yeah but that is still concerning:
I agree with KeyStrategies.
You need to understand how investment works. Successful investors do their research, work out what they want to invest in and why. Then they just do…[Read more]
FIFO will only last while it’s cheaper for the mining companies than paying rents in mining towns.
FIFO may occur, and if it does then rents will fall. Then some time later, the mining companies will notice that it’s cheaper to pay for rent than flights, and they’ll stop FIFO.
If FIFO is being seriously considered, then we have an…[Read more]
3. If my property has a big lawn, would it be hard to maintain? As in, is it possible to make sure the tenants will mow the lawn? And incur penality in the future if they don't maintain it, such as deducting money from the bond to replace the lawn?
This is always the tenant’s responsibility and the PM should ensure it is done.…[Read more]
Hi AllWe are thinking of investing in Dysart but are concerned about Fly-in and Fly-out and what impact this might have on the property.market there. Does anyone have any information about if FIFO is going to go ahead for all mines in the area or if it's only going to be for new mines.Thanks for your help Kirstie…[Read more]
Hi Anna,It's hard to generalise about pets but my tenants have pets (outside dogs). A lot of places in Dysart are high set, so the dogs can be 'outside' but still under cover.I haven't heard of snakes being a problem – I've never even considered it before…Dysart is about 3 hours from the coast.All the best,Daedalus.
Hi,Yes, the locals are expensive – but that's what happens in a micro-economy where everything (including rents) are higher than everywhere else.It might be a bit cheaper than it was because Dysart has been quiet for a while. I'd get some quotes from Mackay installers for aircon, because the units will probably come from there anyway.When I need…[Read more]
I agree with Hadi. An investment is an investment is an investment, and should be undertaken with a level head.Ensure you know your reasons for investing in a certain area – that way when you are in a down cycle, you won't be as stressed about it.To put some perspective on it, the 1000+pw rents were ABNORMAL – the product of a concentrated amount…[Read more]
Hi Yorkie,Somewhere earlier in this thread is a post about my adventures with Moranbah real estate agents – you'll have to look that up .I use Mackay Rentals in Moranbah, and I'm pretty happy with them.Daedaluls
Hi Yorkie,I like the prospects for Moranbah right now. It's a large town and there's good industry support, even though there's been some negative press.I agree that there seems like there's some good buying at the moment. It looks like there are some distressed sellers on the market.Daedalus.
I've used the Ikea glue-together laminate, which has now been down 9 years and looks pretty much the same as the day it was laid. There is one ding where I dropped a claw hammer on it. It runs into a kitchen and hasn't had any problems with water. It also gets a lot of direct sunlight and hasn't faded at all. An excellent product, but it is slow…[Read more]
Hi,I use R&H Mackaey for my Dysart property and Mackay Rentals for Moranbah. Happy with both. I know that R&H Mackay are in contact with BMA, so I'm not 100% about the claim that BMA only uses Vision. It does sound like the kind of story that Vision would spin though. One of the principals of Vision used to work for R&H Mackay, and I don't think…[Read more]
My understanding is that BMA has set a rental limit of $1000 pw. Over that and the property has to be 'something special'. Also, they are allowing their employees to inspect the properties before deciding, rather than just renting them unseen.This says to me that the demand is lower than it has been, but 1000pw still indicates significant…[Read more]
Hi ChrisV,Welcome to the post. I think it's time for care – but then again – all investment is time for care. HopefulInvestor provides some interesting information, but it's mostly just media quotes, so might not be anything new for you.There is certainly herd mentality, both in the housing market and in the mining industry (and the media for that…[Read more]
Hi Mannia,With regard to expenses, management fees are around the 8% mark. If you get a property manager from a small town, you may need to keep a close eye on them. I've had less than satisfactory experiences – see previous posts.Rates are about $1400/year. Incidental maintenance can be expensive, because often the local trades do work at the…[Read more]
Hi Manni,Congratulations on what looks like some good research. I'm not sure I'm going to be able to add much though.Collinsville is out of my research area, although I don't recall it appearing in any "Bowen Basin" Google news alerts, so I'm not aware of any press either. Looks like a sizeable town though. With projects in the area, accom will…[Read more]
Thanks guysI agree with all of your comments. Unfortunately I have a few family members who like to put the negative articles under my nose which can have a tendency to undermine all the research and strategies. It is nice to hear a bit of positive back up.Cheers
These are usually the same people who don't bother to do ANYTHING w…[Read more]
Hi Daedalus…It is hard as an investor in the area not to feel a little exposed when the mining companies start to lay off employees.
I agree it's hard not to feel a little exposed with the news of layoffs, however my contacts in the area tell me it's not as bad as the news makes out. A lot of those workers will s…[Read more]
Hi RedLeaves,I think you'd need to find someone from Emerald or Rockhampton – there should be plenty to choose from as they are large towns. Wherever there is some competition, the inspectors are usually good enough. Ask if they provide photographs in their report.I've recommended an inspector previously in this post, but he's based in Mackay and…[Read more]
maurice Levine wrote:
Hi Guys, I am new to your forum. There seems to be so many differing opinions on the advantages and risks associated with buying in the mining towns. I have two properties that I am currently considering: 1 is in Dysart – a 4 Bedroom going for $485,000 with a lease in place for $1,000 / week. 2nd is in Blackwater – a 3…[Read more]
personally i would go for Blackwater. try negotiate a better price, small reno to increase your yield. This will imo reduce your risk. Also consider to buy a cheaper Blackwater property, this way your buying in the lower end of the market.
At this point, so would I. Blackwater has only just started to pick up after a long…[Read more]
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