Muswellbrook, top 10 hotspotting

Muswelbrook

Hi everyone we happened to buy our first investment in Muswellbrook and we are more than happy 2 storey brick for $320,000 spent about $6000 furnishing and we are getting $700 per week. We did heaps of research and are more than happy with it all.We are now loooking to go again for our 2nd investment excited sure are .....
 
According to the link posted muswellbrooks second highest occupation is machinery operators. I work as a machine operator in the mining industry in wa and over the last 8 months we have lost no less than 60% of our crew (about 50 operators) with the majority going to muswellbrook BHP/Rio mines. Work agencies based in mus have even come to visit Kalgoorlie (haul truck operator hub) to poach truckies. I can verify workers from the mining industry over here are flocking to Muswellbrook in droves due to even time rosters and lifestyle opportunities.
 
If you're working in the mining industry you'll be hard pressed to find a better area to live and work in in Australia. However I'm sure this is reflected in salaries, therefore less potential for rents to rise.

Mines out there go through good periods and bad periods (just like everywhere else). Right now it's quite OK. Look back 10 years or so and it's a different picture. I know at least one coal mine that was mothballed for a time, I'm sure there were others.

Food for thought!
 
Trawler said:
If you're working in the mining industry you'll be hard pressed to find a better area to live and work in in Australia. However I'm sure this is reflected in salaries, therefore less potential for rents to rise.

Mines out there go through good periods and bad periods (just like everywhere else). Right now it's quite OK. Look back 10 years or so and it's a different picture. I know at least one coal mine that was mothballed for a time, I'm sure there were others.

Food for thought!
Click to expand...

same as some bowen basin mines but you would be hard pressed getting land for some of the house prices around muswellbrook
 
james_w said:
same as some bowen basin mines but you would be hard pressed getting land for some of the house prices around muswellbrook
Click to expand...

Not quite. Different mines have different operating costs. My understanding is at least some mines around Muswellbook, for whatever reason, have higher operating costs than others in more isolated areas. Strange I know!
 
just had a chat with a PM,
rental market is really poor at the moment,

rents have come back up to $50-$60 per week, sitting on the market for months in the better areas, and longer in the not so good areas

just FYI for everyone!
 
TMNT said:
just had a chat with a PM,
rental market is really poor at the moment,

rents have come back up to $50-$60 per week, sitting on the market for months in the better areas, and longer in the not so good areas

just FYI for everyone!
Click to expand...

just had a call from my agent they are suggesting to drop the rent for lease renewal from $350 down to $270 per week,
 
Well there ya go.....the mining boom has busted in the Hunter.

They're all moving up here and beyond to Gunnedah, Boggabri, Narrabri, Moree.

I heard a bit over 10 years ago on the ABC radio one day while travelling from here to the coast (right thru the guts of Hunter Valley) and an expert said that there is possible only 10 years or so of coal left in the Hunter before they must begin to search and source coal from further afield.

Looks like that is coming into fruition.

Could be wrong, but at the time I thought it incredible and wondered where they would go to next.
 
The high vacancy rate and lower rental yields in Muswellbrook are primarily due to the fact that a lot of contractors have lost their jobs and left town. The contractors, especially those involved in construction, frequently make up a high percentage of the renters in most mining towns. They also are generally the tenents interested in furnished properties, so when they leave the demand for furnished drops significantly. Very few of the permanent miners have lost jobs. Many of those employed at the recently expanded Mt. Arthur mine, and recently constructed Mangoola mine, have purchased their own homes, and some others will be doing so soon. There have been several residential developments in Muswellbrook in the last two years, and the extra supply on the market from these developments has also affected the market and vacancy rates, as some investors have purchased house and land packages and subsequently rented them out.
There is no shortage of accessable coal around Muswellbrook currently. There are three mines proposed to go in near Denman, and Rio Tinto have approval to construct a new mine, Mt. Pleasant, aout 10 Klm outside Muswellbrook itself. There are also deeper veins of coal below currently mined open cut pits. While coal prices are down from peaks achieved two years ago, the mines near Denman and even Mt. Pleasant are unlikely to go ahead, but the coal is there, and most of the permanent miners are there, and pulling very nice salaries. The car parks at the mines are full of nice new Prados, Hi lux and Tritons. The local owner of the Toyota dealership is laughing!:)
 
Yes, and on the south side of Muswellbrook is a brand new estate, underway, with at least a 100 houses that is an extension of an earlier estate of probably twice as many new houses over the last few years. Let alone the other massive growth that Muswellbrook has seen in the last 10 years along with Aberdeen, Scone and Singleton.

I travel the hunter on a regular basis and the increase in activity on the roads from Muswellbrook and south all the way to Newcastle has been incredible, especially the last couple years.
 
yes, certainly looks like it

the ship has sailed for anyone looking for a boom
contractors losing their jobs, while the estates are pumping out new dwellings left right and centre,

I think that muswellbrook will still chugg along with hte state average or regional average,
the rental market will stay flat for a little bit longer,

the bypass effects, nobody seems to know if it will be bad/good/indifferent

I think the rental market will recover to pre boom levels once the estates all get snapped up,

the mining activity hasnt dropped, just hasnt increased like what everyone expects.

yet damn, I have a small job that needs to be done, and every tradie still wants stupid money and their next avaiable time slot is 3months away

go figure!
 
I am currently renting a furnished property in Muswelbrook for $525/week. I have my doubts that it will continue beyond the current lease that expires in late August.

Does anyone know what is going on with all the different projects that were planned for the area? What about the power station construction. Is that still going ahead?

Capital growth has been slow since I bought my property nearly 3 years ago. I'm told that my property has grown by about 10% over that time which is not that bad given the average for that time in some other areas.

Its a long term investment though so no real concerns for me at the moment.
 
The rent on my 3 bedder has dropped from $380 to $335 as well. Had a good chat to a few people that live in the area and they see the reduction in rental demand as being only a temporary thing. They were expecting things to pick up again towards the latter part of the year. Had the house revalued as i am refinanacing and value came in as per 12 months ago so was happy with that. Might be a good time to jag a bargain if you're looking.

Dan
 
Was reading that the mining industry in the Hunter has lost more jobs in the last 6 months than the closer of BHP Newcastle and Ford Geelong combined ... it's a big hit for the area - and of Westrak, 200 of the jobs are expected to be lost in the Hunter.

Friend was laid off yesterday - only 2 months after half her department was laid off and she thought she was safe ... puts a feel of trepidation through the locations affected so, even if many are still on good incomes, no one is spending in anticipation of needing some financial reserves "just in case" ... me included.
 
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Yes Lizzie, that is the sentiment right now.

Jobs being chopped left right and centre, no mention of these in the news much, but the people on the ground are wary that's for sure.

It's reverberating up the line over the range into our territory Nth West Slopes and Plains coal fields.

Lets see what Kev has in mind to alleviate this problem, that's if he knows about it that is.

Im trying to gather jobs (Landscape construction) from as far off as Perth...! Seriously! :eek:

Mind you, Perth is prefered destination with family there making it easy...:D
 
The Fence said:
Lets see what Kev has in mind to alleviate this problem, that's if he knows about it that is.
Click to expand...

I don't like your chances....

I can't say I have any faith in Labor full stop..... Without wanting to start a political debate and as far as Rudd and Labor is concerned.... Bump in the poles recently on the ousting of Gillard and Rudd is the Messiah on his second coming...Geez Louise...We Australian's sure have short memories. I can't wait to see the back of them!
 
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