Chinchilla - hold or run?

Jenko said:
Yeah is that like Gladstone and Rockhampton are mining towns I guess?
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Eh, don't get me started. I bit my tongue when folks said Emerald was a pretty safe bet because it was a diversified economy. Now it's fallen further than I thought it would and still going down. Read in the paper this week that there's a master planned estate with 190 lots and 145 townhouses going in, so someone out there must think there's more suckers willing to part with their $$$'s. Seems like there's oversupply almost everywhere in the Queensland regionals. :(

http://www.cqnews.com.au/news/development-boosts-town-master-planned-community-h/2278558/
 
Arnoldus said:
Eh, don't get me started. I bit my tongue when folks said Emerald was a pretty safe bet because it was a diversified economy. Now it's fallen further than I thought it would and still going down. Read in the paper this week that there's a master planned estate with 190 lots and 145 townhouses going in, so someone out there must think there's more suckers willing to part with their $$$'s. Seems like there's oversupply almost everywhere in the Queensland regionals. :(

http://www.cqnews.com.au/news/development-boosts-town-master-planned-community-h/2278558/
Click to expand...

Seems like Cairns is about the only one getting off lightly, and that's mainly the result of nearly no new construction since Cairns tourism was hit by the GFC.
 
norwoodman said:
Seems like Cairns is about the only one getting off lightly, and that's mainly the result of nearly no new construction since Cairns tourism was hit by the GFC.
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I'm pretty sure once cairns starts to take off their will be a cane paddock or two getting developed. :rolleyes: there's no shortage of land there either.
 
Last edited:
Is anyone up to date with what is happening chinchilla lately or in the near future? Talking to my PM yesterday and she informed me that there is 240 rentals available and 400 properties for sale in the area. She said there is still new properties coming on line everyday. New 4x2x2 houses are renting for $350 pw! I better a few people are having heart attacks when they find out the new property they have just built will only receive that kind of money. Another thing she said that most of the new houses are owner by WA investors. She also said things should improve latter this year but was unclear why she thought this :confused:
 
I work for a major construction company working in Chinchilla and surrounds and they are starting to ramp down in the next few months. It might get busy again mid next year then again it might not and just continue to roll on but at a much slower pace with a lot less people.
 
Jenko said:
Is anyone up to date with what is happening chinchilla lately or in the near future? Talking to my PM yesterday and she informed me that there is 240 rentals available and 400 properties for sale in the area. She said there is still new properties coming on line everyday. New 4x2x2 houses are renting for $350 pw! I better a few people are having heart attacks when they find out the new property they have just built will only receive that kind of money. Another thing she said that most of the new houses are owner by WA investors. She also said things should improve latter this year but was unclear why she thought this :confused:
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Mining is a bit of a curse

With reckless developers around and cash hungry councils you almost can't invest anywhere except the capitals

Or wait for bargains in these towns and hold through hard times
 
strongy1986 said:
Mining is a bit of a curse

With reckless developers around and cash hungry councils you almost can't invest anywhere except the capitals

Or wait for bargains in these towns and hold through hard times
Click to expand...


Yeah strongy I remember you where advising against chinchilla and looking back advice I should of taken.. Like Gladstone I just can't believe that building would continue and continue to a massive oversupply in chinchilla. I guess developers are out to make as much as they can. You would think council would limit the amount of land released to a sustainable level knowing that the work force will decrease after the construction stage. I'm learning the hard way!:( It's almost as if a town is going to get great returns and it's well known, developers are going to move in and destroy the yield and returns. Your better off sitting on your hands letting things happen and pick up the bargains when everything goes pear shape.:cool:

I think one of the main problems for Mackay, Gladstone and Chinchilla was that when they where firing the rest of Queensland property market was in the doldrums. With nothing else happening builders & developers flooded the three towns to make a quid.
 
Jenko said:
Yeah strongy I remember you where advising against chinchilla and looking back advice I should of taken.. Like Gladstone I just can't believe that building would continue and continue to a massive oversupply in chinchilla. I guess developers are out to make as much as they can. You would think council would limit the amount of land released to a sustainable level knowing that the work force will decrease after the construction stage. I'm learning the hard way!:( It's almost as if a town is going to get great returns and it's well known, developers are going to move in and destroy the yield and returns. Your better off sitting on your hands letting things happen and pick up the bargains when everything goes pear shape.:cool:

I think one of the main problems for Mackay, Gladstone and Chinchilla was that when they where firing the rest of Queensland property market was in the doldrums. With nothing else happening builders & developers flooded the three towns to make a quid.
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We have an ip in whyalla where a similar thing happened.

We bought an established house in town area so havnt seen a drop
In capital value but our rent (2 bdrm weatherboard) has gone from 330 down to 260 a week

We were there a few months back and everything is ticking over, people there very positive, plenty of flash cars driving around

Pity about the overdevelopment, maybe it will encourage more people to move to town if the rents are a bit cheaper. There's plenty if money to be made there. A lot more than Adelaide. Might be good for the towns long term prosperity (larger population) - time will tell
 
DoobyNuts said:
I work for a major construction company working in Chinchilla and surrounds and they are starting to ramp down in the next few months. It might get busy again mid next year then again it might not and just continue to roll on but at a much slower pace with a lot less people.
Click to expand...
Yeah time will tell, it would just be good if they would stop building houses. I think I bought well compared to what was available at the time. I purchased a two year old property in a pretty good area minimum $50k less then the H&L packages that where selling at the time. I just hate the thought of have a negatively geared property in a small regional town. I was trying to keep my portfolio positively geared and thats what lead me away from the capital and out west. Much rather having negatively geared property in Brissy.

There must be a crap load of new vacant properties in town Dooby.
 
I nearly got caught up with the hype about 3 years ago but my bank did me a service by not approving a loan. They explained it by saying that it was in a higher risk area.
 
Nth Brisbanite said:
I nearly got caught up with the hype about 3 years ago but my bank did me a service by not approving a loan. They explained it by saying that it was in a higher risk area.
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Yeah I almost got caught up in the hype around then also. I was working for a company that travelled up that way a fair bit and had lots of contacts with companies operating in Chinchilla and other small mining towns so I got to hear a different perspective. I got chatting with an old school friend who lives in Chinchilla and is also an active investor and decided to stick with capital cities.
 
redwing said:
Time for a new poll :D
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Not a "Which capital city will have the most growth/less affected by a downturn?" Poll. Capital city? there are heaps of different market with-in a capital city.

How about a subject "which town or city suburb is going to preform best and why?"
 
I have been thinking about bumping this post myself of late to see what the lastest is. Thanks for sharing the links its a lot better then what my pm advised me a week or so ago. My rents about to drop $250 pw OUCH! Just hope if/when things improve the developers and spruikers stay away. Or at least people might think twice before jumping in.
 
our place is in Miles in the surat basin and we got in at a relatively low price point, I thought the markets ie miles and chinchilla were closely linked but just had a look on real estate.com and the rents do appear lower in chinchilla

The thing that got us a tenant was paying the extra money its 250 a month to promote the property on real estate.com so it stays on top and people don't have to trawl through lots of properties.

The TSM homes facebook page (funnily enough) has lots of positive info on it
 
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