Buy in which mining town??

[timtam]

While there has been quite a bit of discussion and information (from well informed people) on this forum about which mining areas are good/better/best to buy in I am still somewhat confused as to where to invest. As I'm not familiar with the industry some of the industry-specific information is a bit above my head .

I would like to buy late this year or early next - for around $400-$450k depending on return.

Also - for those people who have experience in working or investing in this environment, which is the best option for rental - houses or units?

If you would just like to refer me to another thread - thanks - if you have an opinion from personal experience - thanks also.

 

[one day]

Timtam,

We are in the same boat, wanting to add a property from a resource area to our current portfolio. We've looked at both East and West coast and have decided to go the East.

Gladstone is hot to trot at the moment but at the back of my mind is what happens at the end of the construction phase of the projects and the required workforce shrinks. Will there be an oversupply of housing? There are a lot of new estates going up in the surrounding areas.

Top runner at the mo is Muswellbrook (Hunter Valley) due in part to affordability and also because whilst mining is a major driver, it has a fairly broad industry base other than mining. Getting closer to Newcastle might be the go.

Townsville also may be worth a look?

The West coast is big dollars for both buy in and also rent return.

My 2 cents worth.

 

[timtam]

That's good value for 2 cents

 

[rmoloney]

http://www.hotspotting.com.au/index.php?act=viewCat&catId=1

hey guys, i stumbled upon this a few weeks back.. some good research

 

[james_w]

I like the look of rockhampton and surrounds for future growth

 

[Bullfrog]

Mining Town Cobar

Hi Everyone,

We bought a property in Cobar in mid NSW (West of Dubbo) about 3 years ago and have seen it rise and fall and now start to rise again. We bought a 4 brm place at $140k which included all costs and a reno. Much lower entry point than some of the other places you mentioned which reduced our risk to any possible down turn. The market is now just starting to move again as there's been a new mine announce at Nymagee just down the road and further exploration is happening all around the place.

Last time I looked there where no vacant properties available for rent which is helping to put up rental values, we're getting almost a 10% return. We bought a 4 brm house on the back of there are not many available which we believed would put us in a better position if and when things got quiet. It's never been empty for any length of time. From scanning the rental market over time it seemed that owners with 1 or 2 brm units struggled the most when there was a down turn as the single fly in fly out guys left town but families stayed.

Hope this has helped

Cheers Bullfrog

 

[Garry Mac]

Hi timtam

As with any PI you obviously need to do your own research. In terms of 'mining areas' have a look at Moranbah in sunny QLD. We spent a good deal of time there, not only with Agents but with Council, Engineers involved in the various projects AND have bought for clients... doing very well in terms of both capital growth and cash flow.

Cheers
Garry

 

[jonesy427]

paraburdoo.

30years left in this mine at least. plus surrounding areas. 1 room rents at 200 per week.

there is no vacant rentals. period.
there is alot of town upgrades that will be happening in the next few years.
there are no houses for sale.

 

[Sunfish]

Clermont has more than just mining and is a "community" in the normal country town way.

 

[timtam]

Great feedback - thanks to all (been away for a while).

 

[roujnik]

Hi timtam

As with any PI you obviously need to do your own research. In terms of 'mining areas' have a look at Moranbah in sunny QLD. We spent a good deal of time there, not only with Agents but with Council, Engineers involved in the various projects AND have bought for clients... doing very well in terms of both capital growth and cash flow.

Cheers
Garry

Hi Garry and fellow Investors.

I am asking your opinion as I will be in Bowen Basin soon and doing research now but I deperately need expert opinion.
1. Blackwater or Moranbah, where to buy and why?
2. Unit of the plan or established house and again why?
3. When ULDA is going to release some land as they promised in 2012?
Please advice.

 

[roujnik]

While there has been quite a bit of discussion and information (from well informed people) on this forum about which mining areas are good/better/best to buy in I am still somewhat confused as to where to invest. As I'm not familiar with the industry some of the industry-specific information is a bit above my head .

I would like to buy late this year or early next - for around $400-$450k depending on return.

Also - for those people who have experience in working or investing in this environment, which is the best option for rental - houses or units?

If you would just like to refer me to another thread - thanks - if you have an opinion from personal experience - thanks also.

Hi TimTam.
Have you bought in Moranbah or elsewhere sinse last posting?
I am asking your opinion as I will be in Bowen Basin soon and doing research now but I deperately need expert opinion.
1. Blackwater or Moranbah, where to buy and why?
2. Unit of the plan or established house and again why?
3. When ULDA is going to release some land as they promised in 2012?

 

[roujnik]

Your opinion is requested

Hi fellow Investors.

I am asking your opinion as I will be in Bowen Basin soon and doing research now but I desperately need expert opinion.
1. Blackwater or Moranbah, where to buy and why?
2. Unit of the plan or established house and again why?
3. When ULDA is going to release some land as they promised in 2012?

 

[Ian (WA)]

......biting tongue.....biting tongue........





.........expert.........opinion..........desperate.........now.........3 x posts in 10 minutes???






Nope sorry.........you are not yet ready Grasshopper!



Ian.

 

[roujnik]

......biting tongue.....biting tongue........





.........expert.........opinion..........desperate.........now.........3 x posts in 10 minutes???






Nope sorry.........you are not yet ready Grasshopper!



Ian.

WOW! Do not throw stones or nickname people! What a shame!

 

[locko24]

Yeah, how could you Ian...

 

[Ian (WA)]

Roujnik Mr,

I was not throwing stones, I was gently lobbing pebbles.........nor was I "nicknaming" you.....it was a metaphorical application of 1970's humour.

Obviously there is a slight cultural divide evident here; perhaps I should be more sensitive, but alas I'm not.

Your question, "Moranbah or Blackwater and why?" is like asking a gold digger where did he find a big nugget, or asking a fisherman to tell you where he catches the biggest fish. Are they going to tell you?......NO!!! In Australian culture, and I suspect in the larger universe, it is considered rude to ask this type of question of people.

It is also considered rude to come barnstorming onto an internet forum and asking quite bold questions with your first few postings, let alone repeating the questioning three times in 12 minutes!!!

If you "desperately need expert opinion", seriously, do you think getting opinions on an internet forum is an appropriate platform from which to base your decision making when possibly looking at investing many hundreds of thousands of dollars???

"Unit off (sic) the plan or house and why?".....this is for you to decide after you do your own research. Ask this question of yourself, What would you buy in Melbourne and why.....a unit off the plan or a house?

So you're going to the Bowen Basin. The Bowen basin is approximately 60,000sqkm and approximately 16 large to big towns.

So where are you going to? Which town(s)?
Have you travelled through rural Australia before?
Do you know anything about owning property in Australia?
Do you know anything about owning property in regional Australia?
How long are you going to the Bowen Basin for?
How did you hear about Moranbah & Blackwater?
Why do you think you should buy in these places?
What do you want to achieve with your investment?
Who are you going to possibly rent property to? What is your target market?
Are you going there hoping to find a place to buy on your trip?
Have you got your finances already arranged if you do find something to buy?
Did you ever watch Kung Fu on TV?

For what it's worth, buy as many places as you can afford in Moranbah, but don't buy in the hills area there as they have problems with drop bears getting into the roofs (you can get traps from the local council, the drop bears will feed on fresh meat).

Good luck.

Ian.

 

[roujnik]

Regardless to cultural diffrence it is/was rude and uncultural

Please see my serious answers in order of questions appearance. I again am asking investors experience in this particular area, not "mocking bird" questions.

So where are you going to? Which town(s)? Moranbah, Dysart, Middlemout, Blackwater.
Have you travelled through rural Australia before? Yes, I did in Qld and Vic
Do you know anything about owning property in Australia? Yes, I do, having in total 7 IPs in Victoria and Qld.
Do you know anything about owning property in regional Australia? Yes, I do having two.
How long are you going to the Bowen Basin for? One week in December.
How did you hear about Moranbah & Blackwater? From API regular analisys of CG and RR (stands for rental return)
Why do you think you should buy in these places? (to have a positive cash flow and suport negatively geared)
What do you want to achieve with your investment? (Positive cash flow for a number of years, not flipping).
Who are you going to possibly rent property to? What is your target market?
(BMA, RIO, LEI and others companis workers)
Are you going there hoping to find a place to buy on your trip? (I am not going to sign contract on a spot but I will meet agents, look at areas and then back home I will decide what to do having local experience and comparision between diffrent possible scenarious)
Have you got your finances already arranged if you do find something to buy?(yes, with CBA and Westpac independent approvals?
Did you ever watch Kung Fu on TV? No comment on this irrelevant, uncultural, mocking question, sorry for obvious cultural difference.

 

[Ian (WA)]

Given you have a number of properties along with the wealth of experience that comes with ownership and you have seriously answered my questions, I really don't know why you are asking such basic questions in such a "desperate" manner?

1. Blackwater or Moranbah, where to buy and why?
2. Unit of the plan or established house and again why?
3. When ULDA is going to release some land as they promised in 2012?

"The pebble......it is gone; it is time for you to leave Grasshopper."

 

[knightm]

No comment on this irrelevant, uncultural, mocking question, sorry for obvious cultural difference.

roujnik - welcome to the forum.

Ian is not mocking he is being humorous. Youtube the grasshopper quote and see what you find. The forum is full of people who like obscure movie and other vague references. It makes us feel smarter to use them from time to time.

You have a serious portfolio of properties, he is indicating that you have the knowledge first hand already yet your questions sound like they have come from someone who wants an off the shelf salesmans solution - typically these questions come from someone with no experience. Stick around, search the forums that have already been posted on the areas you are interested in. Share your experiences with us when you travel north in December. Different questions will get you different answers.