Arckaringa Basin SA

C

C-mac

Hi Everyone,

My apologies if another thread exists on this already (if someone can find one, let me know and I'll transfer my comments across there, and close out this one).

I've been doing a fair bit of research on the Arckaringa region ever since the shale oil news broke. The bulk of it is squarely focused on the town of Coober Pedy. If I'm not mistaken, the town 'as-is' already represents high rental return. So at worst case scenario I already have a high-returning, low-entry-point asset, right?

Best case is we see the huge values gains and further rental returns gains that other mining towns have seen, when the jobs started turning up (once the mining works began).

Apart from the always-challenging 'cons' of poor property management/tenants, and ludicrous repair costs (getting grossly overcharged for repairs due to the town being so remote that investors get squeezed out on such services), are there any other cons for this region that I'm not seeing? I'd be willing to take the risk on poor property management/repair works if the gains more than compensated for that, unless there's some other reasons that Coober Pedy should be avoided?

Any help would be great!

Cameron McEvoy
www.propertyspectator.blogspot.com
 
Population there has been decreasing for the last 20 years, I think down to about 1500 now

To date there has not been an economic shale gas well drilled in Australia

A lot of the current exploration activities are 100's of km north of coober pedy

The rent is a good yield but any repairs or works will stuff your returns
as the average rent would only be about 140 a week

It's hard to gain rental vacancy information as properties for rent are not advertised

There are the cons

There are also lots of positives as you have pointed out
 
Coober Pedy IP

We purchased a IP in Cooper Pedy just three years ago, it's a underground 'dug out' home and has 5 bed and 2 Bathrooms.
Pros:
It has increased 20% in value and it's rented to the South Australia Government, meaning 52 weeks of rent. Just had a lease renewal for another year and will be $50 more per week soon. There are not too many good rentals on the market!
Cons:
Property Management was hardly worth is and we stopped it after the first year and now self manage. (check my post about Coober Pedy Property Management a few years ago)
Maintenance is expensive, we just had a make over done and had a huge bill, but overall the dug out do not have a lot of issues.

We went to visit the property last year and spend a few nights in it, great consistent temperature and very quiet. We had a hard time finding items like paint and curtains, so next time have to bring it with us.

Overall not everyones type of investment, but we like to not always swim with the crowd. Currently property is positive cashflow:)
 
Property is lease hold not free hold - It is common around mining towns. Someone correct me if im wrong but all propertys in Canberra and NT are lease hold.
 
underdev said:
Property is lease hold not free hold - It is common around mining towns. Someone correct me if im wrong but all propertys in Canberra and NT are lease hold.
Click to expand...

So does this mean you would pay an annual fee based on the value of the property? How long generally do the leases last?
 
Hi everyone,

I'm really keen to know more about this too.

Apologies if there are already separate threads dedicated to this, but what is the definitions of; and differences between 'free hold', 'Lease hold' and any other time of annual hold properties?

Are most SA regional properties like this?
 
You must log in or register to reply here.

Similar threads

C
Would you do Termidor treatment after this report?
Replies
12
Views
4K
wylie
W
T
Buying IP in 2014 - am I on the right track?
2 3
Replies
51
Views
11K
Tulamalula
T
B
Dream to be Comfortable not Rich. Start Now!
2
Replies
33
Views
7K
ChrisA1
C
The Y-man
The Micheal_X story
Replies
1
Views
6K
The Y-man
The Y-man
Michael_X
My Story 10+ Properties by 30 yo
8 9 10
Replies
188
Views
51K
Michael_X
Michael_X
Back
Top