Hi Josh,
Still interested in investing into either Mackay or Gladstone. Can you talk me through which one will deliver for me the best opportunity for steady growth and protection with good solid rental return? Are both regions solid investments?
Confirmation of the new $4 billion Steel Plant Project, starting 2012.
2,000 construction workers and 1,800 staff once operational.
Gladstone really is becoming a super-infrastructure town.
http://www.gladstoneobserver.com.au/…ess-gladstone/
my latest blog update, a bit of the box but I feel it necessary for people to assess the facts of mining areas and regional towns.
http://ppiqldtour.blogspot.com/2011/08/apples-with-apples-and-oranges-with.html
It long again, but I hope it helps you!
thanks Josh
hot off the press…Emeralds largest agency has just 2 properties available for rent currently. forget what realestate.com.au shows, this is now reality. I knew it would come to this! rents and prices will now start rising dramatically
shoooshoo wrote: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 Shoooshoo, this area is broken into 2 sections – 1 will be larger lots (I think it was 5000m2 up to a couple of acres) and the other section will be 800-2000m2 lots so from memory I worked out that it will only be approx 300 lots in total. This is only in infant stage and will take a couple of years for first land release as it is literally virgin bush. Meanwhile, the mines continue to expand not only their own employee numbers but contractor numbers as well and the MAC Camp is consistently overbooked. I have heard of contractors being accommodated at Coppabella and Nebo and commuting to and fro every day because threre is nothing available here. Another thing to take into account is that in approx 2 years another mine (Saraji East or New Saraji) will be commencing which I believe will absorb any new housing along with the additional employees at the current mines. Another thing to take into account is that there is a LOT of exploration drilling going on around here at the moment – I have never seen so much activity. Middlemount is the closest town and is majority owned by Anglo/Capcoal so nothing available there for anything else new that comes to fruition from all of this exploration.
Hope this helps from someone "on the ground".
Cheers
hi lisa,
thanks for your replying to me in the post, do you know what is happening in the blackwater area? considering buying there also.
Hi Josh and everyone
I think this now puts a whole new light on matters up in the Bowen basin
http://www.dailymercury.com.au/story/2011/09/02/breaking-news-the-state-government-today-cleared/
But reading between the lines is interesting
cheers
Hi Josh
Firstly, thanx for taking the time to help out investors with information on the Mining Towns.
Your blog updates and forum posts have been great reading.
I have purchaed homes in the Bowen Basin, Surat Basin and in Kalgoorlie and have experienced great capital growth and rental yields in all of them.
I love the Mining Towns and cant get enough of them
I am looking to purchase my next property and am currently looking at Emerald.
I see that you are a big fan of Emerald and have previousley lived in the town. What are the better areas to be looking at buying.
I am planning on making several calls to agents in the area tomorrow.
Thanx
Deb
thanks KeyStrategies for posting that article. what is the Major Resource Project Housing Policy. also the comment for the article suggest that the housing plan is 4years old. I dont think this FIFO is going to affect the south side of the bown basin, such as middlemount and blackwater. what are your thoughts?
KeyStrategies wrote:Hi Josh and everyoneI think this now puts a whole new light on matters up in the Bowen basin
http://www.dailymercury.com.au/story/2011/09/02/breaking-news-the-state-government-today-cleared/
But reading between the lines is interesting
cheers
Thanks keystrategies,
great news for regional QLD! Another mine to get underway!
fingerscrossed wrote:Hi JoshFirstly, thanx for taking the time to help out investors with information on the Mining Towns.
Your blog updates and forum posts have been great reading.
I have purchaed homes in the Bowen Basin, Surat Basin and in Kalgoorlie and have experienced great capital growth and rental yields in all of them.
I love the Mining Towns and cant get enough of them
I am looking to purchase my next property and am currently looking at Emerald.
I see that you are a big fan of Emerald and have previousley lived in the town. What are the better areas to be looking at buying.
I am planning on making several calls to agents in the area tomorrow.
Thanx
Deb
Hi Deb,
Firstly, thanks for following the blog
Mining regions are great aren't they! And yes, I do like investing in Emerald. Currently it has had significant pressure on its rentals which has seen prices rise a bit further as of late.There are areas to stay away from, one estate has a 90:10 investor/PPR ratio, not to good for general values. And in some estates the builders don't put any thought into design and orientation on the block as they guess investors or people looking for a bargain will buy anyway, not realising the effect that a lack of thought when first building a house will have significant impacts later on (this is the case anywhere however). Some properties are below the flood level so make sure you know if they are or not.
Its hard to say that any area is the best as you may get a bad house in a good area or vice versa.
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Dont go to far out of the CBD if you can avoid it. It is also a situation of "you get what you pay for". You dont need the most expensive but the cheapest is quite often the cheapest for good reason, well that's what past experiences have taught me first hand
if i was to buy in qld, and need a solicitor to have a look at the contract, can i use a melbourne conveyancer, or is a qld one better, if so any recommendations?
shoooshoo wrote:if i was to buy in qld, and need a solicitor to have a look at the contract, can i use a melbourne conveyancer, or is a qld one better, if so any recommendations?shooshoo,
you must use a QLD registered/licensed solicitor. this doesn’t mean they must be in QLD however most of the time they are.
Portfolio PI wrote:shoooshoo wrote:if i was to buy in qld, and need a solicitor to have a look at the contract, can i use a melbourne conveyancer, or is a qld one better, if so any recommendations?shooshoo,
you must use a QLD registered/licensed solicitor. this doesn’t mean they must be in QLD however most of the time they are.
Hi Josh thanks for the response, any recommendations for the regional areas, can i just use a conveyancer?
Hi again Josh
What about Capella?. I have heard that Rio Tinto have a new mine approved for the area.
There are no houses for sale or rentals available out there at all.
A few house and land packages are about to hit the market.
What are your thoughts on this area please.
Thanx
Deb
fingerscrossed wrote:Hi again JoshWhat about Capella?. I have heard that Rio Tinto have a new mine approved for the area.
There are no houses for sale or rentals available out there at all.
A few house and land packages are about to hit the market.
What are your thoughts on this area please.
Thanx
Deb
Hi Deb,
Capella to me is quite risky, there are not many mines that support it. In the GFC it was a ghost town as commodity prices shrunk the mine that was operating there decided that it was not financially viable to continue until prices rose. People were stuck with houses they could barely give away. Understandably, things are better know, it just depends to what risk level you wish to expose your portfolio to. As I say with many places in the south of the Bowen Basin, Emerald will be the regional hub for any new mines in the area, providing, stable, long term, diversified employment opportunities to support the longevity of the town.
Personally, I would not invest in Capella. Please understand that that is my personal view, it is in no way saying that it is a bad investment, I just am not comfortable for the risk that I see in it, in my own portfolio.
How long do you want to hold your next property can I ask?
Thanks
shoooshoo wrote:Portfolio PI wrote:shoooshoo wrote:if i was to buy in qld, and need a solicitor to have a look at the contract, can i use a melbourne conveyancer, or is a qld one better, if so any recommendations?shooshoo,
you must use a QLD registered/licensed solicitor. this doesn’t mean they must be in QLD however most of the time they are.
Hi Josh thanks for the response, any recommendations for the regional areas, can i just use a conveyancer?
Hi Shooshoo, as long as they are thorough and are a good conveyancer/solicitor it is much of a muchness.
Hi All
Long time lurker first time poster!
I have to commend you all on a great thread! I've been reading with interest.
Myself, I'm quite curious about Emerald and have just commenced some due dilligence into the area. Just wondering, other than the information already posted does anyone have any recommended reading?
I'm very interested job statistics and mine worker demographics. Josh, as someone familiar with the area, are most of the mine workers in the area:
a) living in Emerald and FIFO or DIDO to work?
b) flying into Emerald from other parts of Oz, living there during their shift periods and commuting out mines?
c) Are they merely flying into Emerald on their way out to mines with Dongas?Also has anyone noticed and particular trends in the area in terms of shifting demographics, job advertisments, private or public invetsment other than that breifly mentioned earlier?
Finally, thanks to Keystrategy for posting that article about the Caval Ridge FIFO decision. When you say reading between the lines, are you refering to Andrew Fraser's comments? If so what locations do you believe will be the biggest winners and losers if this is an indication of what's to come?
Thanks for your help,
Stussimpson2003 wrote:Hi AllLong time lurker first time poster!
I have to commend you all on a great thread! I've been reading with interest.
Myself, I'm quite curious about Emerald and have just commenced some due dilligence into the area. Just wondering, other than the information already posted does anyone have any recommended reading?
I'm very interested job statistics and mine worker demographics. Josh, as someone familiar with the area, are most of the mine workers in the area:
a) living in Emerald and FIFO or DIDO to work?
b) flying into Emerald from other parts of Oz, living there during their shift periods and commuting out mines?
c) Are they merely flying into Emerald on their way out to mines with Dongas?Also has anyone noticed and particular trends in the area in terms of shifting demographics, job advertisments, private or public invetsment other than that breifly mentioned earlier?
Finally, thanks to Keystrategy for posting that article about the Caval Ridge FIFO decision. When you say reading between the lines, are you refering to Andrew Fraser's comments? If so what locations do you believe will be the biggest winners and losers if this is an indication of what's to come?
Thanks for your help,
StuHi Stu,
heres our suburb snapshot of Emerald, although it will be updated shortly. Also read my blog as it will have a lot on the Bowen Basin over the next 2 weeks especially. http://www.portfoliopi.com.au/SUBURB%20PROFILE%20EMERALD.pdf
Development Register:
The latest Central Highlands Development Register was released in July. It shows some key figures of investment into this booming Central QLD region including:
• $84.7 million investment for community infrastructure
• $45.5 million in retail shop developments including newly announced Harvey Norman
• $5.8 billion of corporate capital investment into mining ventures around the Emerald township.
• 3,100 direct new jobs in the above projects
• $16 billion of new projects planned for Alpha (150km West of Emerald). Emerald is planned as the “hub” for these mines according to the Environmental impact statements released.
• 10,680 proposed new jobs for the operation workforce of the above projects in Alpha where, according to the EIS’s, 15% of the direct workforce will reside in Emerald. This figure is expected to grow as housing becomes available.Housing in Emerald is accommodating local people who work and reside in the area, not fly in fly out. They will DIDO and BIBO to the mines for their entire shift week or just the day depending on which place they work. The motels etc accommodates a large number of FIFO workers also, however, mainly contractors.
Put bluntly, all trends are showing increasing signs of people, wages, job vacancies, houses, rental prices and capital values.
Doe this help?
cheers,
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