Forums / Property Investing / Creative Investing / Surat Basin – which town to invest in?

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  • Profile photo of Property Investor 1Property Investor 1
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    @property-investor-1
    Join Date: 2011
    Post Count: 10

    Hi Everyone,
    I am looking at investing in the Surat Basin but am unsure of what town to invest in.
    What town would you recommend and why?
    – Dalby
    – Chinchilla
    – Miles
    – Roma
    – Others?
    I am looking for a medium term (5-10 year) investment.
    Your advice would be welcomed.
    Thanks!

    Profile photo of GiumelliGroupGiumelliGroup
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    @giumelligroup
    Join Date: 2010
    Post Count: 73

    Hi there,

    The best place to invest really comes down to what you want out of the investment personally. See below

    – Dalby – would be careful here right now due to flooding and over supply. On the plus side it is a great town with a lot of backing, only an 1.5hrs from Toowoomba & 3hrs from Brisbane and is the gateway to the Surat Basin.

    – Chinchilla – my personal favourite due to high capital growth predictions, major retailers coming to town currently like Woolworths, McDonalds, KFC etc, large mining companies around – Extrata, BHP, Santos, Link Energy, 200 years worth of gas (LNG) reserves, 20-25 years worth of coal reserves, direct rail link & LNG pipelines to Gladstone and it is backed up by a massive agricultural industry.

    – Miles – great area also, good solid growth, excellent rental incomes right in the middle of the mining boom

    – Roma – massive rents (cash-flow positive), beautiful town, has its own airport, all major retailers already in town and sits on the the same mining interests as Chinchilla.

    – Others? Too many others to list but you need to look at the size of the towns, what is the longevity of the town, why is it a good place to invest and does it meet your investment long term strategy.

    Hope this helps, don't hesitate to contact me directly on the details below if you would like some further information on any region.

    Profile photo of JPS25JPS25
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    @jps25
    Join Date: 2010
    Post Count: 121

    We did our first investment in Chinchilla (a new build), the town is very nice and with lots of new developements going on. As Trent mentioned there is a lot of retailers coming to the town which can only mean that it is going to continue to grow. 

    We did look at Miles around this time last year, not really sure about it depends what you want. Dalby is nice but with the floods they received there you would need to be careful where you picked. Some flooding in Chinchilla too so again just do your homework.

    JPS25

    Profile photo of Property Investor 1Property Investor 1
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    @property-investor-1
    Join Date: 2011
    Post Count: 10

    Thankyou for your comments. Further research is suggesting that Chinchilla would be a good investment. I’ve just committed to a second purchase in Dysart (Bowen Basin), but in 2 months I’ll be ready to purchase again. I’ll continue my research until then. I would welcome further comments on the Surat Basin as it seems like there are some amazing investment opportunities to be had. Thankyou to those who have posted comments!

    Profile photo of GiumelliGroupGiumelliGroup
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    @giumelligroup
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    If you need any further information with regards of where to and not too purchase in Chinchilla we're more than happy to help!

    Profile photo of JPS25JPS25
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    Property Investor 1

    We built with a local builder Pm me if you want their name they are very helpful and build a nice home

    JPS25

    Profile photo of matt_decatmatt_decat
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    @matt_decat
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    because i have no experience in builing in these rural areas, how much would it cost to get someone to buiild me a house (excluding cost of land).  for example, a basic 3-4 bedroom 2 bathroom double story house.

    Profile photo of GiumelliGroupGiumelliGroup
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    @giumelligroup
    Join Date: 2010
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    Matt, you can pretty much bank on around $1400 – $1500 per square meter but it really comes down to your inclusions! Our homes are built for around the 270k mark which include Chef, Westinghouse & sometimes Miele appliances which is a big difference to the Chinese crap available as we usually build 5 at a time.

    i.e. worst case $1500 x 200m2 = $300,000

    If you have a design you want quoted feel free to email it through and I will pass it onto our builders and see what they come back with.

    Profile photo of coalstarcoalstar
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    i would consider wandoan

    Profile photo of Josh AthertonJosh Atherton
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    @josh-atherton
    Join Date: 2011
    Post Count: 269

    Property Investor 1

    make sure that when you look in the Surat basin that you dont invest in an area that has a higher construction workforce than running workforce. In the LNG industries the figures are around 45-50% less long term workforce than construction workforce. Whilst the next 5 years might be GREAT! you may find that 45-50% of employees will not be there by then. Although the mining will be continuing the workforce to runt he operations is a lot less than the workforce needed to get it running.

    Most investment place wont point this out to you, but you could be screwed in 5 years with a property that may not have grown at all in long term values.

    Their are many more viable stable towns to consider than these if you want long term. If its short term than that great…you just need to rely on the greater fool theory in 4/5 years time!

    research the companies that are investing here and look into detail into the EIS.

    Im not anti mining regions…I’m Pro them! i have 15 properties in central QLD and will be building another 10 next year to hold..just pick your areas

    JA

    Profile photo of Property Investor 1Property Investor 1
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    Hi Portfolio PI,

    I’ve now settled on property #2 in Dysart, and am now ready to buy again. Ive done my research and I’m pretty convinced that Chinchilla is a town that is going to boom. I’m currently searching for a property off-the-plan in Chinchilla. I’m also looking for an older style brick home on a block that I can subdivide.

    You however seem a little sceptical about this region. On that note, I would like to know where are you building your 10 houses?

    I also think Geraldton will be a good investment later this year / early next year. Rents are still a bit low right now, but word has it that they are on the rise…..

    Your thoughts?

    Regards,
    P.I.1

    Profile photo of Josh AthertonJosh Atherton
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    @josh-atherton
    Join Date: 2011
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    Sorry for the delayed response.

    I may be biased and call me to have all my eggs in 1 basket but i have made over $1m in the town of Emerald over the last few years. The reason for this is that house prices are still very affordable (although going up quickly). The reason for choosing this town is that it is not dependant on “hype” not everyone knows about it and it isnt published in the magaines all that often. It is a true diverse regional centre with mining and agriculture at the centre of it. The people who move to the region move for the long term due to lifestyle AND work. not JUST work like chinchilla where they will eventually move away once they have done their “mining stint”. capital growth has been very high over the last decade and looks set to continue.

    I could go on forever but this is a long term stable investment environment which is overlooked and should be considered more so than those towns that will be affected greatly if 1 mine changed its course of action etc.

    PM me if you want any more info

    Cheers

    Profile photo of JPS25JPS25
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    Hi Property Invester 1

    We are just about ready to build our 2nd IP in Chinchilla with the same builder we used last time. They are very good and all thier homes are built to a high standard.

    Not a lot of land left to build on at the moment but will be more in the near future so you need to be quick or wait for the next development to open up.

    Good Luck

    Jean and Paul

    Profile photo of Josh AthertonJosh Atherton
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    JPS25 wrote:
    Hi Property Invester 1

    We are just about ready to build our 2nd IP in Chinchilla with the same builder we used last time. They are very good and all thier homes are built to a high standard.

    Not a lot of land left to build on at the moment but will be more in the near future so you need to be quick or wait for the next development to open up.

    Good Luck

    Jean and Paul

    Hi Jean & Paul,

    Can I ask what builder you used in Chinchilla?

    Thanks

    Profile photo of JPS25JPS25
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    @jps25
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    Hi Josh,

    We built direct with Surat Basin Homes, and have had no problems with them and first house was rented out 2 weeks after handover last year even though there was a flood of properties on the market at the time. Website is  http://www.suratbasinhomes.com.au/

    Ask for Di Ewan you can mention our name Paul and Jean Smart I am sure she will be able to help you find what you want. They are local builders who are very proud of thier homes and the town. They also have a developement in Miles and another opening up in Chinchilla shortly.

    If you need anymore info would be glad to help you we are out there again on 5th August.

    Good Luck

    Jean

    Profile photo of ShedinShedin
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    So a year on from this post i would love to hear how you are all positioned and thinking now regards this area? There seem to be many towns in this area that have and look to continue to do very well into the next 10-20 years.

    In looking at this region compared with Mackay, Townsville areas I am seeing that this region has more than just mining sector and LNG, it has agriculture, cattle…. however I keep believing that our East Coast towns/cities will always be where the longevity will be, so short term and long term gain.

    Very undecided between the two regions, leaning though towards the coast, for possible cask flow plus longer hold as opposed to Surat for just possible cash flow and short term…

    Your comments please…those that have purchase in Surat, those that are looking seriously at it, today and tomorrows pros and cons as you see them a year on from these comments of 2011.

    Thanks

    Profile photo of foxyleemoofoxyleemoo
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    @foxyleemoo
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    I would also be interested in updated comments about chinchilla, now 2013..  is it too late?

    I too am trying to decide if it's surat basin (LNG) or mackay, emerald etc.. (coal) that i wanna invest in.  I would like good yield and something I can hold long term for good capital growth.  I like the sounds of chinchilla still, I just don't want to buy into the hype,,,  I feel it may follow a similar path as Gladstone has,,  overhype, lots of building, then oversupply (atleast in the short term..)

    Profile photo of tlm1987tlm1987
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    if anyone updating, would be interested to hear about the future of Roma; how long does it have left?

    Profile photo of DubstepDubstep
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    Join Date: 2012
    Post Count: 395

    Hi Guy's,

    I have just moved to Dalby for work on the gas projects, I can say there is about 12 to 24 months on the construction works here at Dalby and then the works continues to creep up through the Surat basin, Chinchilla, Miles, Rom, and Wandoan.

    I am led to believe there is about 15 years worth of works all up, but obviously that is only one industry.

    Any one else know what's happening out here ?

    Profile photo of GiumelliGroupGiumelliGroup
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    @giumelligroup
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    Post Count: 73

    Chinchilla remains as an unbelievable investment at this time. Prices have gone up somewhat and will continue to do so in the future, you have to be extremely careful which estates to buy into and putting the right product on it as the wrong product will greatly hinder your future resale options. Don't be fooled by the smaller 450m2-580m2 cheaper blocks and contrary to what people say if you have or do purchase a smaller lot don't expect top dollar rents as it wont happen.

    We have clients in town whom are obtaining between $600 – $650pw for a unfurnished house & between $800 – $850pw for a fully furnished house on 800m2+ of land with 4/2/2 with separate lounge/media rooms. Another great addition is an external garage this jumps the rents up further again.

    Chinchilla is a unique little town, there are limited land lots due to the flood plans and current town plan with a huge workforce coming to town; population is growing very steadily as too a lot of large retailers, shopping centre etc. It is still my personal favorite investment area hence why i have just purchased another property in town, if you want to know more please feel free to call me at anytime.

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