We are considering investing in Dalby-townhouse development – with intention to hold on the new stock and rent them out.
Would anybody have some hand -on experience with the area?
Thanks
Hi Ballerina
I did a road trip last year went from Toowomba thru Dalby, Chinchilla, Miles, Wondoan, Blackwater, Emerald, Dysart, Moranbah and out to Mackay.What I recall about Dalby came from a local builder who indicated that there was a lot of stock sitting vacant at the time. So I would do some homework on supply and vacancy in town.
Cheers
Hi Key Strategist
Thanks a lot for your comment. I am definitely going to do that.
Hi Ballerina,
the Surat Basin area is going well. Further out, there are few rentals available in Miles and Wandoan and good returns are being made in these areas.There is a lot of development going ahead now in the entire area with the approval of the Xstrata mine, gas pipeline, and continuing gas projects. Not too sure about Dalby, but I heard some workers are having to drive from Chinchilla to Wandoan and Miles as there are no rentals. The area is only going to expand and from my experience things have really taken off in the last 4 months.
Hi Buri
Thanks for your comment. We have researched the area quite a lot and are aware that at the moment Dalby is not even near as flash as Chinchilla, Miles etc. Rentals are still in 'normal' range and newer stock is renting harder then older, affordable dwellings.Development activity exists, but not in a excessive range. Question is: is it a time to enter a Dalby market NOW, when most of the heads are turned the other way? We have couple of more days to make our decision.
Development feasibility is good and 20% profits are to be made on the development, if townhouses are sold. If kept as a rentals, help of negative gearing would be required for neutral position. And that part is what I do not like. Current rentals do not support develop and hold strategy.
So, we are closer to develop and take profits out approach.<moderator: delete advertising>
Dalby is not in the centre of the Coal/Gas market.
It is still driven by cattle.
The workers need to be further west, around Chinchilla, Miles, Wandoan or Roma.
The workers in Dalby are occupied around the Kogan area and there is no more demand through there.
Go west young man!!Dalby could be a good pick as it is not entirely reliant on new CSG work to sustain or grow its market. So after the CSG construction workers leave and a smaller number of operations staff take over it shouldn’t experience any pullback. People in Chinchilla used to consider Dalby as the big city to do shopping and the like in. Obviously check out flood zones and stay well clear of them, otherwise I cant see anything wrong with investing in that town.
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