Muswellbrook, top 10 hotspotting
- Thread starter MTR
- Start date
MTR
You could be onto something here as I am generally not a fan of hotspotting as generally the horse has bolted by the time these reports generally come out however this one actually shows the opposite. Have a look at this link http://money.ninemsn.com.au/aussiePriceMapping.aspx?formType=results&suburbID=31682&statesID=1
This give a few more details on the suburb, if I was looking at this place these are the questions I would be wanting answers on
- Why are there so many places for sale
- Why is the yield so low for a country area
- If places are advertised and they are on the market for 4 months + ( which a number are) will they accept dramatical reduced prices
- Is this place going somewhere?? Has the population over the last 3/5 years kept in line with region/state average.
If there has been negative growth and the property will also be negative geared even at 20% deposit what do you expect out of your investment
Jezza
You could be onto something here as I am generally not a fan of hotspotting as generally the horse has bolted by the time these reports generally come out however this one actually shows the opposite. Have a look at this link http://money.ninemsn.com.au/aussiePriceMapping.aspx?formType=results&suburbID=31682&statesID=1
This give a few more details on the suburb, if I was looking at this place these are the questions I would be wanting answers on
- Why are there so many places for sale
- Why is the yield so low for a country area
- If places are advertised and they are on the market for 4 months + ( which a number are) will they accept dramatical reduced prices
- Is this place going somewhere?? Has the population over the last 3/5 years kept in line with region/state average.
If there has been negative growth and the property will also be negative geared even at 20% deposit what do you expect out of your investment
Jezza
The horse has not bolted as far as I am concerned and there is a thread on Muswellbrook here:
http://www.somersoft.com/forums/showthread.php?t=59987
In this article from The Daily Telegraph, an agent suggests $600/week is possible. (I tend to be alot more conservative.
)
I was told on Friday that our properties can achieve a return of well over $500/week. With depreciation, furniture package etc these properties can return at least 45/week on a $105% lend. (Including Rates, Insurances and $800 for maintenance.)
That is a 7% yield on a 335k purchase. If you look at the newer properties then, yes the yield is lower but you'll get the depreciation and no maintenance.
I think the Capital Growth that this little town potentially offers, not to mention the chance to also have a Positively Geared property - is a great opportunity.
I would only be careful about where/what you buy. If your thoughts are to rent to Contractors/Miners etc, you don't want to be too far out of town or buy a little old run down fibro. (Cheaper properties listed.)
You also need to remember that you'll need to furnish the properties properly.
Why so many properties on the market? I remember when Redcliffe was booming and someone asked the same thing. They may be country folk but they are not silly!
Just my thoughts.
Regards JO
http://www.somersoft.com/forums/showthread.php?t=59987
In this article from The Daily Telegraph, an agent suggests $600/week is possible. (I tend to be alot more conservative.
) I was told on Friday that our properties can achieve a return of well over $500/week. With depreciation, furniture package etc these properties can return at least 45/week on a $105% lend. (Including Rates, Insurances and $800 for maintenance.)
That is a 7% yield on a 335k purchase. If you look at the newer properties then, yes the yield is lower but you'll get the depreciation and no maintenance.
I think the Capital Growth that this little town potentially offers, not to mention the chance to also have a Positively Geared property - is a great opportunity.
I would only be careful about where/what you buy. If your thoughts are to rent to Contractors/Miners etc, you don't want to be too far out of town or buy a little old run down fibro. (Cheaper properties listed.)
You also need to remember that you'll need to furnish the properties properly.
Why so many properties on the market? I remember when Redcliffe was booming and someone asked the same thing. They may be country folk but they are not silly!
Just my thoughts.
Regards JO
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But then again...I remember hearing on the radio a indepth discussion about how the Hunter Valley coal only had a good ten years left before they have to move on further up the line...and that would have been about ten years ago now come to think of it.....
All this is coming into perspective as the coal is now starting to rev up over the range and into the NW Slopes and Plains districts....
Could it be the workers relocating further up the line, yet still some promise of $600 rents while they clean up in the Hunter...??? How long would these rents last if coal was finished around Muswellbrook...?
$600/wk is alot of rent for a house anywhere in the bush....???
Questions that need answering...
All this is coming into perspective as the coal is now starting to rev up over the range and into the NW Slopes and Plains districts....
Could it be the workers relocating further up the line, yet still some promise of $600 rents while they clean up in the Hunter...??? How long would these rents last if coal was finished around Muswellbrook...?
$600/wk is alot of rent for a house anywhere in the bush....???
Questions that need answering...
now that's a good question have no idea about the area bowen basin has 100yrs+ so who knows...
Don't think they are packing up their bags and shifting just yet. At least 3 new projects underway/approved. An old one will fire up again end 2010 or 2011, so I am told.
On re-reading the post, perhaps they were talking about the Hunter Valley as in the Cessnock area and not Upper Hunter/ Muswellbook.
Sunshine
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I just bought a place in Muswellbrook for $255K and it is currently renting for $550 per week. I had to furnish it but that cost me less than $7000 for everything.
Not a bad return in my view
Not a bad return in my view
ive been putting in offers on a few properties there but they have been going quick. can i ask details on your property ?
LOL What is a good return for you? Can you let me know who you use for PM please, private message would be fine, thanks
I am interested in this can you tell me where you read this please?
Don't worry I found the articel. Thanks for the pointer.
sunshine
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What do you want to know?
link to ad here http://www.realestate.com.au/property-house-nsw-muswellbrook-106356671?tm=1267266751&c=56461693
NOPE won't affect prices at all IMHO.
Bickham Coal is towards Murrurundi past Scone and was only going to be a small player if it got through. Patrice Newell (colgate girl, farmer and wife of Phillip Adams) has led the charge against this mine with the Paiges River the major factor (runs through her property). Battle has been ongoing for about 5 years.
MAJOR works still about to go ahead/happening greensites and expansions. So I think the area is a goer.
My PM told me recently that they were looking to house 125 workers in furnished accommodation, hence the big rents available at the moment. Won't last long in my opinion. I hear that the mining companies are starting to buy up their own houses. Rents are moving along with prices.
I have invested in the area for 10 years. It has been very good to me, but this is what I have been waiting for. Exciting times. (Hopefully!)
Sunshine
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I don't think the announcement by the NSW Gov today will hurt Muswellbrook at all. There is enough investment in the area (mines & Power Stations).
It is my understanding that the rents are currently being pushed up by not only the mines themselves but construction workers contracted by the mines. With mine expansion and construction as well as the new power station construction I'm am told the high rent for furnished properties could last as long as 4-5 years. I have my doubts about this so am relying on 2-3 years of higher than normal rents
Even 1 year is a bonus I reckon. The longer the better. Congrats you have done well.
Sunshine
Sort of. It is leased to a construction company that is working on one of the mines. I'm told this should continue for at least two years and more than likely longer.
The existing mine is being expanded, a new mine is being built and the state government has just approved a new power station next to the existing one. All this work is going to require construction workers etc to be brought in from out of town. They have to live somewhere.
I wouldn't rely on the high rents though. Anything can go wrong.
