Forums / Property Investing / Help Needed! / QLD mining regions (Bowen & Surat Basins & Gladstone): Willing to help anyone with questions

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Viewing 20 posts - 361 through 380 (of 481 total)
  • Profile photo of Josh AthertonJosh Atherton
    Member
    @josh-atherton
    Join Date: 2011
    Post Count: 269

    Hi Everyone,

    From being on the ground in all these areas I have provided an update for some key regional towns. The market activity of late including sales and rentals should show investors that by reading just media headlines or "town reports" with all the good news is not something to base your investment off. Investors have driven up many market values based on rents and expected capital growth caused by investor hype. Again, a reminder, this is not a sustainable way to invest or even to justify an investment. You need to categorize your risk profile and invest accordingly.

    It is also becoming more and more important to surround yourself with a team of independent property professionals to complete your investment transaction in some of these towns.

    Heres a link to the blog update. Again, thanks for reading and I trust it helps you all. http://www.ppiqldtour.blogspot.com.au/2012/08/regional-qld-market-update.html

    Profile photo of AnneMarie BrisAnneMarie Bris
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    @annemarie-bris
    Join Date: 2012
    Post Count: 1

    Hi everyone,

    What a wonderful forum with lots of advice for a new investor such as myself.

    I have recently purchased a block of land in Whitsunday Shores in Bowen.  I am currently contemplating building an investment property on this (approx $350k for house).  Given all that is occurring up there at present, I am not sure if I should wait another 12 mths or build now.  My budget is fine with the land loan however if the rent demand (and $) is not there yet, it may be tight paying for a vacant property (even with PAYG Variation for cash flows).

    I would appreciate any advice or experience.  I am based in Brisbane and will be heading up north later in the month to check out development and speak with real estates re rent demand.  Any recommendations for property managers in Bowen would be great also :)

    Thankyou

    Anne-Marie

    Profile photo of Steve McKnightSteve McKnight
    Keymaster
    @stevemcknight
    Join Date: 2001
    Post Count: 1,749

    Hi Anne-Marie,

    I would get the get the plans and permits prepared and lodged as soon as possible because it can take quite some time to get approval. 

    As you do your due diligence, be sure to ask the local council how long you have (once the plans are approved) before you have to start building.

    That way you can add value before committing, and have potentially some years up your sleeve before you have to decide whether to build or not.

    For instance, you may have as long as three years after plans are approved before you need to start construction (or the permit lapses). Every area is different though so do your homework.

    – Steve

    Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
    https://www.propertyinvesting.com

    Success comes from doing things differently

    Profile photo of Nel66Nel66
    Member
    @nel66
    Join Date: 2012
    Post Count: 2

    Hi Anne-Marie,

    We purchased a block of land in Bowen earlier this year and are currently in the early stages of negotiating our construction of a home. I've been up there and spoken to RE Agents, Developers, Builders and such and have found whom seems to be a great property manager (Suggested by many as the best). I'd be more than happy to pass on the information I've been able to gather if you need it…

    Thanks,

    Nelson

    Profile photo of Aviator77Aviator77
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    @aviator77
    Join Date: 2012
    Post Count: 11

    Hi Josh,

    I have had a look at Emerald recently and seen that the rental prices have dropped from the lofty heights of $950 per week and now look like $700-$750 (which by the way is still a good rental yield).

    I understand those prices may not have been attainable for a long period of time but as I am looking to buy again I am treading cautiously, so keen on your feedback. Also do you have any exclusive stock available for me at around $460K for a 3-4 bedroom house and land?

    Profile photo of Josh AthertonJosh Atherton
    Member
    @josh-atherton
    Join Date: 2011
    Post Count: 269
    Aviator77 wrote:
    Hi Josh,

    I have had a look at Emerald recently and seen that the rental prices have dropped from the lofty heights of $950 per week and now look like $700-$750 (which by the way is still a good rental yield).

    I understand those prices may not have been attainable for a long period of time but as I am looking to buy again I am treading cautiously, so keen on your feedback. Also do you have any exclusive stock available for me at around $460K for a 3-4 bedroom house and land?

    Hi Aviator77

    You are correct about Emerald. Rents have subdued from the $900/$950 per week they were earlier on in the year. Whilst that was an amazing rental yield, there were several factors causing it to be that high as you could imagine. Emerald is a market that is not immune to seasonal fluctuations. Whilst it is not a "one trick pony" where if one mine changes its employment pattern it severely affects the rent, it still has fluctuations. Just not as severe as the smaller towns.

    As you are aware, BMA are still in negotiations with the unions. Whilst this is still occurring after nearly 2 years, they are not renewing third party contracts with suppliers. This is having a general affect across the entire Bowen Basin and Emerald is feeling some of the effects of this. 

    It is also important to understand the size of Emerald, with a population just under 18,000 people, it is not hard to have fluctuations that go up or down. The rents on a 4 bedroom house went from $650 per week to $800, then to $900 all within a few months. Now they are back to $700 or se per week. Whilst many investors would see this as the market coming off, arguably, they should not have got to $900 so easily. This was due to a combination of a number of contractors needing urgent accommodation in the town at the start of the year, along with very little vacant land being released last year. This really caused a bottleneck and caused companies to offer ridiculous amounts for rent. So rather than looking at the market unexpectedly coming down, I would say it is the other way around. Look at the market going unexpectedly up for a short period! 

    The underlying fundamentals for growth of Emerald are some of the best you will get in the country. As an ever growing hub for the Basins surrounding it, new shopping and lifestyle activities, new land estates being released etc, it is growing to become an ever more sustainable community right in the middle of Qld.  As a 5 – 10 year investment, the outlook is absolutely amazing for the town. 

    Times like these are unfortunately inevitable and it is also unfortunate to see the sales market increase as it does based purely on investor speculation of rents increasing. It does damage to a small town like this. Investors follow each other too much and wont wait for the right opportunities. They always come. I cant say how many clients didn't want to wait for the packages we had available and jumped in to inflated priced stock purely based on a short term outlook on rental yields. If you take a long term view on your investments, then it shouldn't matter that you wait until the best opportunity arises. I have to say, I am still to hear a positive story from an investor that got in with the hype! These are long term markets.

    In answer to your question, yes we do have quite a few more opportunities becoming available both now and in the long term  and some of them are very good opportunities at that which is even more exciting. For years, emeralds rental yield at capital value has been 7 – 7.5%. This is sustainable and good for the community. with different housing sizes and types, this means that rents can be anywhere from $450 per week. Allowing a diverse range of people to live in the town and for it to operate sustainably. If you take the view that your investment in Emerald will be positively geared yet sustainable along with a very healthy growth rate over the years, it is undoubtedly a great place to invest.

    Whilst this forum is not here for advertising, you are welcome to email me to assess opportunities. 

    Profile photo of moxi10moxi10
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    @moxi10
    Join Date: 2010
    Post Count: 193

    Gina is apparently looking for alternative water supplies. I think this approach is unethical and should be stopped. Perhaps it should be suggested to her that she might finance the construction of the Connors river dam herself.

    http://www.cqnews.com.au/story/2012/08/17/producers-alarmed-as-water-allocations-sold/

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

    Moxi10,

      I was thinking she could pay for a pipe line down from Darwin  !

    Profile photo of moxi10moxi10
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    @moxi10
    Join Date: 2010
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    Hi Josh, good post as usual. The strikes are a thorn in the side for BMA in particular, and the region in general. Yesterday BHP made an announcement that further job losses are inevitable in the coal industry, and that high production costs are a contributing factor to their decision to cut jobs. While there are a number of negatives impacting on the coal industry beyond the control of Australians, it is possible for us to control the employer-employee relationship. I noticed also that about 2 weeks? ago BHP and the unions said progress had been made on an agreement, and dependent primarily on site specific details being ironed out, a solution was anticipated. Let's hope that happens soon.

     Here's a link to an article concerning the  purchase of water rights by Gina Rinehart, apparently for use by Hancock Coal.

    This looks like a very controversial move to me. I believe she should be looking at financing the Connors river dam herself, rather than buying other people's water. I posted this link on another spot on the forum, but since it might be overlooked there, I'm putting it here too to draw attention to it.

    http://www.cqnews.com.au/story/2012/08/17/producers-alarmed-as-water-allocations-sold/

    Profile photo of Aviator77Aviator77
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    @aviator77
    Join Date: 2012
    Post Count: 11

    Josh,

    I would image this announcement a few days ago by the Federal Government (on the same day as BHP releases to the press that they are not proceeding with the expansion of Olympic Dam in SA) is going to continue to build interest around Emerald given the requirement to house these new workers? 4000-6000 (or more) required and min 25% living in Emerald augers well again for continued long term growth within this hub?

     http://www.mineweb.com/mineweb/view/mineweb/en/page72068?oid=157534&sn=Detail&pid=102055

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

    Emerald was always set to be the hub for any projects out west. its great news! also, as GVK are more involved in the end to end process of the coal than companies like BMA or RIO, a reliance on exponential commodity prices will most likely not be required for financial approval. which is always the next big hurdle for these projects! Emerald will see stock cater to the demand, but it most likely wont be on par in the long run and will no doubt, continue to deliver great rental yields with a very healthy capital growth for the future.

    This is great news in the midst of some not so favorable media coverage. It once again shows that Emerald is not to be labeled a typical "mining town" as it is a service hub to a massive part of this state. The rents have come off as mentioned above, however sales are going great there still. It's great to see that people just "get it" when it comes to Emerald. Its about the growth and the property paying for itself. 

    We have had record sales on our House and Lands packages in Emerald lately. we had no stock for ages until recently so its perfect timing for the alpha news as rents are down a bit.

    Josh

    Profile photo of bardonbardon
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    @bardon
    Join Date: 2004
    Post Count: 557

    Good stuff there Josh.

    I still rue the day that a no good bone idle loan broker talked me out of proceeding with the purchase of a six unit commercial in Emerald, very high yield in 03!

    Profile photo of DubstepDubstep
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    @dubstep
    Join Date: 2012
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                            The Central Queensland news clip :

       http://www.cqnews.com.au/story/2012/08/29/emerald-wins-alpha-coal-nod-business-set-to-soar-w/

    Profile photo of DubstepDubstep
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    Profile photo of moxi10moxi10
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    Profile photo of dizzy_7dizzy_7
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    @dizzy_7
    Join Date: 2012
    Post Count: 5

    Great info as usual…

    Please keep the updates coming

    Profile photo of moxi10moxi10
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    @moxi10
    Join Date: 2010
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    Union meetings with BMA have concluded…results under wraps pending employee votes. Sounds promising to me.

    http://www.dailymercury.com.au/story/2012/09/03/meetings-unions-enterprise-bargaining-agreement/

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

    I am told there are some good pay rises in the new negotiations however still some unfavorable terms for the unions at this stage. it will be interesting to see the official outcome and resolution.

    On another note, we finally have seen NRAS stock in Emerald. With a proposed market rent of $600 or so per week for the houses, this could be great for many middle income tenants in Emerald having access to new houses for $450 or so per week while the landlord receives approximately $190 per week tax free into heir pocket on top of this. 

    I believe this is a great aspect for a town like Emerald and will help keep many of the non mine workers in the town and help sustain and create diversity within the hub that it already is.

    Profile photo of Tinsel777Tinsel777
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    @tinsel777
    Join Date: 2008
    Post Count: 23

    I have read the beginning of this post & I wanted to ask Josh why he was targeting areas where it is proposed for Coal Seam Gas Mining?

    Has anyone on this thread even bothered to do any due diligence as to the detrimental effects of this process, not only to the environment (it poisons our very precious deep water table) but it is devastating lives in health issues (especially in children) also the poor farmers who have had their land stolen by these crooked corporations, aided & abetted by an equally corrupt government!!

    Anyone with even a slight conscience should do their own research into this travesty that has been allowed into our country. A good place to start are these links:

    http://www.sbs.com.au/news/article/1642781/QA-Health-and-environmental-impacts-of-CSG (also take a good look at the comments at the end of this article).

    http://www.smh.com.au/opinion/the-question/is-coal-seam–gas-worth–the-risk-20110819-1j20j.html

    http://www.huffingtonpost.com/2012/08/29/us-poverty-environment-health_n_1836599.html (CSGM has been used in the USA much longer than in Australia, where devastating health conditions are now emerging (including birth defects & cancers) as well as water contamination.

    http://www.catholicreligiousaustralia.org/index.php/109-justice-network/378-coal-seam-gas-mining-and-the-human-and-environmental-impacts

    http://www.abc.net.au/local/stories/2012/07/06/3540381.htm

    We should be boycotting areas where these mines are being set up & the corporations who are responsible.

    Profile photo of Josh AthertonJosh Atherton
    Member
    @josh-atherton
    Join Date: 2011
    Post Count: 269
    Tinsel777 wrote:
    I have read the beginning of this post & I wanted to ask Josh why he was targeting areas where it is proposed for Coal Seam Gas Mining?

    Has anyone on this thread even bothered to do any due diligence as to the detrimental effects of this process, not only to the environment (it poisons our very precious deep water table) but it is devastating lives in health issues (especially in children) also the poor farmers who have had their land stolen by these crooked corporations, aided & abetted by an equally corrupt government!!

    Anyone with even a slight conscience should do their own research into this travesty that has been allowed into our country. A good place to start are these links:

    http://www.sbs.com.au/news/article/1642781/QA-Health-and-environmental-impacts-of-CSG (also take a good look at the comments at the end of this article).

    http://www.smh.com.au/opinion/the-question/is-coal-seam–gas-worth–the-risk-20110819-1j20j.html

    http://www.huffingtonpost.com/2012/08/29/us-poverty-environment-health_n_1836599.html (CSGM has been used in the USA much longer than in Australia, where devastating health conditions are now emerging (including birth defects & cancers) as well as water contamination.

    http://www.catholicreligiousaustralia.org/index.php/109-justice-network/378-coal-seam-gas-mining-and-the-human-and-environmental-impacts

    http://www.abc.net.au/local/stories/2012/07/06/3540381.htm

    We should be boycotting areas where these mines are being set up & the corporations who are responsible.

    Hi Tinsell, 

    It may be worth reading other parts of this thread as there is simply information provided about the towns in regional Qld. In fact, from an economics perspective I actually advise not to invest in areas that have coal seam gas operations. 

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