- mattnzParticipant@mattnzJoin Date: 2007Post Count: 574
I have several developments in Gladstone. In Central Lane, that sounds like it could be too low density and the council may not approve it. Depending on the exact location and block size, you could be getting as high as 1 unit for every 100 sqm of land and 4 or more stories.
If you drop me a PM with your email address advising the street address I can tell you pretty much what you are able to build on the site and advise architects that specialise in this type of development.
Mattmoxi10Participant@moxi10Join Date: 2010Post Count: 194
Here's an article that was published four days ago about the decision by BHP to use a 100% FIFO workforce at Caval Ridge and Daunia mines near Moranbah. There are obviously negative implications for Moranbah and other towns in the region, especially if the government allows this approach to be utilized by all companies on regional mines. Reading the comments below the article, it is apparent that some locals previously against the stance taken by the CFMEU against BHP in recent strikes have switched allegiance. I've personally witnessed the one-sided benefits which occur in regional mining towns, and believe that the mining companies should be required to source a predetermined percentage of their workforce from the local population. The locals should gain some benefit to compensate for the damage done to the local environment, particularly by open cut mines, which emit vast quantities of dust into the air, in spite of the best efforts to contain and deny it. All other considerations aside, this decision, if allowed to proceed, will make it even more risky for property investors to commit to mining towns. Which in turn will be another loss for local communities if investors avoid their towns.HomemadeParticipant@homemadeJoin Date: 2013Post Count: 22
Hi josh, great blog (lots to read!). Gladstone has come off the boil, with some properties shedding 20% in the past month or two and vacancy rates doubling (to near 4%) as the workers head out to the island accom. It looks like it will still be under supplied however in the medium term. With heavy discounting there may be opportunity to realize a bargain or two still for the new to town investor. Thoughts? Your latest blog on topics seems to be mid 2012 (that I can find at least) – any recent updates?
Craig.DaOneParticipant@daoneJoin Date: 2008Post Count: 38fingerscrossedParticipant@fingerscrossedJoin Date: 2005Post Count: 81
I have just received this from my Property Manager in Moranbah and thought that some of you maybe interested.
"I just wanted to touch base with regards to BMA’s Standards that are now required. As you can see they are wanting close to new or freshly renovated homes at this stage and are
looking for the properties themselves (no tenant is allowed to enquire on behalf for an external rental).
BMA are also now renewing from $400 – $500 and expecting 12,18 or 24 month lease. They won’t accept any rent increases with in the renewal or accept a short term lease.
They will vacate if you won’t accept their offers and have no issues moving families. I know this is a shock but unfortunately it is now the expectations.
This is for the Moranbah sector in which I received this information, Dysart I expect will be the same but at this stage aren’t looking for externals."
And then this from BMA
"External Rentals & House Purchases
•I•M•A• BHPBillilon Milsubishi Amance
cr :The below are"standards that are utilised by Accommodation Services to determine if properties
are appropriate when assessing homes for future rental or purchase. These standards may not
be available in all current housing in the accommodation pool. "
• No asbestos
• Structurally sound
• Fit for purpose
• Does not require rewiring
• Modern Kitchen & Bathroom
• Good size bedrooms (to fit a double bed) with built-in wardrobes
• Ensuite to master bedroom and bath in the. main bathroom
• Adequate storage for size of property
• Air-conditioning throughout
• Fully fenced
• Under cover car a"ccommodation dependent on accommodation size.
• Appropriate and undamaged floor coverings
• Recently Painted -Interior. Exterior paint in good order
". No pool
• Internal staircase if double story built in house
• Rental Amount – Within budget – currently under $500 per week
At least they are renewingfingerscrossedParticipant@fingerscrossedJoin Date: 2005Post Count: 81
A bit of positive news here for a change.foxyleemooMember@foxyleemooJoin Date: 2010Post Count: 3
Does anyone/Josh have any links, stats or actual knowledge of the real ong term work force for the CSG and other projects in the Surat Basin and in particular Chinchilla. I know Josh said he was not convinced the Surat is a good place to invest, based on the fact that the construction workforce will only be short lived, but really with the amount of projects going on, this may last longer than originally expected, plus I am trying to find out if there will be lots of on going exploration and maintenance etc,, to keep the gas field going and growing.
With big franchises and big resource/energy companies setting up shop in these small towns, there must be some kind of long term future for them?trickeymickeyMember@trickeymickeyJoin Date: 2012Post Count: 19
foxyleemoo… Try QGC's website to get an idea how their 9000 strong workforce is currently being utilised, along with with progress updates to the first LNG in 2014 and the local councils for your information. Whilst they'll be still be sinking wells for quite a while, it'll be a gamble as to whether supply will then outstrip demand after the construction is completed and the workforce drops. The right time to buy in would have been when the announcement was first made about the 40 Billion Dollar project and then trying to sell at the peak.Sapparo sanParticipant@buriJoin Date: 2009Post Count: 4
Try these projects for starters. There is a long way to go and the demand on rentals is growing.
Queensland Curtis LNG (QCLNG) – owned by the Queensland Gas Company QGC (a BG group company)
Gladstone LNG (GLNG) – a joint venture between Santos Ltd, Petronas, Kogas and Total
Australia Pacific LNG (APLNG) – a joint venture project between Origin, ConocoPhillips and Sinopec
Arrow LNG – a joint venture between Shell and PetroChina
Some good returns can be found especially in the smaller townsAviator77Participant@aviator77Join Date: 2012Post Count: 11
There is still a lot of hope for Moranbah! Have a read peoples!GiumelliGroupMember@giumelligroupJoin Date: 2010Post Count: 73
trickeymickey, The Surat Basin hasn't peaked yet it still has a long way to go as prices are still very affordable, however if the council doesn't pull their finger out and mean soon then its only going to be a completely different story over the coming years as they are well short of housing lots due to the flood affected areas of town.
Our clients rents have jumped from $600 – $800pw+ for a fully furnished property.JT7Member@jt7Join Date: 2010Post Count: 286Aviator77 wrote:There is still a lot of hope for Moranbah! Have a read peoples!
I wouldn't get too carried away until people and jobs are in place and coal is being pulled out of the ground. Some investors bought in right at the peak in Moranbah and got burnt badly…….trickeymickeyMember@trickeymickeyJoin Date: 2012Post Count: 19
Trent, there's no denying the Chinchilla market is currently up but so was Emerald, Moranbah, Port Headland and Gladstone 12 months ago. I have an IP in Emerald and whilst Emerald and Chinchilla are not necessarily reliant on the one single industry, the effect of one industry can impact the market. When employees and contractors left Emerald last year, it had a downward effect on the market and there is currently an over supply. Emerald's population is about 13000 compared to Chinchilla's 4000 people. There are currently more than 11600 people working with QGC and it's contractors on just their project alone, but once construction of the pipeline and Curtis Island is complete, QGC forecast about a tenth of that. Will your clients still be able to get $600-$800 per week once construction is complete? How many weeks will they have a vacant property? Will they be able to sell high enough to make money on their purchase? I would have loved to have purchased an IP in Chinchilla but feel I missed the boat. Whilst Emerald is currently down, it still has the big Indian projects in the area with GVK's Alpha Coal and Kevins Corner out towards Alpha, who are set to work with Theiss and Aurizon, so I'm hoping these will put an upward pressure on the market once people and contractors are recruited again. Investing in a resource sensitive market always carries a risk and I was happy to gamble on Emerald because of the projects still progressing, even though other companies have slowed. However, the gas industry is in it's construction stage and infancy so even though your clients might be making an extra 20K profit this year due to the higher rent, what will happen in 2015? Would love to know your thoughts….rhino101Participant@rhino101Join Date: 2008Post Count: 31
Geezzzz, there'd want to be some hope.
We owned a duplex there several years ago. Held it for a year and sold for $100k profit, while maintaining 15-18% rent returns. After we sold,. the market continued to increase and if we'd waited another year we would have seen another $100k. I have no problem selling when we did as I have long held the motto of "Always leave something on the table for the next guy". When we bought – basic 3 bed dumps were selling for high $400's and renting for $800/w – they soared up for several years and now when I look at R/E.com there are close to 200 places for rent and the same type of place is only asking $300/w and selling for $300k.
Like others on this thread, i am of the belief that if companies like McDonalds are opening there, then there is a long term strength to the town. These companies have huge resources to call on when assessing a location to open in and it is pretty rare to see one close and move out of a location.
For those still invested there, I hope the current state is just the bottom of a cycle and that things look up for you soon.GiumelliGroupMember@giumelligroupJoin Date: 2010Post Count: 73
Thank you for the opportunity to reply.
Emerald, Port headland & Moranbah have been going for quite some time in various guises as we have previously sold in each area some time ago now, however these areas seem to be typically reliant on either coal or iron ore or both which have copped a hiding in recent times due to the high dollar and “lower” so called demand according to the media. Personally I have always found Emerald to be a bit of yo-yo market which is contrary to what others have stated but that’s another matter.
Chinchilla however has been a completely different proposition for us over the past 4.5 years & beyond. Population is now just over 7,500 with estimates it will be hitting upwards of 14,000 by 2031; McDonalds, KFC, Woolies, Jamaica Blue, Gloria Jeans are just some of the big named retailers now in town along with talk of some other major chains like BCF, Supercheap, Bunnings, Masters, BigW on the radar. The area is backed by many different minerals as well as agriculture and now has 4 schools with the Christian school being the first to accommodate years 1 – 12. Whilst there has always been speculation about the workload slowing in 2015, if that were to come to fruition per say, the research we have conducted with the many local companies, councils, government departments, trade groups & speaking to the locals on the ground whom have inside knowledge, is there are plenty of other industries to take up the slack in this area as it is not solely reliant on Gas construction.
Investing in property particularly in the mining regions is all about research and I implore all potential clients to do their own research before committing to anything to make sure it fits within their desired portfolio goals.
The comment about missing the boat however has raised some questions for me; you’ve stated that you own an investment property in Emerald with the ‘hope’ it will rise in value in the future versus purchasing in an area that is consistently rising in value, this doesn’t make commercial sense to me. Being a professional investor it’s all about the numbers now not the future and even in the worst case scenario if all mining ended in 2015 why not get in now make your profits and get out before that time?
Each town is very fickle with the product that needs to be supplied to meet its local market. For Chinchilla the ‘desired’ packages to suit the towns criteria consist of 650m2 of land or greater, 4/2/2 plus media room located out of flood affected areas and below market value which we supply. Packages are priced from $428,000 off the plan; these same products once completed are currently being valued at closer to $500,000 through Herron Todd White, Taylor Byrne & Fraser valuations. On top of that clients are achieving up to $850pw in rent (furnished) which averages approximately $250pw cash flow positive so it’s a little hard to go past these opportunities as an investor.
It’s all about choosing the right stock in each area that meets local demand as the only properties that will be stuck on the market in the longer term if there were to be a down turn would be those lots that fall outside of these guidelines i.e. 450m2 – 550m2 which the Giumelli Group DO NOT endorse or recommend in any way.
As I always state when investing in property “you make your money on the purchase not the sale” and I do hope this has clarified your questions raised.daniel vicParticipant@daniel-vicJoin Date: 2013Post Count: 120
Any one got any news on Gladstone I have bought in there and stil waiting for settlement any one know if it's the best move or where the town might be heading?
as the prices are falling there ATM
warm regards danielrhino101Participant@rhino101Join Date: 2008Post Count: 31
I live and own a place in Gladstone – have a look at this thread for a bit more info.
Cheerswaydo77Participant@waydo77Join Date: 2011Post Count: 155
been quiet in here for a bit whats happening?daniel vicParticipant@daniel-vicJoin Date: 2013Post Count: 120
my property in kirkwood gladstone
settles tomorow land that is
after a massive delay finially here things havnt quite gone as planned with the val falling by $52,000 i managed to get a $18,000 discount from the buyers agent and builder and the marketing company to help the loss's so total val loss of $34,000 iam hoping gladstone comes back on the move again in the next few years so i can keep moving a good rate
anyone else investing in glaqdstone?