All Topics / Help Needed! / Investing in Dysart,is it too risky?

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  • Profile photo of jamesw82jamesw82
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    @jamesw82
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    Hi steve just chasing a bit of advive please mate.Im looking at buying my second investment property and im looking in a mining town simply because of the gross rental yield. The place im looking at is Dysart, im just a little worried because at the moment they are talking about becoming fly-in fly out mine which will undoubtly effect the rental properties in Dysart, do u think i should still invest there or look else where.Please help. Thank you James Williams

    Profile photo of Jamie MooreJamie Moore
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    Hi James

    If you do a search for Dysart you should find plenty of previous posts that might be helpful.

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
    Email Me | Phone Me

    Mortgage Broker assisting clients Australia wide Email: [email protected]

    Profile photo of minichickminichick
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    I would wait and see if the carbon tax goes through before investing in any mining area atm

    Profile photo of jamesw82jamesw82
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    Thank u guys i have found out alot and have had alot of advice thanks to these forums, absolutely loving this site, for someone as green as me at investing this site really helps aswell as the users on here.Cheers guys.

    Profile photo of Josh AthertonJosh Atherton
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    @josh-atherton
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    Post Count: 269
    minichick wrote:
    I would wait and see if the carbon tax goes through before investing in any mining area atm

    how is the carbon tax going to impact coal mining exports?

    Profile photo of minichickminichick
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    Portfolio PI wrote:
    minichick wrote:
    I would wait and see if the carbon tax goes through before investing in any mining area atm

    how is the carbon tax going to impact coal mining exports?

    http://www.miningweekly.com/article/carbon-tax-will-hurt-jobs-in-coal-mining-report-2011-06-14

    http://www.news.com.au/business/markets/market-falls-almost-1-per-cent-at-open-as-carbon-tax-sets-in-eurozone-debt-fears-spread/story-e6frfm30-1226092946883

    <moderator:  I have deleted the pasted text of the article.  Please use link to see the article>

    http://www.kenodowd.com.au/LatestNews/MediaReleases/tabid/74/articleType/ArticleView/articleId/101/New-report-backs-claims-on-coal-jobs-threat.aspx

    9 contracts have pulled out last time Rudd tried a similar tactic jobs were lost and the reigns given to Juliar would be nice to be wrong as I was considering investing in some towns such as Blackwater/Emerald dysart/middlemount are just to risky for my SANF

    Profile photo of JT7JT7
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    minichick wrote:
    Portfolio PI wrote:
    minichick wrote:
    I would wait and see if the carbon tax goes through before investing in any mining area atm

    how is the carbon tax going to impact coal mining exports?

    http://www.miningweekly.com/article/carbon-tax-will-hurt-jobs-in-coal-mining-report-2011-06-14

    http://www.news.com.au/business/markets/market-falls-almost-1-per-cent-at-open-as-carbon-tax-sets-in-eurozone-debt-fears-spread/story-e6frfm30-1226092946883

    <moderator:  I have deleted the pasted text of the article.  Please use link to see the article> 

    http://www.kenodowd.com.au/LatestNews/MediaReleases/tabid/74/articleType/ArticleView/articleId/101/New-report-backs-claims-on-coal-jobs-threat.aspx

    9 contracts have pulled out last time Rudd tried a similar tactic jobs were lost and the reigns given to Juliar would be nice to be wrong as I was considering investing in some towns such as Blackwater/Emerald dysart/middlemount are just to risky for my SANF

    There appears little doubt this carbon tax is causing the industry some headaches. It has surely caused uncertainty in the market and increased sovereign risk in the short term. However, I also think there is some scare mongering from both sides.

    It is my understanding, and I'm only to happy to be corrected, that the carbon tax will only add approximately $1.20c to the cost of 1 tonne of coal for export.

    There may be some confusion between the tax on export coal apposed to coal fired energy facilities such as Hazelbrook down in Victoria which burns high polluting brown coal.

    I believe the underlying fundamentals are extremely strong. There is a whole lot of politics going on at the moment and some spin on truths. Don't listen so much to what these massive mining companies are saying at the moment but look at what they are quietly doing.

    Jack

    Profile photo of hbbehrendorffhbbehrendorff
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    How could you go wrong Investing in Dysart ??????

    As you should well know by now (if your an educated and experienced property invester)  property doubles every 7-10 years

    So if you buy a 500k dog kennel today, your property will be worth approx :  $32,500,433.65  in 40 years !!! WOW

    SEE HOW YOU HAVE BUILT 32 MILLION DOLLARS OF EQUITY FROM JUST 1 INVESTMENT PROPERTY ???

    all you have to do is jump on the gravy train and the wealth will flow to you

    In 40 years at a 10% rental return that equals $61, 538 a week in RENT !!!! wow

    With the current Qld wage today being about $63,840.00 if there is 3% inflation every year, the average wage in 2051 will be say $306,497.16

    That means your property will be worth 106 times average wages !   See how easy building wealth really is with property investment ?

    Profile photo of Josh AthertonJosh Atherton
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    hbbehrendorff wrote:
    How could you go wrong Investing in Dysart ??????

    As you should well know by now (if your an educated and experienced property invester)  property doubles every 7-10 years

    So if you buy a 500k dog kennel today, your property will be worth approx :  $32,500,433.65  in 40 years !!! WOW

    SEE HOW YOU HAVE BUILT 32 MILLION DOLLARS OF EQUITY FROM JUST 1 INVESTMENT PROPERTY ???

    all you have to do is jump on the gravy train and the wealth will flow to you

    In 40 years at a 10% rental return that equals $61, 538 a week in RENT !!!! wow

    With the current Qld wage today being about $63,840.00 if there is 3% inflation every year, the average wage in 2051 will be say $306,497.16

    That means your property will be worth 106 times average wages !   See how easy building wealth really is with property investment ?

    Ummm…No I don’t see how you create 32 million dollars of equity. Could you explain further perhaps?

    Profile photo of hbbehrendorffhbbehrendorff
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    @hbbehrendorff
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    Post Count: 293

    7 years = 1 mil
    14 years = 2 mil
    21 years = 4 mil
    28 years = 8 mil
    35 years = 16 mil
    42 years = 32 mil

    Profile photo of Josh AthertonJosh Atherton
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    Actually the historic trend is 10 years not 7. It has doubled in 7 years once in the past which is why people say 7 to 10 years. It has not and is never expected to double every 7 years. Well that’s what educated property investors knwow anyway because as you can see the difference is substantial.

    Profile photo of hbbehrendorffhbbehrendorff
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    So your saying that property will continue to compound by 7.5% every year doubling wage growth forever, Is that what your trying to say ?

    Profile photo of Jacqui MiddletonJacqui Middleton
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    History has shown that property goes up in value.  It kind of has to anyway.  Everything goes up in price.  Groceries, petrol, houses…  Wages increase each year as well.  The trouble is that wages seem to be increasing at a slower rate than the rate that houses are increasing in price.  The price of property tends to go up at a faster pace than you can save.  Thus it tends to be best to acquire a property as soon as you are able to.  The reason property goes up at a faster pace is probably related to demand.  The population is increasing – through reproduction and immigration.  So there are more and more of us all trying to share the same land.  More and more of us wanting to live within a reasonable commute of the cities where the jobs are.  As they say – land is king – it is something they are not making any more of.  Two things will therefore happen simultaneously:  Property close to the employment hubs; in particular Sydney, Melbourne etc, will become unaffordable for many people.  Such people will be doomed to rent forever if they wish to reside in these areas.  At the same time, the government will be forced to create extra employment hubs (because let's face it – we can continue to cluster more and more people around the existing hubs and expect them to be able to commute to work in under an hour).  In VIC, some examples of this are being focussed around Geelong and Ballarat.

    People need food, shelter, and drinking water.  As such, expect that the prices of these will go up as they please and we'll simply have to pay.  The same applies to electricity – but at least if it is cold we have the option of putting on extra clothing instead of turning the heater on.  But when you're thirsty, you need water and that's that.  And unless you're ok with living in a tent or on the street, you'll need a dwelling to live in as well.  Food – yep, we need that too – and most of us have no ability to grow our own food because we do not have the skills and do not own a suitably large patch of dirt in which to grow vegies.  So off to Woolworths we go and pay whatever that pricetag says. 

    It would be ridiculous to expect that in a 10 year timeframe, the value of property would not go up.  I've rabbitted on for a little long, but trying to say enough to make it clear that yep property goes up, and thus give you the confidence to commence your investing journey.

    All that said, while a property that you buy for whatever the price is now might well be worth millions in the future, it will also be true that the cost of everything else will have gone up.  One million dollars today seems like a lot of money.  In 30 years it won't buy anywhere near as much stuff as it would buy today.  Just ask yourself – what is the price of a Mars Bar today… and what was it 5 years ago and you'll see what I mean.

    The beauty of property is though, that you put down SOME of the pricetag, and then the tenants generally pay the remainder of the mortgage off for you.  Nice.

    Jacqui Middleton | Middleton Buyers Advocates
    http://www.middletonbuyersadvocates.com.au
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    VIC Buyers' Agents for investors, home buyers & SMSFs.

    Profile photo of minichickminichick
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    JT7 wrote:
    minichick wrote:
    Portfolio PI wrote:
    minichick wrote:
    I would wait and see if the carbon tax goes through before investing in any mining area atm

    how is the carbon tax going to impact coal mining exports?

    http://www.miningweekly.com/article/carbon-tax-will-hurt-jobs-in-coal-mining-report-2011-06-14

    http://www.news.com.au/business/markets/market-falls-almost-1-per-cent-at-open-as-carbon-tax-sets-in-eurozone-debt-fears-spread/story-e6frfm30-1226092946883

    <moderator:  I have deleted the pasted text of the article.  Please use link to see the article> 

    http://www.kenodowd.com.au/LatestNews/MediaReleases/tabid/74/articleType/ArticleView/articleId/101/New-report-backs-claims-on-coal-jobs-threat.aspx

    9 contracts have pulled out last time Rudd tried a similar tactic jobs were lost and the reigns given to Juliar would be nice to be wrong as I was considering investing in some towns such as Blackwater/Emerald dysart/middlemount are just to risky for my SANF

    There appears little doubt this carbon tax is causing the industry some headaches. It has surely caused uncertainty in the market and increased sovereign risk in the short term. However, I also think there is some scare mongering from both sides.

    It is my understanding, and I'm only to happy to be corrected, that the carbon tax will only add approximately $1.20c to the cost of 1 tonne of coal for export.

    There may be some confusion between the tax on export coal apposed to coal fired energy facilities such as Hazelbrook down in Victoria which burns high polluting brown coal.

    I believe the underlying fundamentals are extremely strong. There is a whole lot of politics going on at the moment and some spin on truths. Don't listen so much to what these massive mining companies are saying at the moment but look at what they are quietly doing.

    Jack

    My husband is an ex miner 3 mates from the bowen basin area called last weekend they are worried about there own properties.

    These are locals 1 is a UM the other a deputy. 1 mate says if it kicks in he’ll loose his high paying job and have a 350k mortgage on a house worth about 50k.

    EXPORT is the one thing that will get hit hard china will not buy from us even though we have the highest quality coal if cost is 50% higher then the next best competitor.

    May want to read this article:

    http://www.heraldsun.com.au/news/more-news/we-answer-the-carbon-tax-questions/story-fn7x8me2-1226091830525

    You can take the word of spruikers or listen to locals which one is wiser on the current market the one trying to make a buck selling an overpriced property?
    Or mining employees/employers worried about there own future, I know which one I choose only a fool would choose a spruikers word…

    I pray that Brown oops I mean Gillard doesn’t get her way.

    Profile photo of Josh AthertonJosh Atherton
    Member
    @josh-atherton
    Join Date: 2011
    Post Count: 269
    minichick wrote:
    JT7 wrote:
    minichick wrote:
    Portfolio PI wrote:
    minichick wrote:
    I would wait and see if the carbon tax goes through before investing in any mining area atm

    how is the carbon tax going to impact coal mining exports?

    http://www.miningweekly.com/article/carbon-tax-will-hurt-jobs-in-coal-mining-report-2011-06-14

    http://www.news.com.au/business/markets/market-falls-almost-1-per-cent-at-open-as-carbon-tax-sets-in-eurozone-debt-fears-spread/story-e6frfm30-1226092946883

    <moderator:  I have deleted the pasted text of the article.  Please use link to see the article> 

    http://www.kenodowd.com.au/LatestNews/MediaReleases/tabid/74/articleType/ArticleView/articleId/101/New-report-backs-claims-on-coal-jobs-threat.aspx

    9 contracts have pulled out last time Rudd tried a similar tactic jobs were lost and the reigns given to Juliar would be nice to be wrong as I was considering investing in some towns such as Blackwater/Emerald dysart/middlemount are just to risky for my SANF

    There appears little doubt this carbon tax is causing the industry some headaches. It has surely caused uncertainty in the market and increased sovereign risk in the short term. However, I also think there is some scare mongering from both sides.

    It is my understanding, and I'm only to happy to be corrected, that the carbon tax will only add approximately $1.20c to the cost of 1 tonne of coal for export.

    There may be some confusion between the tax on export coal apposed to coal fired energy facilities such as Hazelbrook down in Victoria which burns high polluting brown coal.

    I believe the underlying fundamentals are extremely strong. There is a whole lot of politics going on at the moment and some spin on truths. Don't listen so much to what these massive mining companies are saying at the moment but look at what they are quietly doing.

    Jack

    My husband is an ex miner 3 mates from the bowen basin area called last weekend they are worried about there own properties.

    These are locals 1 is a UM the other a deputy. 1 mate says if it kicks in he’ll loose his high paying job and have a 350k mortgage on a house worth about 50k.

    EXPORT is the one thing that will get hit hard china will not buy from us even though we have the highest quality coal if cost is 50% higher then the next best competitor.

    May want to read this article:

    http://www.heraldsun.com.au/news/more-news/we-answer-the-carbon-tax-questions/story-fn7x8me2-1226091830525

    You can take the word of spruikers or listen to locals which one is wiser on the current market the one trying to make a buck selling an overpriced property?
    Or mining employees/employers worried about there own future, I know which one I choose only a fool would choose a spruikers word…

    I pray that Brown oops I mean Gillard doesn’t get her way.

    minichic,

    how will exports be hit hard when the cost of producing export coal will rise by $3 per tonne potentially. intact that article states that coal will expand.

    the day the carbon tax was announced Peabody energy bid $5b for a large coal mining company where it’s main deposits are in the Bowen basin. as an ex local of the Bowen basin and an owner of over 15 properties now in the Bowen basin, I really don’t see how your point is valid. I’m not trying to be rude but some of the largest companies in the world are going against your advice.

    what will be affected in the Australian coal industry are coal powered power plants. the amount of coal that is produced in Aus that goes to the power plants is minimal. this will not affect production one bit with current export demand.

    if the coal industry and other minerals fail, how fo you suggest the government would survive? they are stupid, but thru are not stupid enough to cut off the hand that is feeding them. that’s exactly how Kevin Rudd was pushed out.

    I can assure you, intact I will bet my 15 properties on it, that this carbon tax will not affect export coal mining.

    Profile photo of minichickminichick
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    $3 a tonne is more then enough to send our buyers elsewhere..

    Q: Will this kill the coal industry?
    A: Again, that what many critics fear, but the one thing the Greens and the coal industry seem to agree on is that the coal industry will continue to grow in the next decade. Coal miners say the carbon tax will restrict that growth, but the government has a $1.3 billion package to transition the coal industry to a ‘cleaner’ future.

    This is from that article sounds like political speak for yes it will hurt the coal industry but will give them a bit of money that should fix it.

    Look what they Just did to the beef industry.

    And who says I don’t have a vested interest in the area I said I wouldn’t buy in Dysart/Middlemount

    Not emerald/Blackwater infact I would suggest buying there if it wasn’t for the carbon tax scare.

    anyway I doubt it will get off the ground enough are against it Gillard will just be booted out.

    I went to school there my husbands parents live there half of our friends work in these areas so of course I don’t want the bloody carbon tax to affect the mining sector.

    and I already have enough properties in these areas, some are good some are headaches, if your right if it even comes in then I’ll be glad that 20 of our best friends didn’t loose there jobs…
    Emerald will always be a good area to buy in whether mining is still around for another year or another 100 which is what it should be around for with the amount of coal reserves in the area.

    as it doesn’t rely only on mining as it’s only industry the same can not be said for dysart which is what the op’s question was about in the first place.

    Brown wanted to shut the mines down and even said so in June

    this year

    http://www.heraldsun.com.au/news/more-news/julia-gillard-rejects-bob-browns-call-to-end-coal-mining/story-fn7x8me2-1226083173197

    That’s what is worrying our friends as the whole thing is being pushed through via the greens.

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