Well I am back after a week in Lightning Ridge.
Great place and we had a lot of fun there and were well looked after. Weather was warm and they have an olympic sized pool, water theme park and half built olympic diving platform all entirely out of proportion with the towns size. The town seems proud and very clean and tidy.
Spoke real estate to a few people as you would imagine. Huge shortage of rental properties and waiting lists at the real estate office and all the local government departments. If you own a house here you will get strong rent and low vacancies.
Lot of work going on with the new hospital etc that suggest that the future is solid.
Prices range from around $90K to about $250K+. Strong demand from investors at the moment with most of the cheapies sold.
Here’s the downside – low CG. Prices have hardly moved in the last five years, or so I am told. So even in one of the strongest housing booms in recent history there has been little growth here.
Just thought I would post my observations.
Cheers,
Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
no CG in 5 yrs….which is what it is all about isn’t it.
at the end of the day, investors want to put their money where it is most needed. that is free enterprise efficiency. if rental yields are less than 10% in the bush, with no CG, then why bother with property expenses, in/out costs, and tenant risks when you can go and stick your money in tree farms for 9% pa, or just keep upgrading tax free your PPR in the burbs.
I visit this website because I think it helps make the intergenerational redistribution of capital a more efficient process. And that to me is one of the strengths of a free market.
The public sector, and especially public housing has shown over and over it is less efficient than the private sector at providing accomodation.
Let’s all remember that an opportunity lost is just an efficient market prompting us to think more creatively and laterally, and will reward us manyfold for doing so.
Bruce
Mooloolaba, QldHey Simon,
Thanks for that info. I personally know of Lightning Ridge, and i personally wasn’t even thinking of investing their due to the fact that it is a rural town with little or no cg like you said.Matt
“If you do what you have always done, you will get what you have always had.”
“Isn’t it time for a change?”
>>I visit this website because I think it helps make the intergenerational redistribution of capital a more efficient process. And that to me is one of the strengths of a free market.
The public sector, and especially public housing has shown over and over it is less efficient than the private sector at providing accomodation.
Let’s all remember that an opportunity lost is just an efficient market prompting us to think more creatively and laterally, and will reward us manyfold for doing so.<<
Bruce I haven’t got a clue what you are talking about. Sorry [
]I can’t possibly imagine that you are talking gobbledegook so can you please re-state your contribution in plain English for me (and probably many others) ?
Pisces133
hi simon,
so what are the yields like there?
are they ten percent or are they better?
because like bruce said I would like more than 10 percent if there was no CG. Then again the yield is usually the lowest in the first year and then it gets better, basically because rents slowly rise, especially if inflation kicks in (which is linked to interest rates rising isn’t it?) and the return should get better and better over time, because the original price paid stays the same and the mortgage goes down. and if there is a surplus of cashflow you can churn it back in to the mortgage making it even better over time.cheers-
miniHi Simon,
Never been there but I was told that many people live in underground caves so as to avoid the heat in summer.
Is that correct ?
If so, how much a cave ? [
]Pisces133
Yields are high but not spectacular – got them written down somewhere – will post them when I unpack…..maybe in a week knowing me!
Underground is Coober Pedy. Lightning Ridge is a little damper and to live underground would lead to pneumonia so I was told.
I didn’t mention this but the absent CG has put me off buying – just doesn’t fit my strategy.
Cheers,
Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
>Underground is Coober Pedy. Lightning Ridge is a little damper and to live underground would lead to pneumonia so I was told.
Not to mention cave-ins which are regular after heavy rain. Not sure about the pneumonia, if you were fit and healthy.
Opal prices have fallen steadily for some time now and since opal was the main reason for the ridge to exist the town is not as prosperous as it was in its hey day, thats not to say money isnt being made there still. I think you will find this is evidenced by the half built diving tower, as the community was funding it.
Last time I was working there (Oct) I had a look at some places, but when I spoke to my lender (st george) they turned white with fear, thats after throwing money at me for properties closer to home. So I decided to be guided by their (obviously) bad previous experiences.
Also a work colleague who is born and bred in the ridge earning approx $90k (extremely stable employment) couldnt get a mortage broker to touch him on a PPOR which was $120K about 2 months ago.
(I know his financial history and it is sound)Rental supply and demand will remain relatively strong due the very high cost to build houses that far from a major center.
Lightning Ridge will not die but I believe that it has reached its peak, and will only plateau now. I base this statement on the fact that all nesssary infrastructure is in place (apart from a big opal tourist theme park their trying/going to build) that the ridge will need.
BC
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