked the same (with minor changes). The locals on the street were all fairly upset as there street appeal had been reduced significantly, even to the fact that local agents were telling people that its a bad street. the houses were tiny and attracted a different demographic of people which was not where the street was heading. What was a great street has been significantly negatively impacted until the homes are one day purchased by owner occupiers in hope that they can lift the appeal of the blocks.
I am not out to knock anyone for the sake of it, but when I went to sell my home in that street my sale price was significantly impacted due to these properties being built. As this thread is about helping people invest in regional areas I feel that it was important to mention this. I am sure that if more care was taken with the end result of all of these properties than the street appeal could have been increased.
hey guys, what are your thoughts on this:
http://www.dailymercury.com.au/story/2011/03/11/expansion-plan-opens-more-land-for-housing-mackay/
its about the Issac Shire council giving green light the for Dysart to expand with 50-60hectares of residential lots. how many houses can you put on that amount? and what do you think is the impact to the property market there as i’m researching to buy there, although its very hard to find anything to buy there.
Hi guys just read this article about the massive mining investment from the Indian company in galilee basin. Is this the mega mine happening in alpha?
shoooshoo wrote:Hi guys just read this article about the massive mining investment from the Indian company in galilee basin. Is this the mega mine happening in alpha?Yes. It’s interesting that many ‘economic experts’ in the media warn of the China slowdown but little is mentioned of the increasing market to India. The economic climate is in a place where every man and his dog are trying to predict what will happen.
The underlying fundamentals remain the same, the industrialisation of both China and India will provide a unique opportunity for Australia. Billions of people moving from a socialist regime to a capitalist society. The development of the middle class in both societies that require vast amounts of commodities (stuff).
There are political scare campaigns being implemented from all angles at the moment dampening consumer confidence. This federal government only contributes to the uncertainty but all through it the huge investment bought about by these mining companies keeps quietly moving along.
We are not bound by the same markets as the United States, Greece, Spain, Ireland. Understand the underlying fundamentals and shut out all the noise.
Jack
shoooshoo wrote:Hi guys just read this article about the massive mining investment from the Indian company in galilee basin. Is this the mega mine happening in alpha?Just got the coffee and bread from the village bakery and front page on today’s edition of The Australian!
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