Sounds pretty amazing, but if you missed out on investing in local mining towns like Maronbah in the Bowen Basin, then you may be interested another basin in the USA, where you can purchase housing for under $50k and get $1000 – $2000pw rent.
ROCKIN IN THE BAKKEN – article
Ian
Block Head @ http://www.theblockblog.com
Free Property Investment Info, Tools & Resources For Investors With A Sense Of Humour.Oil Fracking
British companies are hitting this hard
Interesting. Estimated to have around 900 billion barrels of oil of which 4% (36B) is considered recoverable with current technologies. That’ll run the world for about 157 days. Kinda puts its size in perspective eh?
It would be interesting to know how long the field will last for. The set up takes a lot of manpower but once its been built out (pumps infrastructure etc) you need bugger all people to run these things.
5 years??
The Freckle
Been said that if they increase production by 1% then a billion barrels will be extracted. That's big, but yes shale oil is not environmentally friendly to mine.
Workers are living in cars in Walmart carparks I here. Well in summer anyway, I'm not sure if they could survive a North Dakota winter in an 86 Dodge station wagon.
Hotels are being constructed as fast as they can build and the strain on infrastructure is enormous for these small towns. Billions is being spent to upgrade, but like all mining areas it depends on the price ( in this case barrel) once extracted to exploration and mining cost. If the price of oil stays above $100 per barrel, then this will continue for a while.
Ian
Block Head @ http://www.theblockblog.com
Free Property Investment Info, Tools & Resources For Investors With A Sense Of Humour.I like Fort McMurry Alberta for a mining town,,, its got that old swagger to it.. plus huge river running through the town and some greenery.
I bid on a parcel for a shopping center oh 7 years ago so I was up there for 3 days.. got to tour the open pit tar sands mines and ride in the big ass trucks and excavators…
I am sure this is going to be a nice short term play,,, Kind of like a fema village post Katrina….
JLH
Yes, being flogged that deal myself by some brits. As Freckle puts it, and as their guarantees promise, no one knows what happens after 4-5 years. Kinda like Aussie mining towns really…
Ziv Nakajima-Magen | Nippon Tradings International (NTI)
http://www.nippontradings.com
Email Me | Phone MeZiv Nakajima-Magen - Partner & Executive Manager, Asia-Pacific @ NTI - Japan Real-Estate Investment Property
zmagen wrote:Yes, being flogged that deal myself by some brits. As Freckle puts it, and as their guarantees promise, no one knows what happens after 4-5 years. Kinda like Aussie mining towns really…You have to actually have assets when booms come along to kill the pig on these deals. By the time the spruikers hit their straps you know there’s a good chance you’ve missed the boat and any deal now carries 1000% more risk and a compressed time frame to make your buck before it all heads south again.
Alright if your a light on your feet small margin player but most are not.
Relying on one industry to support the infrastructure around your investment is a huge risk. The Maronbah property market is in crisis right now and industry experts have actually black listed the town and recommending clients not to invest there.
If the mine has an estimated life of 20-30 years it's a different story, but only if you get in early.
Kristin i have to disagree.
i am assuming you are referring to Moranbah in Western Qld.4744.
We do around 3 / 4 deals a month in Moranbah & Dysart and other than a short spell a month or so ago where a few of the Tenants were refusing to resign Lease contracts until the prices fell everything is back to normal.
We have not see any softening in the market and reading the valuation reports that come thru the Valuers covering that area seem to agree that the properties ar a good long term investment.
Whilst i agree with you about buying solely in an area which is built up on 1 single industry this is the not the case in Moranbah.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
there are already major enviromental issue cropping up.. And you know the US.. just think about the spotted owl..
this aint Canada,,, some judgle could stop this in a heart beat…
but I think there is a play here but its more of a business play not a long term passive investment play..
I looked at starting a building company there, but just could not get subs… thats why they are hauling in the wobbly box's thats what we call mobile homes. or in the Black community,, the like to Say " we wants one of them Mobility homes""" and I know I sold hundreds of them when I was a kid in the Bay area….. pretty funny really…
Good luck to those who invest… Just make sure you can recoup in 24 to 36 months…
JLH
jayhinrichs wrote:Good luck to those who invest… Just make sure you can recoup in 24 to 36 months…
JLHI'd say go for 12-18 months.
Been looking for advertising locations around Australia recently, naturally wanted to shoot off some ads in mining epi-centres – and found out about 50% of the places advertised as such on the web have "moved on" in the last year or two (which was when those locations were last verified and published on "mining hotspot lists" and such).
Ziv Nakajima-Magen | Nippon Tradings International (NTI)
http://www.nippontradings.com
Email Me | Phone MeZiv Nakajima-Magen - Partner & Executive Manager, Asia-Pacific @ NTI - Japan Real-Estate Investment Property
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