Capital Growth plus Cash Flow in QLD...

[kasman214]

Hi All,

New to the forum and just wanted to chip in my 2 cents and share an area that I know of which has CF+ properties (7%-11%). The area is Dysart in QLD and I believe was rated as one of the top ten boom suburbs in Australia by Terry Ryder from Hotspotting.

There is also a new mine (http://www.abc.net.au/news/stories/2007/10/01/2047736.htm) planned to open which will add to the overall growth of the town, and from this may follow the trend of some of the already boomed resource towns of W.A reaching up and over $1 mil.

Cheers,

Kass

 

[WBG Redcliffe]

Hi kasman

Thanks for your tip.

I wonder how long this mining boom will continue? When it ends as it surely will at some point what will happen to areas that are totally dependant on this industry?

Is there a chance that prices could drop from the 3 and 4 hundred thousand $ price range and to what?

What would happen to rents without the boom?

Your right at the moment however IMO these areas are short term for the CG that has already happened. Not for CF.

 

[kasman214]

Hi WBG Redcliffe,

Thanks for your reply. All very valid points to consider. I don't think anyone can really answer when the resource boom will end right now, but it sounds like the new $500 million contract won by Leighton's Thiess will produce over 700 new jobs when in production.

I agree from a property perspective this would drive the demand for housing up and also the rent in the short term, but haven't heard of the plummet of property prices of resource driven suburbs by $300-$400K in value.

Either way, an area worth keeping an eye on...

Cheers,

Kass

 

[WBG Redcliffe]

Hi Kasman

Sorry for the confussion, I was suggesting that prices could drop from the current price of 3 to 400 to an unknown figure.

I have owned two in Mt Isa in the past and while I did very well out of them, My research suggests that the yeild can change from 7.5% to as much as 10+% with political decissions. Has not happened in receint history but with every boom comes a bust. When is the $2 question.