- py wrote:Hi Josh, What is your thoughts on Emerald for next 5 years or so especially it is located between Bowen basin and Gallile Basin?
Hi PY,
Emerald has been and will continue to be a great place to invest, with continual rental increases over the last several years and capital growth to match, the town still has affordable housing to allow Emerald to grow further as a regional hub. I see Emerald as a very stable, long term investment mainly for capital growth and the extra rent is a good bonus. I have invested personally in Emerald for years and continue to today. I have also lived there so I have a lot of local knowledge which only helps my planning and investing there.
The impact of the Galile Basin has not even began for Emerald, It will boost the housing market gradually over the coming years I believe.
Kind Regards
My thought, for what they’re worth, is still that mining town investment is really about yield and aiming for no capital loss.
The key to yield for us is only buying property that has an existing company lease and if not to make contract conditional on getting one. Also property needs to be v attractive and at higher end of market so it is easy to maintain and appealing for tenants.
The key to capital hold is getting out at right time! This remains to be seen if I get this right!
So I will be listening intently on these boards re Moranbah, Blackwater and dysart where my properties are!
Portfolio PI wrote:Also…as I said i will be looking for development opportunities, however I will not be able to do EVERY project I find so JV partners / Syndication partners are welcome to have a look at what I find as well.What do I need to do to become a JV or Syndicate partner? I am keen to start investing in property and would see JV or Syndicates the best way to get my feet wet so to speak. Looking forward to your prompt response… and I think Linc Energy is in Chinchilla?
Hi Josh, my partner and I were about to purchase in Emerald however our insurance broker who deals in mining prop..around Qld advised us not to proceed with the purch. Insurance apparently is very high, and Emerald is extremely flood prone. Is this correct? Were you affected in the last floods? He did however say that he agreed that all the no’s def. stack up in Emerald making it a very attractive invest.
Michmichmich wrote:Hi Josh, my partner and I were about to purchase in Emerald however our insurance broker who deals in mining prop..around Qld advised us not to proceed with the purch. Insurance apparently is very high, and Emerald is extremely flood prone. Is this correct? Were you affected in the last floods? He did however say that he agreed that all the no's def. stack up in Emerald making it a very attractive invest. MichHi Mich,
IMHO I wouldn't make an investment decision based intirely on the advise provided by an insurance broker!
Emerald is susceptible to flooding but so are a number of other locations in Queensland and also right around Australia that are also prone to flooding, including some parts of Major capital cities…for example Brisbane.
There is a substantial part of the town in Emerald that doesn't flood. I have property in Emerald and the insurance cost is resonable considering.
The only thing I'd agree with your insurance broker about is that the numbers in Emerald do stack up…..
My suggestion is that you complete your own due diligence otherwise you may well miss out on an opportunity because of heeding the misinformed advice given by those who profess to know a market but infact know very little or want to steer towards a product they may have a vested interest in.
Hope this helps mate,
Jack
JT7 wrote:My suggestion is that you complete your own due diligence otherwise you may well miss out on an opportunity because of heeding the misinformed advice given by those who profess to know a market but infact know very little or want to steer towards a product they may have a vested interest in. kExactly I didn’t go ahead with a small 6 unit commercial deal in Emerald in 03. Loan broker talked me out of it, would have made a motza if I had went ahead.
Back to Moranbah – postal voting is in progress for the BMA EA – commenced April 27 and ends May 18. Hopefully this will see an end to the strikes and some renting of houses.
I've also been receiving some reports from "Infrastructure Spotting specialist Flynn De Freitas" – 2 very positive reports about Moranbah. Has anyone heard of him? Is there some underlying reason why he is writing these reports? (so far he isnt spruiking any property developments there….)
I highly rate Flynn, he was providing fantastic analysis on Gladstone being a boom town in 2008/2009. His articles in YIP magazine are the reason I invested there early.
This is his company http://www.omegainvestments.com.au/free_articles_and_reports.html
michmich wrote:Hi Josh, my partner and I were about to purchase in Emerald however our insurance broker who deals in mining prop..around Qld advised us not to proceed with the purch. Insurance apparently is very high, and Emerald is extremely flood prone. Is this correct? Were you affected in the last floods? He did however say that he agreed that all the no’s def. stack up in Emerald making it a very attractive invest.
MichI am looking at emerald also, great yields at the moment and looks like the capital growth is coming into play now also..
i read about the closure of a mine/s in Dysart, QLD. will that have a negative effect on property investments in Dysart, or do you think it's just a minor setback as there are other mines in the area that are still operational?
mattsta wrote:i read about the closure of a mine/s in Dysart, QLD. will that have a negative effect on property investments in Dysart, or do you think it's just a minor setback as there are other mines in the area that are still operational?There are many stories as to the future of this mine and the reasons for closure. Just to clarify, the mine is not closing because of property prices. They really don’t mean that much to them. I believe you will find this mine come back to operation in the VERY near future. some major contracts have still n been told they are going ahead within this mine, and there are also talks of a new company taking over.
Lets just wait and see. I would not rush to sell a house if you have one there. However if it is clear cut and the entire mine shuts with no transfer of employees in the area than yes it is a major setback, however I do not believe this will be the case.
michmich wrote:Hi Josh, my partner and I were about to purchase in Emerald however our insurance broker who deals in mining prop..around Qld advised us not to proceed with the purch. Insurance apparently is very high, and Emerald is extremely flood prone. Is this correct? Were you affected in the last floods? He did however say that he agreed that all the no’s def. stack up in Emerald making it a very attractive invest.
MichHi michmich,
Firstly what experience and knowledge does your insurance broker have about regional qld property investing to qualify to give you such advice? You can still get full insurance, in a flood prone are too, for under $1000. However even if this was $2000 it should not make a big difference to your decision to invest there.
All of the properties that I deal with and provide to my clients are brand new, so no, not flood affected.
It is really important to get quality, well informed advice when investing in an area that you may not know by an investor who is experienced in investing in those areas themselves.
Cheers
All you coal town investors aint looking that bad when you look at the long term demand figures. Especially coking coal.
India’s demand for coal set to soar
BY: ROBIN BROMBY From: The Australian April 30, 2012 12:00AM
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PrintFORGET coal price forecasts for 2013 in tonnes — think quadrillion British thermal units in 2035.
The nation’s burning need for coal will be a boon for local miners
bardon wrote:All you coal town investors aint looking that bad when you look at the long term demand figures. Especially coking coal. India's demand for coal set to soar BY: ROBIN BROMBY From: The Australian April 30, 2012 12:00AM Increase Text Size Decrease Text Size Print FORGET coal price forecasts for 2013 in tonnes — think quadrillion British thermal units in 2035. The nation's burning need for coal will be a boon for local minersIt was a good article.
All comes down to the underlying fundamentals…..There will be ups and downs along the way but long term the prognosis looks good.
I just bought a 3x2x1 unit in Emerald (Jeppesen Drive) 2 years old for 400K. Any thoughts on Emerald and especially this location?
Hi PY,
I just saw this on the web, might be something to keep in mind.
http://www.abc.net.au/news/2012-05-07/insurer-wont-offer-new-policies-for-two-qld-towns/3994612
Thank you for your valuable insight and advice Josh.
Much appreciated
VerityShaky times for mining??
Contracts being cancelled for the China First coal mine – the biggest plan on the books.
What does this mean for Emerald, Alpha and surrounds?
Any thoughts?
I think its inevitable that a substantial number of projects will be scaled back with some being cancelled/postponed until the fundamentals correct themselves.
We have seen softening commodity prices, with blowouts in capital expenditure from when projects were first planned.
People talk about a lot of the projects as certainties, when most haven’t even reached final sign-off. (speaking about the whole of Australia). It’s never to late for a company too back out of a project.
schmoo wrote:Shaky times for mining??Contracts being cancelled for the China First coal mine – the biggest plan on the books.
What does this mean for Emerald, Alpha and surrounds?
Any thoughts?
It does not mean anything for the townships, the projects are still going ahead, and so are Palmers plans to sue for defamation of the SMH after the article was written.
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