It'll be released in stages like most land releases I suspect and regulated by the local council but they do expect big population growth once the Galilee Basin picks up.
The next boom town ? ( Alpha, Qld 4724 )
- Thread starter Dubstep
- Start date
It'll be released in stages like most land releases I suspect and regulated by the local council but they do expect big population growth once the Galilee Basin picks up.
Today the Federal Environmental Minister ( Tony Burke ) has given the approvals for the Hancock/GVK coal terminal at Abbot point.
This project has now received all major state and federal approvals.
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http://www.abc.net.au/news/2012-10-...abbot-point-coal-terminal/4305114?section=qld
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When will it all start in the Galilee Basin ?
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This project has now received all major state and federal approvals.
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http://www.abc.net.au/news/2012-10-...abbot-point-coal-terminal/4305114?section=qld
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When will it all start in the Galilee Basin ?
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Yep it's all set to go now Dubstep.
I don't think the window of opportunity is going to be open for long to get in and secure an early seat. Prices in Emerald, Alpha and Barcaldine will rise significantly along with Bowen. I've got an interest in Emerald and have seen a couple of cracking little deals on the market after rents have softened lately.
India is setting itself up for unpresedented growth and are securing their supply of coal for the long term.
I don't think the window of opportunity is going to be open for long to get in and secure an early seat. Prices in Emerald, Alpha and Barcaldine will rise significantly along with Bowen. I've got an interest in Emerald and have seen a couple of cracking little deals on the market after rents have softened lately.
India is setting itself up for unpresedented growth and are securing their supply of coal for the long term.
Yep Emerald did go through a correction and the rental market has softened in the last couple of months. The companies were driving the rental market and pushing prices up to an unrealistic level. I just don't think the market was ready for those lofty prices.
It's just part of the natural cycle - After expansion comes contraction after contraction comes expansion and round we go.
If you are realistic with your rents you'll secure your tenant. I declined to raise my rent and I've held onto my tenant. Then it's a matter of waiting for the next period of expansion and it may not be too far off by the sound of things.
I thought this was Somersoft - Property Investors Forum
Rather than Somersoft - Property Speculation Forum
Take comment this with a pinch of salt please
Rather than Somersoft - Property Speculation Forum
Take comment this with a pinch of salt please
I thought this was Somersoft - Property Investors Forum
Rather than Somersoft - Property Speculation Forum
Take comment this with a pinch of salt please
Different strokes for different folks I suppose Jake. What you may think is a speculative investment others may not. There are those in the 5-10km radius of a major CBD camp and there are others who believe there are opportunities in the regional markets. Each to his own
JT7 completely agree that people have different takes on what is speculation and investing.
I don't want to sound like I'm against either as both have their places within portfolios and different levels of risk assets will suit different individuals. I've no preference with either proven rural areas or proven city areas. They both have their pro's and cons.
I'd just like to point out that claiming unproven properties or areas are "investment quality" when they are actually "speculation" as per the definitions in the dictionary can be misleading to newer faces who've yet to make up their mind on strategy. Not saying that anyone has done that here... and I was just having a joke before
Most of you will know this but for those that are unsure:
"Speculation is the practice of engaging in risky financial transactions based on incomplete evidence in an attempt to profit."
"Investment is putting money into something with the expectation of gain, that upon thorough analysis, has a high degree of security for the principal amount, as well as security of return, within an expected period of time."
Hence, guessing what the next boom town is going to be is not investing. It is speculating. It has it's place but risk assets are recommended to be only a portion of your overall portfolio.
People who are starting (first 3 IP's) should focus on solid, proven investments or risk getting stuck. Those whom are established and can risk a flop should definitely speculate as per their appetite for risk as the rewards can, as we all know, be fantastic.
Good luck guys, and happy hunting!
I don't want to sound like I'm against either as both have their places within portfolios and different levels of risk assets will suit different individuals. I've no preference with either proven rural areas or proven city areas. They both have their pro's and cons.
I'd just like to point out that claiming unproven properties or areas are "investment quality" when they are actually "speculation" as per the definitions in the dictionary can be misleading to newer faces who've yet to make up their mind on strategy. Not saying that anyone has done that here... and I was just having a joke before
Most of you will know this but for those that are unsure:
"Speculation is the practice of engaging in risky financial transactions based on incomplete evidence in an attempt to profit."
"Investment is putting money into something with the expectation of gain, that upon thorough analysis, has a high degree of security for the principal amount, as well as security of return, within an expected period of time."
Hence, guessing what the next boom town is going to be is not investing. It is speculating. It has it's place but risk assets are recommended to be only a portion of your overall portfolio.
People who are starting (first 3 IP's) should focus on solid, proven investments or risk getting stuck. Those whom are established and can risk a flop should definitely speculate as per their appetite for risk as the rewards can, as we all know, be fantastic.
Good luck guys, and happy hunting!
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I'd certainly 2nd that boys.
I know where you're coming from Jake and I do agree in principle to what you are saying mate
. I do believe that some of these regional hubs have significantly more to them than just being 'boom towns'. They have developed deversified economies and the principles of supply and demand are the same as if investing in a capital city market. For mine, a play in Emerald in my portfolio facilitates exposure to an industry, among others, that has huge potential for the future. The research is extensive both at a macro level and mirco level. If you believe there is a substantial shift in urbanization and a development of a middle class society in developing nations such as China, India, Brazil, Korea, Asia etc etc and a need for our commodities in the long term, then exposure to markets like Emerald, Mackay, Bowen, Toowoomba may provide long term growth and also CF. Other markets that solely rely on one industry are a different kettle of fish
.Jack
Depends on how big your kahunas are with Emerald
Looking on the web there are some fantastically cash flow positive places for sale, so you wonder why they are being sold when hundreds of dollars a week positive.
Flip to the for rent section for emerald, and its pages of "lease take over current tenant will pay difference". The mine closure up there has taken its toll and theres tonnes of houses for rent with tenants not able to break lease, or rent reduced advertised all over them.
With the new mine being approved, it is over 100km away but with the real accomodation options being either Alpha, Jericho or the mining company building a camp, Emerald seems to be in a lull that may well pick up.
As I said, kahuna size and if you are willing to risk owning a lame duck if it doesnt pan out.
Looking on the web there are some fantastically cash flow positive places for sale, so you wonder why they are being sold when hundreds of dollars a week positive.
Flip to the for rent section for emerald, and its pages of "lease take over current tenant will pay difference". The mine closure up there has taken its toll and theres tonnes of houses for rent with tenants not able to break lease, or rent reduced advertised all over them.
With the new mine being approved, it is over 100km away but with the real accomodation options being either Alpha, Jericho or the mining company building a camp, Emerald seems to be in a lull that may well pick up.
As I said, kahuna size and if you are willing to risk owning a lame duck if it doesnt pan out.
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With the new mine being approved, it is over 100km away but with the real accomodation options being either Alpha, Jericho or the mining company building a camp, Emerald seems to be in a lull that may well pick up.
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Hi Dave,
Your close, Alpha is 170 kms west of Emerald ( an hour and a half drive ) which would probably make Alpha the best option for accommodation.
The mine itself is still a 30-40 min drive on the Alpha to Clermont road, so if your in Emerald the trip to work would take about 2 hours, who wants to do that each way every day ?
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With the new mine being approved, it is over 100km away but with the real accomodation options being either Alpha, Jericho or the mining company building a camp, Emerald seems to be in a lull that may well pick up.
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Hi Dave,
Your close, Alpha is 170 kms west of Emerald ( an hour and a half drive ) which would probably make Alpha the best option for accommodation.
The mine itself is still a 30-40 min drive on the Alpha to Clermont road, so if your in Emerald the trip to work would take about 2 hours, who wants to do that each way every day ?
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LOL. Well one things for sure fellas.....time will tell.
Emerald is about a 2 hour drive to the mines but it has the infrastructure in place to further enhance its position as a regional hub. Industries and business will come into the region to support these huge mining projects and Emerald is the likely choice.
Emeralds' strength isn't offering accomodation, it's about its location and growing infrastructure. Gregory has depleted its resource and was always going to close. Yes it has raised vacancies but the market will correct.
Much of the land surrounding Emerald has been purchased by companies over the previous 2 years. Bandana Energy is developing a $1b mine just 60km south of Emerald. Blackwater and it's mines are approximately 80km away and now with the Galilee Basin opening up I strongly believe Emerald is going to play a big part in the regions development.
Emerald has been around for many years. It was never established as a mining town. It has developed a strong economy supported by cotton, wheat, and cattle and the closure of one old mine at the end of its life isn't going to spell the end of Emerald.
Has Emerald had a small correction? Yes, but we also had a $40k-$50k bump in the value on the properties. Be reasonable with your rents and you'll retain your tenant just as we have done. After expansion comes contraction......and round and round we go.
Emerald is about a 2 hour drive to the mines but it has the infrastructure in place to further enhance its position as a regional hub. Industries and business will come into the region to support these huge mining projects and Emerald is the likely choice.
Emeralds' strength isn't offering accomodation, it's about its location and growing infrastructure. Gregory has depleted its resource and was always going to close. Yes it has raised vacancies but the market will correct.
Much of the land surrounding Emerald has been purchased by companies over the previous 2 years. Bandana Energy is developing a $1b mine just 60km south of Emerald. Blackwater and it's mines are approximately 80km away and now with the Galilee Basin opening up I strongly believe Emerald is going to play a big part in the regions development.
Emerald has been around for many years. It was never established as a mining town. It has developed a strong economy supported by cotton, wheat, and cattle and the closure of one old mine at the end of its life isn't going to spell the end of Emerald.
Has Emerald had a small correction? Yes, but we also had a $40k-$50k bump in the value on the properties. Be reasonable with your rents and you'll retain your tenant just as we have done. After expansion comes contraction......and round and round we go.
JT7 you may be misinterpreting my comments... I am not panning Emerald as somewhere not to buy. What I am trying to say is that when you look at it, you need to be able to justify it as a strong regional hub buy without relying the gigantic rents of mining boom. If the numbers stack up with non mining rents, then great.
I have been in contact with a few agents up there the past few months and they are optimistic about the knock on effects of the Galiliee Basin approvals.
The only other comment I would make is "small correction" needs to be put into context for the benefit of others who dont know the town. Houses that used to rent for $800-900pw are now renting for 500-600pw in the current market. Even so, the returns are good, and plenty of future scope if things go well up there.
I have been in contact with a few agents up there the past few months and they are optimistic about the knock on effects of the Galiliee Basin approvals.
The only other comment I would make is "small correction" needs to be put into context for the benefit of others who dont know the town. Houses that used to rent for $800-900pw are now renting for 500-600pw in the current market. Even so, the returns are good, and plenty of future scope if things go well up there.
All good mate
As I mentioned I understand what you are saying and you are right.....It does have a lot to do with entry price and then knowing market expectations for your rental returns based on your entry price. I think the market did 'over heat' and companies drove up the rents to those high prices. It's a healthy correction and will contribute towards the towns long term prospects.
Always good disecting a market and getting feedback. I think it's healthy.
Jack
As I mentioned I understand what you are saying and you are right.....It does have a lot to do with entry price and then knowing market expectations for your rental returns based on your entry price. I think the market did 'over heat' and companies drove up the rents to those high prices. It's a healthy correction and will contribute towards the towns long term prospects.
Always good disecting a market and getting feedback. I think it's healthy.
Jack
400 more jobs shed near Emerald
http://www.abc.net.au/news/2012-10-16/another-qld-coal-miner-to-cut-400-jobs/4316074?section=qld
Thoughts?
http://www.abc.net.au/news/2012-10-16/another-qld-coal-miner-to-cut-400-jobs/4316074?section=qld
Thoughts?
Yes, my PM confirmed this last night. It's certainly not good but indicative of what some of the mining companies are doing at the moment in order to stay competitive in the market place.
The reality is that the rental market in Emerald is softening and rents are dropping in order to secure a tenant. Company leases or fully furnished options just don't seem realistic in this environment even though some are spruiking them. I would not enter the market expecting a company lease or fully furnished lease.
At the moment its a matter of trying to secure a tenant with realistic rents and holding. I have a lot of faith long term for Emerald but it appears in the short term at least things are going to slow.
Thanks dubstep, appreciate your perspective and support
Thank you too Jack, for your comments and feedback.
Your welcome Jake.
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An update below from Bandanna energy, with the release of the EIS for Alpha :
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http://news.ninemsn.com.au/national/2012/10/17/17/22/eis-released-for-qld-coal-project
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http://www.southgalilee.com.au/
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An update below from Bandanna energy, with the release of the EIS for Alpha :
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http://news.ninemsn.com.au/national/2012/10/17/17/22/eis-released-for-qld-coal-project
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http://www.southgalilee.com.au/
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