A couple of months or so ago I contacted several Real Estate Agents in Collie asking for details of properties available for purchase and replies came back showing about six available. Last night I searched available properties on line and was staggered at how many were now there. I am wondering if some properties have been purchased and now there is a mad rush of locals saying “the investers are coming” and thinking “now is our chance to get out of this town”. Have any of you found in the past that a town becomes swamped with IP’s and there is no-one left to rent? I have no intention of buying there, merely gathering info for comparisons.
Judith,
i checked the area out also…a ‘lot’ for sale. checked with a friend whose sister is there, the area is dependant on the coal mine and power station that he believes comes up for renewal in 2007.
lot of locals selling,older houses,and approx 100+ people left the area and an agent in the area is promoting positive cash flow properties, on the other side of the coin some nice brick places being built in the area by locals (owner occupier), economic output is on the up for agricultural and industrial, the town is only 1/2 hr from Bunbury too..
Bring out that crystal ball..[
]“The man that thinks at 5o as he did when he was 20 has wasted 30 years of his life”
Hi Redwing – Collie has several things against it:
1. Population dropping/future projections not good
2. Dependent on coal
3. Freezing at night!But these things also apply to the Latrobe Valley and that hasn’t stopped the property boom there!
But for its size, Collie would be the cheapest town in WA, so might be worth more work. Proximity to Bunbury is an advantage, though there are places like Brunswick Jn or Harvey that are nearer Bunbury, Perth and the coast.
My main worry would be the vacancy rate, both short and long term.
Peter
Just back two weeks ago from an interstate trip to Collie, Bunbury and then Kalgoorlie. No positive cashflow in Bunbury although potentioal for capital growth and I liked the large town. Looked at about 6 properties (houses and units) in Collie. Unfortunately the rents didnt match the 10.4% returns in relation to the asking prices. For example nice modern brick units selling for 75-80000 but only renting for $120. Rents are really low. Nice river running through the town though. And yet in Kalgoorlie, my group purchased 6 X 3 bedroom brick units in one block built in 1990 at 78000 eeach renting at $160 p.w. Other units purchased by my group being a block of 5 x 4 yr old units (top quality)The 2 bedroom units in this block at $107500 with leases of $220 p.w. The one bedders similiar purchase/rent ratio. So I didnt buy in Collie or Bunbury. Kalgoorlie has 30000 people and is a much bigger and vibrant town than I expected, not the desert town image if you know what I mean. The place in on the way up with rents increasing lately. Regards, Scotty.
umm, when you find some bargains shouldnt you be keeping them to yourself? or being at least slightly cryptic?
in regards to collie Im originally from WA and have spent time in the said town, the rental returns are quite low and there isnt a large population to guarantee tenants.
hmmmmmdags nobody
the hippie investorI appluad you Scotty
Most people have dagsthedud mentality and fear if they post where they have been looking they will all vanish.
Your kind of reply is very imformatve and I will be looking out for your name as you are prepared to give real advise in helping people.
ErikaWell done Scotty! You did well (better than me when I went over there 6 mths ago). Re the 3br units, were they villas in a group of 6 or 8? If you don’t mind me asking, how much was the original asking price, and could they have been bought singly, or did the seller want to sell all six to one group.
In contrast, some places have been on the market for months – eg a place at 305 Picadilly St. I looked but thought the asking price was too much and it was too long a walk to town.
BTW did you notice the novel street drainage there?! If it’s rainy you have to jump open trenches or find a ramp (bit of metal placed over a trench).
Peter
Dear erika
I have a attitude where I like to do the research myself and have at least some gratification when My hard work pays off ie; hundreds of internet hours.
I believing in hard work not getting spoonfed.
Well done looking for people that will give you all the info you want so you dont have to go out there and do it yourself.
ouch.Maybee ive had too much coffee it seems im freaking out again
dags nobody
the hippie investorI agree with you 100% Dags. I find it laughable in the extreme, when people do all the work, make an effort to visit a location and then discuss it on this forum for all the spoon feeders to see!!!
Whats up with you guys? You got a problem helping others? I thought this forum was here so we could share info. Sure I did heaps of hours searching the net, (many times until 3am in the morning)the ABS suburb snapshots, many phone calls to local agents etc and then took my wife and 2 kids to W.A Cost me heaps, but I got some good deals. Its my business if I want to share that. My contracts are signed and vendor has signed, so what are you guys frightened that someone would steal your deals before settlement. Why are you guys on the forum Dags, Obviously to read other info that might help you. So in a way we are all getting a little spoon fed. I now have 10 properties plus my PPOR. I didnt start until last November. Sure I bought all the books, and did Hans Jakobis property course etc etc. You have to spend money to get the knowledge. But I got heaps of free information off the Somersoft forum and to a lesser degree this forum, so was I being spoonfed? In fact I got detailed info re Kalgoorlie even to the point of what particular streets have soil, cracking problems. Circled my street map and you know what? the info was dead accurate. Got that from the Somersoft forum. You guys sound selfish. By the way for all you unselfish folks and selfish alike, I have helped organise my accountant Dale Gatherum-Goss to speak at Footscray Uni on 16/10/03 re hybrid property trusts and other property tax matters. This is a totally free night. No selling no kickbacks, and with a room to hold 200 people. Because of unslefsihness from Dale, my investor friends and some good people at the uni, others can be “spoonfed” too, and good luck to us.(see my previous post re details on this a few pages back) So Dags, dont preach to me about what I should and shouldnt do on the forum. Its my risk and my business. By the way Dags your are also welcome to our meeting. I mean that. Regards, Scotty.
Enuff said… good on you Scotty, you can reveal whatever info you like… I don’t see the point in this becoming a slanging match.
Cheers
r
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