Chinchilla - hold or run?

[Jenko]

Perhaps the Melon Festival in Feb could be the catalyst to lift the mood of the town.

I hope that all those invested have a viable exit strategy, or the resources to hold on in hope for a recovery.

Not what I hoped for but I'm okay with low or no growth for a few years... But I'd like to have a good return.. So if the deposits do go up the 30% and make Chinchilla more unaffordable. Building will stop and EVENTUALLY the vacant properties will be used up and rents will go up.. There is always a sliver lining.. The power of positive thinking.. Or grasping at straws call it what you want...

 

[Arnoldus]

Not what I hoped for but I'm okay with low or no growth for a few years... But I'd like to have a good return.. So if the deposits do go up the 30% and make Chinchilla more unaffordable. Building will stop and EVENTUALLY the vacant properties will be used up and rents will go up.. There is always a sliver lining.. The power of positive thinking.. Or grasping at straws call it what you want...

One can only hope. There's always the chance that in the much longer term, Chinchilla transforms into a Dalby-esque (Or Roma) town and get a critical mass to become a regional hub.

 

[Dubstep]

Hi Guy's,

We have been looking forward to the melon festival, as Mrs Dubs and I missed the last one, and it's only on every 2 years ( 14th Feb this year ). http://www.melonfest.com.au/

I mentioned in my last post that there were 244 houses available for rent in Chinchilla, but I didn't mention how many for sale signs there are up throughout the town.

I just checked on realestate.com and there are still 244 rentals, and a staggering 432 for sale.

What can I say ?

 

[Jenko]

Hi Guy's,

We have been looking forward to the melon festival, as Mrs Dubs and I missed the last one, and it's only on every 2 years ( 14th Feb this year ). http://www.melonfest.com.au/

I mentioned in my last post that there were 244 houses available for rent in Chinchilla, but I didn't mention how many for sale signs there are up throughout the town.

I just checked on realestate.com and there are still 244 rentals, and a staggering 432 for sale.

What can I say ?

Crap... That was somthing that I was avoiding looking at. How many are for sale, my PM reminds me of how many are for rent once a week.

PS Thanks for the update Dubstep even though it might be the news I'm looking for it's still good to know what's going from someone at the coal face. Cheers mate.

 

[rkordic]

Chinchilla was in this same position a few years ago- many vacancies, as well as too many houses for sale. The floods didn't help either! These things come in waves. If you own property in Chinchilla, you have to accept the bad with the good. Sooner or later things will turn around, as the area still has the resources that people need.

 

[Jenko]

For sale 4x2x2 house in chinchilla cost $400k rents for $250 pw!!
Any takers??

 

[Arnoldus]

For sale 4x2x2 house in chinchilla cost $400k rents for $250 pw!!
Any takers??

I feel your pain. Our PPoR in Emerald settled just this past week. We were lucky to get within 100K of what is was worth at the peak in 2012.

I notice Queensland government is predicting crazy economic growth next financial year via a gas boom, so with a bit of luck Chinchilla might get their share of the action.

 

[Icarus]

I caught up with mates from Emerald last week who said that the town has been smashed of late. Even the Explorers and Meteor are in receivership!

Are you skipping town Arnoldus, upgrading or moving into a rental? Sounds like there are some deals to be had either way.

Two of our Dalby places had/have their leases expire this month. I think we'll have to take a bit of a hit with rents. Manager is saying drops expected from $280 down to $250pw, perhaps more depending on how long you are willing to sit. 100+ properties available.

Was also reading about the increased economic growth expected in the next 18-24 months. Have a few mates in the oil and gas industry, they aren't giving me a lot of joy in terms of news though.

Good luck to you both.

 

[Arnoldus]

I caught up with mates from Emerald last week who said that the town has been smashed of late. Even the Explorers and Meteor are in receivership!

Are you skipping town Arnoldus, upgrading or moving into a rental? Sounds like there are some deals to be had either way.

Two of our Dalby places had/have their leases expire this month. I think we'll have to take a bit of a hit with rents. Manager is saying drops expected from $280 down to $250pw, perhaps more depending on how long you are willing to sit. 100+ properties available.

Was also reading about the increased economic growth expected in the next 18-24 months. Have a few mates in the oil and gas industry, they aren't giving me a lot of joy in terms of news though.

Good luck to you both.

THanks. I'm skipping town. Looking for a rental around Bargara at this stage, going to stop working for a bit or maybe retire. I'm liking the sleepy beach lifestyle while being close to all the facilities folks in large towns/cities take for granted.

Emerald is a nice place to live, but I think house prices are going to fall for some time yet as I can't see any events on the horizon that'll bring the 1000's of people to town to fill up the empty houses/units (except maybe another big flood to both bring people in and wipe out some of the supply). On top of that you've still got quite significant developments pushing ahead and adding supply.

It's sad about the Meteor and Explorers, though I did find Explorers a bit exxy. Also saw Centro is selling their 2 shopping centres in town.

http://www.cqnews.com.au/news/shopping-centres-for-sale-but-sentinel-keeps-watch/2437282/

 

[Jenko]

Can anyone recommend a good Property Manager in Chinchilla... I'm about to sack mine!!

Pm me if you wish.. Thanks

 

[Jenko]

Surat Basin don't know if that's good or bad news?

 

[Arnoldus]

Surat Basin don't know if that's good or bad news?

Not familiar with most of those projects, but I'm pretty skeptical about the Nathan dam project getting up. I wonder how many of the projects are going to bring people to live in town.

 

[Dubstep]

Not familiar with most of those projects, but I'm pretty skeptical about the Nathan dam project getting up. I wonder how many of the projects are going to bring people to live in town.

The link say's it's 2012 news, which is about right, most of these major projects are about done !

 

[Jenko]

Not familiar with most of those projects, but I'm pretty skeptical about the Nathan dam project getting up. I wonder how many of the projects are going to bring people to live in town.

Yeah sounded a bit farfetched I was expecting to find a link "Buy Now"

 

[powderfingers]

The next big hope for the region is Arrow going ahead with it's project, hopefully 1st quarter 2015:
http://www.arrowenergy.com.au/projects/surat-gas-project

This is their reply after I emailed them:

Thank you for your inquiry,

Arrow Energy has been operating in the Surat Basin for well over a decade and plans to be in the area for many more years. We have a permanent workforce in the region, built around producing and supplying coal seam gas for the domestic market and generating electricity. We own and operate the Braemar 2 power station near Dalby.

Most of our employees are permanent local residents, many with families, and therefore do not need to be supplied with temporary housing.

In terms of the future, we are developing a proposal for a gas supply for LNG project which will greatly increase the value of our spending in the region.

Further information about Arrow Energy and its projects is available on our website at www.arrowenergy.com.au .

 

[TMNT]

The next big hope for the region is Arrow going ahead with it's project, hopefully 1st quarter 2015:
http://www.arrowenergy.com.au/projects/surat-gas-project

This is their reply after I emailed them:

Thank you for your inquiry,

Arrow Energy has been operating in the Surat Basin for well over a decade and plans to be in the area for many more years. We have a permanent workforce in the region, built around producing and supplying coal seam gas for the domestic market and generating electricity. We own and operate the Braemar 2 power station near Dalby.

Most of our employees are permanent local residents, many with families, and therefore do not need to be supplied with temporary housing.

In terms of the future, we are developing a proposal for a gas supply for LNG project which will greatly increase the value of our spending in the region.

Further information about Arrow Energy and its projects is available on our website at www.arrowenergy.com.au .

isnt that comapny talk for , we really have no idea whats going to happen? but we are optimistic for the sake of appearing optimistic

 

[Jenko]

To any Chinchilla property owners I encourage you guys to call council and talk to the Mayor MR Ray Brown. Tell him your concern about the oversupply of properties and any others you have, please don't attack him. He seems like a decent bloke that's well aware of what's going and he is keen to reduce the amount of camps and FIFO workers. I just think the more of us that voice our concerns the better.. What's the old saying about the squicky wheel.....

 

[powderfingers]

They can't do much about the camps if the companies own the land they're built on? and the council has been more than happy to grab the $ from all the land developments even if it ends in oversupply.

 

[Dubstep]

Hi Guy's,
The camps are already operating out here, and will also be in over supply now that the work is finishing.
These are some of the main camps, and there are many more smaller ones dotted around:
Zeller street
Ruby Jo
Jordan
Dalby
Dogwood
Miles

 

[Jenko]

They can't do much about the camps if the companies own the land they're built on? and the council has been more than happy to grab the $ from all the land developments even if it ends in oversupply.

Yes however he is taking the argument to the state government, FIFO workforce has been getting a lot of bad publicity lately. He wants to see a limit to the FIFO workforce and increase the amout of residental roles attracting families to the area. Maybe it's a longshot but the more people that raise the issue the better I think. I have his mobile number I don't know if they meant to give it out or somebody stuffed up. If anyone wants it pm me.