1 / 19

AUSTRALIA THE LUCKY COUNTRY

AUSTRALIA THE LUCKY COUNTRY. WE RODE ON THE SHEEPS BACK THIS TIME IT IS THE RESOURCES BOOM. Moranbah – Why?. Moranbah sits in the heart of the mines. A perfect base for miners to live and be sent to any mine. Moranbah – Why?.

hamlin
Télécharger la présentation

AUSTRALIA THE LUCKY COUNTRY

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. AUSTRALIA THE LUCKY COUNTRY WE RODE ON THE SHEEPS BACK THIS TIME IT IS THE RESOURCES BOOM

  2. Moranbah – Why? Moranbah sits in the heart of the mines. A perfect base for miners to live and be sent to any mine.

  3. Moranbah – Why? • Developments within the town on Res A land, which typically only have a single house on it, are able to be removed without restriction and Multi Unit Dwellings (Units/Townhouses) will be approved under a Development Application (MCU – Material Change of Use) • The town is landlocked due to the surrounding land being mines owned by mining companies (mainly BHP). • What do we mean by landlocked?

  4. Moranbah

  5. Moranbah – Why?

  6. Our Property

  7. Our Property

  8. Our property • Purchase price $668,000 • Rent per week $2,200 • Return of 17%

  9. Our planned development • Build two townhouses on our free land • Build costs $300,000 ea, inc fees = $600,000 • Sell townhouses $650,000 each = $1,300,000 • Profit $700,000 less fees $600,000 (roughly) • Pays off loan on old house, income stream

  10. We then got offered next door

  11. Second Property • Purchase price $508,000 • Expected rent per week $1,600 • Return of 16%

  12. The Development Changes • Then realised we can build ten townhouses • Build $3,000,000 + $1,176,000 = $4,176,000 • Sell all @ $650,000 = $6,500,000 • Projected profit over = $2,000,000 • You bloody beauty

  13. That’s the positives • What about the negatives?

  14. Sewer Lines

  15. Negatives • BMA workers have been on strike, so no new workers were employed for a while • ULDA releases land for affordable housing • This created an over supply of houses to purchase and for rent coming onto the market • Taking too long to develop. You may miss the window of opportunity to get in and out with a healthy profit

  16. 12 Months on • First house rents for $1,600 per week (2,200) • Return now of 12% (17%) • Second house rents for $700 per week (1,600) • Return now of 7% (16%) • We had to adapt to the market

  17. The Development Changes Again • Keep first house and build 5 townhouses, 1 at the back and 4 on second block @ $300K each • Build costs + Other Props Total $1,500,000 + $1,176,000 = $2,676,000 • Sell 5 @ $650,000 = $3,250,000 • Estimated profit $600,000 less fees, plus we • Still have old house paid off for income stream

  18. What if they only fetched $550,000 • Build costs $300K + Old Props = Total $1,500,000 + $1,176,000 = $2,676,000 • Sell 5 @ $550,000 each = $2,750,000 • Estimated profit $74,000 less fees plus we • Still have old house paid off for income stream

  19. Lessons Learnt - Many • Minning town properties can move very quickly up or down, purchase and rentals • Get in and out and take a profit asap • Keep an eye on what the mines are up to • Research, research, research • Developing is a roller coast of emotions • Watch out for the “Pitfalls”

More Related