Forum Replies Created
Hey no worries Sparky
With Adelaide, the hills and the Fluerieu doing the run it's done KI has to be next…eh?
13 mines in SA with another 30 to go……every miner needs a holiday home??For the record, if you own land on the island you get a great discount on the ferry.
Cheers
Mikey P
Hi Sparkys
Kangaroo ISLAND.
Great place. Possible that it could be the last coastal affordable land in Australia. Population of nearly 5000.
Great wine, great food. No denying it's an island same as Rottnest and Hamilton Island (try buying blocks there!)
Only sharing buddy!
Mikey PSorry wrong suburb!!!!!!!!!!!! Try this link http://www.realestate.com.au/property-residential+land-sa-nepean+bay-2567927
http://www.realestate.com.au/buy/property-land-in-american+river%2c+sa+5221/list-3?activeSort=price-asc follow this link. Just to let you know I own land here.
Hi
This subject is a real touchy one especially after the GFC and the effect on Real Estate prices and commodity prices in mining sectors.
We have invested heavily in mining towns. One thing we have learnt is that realistically you are not essentially buying property but options on shares that give a dividend return known as rent in what ever commodity supports that town. Buying right is the only way to go. Buying at the height in these towns (when prices have doubled or more and rent returns have dropped below 10% and you get the feeling you're missing out) is very, very dangerous.
Our experience is mainly in Kambalda south of Kalgoorlie in WA. Prices peaked there in November 2007. A brick 3 brm home that was rented for about $400p/w was selling for high $200's low $300's. Now the same houses are rentng for about $250p/w and selling in the mid $100's. Some units there that were selling for $200k rented at $400p/w are now selling for below $100k and renting upward of $175p/w illustrating that the return is again getting back to 10%.
Another lesson is get long term company style leases with options to adjust to market conditions.
Kambalda is one of our wild cards in our portfolio. It's a market that relies almost entire on Nickel (which is a risky investment) especially over the last year or two. However at the beginning of 2009 the market there crashed…….but guess what the town didn't die. Half the town are die hard Kambalderites who are proud to live in the town so apart from the main stream investor panic selling because of mine closures the town carried on.
We have made great money in this town over the last 5 years or so and do not see any reason why we should change our formula. We are just waiting and watching for the right purchases to come along so we can add them to our portfolio.
I am not endorsing Kambalda but I own property there
Mikey
Hi Andrew
I reckon diversification is critical to survival in the property game.
Some good solid investments in different locations allows the portfolio to enter "wild card" markets with minimal risk to the "mothership".
After all a sprinkle (not too much) of cheap waterfront blocks or mining town investments allows the possiblity for extraordinary capital growth, when most safer markets are in conservative mode.Cheers
Mikey P
Hi Thomas
If you are looking for really cheap beach front land checkout Kangaroo Island (Nepean Bay especially)
Mikey P
It may very well create short term urgency by miners to get the most out of the ground before the tax is put into action. Resulting in a short term accomodation crisis in some areas?? = higher rental returns??
Cheers
MikeyHi
I have worked in property development for 18 years both for myself and creating developments for 1000's of clients.
The golden rule as I was taught and applied…..make sure the living areas are facing as northerly/easterly as possible and make sure that the south/western sides have enough protection such as wide eaves or verandahs. This allows winter sun to warm the living areas in the morning and allows more light where it is required. The term used is solar passive housing. There is heaps of free information on the net, particular sites include the HIA or MBA.
Cheers
MikeyHi
There are positives around this great southern land try Adelaide for a start.
Uranium, gold, nickel are all on the up………..real estate reliant on these commodities (and not in remote areas) are all doing well. Follow the asx.com all the company announcements are there daily. if you find a series of good announcements in one area "google the info"…………………………………
I too get sick of pesimistic attitudes in real estate investments. You can make alot more money in soft market than a strong one and the media will always try to advertise adversity especially when shares/property investing are not as strong as they were.
My opinion is south Aussie all the way (even though I'm in Bunbury WA). Xenia seems to be switched on in Adelaide the info received from this person has given me great insights so far which is turning into profit as we speak.
I agree a few more positive posts would be awesome.
I am not endorsing sa do your own research but i am investing there and loving it!!!!!!!!!!!!!!!!!!!!.
MikeyHi
I reckon Amway have a good saying!!! (not that i am in amway!!)
Definition of J.O.B. is "just over broke!!"
Cheers
MikeyHybrid 2007
The codes in sa are very simular to WA R codes.
The only experience that I have had in SA is on Kangaroo Island in Penneshaw and Kingscote. There doesn't seem to be much differance apart from a lot more flexible in interpretation from council. I would suggest going onto the SA planning commission site, all information is there, especially if you are familiar with WA's rules.
In addition to this I spoke with Southern Fleurieu Realty this morning about the movement south of Adelaide. They are really building alot of momentum in sales and capital appreciation especially in vacant land sales. A few months ago there was 50 or so blocks below $100,000 in the area now……due to developers finding the real cost of producing blocks from scratch the prices are galloping forward. So much so that the avaliablity of blocks below $100,000 is now sitting around 6!!!!!!!!!!!!!!
It would be interesting if there are any developers in SA who could fill us in with actual development costs of land there. If the replacement cost is around $130,000 then any purchases below this figure should return a good profit as stock levels are running very very low???? Food for thought? This is my slant on the situation do your own research prior to any purchases.
Cheers
MikeyHackham is not that bad. Anywhere in SA (my opinion only) should do very very well. Take a look at the increase over the last 18 months in all suburbs and still real estate in general in SA is below replacement value. The current market seems to be driven by the mining industry and if WA is anything to go by??? who knows what will happen.
Take a look on realestate.com and checkout the towns south of sellicks ie myponga, second valley and cape jervis and see what has happened down there in the last month or so. Even Kangaroo island is increasing at a great rate of knotts…..Gold did hit $US1000/oz yesterday for a short time, great news for the mines opening up around Adelaide!!
SA, Hackham and Adelaide in general has my vote! My opinion only.
Thanks
MikeyWow
A lot of negative feedback here!!!!!!!!!!!!!
Gold has just reached record highs, china and india are thirsting more and more of our iron ore and nickel……..the eastern states have resurfaced on the investment scale, wa is holding guys guys don't panic we live in a period that is not once in a life time or once in a century this emergance of two "poverty striken nations " evolving into western societies is an opportunity non of us can afford to miss. Sure interest rates are rising, however as said before equity has gone through the roof in the last few years surely wise people have budgeted for this increase in expenditure???
My opinion only we are still in for a hell of a ride………hold on tight and don't slip off………………..
Mikey PUpdate Kangaroo Island just voted "Best Island in the South Pacific" and # 5 in the world.
I am not endorsing this place but I am investing there.
MikeyHi
Geraldton did boom about 18 mths or so ago…but I don't think she has finished yet. With all the mining activity in the midwest and the port there's only one way it can go (my opinion only do your own research).I invested on the beach front two years ago in Kempton St. We have recorded exellent capital appreciation to date and yes I believe there's heaps more to come.
I am not endorsing Geraldton but I am investing there.
Cheers Mikey
Hgwells
Well done fantastic!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! Get some good capital growth over the next few years and you won't be able to wipe the grin off your face
Mikey PHi
Try Nepean Bay, sapphiretown on Kangaroo Island. Cape Jervis in SA
Cheers
Mikey
ps I own land on KI. I am not endorsing this place though.G'Day
Yes it seems mining towns do still produce CF+ investments. Kambalda is one such place.
I have been investing there for a number of years and it's still going very strong. Rents are on the rise due to supply and demand.
There is not much chance of building new housing there as the cost factor out weighs the resale price. Mines there are predicting at least 10 years +.
The location is only 30 mins to City of Kalgoorlie and 3 hours to Esperance (coast). There is a shopping mall there, main bank and scores of businesses in town well worth a look.
I am not endorsing kambalda but I am investing there and loving every moment.Cheers
Mikey P
Juder
If you feel the need to invest just do it so long as you can afford to wait. There's only one commodity between all of us making huge money and that is time. Buy in the right place at the right time then……..get out when you've made enough. Keep reading this web site it will give you so many leads. Good luck!
Mikey
