- Scamp wrote:devo76 wrote:I remember my grandparents house in Broken hill sold for $30,000 about 8 years back. It was probably the best in the street but they were the last to leave. You could get one in the street for under $20,000. If this happens again. I will consider buying and boarding it up for the next boom. There will be a next boom. Got to get in early but.
There's always a next boom. The question is if you will earn more by investing there as opposed to investing in something else. My guess : you will earn much more by investing somewhere else. Don't forget that maintaining the house to a suitable standard will cost you a lot of money if they steal your rooftiles and windows and doors every weekend.
Fair point. I am not interested in mining towns to be honest. I would want my net wealth to be a bit higher yet before i take on that risky market. I am mainly interested in NSW in or out of the city. The one im chasing now will have a 10% return at purchase and 30% below asking. NSW has had a big correction for some time now. Yes there may be more to come but we sure as hell are not at the peak. I cant speak for other states especially the resource led states but there is a somewhat return to normal prices around my area. Not 2001 prices but sustainable realistic levels.
think that the minning company does not want to take a risk on properties otherwise if they thought it was as a good asset they could securities these assets.
The mining company is happy to pay you $1300 a week in order for you to take the capital movement risk for the house. in otherwords like any investment the higher the return the higher the risk and the mining company is glad to pay the return on $1300 p/w return as they consider property assets within the area are highly volatile.
the rent is subsidise by the mining company to bring worker in to town .one thing i was told is the mines have moved away from the camps for workers idea to much trouble,paying workers directly the rent subsidise .with blackwater spoke to the pm and she said most of the new rent contacts were for 2 year .but one thing about coal the price for 2008 contracts will fund work for years to come ,mining companys don't think 1,2 years as this slow down will last. mining companys think in 10,20years.the australian coal mines were caught lacking in the last run, when it all starts again hopefully we will be on the ball.big chinese companys buying into australian mines is a shore sign it is not over.
Interested to hear from those that own in Dysart and Moranbah now. I am seeing rentals now at $500 a week to rent them out.
Can anyone tell me what was so special about Port Hedland and Karratha that make them $800k + homes that rent for so much consistently? Is there a lack of land for development? I’m trying to understand what the key features are to pick the next hot spot.
Thanks,
MattPort Hedland and Karratha homes cost and rent for more because of supply and demand. The mining industry is still going strong. New developments are being built but it takes time because it is hard to get tradies to go up there to build anything.
In Port Hedland about 2007 they started refurbishing ex-government houses so they could put them back on the market to sell. The rental market was that tight that even though they could get the tradies up there they could not get housing for them. So what should of taken them 6-8 months took them over 18 months to get three houses on the market. Then when summer came it was too hot for the tradies so they left.
There was a slight slow down a couple of months ago but not enough to affect the prices of the houses.
Geez I hope Port Hedland isnt slowing, would make the property I am in the throes of buying a pain in the hip-pocket. I looked round the Qld mining towns before deciding it was a bit hit and miss so I went across country looking at Hedland and Karratha. Speaking with people in Karratha and finding out they are putting an airport (direct flights from Perth) and huge amount of accomodation out on Barrow Island for the workers on Gorgon didnt make Karratha a good thing for me. Hedland being more iron ore and having BHP Billiton and Fortescue made me a bit more comfortable jumping in feet first. I plan on riding along for 5 years or so, checking how things are travelling and if theres any worries, Im outta there. The rents will achieve exactly what I want and if I happen to get some CG as well its a bonus. Risky??? Maybe, but hey, I could get hit by a bus crossing the road.
With the amount of trouble I had just getting an offer into a place this time due to the fast turnaround of places, Im happy with my call.Thanks for your input. How much deposit did you need for your purchase? I am hearing of a number of sales falling through in mining towns as banks are requiring 30% deposit.
Mattnz, Im geared to the hilt on it, no deposit its all using equity including costs. Not my preferred way but its going to have to do.
Here’s some peace of mind in a timely article for you.
http://www.smh.com.au/business/rios-pilbara-mines-operating-at-full-tilt-20091110-i72c.html
Well that is indeed an interesting read and makes me feel better about my call. I felt Pt/Sth Hedland had all the good signs to keep going strong and having Rio say that is nice indeed. Have to look around for something similar for BHP Billiton and Fortescue.
I love reading older post and watch the white-marble-tower replies of some who apparently own a cristal ball and let us, (poor sods) in on some quick reading from it… from time to time.
I bought two blocks of 8 flats in a mining town got it rented for 2 years at twice the cost of keeping them and paying 100% mortgage, and sold them more than doubling the money paid.
Thre is money to be made and there is money to be lost, there is the right timing to get in and the right timing to get out. That in essence is the skill of the entrepreneur in any area not only RE.The holier-than-you replies, particularly those who profetise doom and gloom are not helpful really, and should stick to a different religion. I am told that Global Warming religion is asking for accolites. May be worth a try there. Plenty of fake doom a gloom to be fanfared around there.
My opinion only of course, not to be taken too seriously
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