QLD What is your thoughts on Black water in QLD

Discussion in 'Where to Buy' started by Reddy, 14th Sep, 2019.

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  1. Reddy

    Reddy Active Member

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    Hi all

    I was reading one of the article in the news recently it says rental yields highest in the country is in a suburb called Black water in QLD

    A quick search here and on google indicates it’s mining town. Is that means it’s a risk for investors to buy in that area ?

    Has any one bought over there?

    My all properties based in VIC only and I have not much clue about mining towns keen to hear your thoughts. Much appreciated.
     
  2. kierank

    kierank Well-Known Member

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    Population less than 5,000

    I wouldn’t touch it unless I had some mullah to burn
     
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  3. investoradam

    investoradam Well-Known Member

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    Biggest crap hole of a town next to Collinsville!
    All it has going for it is a mining town with a large chunk of the homes being owned by the mining companies meaning the houses are not looked after. It has a bakery and a Woolworth that hasn’t been up dated since the early 90s
    Money can be made but with coal mining it’s 5 to 7 years of boom then bust to the point it looks like a toast town. It’s well past it’s hey say due to many of the mining companies prefer to keep their workers in camps due to lower costs and to help keep the unions out
     
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  4. Marg4000

    Marg4000 Well-Known Member

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    Any purchase in a mining-dependent town is a gamble. Some win big, some lose big.

    At the moment, mining towns in Qld are pretty much bumping along on the bottom. You can’t count on any, or much, capital gain. Then again, if the mines awaiting approval actually go ahead, the demand may soar. Who knows?

    It’s a big risk.
     
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  5. Angel

    Angel Well-Known Member Premium Member

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    You mean Back water?
     
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  6. Sackie

    Sackie Well-Known Member Premium Member

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    More like Black hole. Once your money goes in... never comes out!
     
  7. Reddy

    Reddy Active Member

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    Thank you everyone for feedback/comments.
     
  8. Sackie

    Sackie Well-Known Member Premium Member

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    It's really a speculative play for those whose portfolios can support the risks. Also your not investing in the property market as much as you are in the underlying comodity of the area.
     
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  9. dabbler

    dabbler Well-Known Member

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    lol...Black Water....

    Something I am often in :)
     
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  10. strongy1986

    strongy1986 Well-Known Member

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    Having been to Blackwater i can confirm that its not the most appealing of places.
    Some mining towns can have appealing features just depends on the towns history really

    i think the town hit rock bottom around 3 years ago (houses selling for 25-40k) and then had a mini boom which was most likely fuelled by investors. Thus has caused prices to rise a little but has put downwards pressure on rent

    So currently you could purchase a basic house for around 80k but you would only get $175 a week which realistically would only leave you with around 3k after expenses (based on cash purchase) - so not worth it

    Having missed the initial rock bottom its probably just a place to monitor as you will find that the vacancies should eventually come down and rents should rise and be starting around the $250 mark
    which would leave you with aroind 7k in your pocket or 8.75% cash return
    i wouldnt expect prices to rise in the short.term as it doesnt really have that owner occupier appeal that other towns do

    having said all that its probably a place i would avoid as you could get the same deal in a better town anyway
     
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  11. Propertunity

    Propertunity Exclusive Real Estate Buyers Agent Business Member

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  12. NewGuy88

    NewGuy88 Well-Known Member

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  13. Reddy

    Reddy Active Member

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    Thank you everyone for your inputs. Really appreciate your thoughts.
     
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  14. jt3427

    jt3427 New Member

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    Townsville is better, look at North Ward/Belgian Gardens/Castle Hill. There are connecting flights from Townsville Airport to Blackwater/Moranbah etc. Plus who wants to live in a hot desert? at least in Townsville the beachside suburbs get a lovely seabreeze and have great cafes and bars.
     
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  15. Ross36

    Ross36 Well-Known Member

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    Make sure you factor in things like:
    1. If something goes wrong how much does it cost to fix? Do you know a good builder / tiler / waterproofer etc there? If not get ready to pay exorbitant fees. Where there's no competition for services there's going to be extra to pay. I can't see tradies there being happy to do cheap jobs for out of towners. Locals may think you're trying to ruin their town and charge accordingly.
    2. If it doesn't go up and you get stuck with it what will you do? Move there? There's plenty of high yield small towns that are much nicer.
    3. What if the town doesn't exist or is a shell of itself in 20 years? Unlikely but who knows? Musket Flat was once a pretty major centre with lots going on. Small towns sometimes die. Take away coal from the region and what happens?

    I've had lots of family buy in towns like this and it's never worked out well. You may be the lucky one though....
     
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  16. Lily20

    Lily20 New Member

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    Speaking from experience from someone who owns a property there - avoid it like the plague. Rents have bounced back a bit now, but the clincher is you’re paying between quarter to double the costs to maintain an IP than in a metro or larger regional area.

    Property mgt fees 9.5%, hefty maintenance costs and tenants from hell.
     
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  17. Reddy

    Reddy Active Member

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    Thanks for taking time to reply