TAS Roseberry/ Zeehan TAS

Hi All,
First time user of the forum! Go easy.
Anyone have any experience in Roseberry/ Zeehan TAS?
What are some of the pros and cons of investing in these areas or some experiences you’ve had?
Cheers

 

Please tell us why you are interested, ie what got your attention. This way we can tailor responses appropriately

 

Thanks for the posting guidance, Angel.

I’m interested in areas with low capital outlay and a strong yield however concerned about the life of the mine.

Recent reports suggest that further exploration has commenced and they have a strong zinc and lead output in comparison to previous years.

Seeing if anyone has any advice around 1) RE in rural mining towns, 2) which part of Roseberry is best to purchase it and 3) any local intel said the area that can help a fellow investor.

If anyone is looking for info on this mine, it’s owned by MMG Limited who are trading at about $5 on the ASX.

 

I am a bit late with this one but the Rosebery mine should kick on for a while, once it goes though the town will fold right down. Renison Bell mine is going well so get some feed off there though most of the workers live in Zeehan which has a more robust economy. Houses still sell ok in Rosebery, expect to pay $90k plus for a house that has been "done up" rents are about $200+ week, you can expect a good yield. A lot of the houses are old pre-fab. The better houses are in Dalmeny and the elite are in Barkers crossing which sits high above the football oval. Snake gulley houses are very worn and very cold inside.

 

Average rents appear to be $140 a week for a 3 bedroom 1 bathroom. By the time you pay for land rates, a broker and insurance you aren't really going to be left with much. I think if you increased your budget a tad you would have better luck elsewhere. Maybe try areas closer to hobart.

Also the tenants you attract in these smaller areas most likely won't be very good. Being in the small rural towns they are in vacancy rates are going to be a real pain.

 

Tenants are not flash and the houses are past the use by date. Bottom line is a big NO- get a good rent on some in Rosebery. Private business' are building a few wind turbine towers at Granville harbour 20ks west of Zeehan with more to come which is creating work. I think the houses are over a $100k in Zeehan and rent is about average $145 wek with more for better homes. 25km to the east is Queenstown the biggest west coast town which relies solely on tourism. The copper mine has closed there so a lot of people have left that town. Be fair to say a major migration of people away from the West Coast. I don't think the area will boom again.

 

I say go for it Cargen. Take a punt.

I have had two 3 bedroom houses in Zeehan for a couple of years now. Bought both as speculative buys that even came semi furnished - miners moving to the mainland and leaving the large items behind. I did travel and make the effort of undertaking due diligence with building reports.

Both former Renison Bell mining houses - so fairly well built. Both, only vacant for a few months over that period. Had no issues with tenants. One long term Centrepay and the other to a mining company. The last time I checked, there were minimal vacant houses available in Zeehan, which theoretically should increase rents in the future.

It can be a problem getting work or repairs done during the wet periods though.

As for capital growth? I think that the key for the area will be the re-activation of the Avebury Nickel Mine or the Rentails Project. As to when that happens - maybe a couple of years to go?

Can’t help you with Rosebery or Queenstown. The team at Harcourts Queenstown I have found fairly helpful.

 

Have seen good growth from zeehan, and strong yields to boot! Did you end up buying?