Forum Replies Created
Looking in my own backyard and what's happened in Moranbah, Dysart, Blackwater, and Emerald, it seems CBA is finally wisening up to the risks of investing in mining towns.
The median price in Norman Gardens was being propped up, perhaps to an abnormal level by the sale of "premium" houses/estates east of Norman Rd through 2010 – 2012. I'm a bit bearish on Rocky at the moment, there's lots of supply coming online and heaps more in the pipeline, and the council de-amalgamation and ridiculous rates rises for IP holders on top of the mining downturn in CQ, it's hard to see much growth in rents or prices unless there's a big change in fundamentals.
It's too complex a situation to suggest that money should be taken from one and given to the other. Both industries receive government assistance and tax breaks, and both have to compete with foreign competitors who receive even more government assistance and tax advantages.
robrok wrote:We have been working property in the Bowen Basin for the best part of 8 years now and having seen our fair share of property cycles are more than happy to share the experiences. Rob House Hunters Australia http://www.househunters.com.auIf you've only been there 8 years you haven't seen a genuine downturn yet. Wait and see what happens if/when the coal price goes below the cost of production.
