Terry Ryder has new commentary on Muswellbrook….http://soundcloud.com/hotspotting/muswellbrook
moxi10 wrote:Terry Ryder has new commentary on Muswellbrook….http://soundcloud.com/hotspotting/muswellbrookYes Muswellbrook and certainly the Hunter Valley in general has some exciting dynamics that should bode well for the property market. Moxi10…I see from another thread you have property in Muswellbrook. I’m having a look at Muswellbrook at the moment and I’d be interested to hear your thoughts on new v established?
I would be thinking new builds may offer exposure to company leases whereas the older stock providing rental accommodation to some of this market and also locals working in the town as the more established property is closer to the town centre.
Any thoughts Moxi10?
Jack
Hi Jack
Buying new would probably increase the liklihood of leaseing to a mining company. The new developments are a little further from the amenities and the popular night life, which make them a bit less appealing to the workers, but I doubt if the mine managers are concerned by that aspect..
A big percentage of the current demand for rental accomadation is from those employed on the expansion of Mt. Arthur, with many more contractors expected late August and early Septemeber to work at the Ravensworth expansion. They are more likely to try to lease a property near the CBD.
The miners themselves are likely to purchase their own house, due to the fact that their incomes allow them to do this fairly easily. Many of them are from the local region anyway, as this is a preference in the selection process applied by the mines. However, about 20% of those employed at Mangoola, the newest mine, are from outside the region, and some are definitely buying homes in Muswellbrook. As the workforce required for the expansions and proposed new mines will exceed the skilled labour available, a higher percentage is likely to. be sourced from outside the region in the future, increasing demand for more housing.There are a couple of new mines planned at Denman, near Muswellbrook, as well as Mt. Pleasant, just outside Muswellbrook.
I chose established houses with recent renovations, which allowed me to claim depreciation. Both my houses also offer opportunities for further improvements. I have converted a rumpus room in one into a fifth bedroom, which has made it attractive to contracting companies.
My leases in both houses will expire soon, and my realestate agent advises that demand is high, and increaseing, allowing for a rental increase.
One established area to avoid is on the northwest of town, near Wollombi road. This is a housing commision area, and there is a disproportionately high crime rate there. Part of the area on the southeast of town is apparently undermined, and subsidience may be an issue. My properties are near Coles and Aldi, on the southwest, which is the direction in which the town is expanding, and the properties there are generally newer and in good condition.
The general new versus old rules apply, with old having established sales history and closer proximity to CBD and potentially greater long term land value etc. My personal preference is for good quality established.
Hopefully that helps your research
Moxi10
moxi10 wrote:Hi JackBuying new would probably increase the liklihood of leaseing to a mining company. The new developments are a little further from the amenities and the popular night life, which make them a bit less appealing to the workers, but I doubt if the mine managers are concerned by that aspect..
A big percentage of the current demand for rental accomadation is from those employed on the expansion of Mt. Arthur, with many more contractors expected late August and early Septemeber to work at the Ravensworth expansion. They are more likely to try to lease a property near the CBD.
The miners themselves are likely to purchase their own house, due to the fact that their incomes allow them to do this fairly easily. Many of them are from the local region anyway, as this is a preference in the selection process applied by the mines. However, about 20% of those employed at Mangoola, the newest mine, are from outside the region, and some are definitely buying homes in Muswellbrook. As the workforce required for the expansions and proposed new mines will exceed the skilled labour available, a higher percentage is likely to. be sourced from outside the region in the future, increasing demand for more housing.There are a couple of new mines planned at Denman, near Muswellbrook, as well as Mt. Pleasant, just outside Muswellbrook.
I chose established houses with recent renovations, which allowed me to claim depreciation. Both my houses also offer opportunities for further improvements. I have converted a rumpus room in one into a fifth bedroom, which has made it attractive to contracting companies.
My leases in both houses will expire soon, and my realestate agent advises that demand is high, and increaseing, allowing for a rental increase.
One established area to avoid is on the northwest of town, near Wollombi road. This is a housing commision area, and there is a disproportionately high crime rate there. Part of the area on the southeast of town is apparently undermined, and subsidience may be an issue. My properties are near Coles and Aldi, on the southwest, which is the direction in which the town is expanding, and the properties there are generally newer and in good condition.
The general new versus old rules apply, with old having established sales history and closer proximity to CBD and potentially greater long term land value etc. My personal preference is for good quality established.
Hopefully that helps your research
Moxi10
Hi Moxi10,
Thanks mate that is an excellent summary and a great help to my research. I certainly agree with you in relation to good quality established housing for higher land values closer to town. It’s going to be an interesting 3-5 years I think.
Jack
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