Investing in Mining Towns eg Weipa

[thetracer]

I just registered on the forum today. In fact I have spent the best part of this morning trying to find out more info on "What is involved in Strata Titling a block flats" six to be exact. While looking, I came across this forum, so here I am. And yes you guessed it, the block of flats in question is in Weipa FNQ. Bauxite mining town, Comalco, Rio Tinto mine there.

I have made good money in property before in Brisbane, however, this venture is a little out of my comfort zone but I have a pretty good feeling about it.... Finance hasnt been approved yet but I am wondering if anyone else has heard about the Accommodation crisis in Weipa as well as the infrastructure going on there at the moment. The Gladstone Refinery is looking to Weipa to increase its output of Bauxite by about 50% to 60% by the end of 2008. Im full of it and happy to answer any questions but really I am hoping to get some more info on the Strata Titling part and the pitfalls if any.

Thanks

thetracer

 

[4GH1RH]

Not sure of the nature of mining in Weipa, and Australia in general, but my experience in South Africa was that towns that were heavily centred around mining had a lifespan, and that once the mining was no longer viable, the town died - literally. Seen a few ghost towns there. I'd be checking the life expectancy of the mining operations amongst other factors like if and how the mines provide housing or subsidised housing to employees.

On the positives, I imagine a mining town has a fairly transitory population who would rather rent than build or buy, and there should be some good salaries coming off the mines which means you might be able to offer a better property for higher rentals? I would also think that comfort is an important factor in a warm place like Weipa.

Only mining town I have really experienced is Chillagoe, that would have been a good place to invest in its heyday, but today... not a lot happening there!

 

[Ecogirl]

Only mining town I have really experienced is Chillagoe, that would have been a good place to invest in its heyday, but today... not a lot happening there!

What a great town Chillagoe is! I used to work at Red Dome and it was a thriving town back then. Then I worked on the decommissioning of the mine and the town shrunk several notches. I used to love pulling a beer (i had to pay them ) at the post office hotel and chatting to the locals for fun on a sat nite...it was interesting (from a psychological perspective) to watch the effects of the mine closure on the town and the strained finances (ie business etc) and relationships. Mining towns evolve in the boom/bust cycle.

Invest with your eyes wide open...
Ecogirl

 

[4GH1RH]

He he, yeah, gotta love that excuse to get to the Pub in Chillagoe

"Oh, I'm just going to the Post Office"

I forget the name of the other pub... hmmmm...

I still go to Chillagoe maybe once a year for some caving and of course a swim in the Bogey Hole.

 

[Ecogirl]

I forget the name of the other pub... hmmmm...

the black cockatoo, which is a fav for ringers....never went there myself though

Ecogirl

 

[jrc]

Info on strata titling

Suggest your first port of call should be the town council to see what the planning requirements are to convert an existing building to strata title and what the council fees would be.

If these seem to be feasible, then your next port of call would probably be a land surveyor to find the costs of doing a strata plan and a solicitor.

I assume you want to strata so you can sell some of the units on or for better financing. If you're intending to renovate any of the units and sell you might get caught with GST if substantial renovations have occurred. See GST public ruling 2003/03.

If you're intending to keep will you have extra rates to pay if strata? Check with council.

 

[nutsa.1]

but really I am hoping to get some more info on the Strata Titling part and the pitfalls if any.

thetracer[/QUOTE]

We have just been through the strata titiling of a duplex block (NSW).

Suggest you get a couple of prices from surveyors to do all the work and negotiate like hell. Ours varied from $1750 to $2500 for the linen plan only and they should have been mates rates. hmmm. Total cost Incl registering, solicitor and bank $3030.

I wished I had been specific to the survyor to do all of it. (I know that they can do this) But I did the running around to the solicitor, bank, council. Not a big deal really I guess.

Another thing to check out is the insurance side. Our insurer won't insure anything with "community property" and hard to get an answer on how to insure it. They ended up extending the policy on the existing free standing property we live in and then will not insure when the policy runs out.

I've yet to sort this out because I've got till March 2005, but I'm sure I'm not getting all thge info. Maybe this is what Body Corp. structures are for?

As suggested previously check it all out and good luck.

Steve

 

[outbackjack]

Timing

I know old post, but I think Weipa and a few others are shrinking. 100 jobs cut this week.

 

[nhb74]

Rental Vacancy 0% in Weipa again