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

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Presentation on theme: "AUSTRALIA THE LUCKY COUNTRY WE RODE ON THE SHEEPS BACK THIS TIME IT IS THE RESOURCES BOOM."— 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

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 $650,000 = $6,500,000 Projected profit over = $2,000,000 You bloody beauty

13 Thats 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 $300K each Build costs + Other Props Total $1,500,000 + $1,176,000 = $2,676,000 Sell $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 $550,000each = $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


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