Chinchilla or Toowoomba

hi,

i am hoping to hear from anyone that has some idea about the Surat Basin Region in QLD,in particular Chinchilla which is experincing a boom from LNG drilling.....

I am looking at investing in a house , roughly around the $420k mark returning about $700 per week in rent.

my concern is, have i missed the boat in a booming LNG area of Chinchilla?

what are peoples thoughts on chinchilla, or should i cast my eyes on Toowomba?

many thanks,
kk
 
we'll the projected growth (capital) is predicted at 10-18% for the next few years... and this is why i am looking in the area.

problem in the area is, once a property is listed its sold very quickly...that can only mean a good deman?
 
we'll the projected growth (capital) is predicted at 10-18% for the next few years


According to who(m)?


... and this is why i am looking in the area.

KK, do you own any other investment properties? If you are starting out, I would suggest staying away from things like this. If you are seasoned as an investor then looking for a higher yield is not without it's risk in towns like this.

I don't know a great deal about Chinchilla, however it, like Miles, has probably had a lot of the upside already delivered.


problem in the area is, once a property is listed its sold very quickly...that can only mean a good deman?..............or great marketing to the masses of investors flocking there.


Toowoomba is a far safer bet. You won't see the yields of Chinchilla, however nor will you see the volatility that can occur with smaller mining reliant towns. Toowoomba holds it's own as it has numerous industries and a population of circa 150,000 that provides critical mass. It services those Surat towns and possibly has some workers raising family in Toowoomba whilst doing weekly or fortnightly stints at the mines and coming home to family for similar time periods.

Others may disagree with me, however Toowoomba has a lot more going for it. Yields will be circa 5-7% depending on the calibre of suburb and type of dwelling.
 
hi,

my concern is, have i missed the boat in a booming LNG area of Chinchilla?

what are peoples thoughts on chinchilla, or should i cast my eyes on Toowomba?

many thanks,
kk

I had a contract to purchase in Chinchilla a few years but missed out because the banks made it too difficult for me. I'd be about $80,000 richer if I could have got the loan.

I still think that there is some growth potential but I think that you've missed the boat. I agree with another post on Toowoomba being a safer bet.
 
KK, I'd have to agree with Player on this one.

Towns such as Chinchilla can be volatile and you really have to be on the ball in relation to timing the market. You have to know what projects are ramping up and when. You have to identify the population driven by the construction phase apposed to population supporting the running and maintenance phase of the project.

As a result of the movement in population the rental market can be volatile. If you time your purchase incorrectly and the market softens you may be left struggling having paid overs and being forced to drastically reduce rent to secure a tenant.

I have property in a rapidly growing regional hub situated between the Bowen and Galilee Basins and the rental market can be volatile when the price of the commodity being extracted fluctuates.

Just be sure you are aware of the potentially volatile market you may be entering in a market like Chinchilla.
 
Chinchilla

I agree with the previous comments ---

Dalby slightly safer.... Toowoomba much safer.

Unlike some of the huge coal & iron ore & gold mines of past years --- LNG or CSG is a much more mobile or nomadic mining process.

There will be huge growth while construction & infrastructure is underway - and then (in my opinion) later a lot of empty houses with low asking rents.
 
"Others may disagree with me, however Toowoomba has a lot more going for it. Yields will be circa 5-7% depending on the calibre of suburb and type of dwelling"

Hi Playa thank you for your comments i really appreciate it.
Yes, you are correct, this is my first investment and the reason why I looked into Chinchilla is due to the property market growth in the area for the past 3-5 years - ave of about 8-10% grown (this is from the PRD Data).

The projected growth is from reading the Surat Basin reports -generated by the local councils, talking to the real estate agency in the town (& Yes I know that you are probably going to say dont listen to them, however i like to get a feel of what they are saying and comparing it agianst what is being published). Looking at what is going to happen in the town - such as LNG gas which will be going on for the next 20years post 2015...not to mention that Origin energy has engaged Surat Basin Homes to construct homes for their employees and are offerring 5-10 years...it just seems to be a place to 'geet in while you can' - I understand some comments about missing the boat....which boat was it that i missed?

I must also point out that my investment strategy is only for about 3years...

Toowomba is certainly a better option, however, given that Maccas, BCF, KFC, Woolworths have all invested in Chinchilla - doesnt that say something?

looking foward for your comments as you seem to be honest and have substance to your replies. Thank you.
 
reply yo Painter..

If you want to have a piece of Chinchilla yet still play it safe,Dalby is the next best place :rolleyes:

Hi Painter - Thank you for your comments...
what makes you feel that Dalby is safer than Chinchilla? When i reserached into Dalby it seems to be more of a seasonal work force rather than in Chinchilla where are various industries -such as tourism, agricultural, obviously mining and the recent LNG Gas projects.

interestd in your views...
thank you.
 
Rents in Dalby are increasing as we speak with lots of the workers and their family from chinchilla choosing to reside in Dalby.
If it all turns to **** you still have a house that will hold its value.

If you can afford to buy in chinchilla at the right price there will be a larger gain but also a larger risk,but if you get in early and get out short term you should be fine.
I have been to chinchilla recently to check it out,its still only a small town with nothing to do while dalby is a much larger place more family friendly..

Hi Painter - Thank you for your comments...
what makes you feel that Dalby is safer than Chinchilla? When i reserached into Dalby it seems to be more of a seasonal work force rather than in Chinchilla where are various industries -such as tourism, agricultural, obviously mining and the recent LNG Gas projects.

interestd in your views...
thank you.
 
Just a quick observation you should be aware that the resource companies have work place health and safety regulations that prohibit travel over 40kilometres after the shift finishes. Most of the gas wells and future coal mines are between Chinchilla, Miles and Wondoan. Nearly 100% of Dalby is flood affected with insurance issues. Toowoomba is setting itself as the regional city of the Surat Basin and some supply companies have set themselves up there and I agree that it will be a good steady performer but it depends if that is what you are looking for and if you are looking in Chinchilla I suspect you are looking for something that will be more than a steady performer.
 
Just a quick observation you should be aware that the resource companies have work place health and safety regulations that prohibit travel over 40kilometres after the shift finishes. Most of the gas wells and future coal mines are between Chinchilla, Miles and Wondoan. Nearly 100% of Dalby is flood affected with insurance issues. Toowoomba is setting itself as the regional city of the Surat Basin and some supply companies have set themselves up there and I agree that it will be a good steady performer but it depends if that is what you are looking for and if you are looking in Chinchilla I suspect you are looking for something that will be more than a steady performer.

Very good information,
Thank you
 
I am looking at purchasing in Chinchilla and I can't seem to find a flood zone map of town on the net, does anyone know where I'll find one?
 
I am looking at purchasing in Chinchilla and I can't seem to find a flood zone map of town on the net, does anyone know where I'll find one?

Just a word of warning on areas effected coal seam gas. The process is very heavily scrutinised (government) and is getting harder to do all the time

I think in the coming years shale gas will be the next big thing (outback sa/ qld - cooper basin) and the shear volume of gas that thy will have access to might spell the end for the need of coal seam gas. Particularly as there is increasing worry over Australia's future food supply which coal seam gas diminishes (holes are drilled in farms) whilst shale gas does not.
 
Got an email from my property manager in Toowoomba yesterday. They are desperate for rentals in the $250-$350 pw range. Looks like there is demand if you want to buy in at that level
 
Just a word of warning on areas effected coal seam gas. The process is very heavily scrutinised (government) and is getting harder to do all the time

I think in the coming years shale gas will be the next big thing (outback sa/ qld - cooper basin) and the shear volume of gas that thy will have access to might spell the end for the need of coal seam gas. Particularly as there is increasing worry over Australia's future food supply which coal seam gas diminishes (holes are drilled in farms) whilst shale gas does not.

So are you saying that its over before its begin?? I don't think so, there has been way to much money being spent on the project for it to fail. I can't see what the risk is in Chinchilla. Chinchilla doesn't rely on LNG it's one of many commodities. I'm sure Macca's would go in to a town of 5000 without knowing the perdicted growth.
 
So are you saying that its over before its begin?? I don't think so, there has been way to much money being spent on the project for it to fail. I can't see what the risk is in Chinchilla. Chinchilla doesn't rely on LNG it's one of many commodities. I'm sure Macca's would go in to a town of 5000 without knowing the perdicted growth.

As long as you have done your own research then there shouldn't be any surprises.
I'm not saying its over but I think once they start drilling horizontal wells in the cooper basin then the government might start to question whether it is responsible to destroy farmland for gas when we have all we need in the outback.

Personally I would go for a more labour intensive resource than gas.
 
Personally I would go for a more labour intensive resource than gas.

I think that's a very good point strongy...I agree, if it's Queensland your looking at...Coal is certainly more labour intensive. If it's gas...then I think Toowoomba as a regional hub will do well and there's also coal in the Surat Basin so it's diversified. Gladstone has seen great growth of the gas industry but realistically the boats sailed.
 
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