Opinion's on Mt Isa Market

[WBG Redcliffe]

Hi all,

I have a duplex in Mt Isa. Paid 190K in Jan 06 spent 25k on a reno. Rents for 490 p/w. The agent said it would sell for around 300k now. It has a birthday this month. Great year but not sure that the capital growth will continue.

Would like to know if any of you guys have any interest in Mt Isa or if you have an opinion as to the future up there. Im thinking of selling.

Thanks in advance

Wayne

 

[Rolf Latham]

cant go broke taking a profit

There are varied opinions on those types of markets.

have lived there my self and ALL depends on the resources prices at the time

Been quite a few new mine developments in the region, and it is the largets service centre for huge area.

Have a look to see what ex strata is doing with its own housing ..........

ta

rolf

 

[RichardC]

ALL depends on the resources prices at the time

This is correct of course. To sell or not would depend on your belief on the strength/life of the resource boom, and you need to read internationally sourced reports to give yourself a chance. IMHO it still has some way to go.

If my assumption is correct (?) you should hold as long as the quality of tenent and PM is adequate. I'm told both can be sub-standard. Methinks Syd returns will fall further and sooner than The Isa. Don't be too timid to do something different.

ps Spot metal prices do not affect the operations of existing mines, as long as they are not sub-economic. Naturally, it does affect their exploration (drilling) activity.

 

[Ausprop]

I hope it's good - I am buying up there...

 

[WBG Redcliffe]

Hi Ausprop

Is this your 1st IP in Mt Isa. What are you looking for? The returns are still around 8 to 8.5%. Not to bad at all. My frustration is the distance.

Wayne

 

[Ausprop]

yes it is my first... KPH is the man to talk to on mt isa and I am buying off the plan from him. drop him a PM or he may drop in here some time.

 

[APerry]

KPH is the man to talk to on mt isa

I agree, anyone interested in Mt Isa, or mining areas generally, should speak to KPH. He has made a lot of money over a number of years in these areas and is a wealth of knowledge. He also has some very high quality properties for sale and I'm sure he would do a good deal for anyone approaching him directly.

Regards
Alistair

 

[kph]

No I disagree..
I have some hands on knowledge based on what I have seen first hand in a mining town, and those parameters are duplicated around the country at present, in other mining towns in other states.

You could go to Roxby Downs, Moranbah, Hopetoun, Broome, Newman, Pt Hedland, Karratha etc... and recognise the same symptoms.

These places are logistically difficult to work in, costs are hyperinflated, service is poor, but the returns are also better.

If you can overcome the frustrations that come with working in a regional area, the rewards are great.

As far as quality properties goes, when you are competing with 25 and 30 year old properties, 'new' will always do better.

There is always a percentage of the population anywhere, who will pay the premium to be in a new and modern designed home compared to existing 30 year old stock.
KEvin