Hi,
I am new to the blog and also the investment game, and am wondering if anyone had any thoughts on investing in Chinchilla and Miles……I have done a heap of research and spoken to some developers but am getting conflicting advice to what is going on in the area….Please help!
Wouldn't touch them with a barge pole. They're flooded with houses for sale (453). It's your typical boom bust scenario. House construction is over shooting demand. Vacancy rates aren't bad yet but my bet is that will change to the downside over the next 18 months or so. All those properties for sale are in the main rentals. With vacancies in the 70's that can only get worse.
Not worth the effort – way to much risk.
Don't do drugs. Don't do mining.
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
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Hi Mandy
Firstly welcome to the forum and i hope you enjoy time with us.
Like the old saying in Invercargill the last one to leave please turn the lights off…. No seriously investing in Miles wouldn't be as bad as that but i question why you would invest in an areas after the boom has been thru.
As a new investor start small engage the assistance of someone to work with you on your property investing journey and spread your risk.
Investing is all about risk minimisation and not maximisation.
For what you would pay in Miles or Chinchilla you could buy 2 lower risk properties with sound growth and rent drivers and sleep at night.
Enjoying financial freedom doesn't have to be achieved in 1 year so build your foundations.and the rest will click into place as time goes by.
We put a lot of our new investors clients into low risk property where they can find their feet feel comfortable with the mechanics of investing and then start to build wealth for them over time.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Thanks everyone for you advise, I think I might hold off and so a little bit more research to try and figure out what is going on in that area. I have spoken to some other people who are saying that Miles/Chinchilla are the exception not the rule when investing near mining, as it is LNG not wholly and solely coal……not really sure if I am sold on this, but I suppose the good thing is that the more I research the more I will understand.
Hi Mandy,
My partner and I were looking at the Chinchilla area about 14 months ago, and to be honest we assessed that we had already missed the boat on that area (would be even more so now). Prices had already risen sharply and there were a lot of housing developments going up.
The problem is that the demand for property has been strong due to the construction phase of many projects (Kogan power station, LNG pipline, CSG exploration). However very soon all of these projects will be in the operational phase, and some already are. And unlike coal mining, LNG and CSG operations require a much smaller operational workforce. So basically when the construction workforce leave town, there will be a lot of vacant properties that will be competing with each other for tenants, which should see prices drop.
It's always important to do your research, and not just take the advice of the spruikers.
Many marketing companies are selling properties in these areas for around $450,000, especially in Chinchilla. If you do a basic search on say realestate.com.au you will find properties on larger blocs in better locations for $390,000. Count on the fact that marketing companies are making at least $30,000 per sale. However you are better to look at main cities like Melbourne or Brisbane and be selective on what you buy. There are great deals in inner city Brisbane at present.
Nigel Kibel | Property Know How
http://propertyknowhow.com.au
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I agree with Nigel, you will find something for the same sorts of money in major city centers, a lot more secure for you down the track.
Hi Mandy , I have worked in the area from Miles to Gladstone in the CSG industry ,and the workforce is seasonal as the projects are constantly on the move , so workers are always on the move , that would make it a big risk trying to lock in tenants .Currently a 1000 man camp is being built in miles to house workers for future projects another reason to give it a big miss,hope this helps in some way .
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