Mount Isa???

I'm guessing discussions on towns like Mount Isa have been done before, but I'd like to start another (as my search for related info came up fairly scant). What does everyone think of an investment in the Isa?
I have work connections/information there and am quite positive about the prospects.
Yes, I know many out-of-towners with realestate.com.au access (and maybe not much else in terms of research quality) have jumped on the wagon, but, my mail and feeling is good.

Thanks in advance.

maxy said:

I'm guessing discussions on towns like Mount Isa have been done before, but I'd like to start another (as my search for related info came up fairly scant). What does everyone think of an investment in the Isa?
I have work connections/information there and am quite positive about the prospects.
Yes, I know many out-of-towners with realestate.com.au access (and maybe not much else in terms of research quality) have jumped on the wagon, but, my mail and feeling is good.

Thanks in advance.

Click to expand...

I've heard Extrata is better for the town than MIM was. Just a bit of bar talk.

Thommo

Yeah, that's right Thommo. Xstrata are employing crew as we speak and have big plans for new open cut - that's my mail anyway (slightly more reliable than bartalk).

G'day Thommo,
Looks like your in the right pub. Xstrata doing good things for community as well as economy, open cut powering ahead with prospects for 15 + Yrs. I believe. Local sentiment strong - Xstrata/Local council are expected to release approx 200 house blocks for development.

regards Gus.

press release

XSTRATA LAUNCHES $4 MILLION COMMUNITY PARTNERSHIP PROGRAM IN NORTH QUEENSLAND

Mount Isa, Thursday 9 December 2004

Xstrata has today launched a new Community Partnership Program that will contribute $4 million over the next three years to improving services and facilities in the north Queensland communities of Mount Isa , Cloncurry, Townsville and Bowen.

This amount includes the $1 million commitment to the Buchanan Park redevelopment project in Mount Isa announced by Xstrata plc's Chairman Willy Strothotte on 6 October, 2004.

The program is in addition to the $460,000 to be spent by Xstrata in 2005 in the north Queensland communities on sponsorships, donations and other community support initiatives.

The Xstrata Community Partnership Program in north Queensland was developed following extensive consultation with local groups and residents over the past twelve months.

This process allowed Xstrata to identify the areas of greatest need in the north Queensland communities where the company's employees live and work, with a particular focus on education and health, and to develop partnerships with local groups and government to address them.

The program addresses six key areas, namely enterprise and job creation, education, environment, social and community, health, and arts and culture. A full list of initiatives and community partners is attached.

It also includes a substantial commitment to addressing the skills shortage in the mining industry in north Queensland with a tripling of the apprenticeship intake over the next three years, and more traineeships, bursaries and scholarships. The funding for this skills initiative will be in addition to the $4 million Community Partnership funding.(See separate press release.)

Xstrata Copper Chief Executive Charlie Sartain said the community partnership program was a demonstration of the company's belief that local communities should benefit from the company's operations both in the short and long term.

"I look forward to sharing the benefits of our business performance with our employees, communities and our partner organisations through this program," he said.

"The program's strength lies in the fact that it directly addresses the areas of most concern to local people, such as quality education for their children, access to medical care and youth employment and training."

Funding for the program is part of Xstrata plc's commitment to Corporate Social Involvement (CSI). The company contributes at least one percent of its pre-tax profit to community initiatives. In 2003 this amounted to US$6.7 million, 1.9 per cent of pre-tax profit.

The program was launched in Mount Isa today by the Queensland Minister for State Development and Innovation and Member for Mount Isa, Hon. Tony McGrady, MP.

Mr McGrady said he was pleased to welcome Xstrata as a partner in the Queensland Government's commitment to build a better State with stronger communities.

"I congratulate Xstrata for working with us to create a sustainable future for Mount Isa , Cloncurry, Townsville and Bowen," he said.

"This is all about making sure Queensland 's regions remain great places to work and live."

Mount Isa Mayor Cr Ron McCullough said the program was a most welcome display of corporate responsibility as well as a demonstration of Xstrata's commitment to local communities.

"The investment in community support will ease the burden on local organisations and allow them to concentrate on improving the wellbeing of the population at large," he said.

Cloncurry Shire Mayor Cr Ed Morrison said that the Cloncurry Shire supported Xstrata on this initiative which would assist in stimulating the commercial and social needs of residents in the region.

“Cloncurry Shire Council congratulates Xstrata on this terrific boost for communities in the north west of Queensland and looks forward to further partnering opportunities both with Xstrata and other businesses," he said.

The Xstrata Community Partnership Program in north Queensland supports the company's transformation of its north Queensland operations where it is delivering significant and sustainable performance improvements.

This year, Xstrata has committed over $115 million to major new projects including additional development of the Enterprise underground copper mine, copper smelter capital improvement projects, and the development of the Black Star zinc-lead open pit mine all at Mount Isa ; and gas conversion at the Townsville copper refinery.

Commenting on the program launch and business transformation process, Mr Sartain said, "I believe these new projects and the Xstrata Community Partnership Program in north Queensland will assist in creating an exciting era of opportunity, cooperation and involvement for Xstrata and the local communities in north Queensland."

Hey Gus,
good to hear from a local on this one.
Do you know if the land being released is in the Healy area?
And......if you don't mind - would you say that cap growth in the Isa would have been around 30-35% in approx the last 18 months??
Or am I way off?

Hi Maxy,
Yes Correct on both counts. The land for release backs onto the southern end of Healy and I would say that 30% to 40% Cap. growth would be about right.

Regards Gus.

Can anyone tell me what is going on in Mt Isa? The Residex states that for :
Houses

Capital growth -last year 25.57%
" " - last 10 yrs 3.35%

Rental yield - last year 10.28%
" " last 10 years 8.57%

Units
Capital Growth - last year 7.21%
" " - last 10 yrs 0.19%

Rental yield - last year 5.55%
" " - last 10 yrs 5.51%

How come the capital growth for units is so terrible? I have heard that capital growth on, I think it was, houses didn't increase for over twenty years in Japan.
I'm no economist, so what is going on? Being simple I would have thought that both houses & units would have to have increased to some extent together. Surely the cost of building has increased, so how come the cost hasn't shown up in capital growth on units? I realise that a dying town isn't going to go anywhere, but Mount Isa isn't a dying town. Please help.

Can someone in the know tell me anything they know of the place. How will this new development affect prices close to this new complex? I don't know that I would fancy living close to such a project - all those cars parked around the complex & the noise that goes along with it.

I would really appreciate any comments'
thanks
blossomoz

blossmoz. I'm not surprised by those figures for Mt Isa.

Lots of small towns all over the eastern Australia would have growth figures like that. The property boom in Sydney and Melbourne increased gradually over many years. In the bush, it hit in a rush. I think most residents thought that the boom was going to pass them by. Then the investors piled in. I know of towns where house prices doubled in 12 months, yet nothing would have happened for 10 years before. Admittedly, some of these houses would have been selling for half the replacement cost before the boom, so they were simply dirt cheap. There would still be little land content even now.

I personally know a real estate agent who said that when the rush hit, cashed up city investors were just buying up over the phone, and leaving the buying to the agent. These were possibly experienced investors who had seen it all before, maybe even following the ripple out. The ones who got in early made a killing. This happened in most small towns, whether the towns had any real growth or not.

Hobby farms have seen even better growth. at least these have a good amount of land content.

The rental yield figures for houses may be right for Mt Isa due to the mining boom. In most other small towns the rental yields simply halved as prices doubled. The rental yields for units seem terribly low. Who would buy a unit in Mt Isa with a rental yield like that? Perhaps the rent is subsidised by the mining company? No idea. Only guessing.

See ya's.

It may well be that there is a greater supply of units than demand, but fewer houses- which would explain the different growth rates.

Houses generally have more land- and it is land which appreciates.

Isa

Took the opportunity to go to Isa and find out what is going on earlier in the year. Rentals very strong in fact there are very large waiting lists and prople are making good money with short term accom for the flow over. Xstrata has employed a developer to build them a suburb in return the developer gets to manage the properties - no real investment opportunity there.

There are still some good returns on houses if you can get them in time. there is a few agents only one or so you would actually do business with and just as a point of interest the local memeber Bob Katters son is the valuer. Many use agents in Townsville to sell there properties and maintenance is done by flying in people from out of Isa - getting expensive. Same ol story if you were here last year luv you could of picked up a bargain.

Personal opinion: when Xstrata have a guaranteed accom and they bring in the 100's they are employing they will be self sufficient. In the mean time the builders etc have to live somewhere - and don't be caught out there are some real bad streets as there are some lovely ones.

Large franchises etc are in town and there is news of a big shopping centre ( another one) going in. Mining money is good money.

Buzzzz.....

My units in the isa

I bought a block of units about 18 months ago for $130K (2x2 bed, 1x1 bed) - block was rebuilt in 1998 after a fire on the original. When i bought was renting for $340 per week (120, 120,100), now returning 390 week and likely to go to 420 per week in the next 3 months. Property now valued at $225K with potential for more after DA given for more units out the back of the block. Cash on cash return is looking really healthy.

There were lots of unit blocks for sale when i bought, now there are not so many and asking considerably more - generally 8 - 9% return. Ones that are left are nothing flash.

Xstrata has brought a lot of employees back to the isa who were previously in Brisbane.

OSS

Thanks to those who replied to my questions. I tried to reply sooner but had some problem with the computer.
I have been off line, so thanks; though somewhat belatedly.
cheers
blossomoz