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zaph

Moranbah speculators want govt protection

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The concept of making Queensland's Moranbah a 100% fly-in, fly-out town has angered investors, who argue that it isn’t a flexible option and that there is plenty of accommodation for workers to live in the town.

Moranbah, once an investor favourite town gracing hotspot lists around the country, saw capital gains soaring and high rental yields to the tune of 20% before plummeting in recent times and leaving investors the area struggling.

The area has been the subject of much debate, and has recently been labelled a hotspot again with resources spending expected to be significant.

However, within a new proposal from BMA to expand underground mines and create a new development is a 3,000-room mine camp for all of the construction and operational workforce.

Property Observer was provided with a letter sent to Deputy Premier and Minister for State Development, Infrastructure & Planning Jeff Seeney by a Real Wealth Australia client, who lost a tenant due to forced changes and who is calling out for there not to be an enforced 100% FIFO workforce.

 

http://www.propertyobserver.com.au/news/100-fifo-concept-slammed-by-moranbah-investors/2014022367984?utm_source=po&utm_medium=aida&utm_campaign=newsplus

 

 

Read the rest of the article for a good laugh at the mindset of someone who invests in a very risky (and for a while, high return) area.

 

There's an old maxim about QLD politicians - half of them are real estate agents or the like. So it may well get protected. 

Edited by zaph

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Investors should struggle from time to time.   I believe these may be the haaad yaaads they lecture tenants about.   Good on 'em gaining insight and experience to win at property.  Lucky bastards.

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Dear Mr 'Real Wealth' property investor,

 

Thank you for your letter outlining the concerns on the local Moronbah 100% FIFO proposal. Like you, the state government is very concerned by the proposal. That is why we will not allow a 100% FIFO workforce, it would destroy the very fabric of the Moronbah community.

 

In line with our decentralisation plan for the state we have invoked the 'investment of special significance' laws to override local planning regulations to ensure a larger, more vibrant local community. Today we commenced work on a subdivision of 3000 residential lots on state owned land (Homevale national park), and the approval of two new brothels in the area. The residential lots will be available FOC to all workers at the mine and will be provided a grant of $32,565 for the construction of a dwelling. 

 

We hope this will put an end to this ridiculous idea of FIFO workers. Rest assured we will put an end to these FIFO workers. If, in the unlikely event that our miners home package doesn't stop air travel we will close the Moronbah airport and will consider closing the Mackay airport. If necessary we will declare mining executives as VLADS.

 

Yours

 

 

Jeff Shiny. 

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HUNDREDS of investors are banding together to challenge the State Government, Isaac Regional Council and mining companies over an increase in the use of fly-in, fly-out workers.

Lee de Ryk said he'd invested in a standard Moranbah development that had recently dropped $300,000 in value.

Mr de Ryk said an increase in FIFO operations had "destroyed the spirit" of Moranbah and other mining towns.

"We need to put a stop to FIFO," he said.

"There are 200 to 300 people (investors) who have lost hundreds of thousands of dollars from the value of their properties.

"This week I know two people who have had to foreclose their properties.

"I know one person who bought a property valued at $910,000 and this week sold it for $199,500."

Mr de Ryk said the group of investors was asking for hardship relief from the council and State Government.

http://www.dailymercury.com.au/news/investors-challenge-over-fifo/2178632/

 

 

I'm sure the locals will be happy with the destruction of the spirit of the town and accompanying destruction of house prices. 

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Bwahaha... sounds more like specufestors than investors. Mining towns are high risk/reward gambles, I guess this is symptomatic of the entitlement mentality many people have in Oz.

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This whole FIFO thing is more to do with busting local unionists.  A bad time to start demanding improved conditions when coal prices have been falling. Specufestors caught in the middle probably should have seen it coming. I feel a little bit sorry for the locals. However they could still benefit by supplying goods and services to the mine. Virtually the only ones that made good from the early Oz gold mining were the ones who supplied miners.

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Diversity is the key to avoiding property pain

Quote

Imagine paying nearly $50,000 a year in council rates on top of mortgage repayments for properties that no one wants to rent.

That's the position that real estate agent and investor, Bella Exposito finds herself in after going all in and buying up 19 properties in the Queensland mining town of Moranbah.

"About 70 per cent of my wages is going out on mortgage repayments, and rates are on top of that cost. It makes me feel sick and very angry," she says.

Quote

For some time now Bella has been a vocal critic of the property downturn in the Queensland mining town of Moranbah, "Now we have a lot of supply of properties but no demand," Exposito says.which she blames on the Labor Government under Anna Bligh, approving fly-in-fly out workers.

"Before miners would settle in the local area, but now 70 per cent are opting to fly in and fly out, and they are not even coming into town to shop with buses taking them from the airport to work, and back again. 

 

Good grief. This is Labors fault and nothing to do with my own greed.

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I'm on James Altucher's mailing list. He recommends not having more than 2% of your savings in any one investment. That includes mortgages.

Yes, that' s two percent. He's apparently made and lost millions on several occasions.

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That would be except "cash".

I have on occasion had 100% in cash, and never lost a cent. It might have deteriorated according to inflation, but that's beside the point.

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