Looking for first IP in mining towns

Hi Sunny,

Another one saying BHP will not be expanding their Olympic Dam site in the foreseeable future.

http://www.watoday.com.au/business/mining-and-resources/bhp-mothballs-olympic-dam-expansion-20120822-24m4i.html

Hi Sunny,

I first looked at this post as I live in Moranbah and keep a close eye on surrounding areas etc. I agree with Moxi10's comments completely about investing in the greater area.

However, after reading further I would really recommend (shadowing the comments of JacM and some others) getting educated first – and many of the resources are right here at this website. Check out the links at the bottom of the page. The creator of PropertyInvesting .com (Steve McKnight) has been someone I have talked to and learnt from for many years now. He has used (and has a knowledge of) many different methods of making money (ie. investing) – which is why this website was created in the first place. You may already know, but in my experience there are a few basics which I have learnt over the years which are absolutely critical in being a successful investor such as knowing the why – what exactly do you want out of it ? Once you have a plan in place, many of the ' money making ' questions will fall into place (and when you're doing it right, they will come to you !)

All the best.

AJ.

Hi Sunny,

Welcome and congrats on taking steps to on your investment journey.

Like everyone here has said increasing your own knowledge is most important, there are so many seminars or companies out there that make it seem so easy because they'll do it all for you, just don't get caught out.

Personally I like to know how it all works before I dive in, just like developers make it sound easy and set you up for easy $$ but you're not told about the built in commission they charge you and that you'd be paying above market value, but "you'll get maximum depreciation" they say. Instead you could look for a similar property a year or two old at a better price. Of course this is not always the case just an example.

I think it was actually Steve that I heard this one from and it's stuck with me:

You know what you know,

You know what you don't know,

But the one you got to look out for is, what you don't know, you don't know

Do your research, everything is always so obvious in hindsight

Hi Sunny,

reallly really really important to spend time on your due diligence….

Be careful with lots of QLD mines particulary Emerald….great returns but very flood prone…most insurance comp. will not insure there.

Call the local council in the area that youre interested in and see what plans they have for the future…

I have 2 prop. in Gladstone…returns not as great as other mining towns but there is a lot of other infrastucture NOT dependent only on mining. I have another in Middlemount much higher risk but a much better return….

BE CAREFUL…..itts easy to get caught up with the wonderful rental yeilds on offer……you need to be comfortable and most importantly be able to sleep at night…not worrying whether or not you have made the right decision.

go to lots of free seminars and keep reading forums.

If looking for mining towns, be careful, educate and learn.

But don't just limit yourself to Queensland, NSW has the Hunter Valley where duplexes are selling for $390k and renting for $500 a week. Good returns and better economy than places like Mooranbah that are solely reliant on coal.

Houses for $500k returning up to $800 furnished or $700 furnished.

Hunter Valley is reliant, but a bit more diverse.

Fatman.