WA Broome WA Netting 8% Pus Rental Returns

Discussion in 'Where to Buy' started by Stegve, 27th May, 2022.

Join Australia's most dynamic and respected property investment community
Tags:
  1. Stegve

    Stegve Well-Known Member

    Joined:
    8th Jun, 2017
    Posts:
    51
    Location:
    SA
    Rent prices are going berserk in Broome.
    Net returns of 8% plus and rising.
    Property prices are still very reasonable.
    Properties in the $399K mark renting out anywhere from $800-$900 per week.
    Check the market out for yourself.
    Cheers
     
    Last edited: 27th May, 2022
    Investor2022 and BuyersAgent like this.
  2. Sam123456

    Sam123456 Well-Known Member

    Joined:
    15th Jun, 2020
    Posts:
    1,114
    Location:
    Queensland
    What's the cause of demand increase?
     
  3. Stegve

    Stegve Well-Known Member

    Joined:
    8th Jun, 2017
    Posts:
    51
    Location:
    SA
    Mining projects increasing
    Region has had many upgrades
    Money is pouring into the region
    Population increase
    Low supply
    Many owner occupiers buying up for the sea change / lifestyle change
    By the looks of it.
    Port Hedland property prices have had a huge increase in value, then Broome tends to follow the trend
     
  4. Stegve

    Stegve Well-Known Member

    Joined:
    8th Jun, 2017
    Posts:
    51
    Location:
    SA
    Just researched Broome council.
    The town has had millions of $$$$$$$ face lift
    Town Beach has had Millions of $$$$$ face lift
    Town Beach Tourist Park is going through a multi million dollar up grade
    International airport about to get a multi million dollar up grade
    New Skate and bike park is starting to be built
    Cable Beach is next to get the face lift
    The port is getting a boating revamp with a new floating wharf for easier access for mining ships
    Mr Forrest is shipping is cattle out of Broome
    The list goes on
    I think they're expecting something big
     
    Last edited: 27th May, 2022
  5. thatbum

    thatbum Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    5,788
    Location:
    Perth, WA
    Eh, prices used to be a lot more reasonable, and have grown sharply recently, similar to most of WA.
     
  6. Sam123456

    Sam123456 Well-Known Member

    Joined:
    15th Jun, 2020
    Posts:
    1,114
    Location:
    Queensland
    Yeah but you can't always get on before the upswing.

    I was just interested in whether the demand was likely to be linked to a longer term population increase of whether it would be a repeat of the pre 2008 boom
     
  7. Spanna

    Spanna Well-Known Member

    Joined:
    14th Jul, 2015
    Posts:
    108
    Location:
    Port Hedland
    Rental market has been very tight for a few years now. Sales market has caught up in the last 6 -12 months
     
  8. Stegve

    Stegve Well-Known Member

    Joined:
    8th Jun, 2017
    Posts:
    51
    Location:
    SA
    Just finished researching Broome property history.
    Prices are still below all time highs of 2010 yet rents has almost doubled from the all time highs of 2010.
    Rates, strata have only gone up a small amount from 2010 levels.
    Insurance seems to have gone up a lot but from what I've read insurance for the Kimberley region is set to come down by as much as 40% by the end of this year.
    Broome has repeatedly missed cyclones only experiencing tropical lows with no major damage like the east coast experiences on a regular basis, so what gives with insurance?
    Apart from that, Broome may be the place to park my money.
    Any thoughts?
     
    Last edited: 27th May, 2022
    Piston_Broke and Redwing like this.
  9. Stegve

    Stegve Well-Known Member

    Joined:
    8th Jun, 2017
    Posts:
    51
    Location:
    SA
    Looks like more subdivision has opened up in Roebuck Bay estate, new infrastructure and lots of land has been sold off.
    Broome population forecast is expected to double if not triple by 2036.
    Below is a cut and paste off the Broome Power Station Website
    About the Broome Power Station
    Commissioned in 2008, the Broome Power Station took over from Horizon Power’s original station after 30 years of generation to provide the community not only with a 25% reduction in greenhouse gases, but to meet the energy needs of the growing population.
    The power station has 17 Caterpillar gas generators and nine backup diesel generators installed, creating an operating capacity of 43.2MW.
     
  10. Redwing

    Redwing Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    7,432
    Location:
    WA
    upload_2022-5-27_21-33-47.jpeg

    So they truck it in from Karratha (several trucks per week)

    Broome's Power Plant runs off gas, have a look at the gas at the old tip if you're ever out there
     
  11. Stegve

    Stegve Well-Known Member

    Joined:
    8th Jun, 2017
    Posts:
    51
    Location:
    SA
    I'm in SA, only looking to purchase an investment property.
     
  12. Shogun

    Shogun Well-Known Member

    Joined:
    26th May, 2018
    Posts:
    2,856
    Location:
    Perth
    Broome is not a nice place to live in summer. In winter all the Snowbirds go there.
     
  13. skater

    skater Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    10,222
    Location:
    Sydney? Gold Coast?
    What makes Broome a better investment than somewhere closer to home?
     
  14. Stegve

    Stegve Well-Known Member

    Joined:
    8th Jun, 2017
    Posts:
    51
    Location:
    SA
    Hi Skater,
    Broome has a far higher rent return on investment with consistent tenancy and a far higher capital gain looking forward.with everything that has gone on and going on in the region.
    Stamp duty is cheaper in WA.
    The region has a few sources of ongoing industries to support it, government, mining, tourism, fishing etc
    Everything is within a 5-8km range from CBD to world famous Cable Beach.
    I cant find any of this elsewhere in Australia in my price range.
    I'm about to make an offer on a property. A friend of mine has been keeping an eye out for me up in Broome.
     
    Last edited: 28th May, 2022
    smallbuyer likes this.
  15. thatbum

    thatbum Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    5,788
    Location:
    Perth, WA
    This seems like pure speculation though.

    Don't get me wrong, I like Broome, and can see upsides, but I have no idea if prices will increase or are sustainable.
     
  16. skater

    skater Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    10,222
    Location:
    Sydney? Gold Coast?
    You do realise the CG is not guaranteed, don't you?

    I'm not going to pretend to be an expert on the area, but I do know that investing anywhere where the main industry is mining has risks. The mines close, people move elsewhere, vacancies occur. Prices pull back. If population decreases the government will reduce their presence as well.

    Have you even been to Broome? It's not that big a place, and it's miles away from anything else. Getting trades may be expensive, and supplies might have to be flown in from Darwin/Perth.
     
    R R and PeterCr like this.
  17. Shogun

    Shogun Well-Known Member

    Joined:
    26th May, 2018
    Posts:
    2,856
    Location:
    Perth
    Tourism?
    I know a little about one of the caravan park owners. Makes all the money in winter from the snow birds
     
  18. smallbuyer

    smallbuyer Well-Known Member

    Joined:
    25th Jun, 2015
    Posts:
    404
    Location:
    WA
    Regional govt and health services biggest employer and constantly growing (FT high paying jobs) , plenty tourism work and mining work which can be a more seasonal (wet/dry or mining boom/bust)
     
  19. smallbuyer

    smallbuyer Well-Known Member

    Joined:
    25th Jun, 2015
    Posts:
    404
    Location:
    WA
    $75 per night for a powered site I hear!!
     
  20. Stegve

    Stegve Well-Known Member

    Joined:
    8th Jun, 2017
    Posts:
    51
    Location:
    SA
    Just got back from Broome.
    Wow, what a great place.
    Spoke to many agents, looked at a few places and just missed out on a few potential places being already under offer.
    I lucky to have a mate that lives up in Broome to check places for me before I put an offer in.
    Places are being sold fast and rents are still skyrocketing. Net returns are still anywhere from 5% up to 8% if you can grab a bargain.
    Im looking for a property in Chinatown as they get leased fast with consistent 0 vacancy rates and still have a fantastic return, dried up at the moment but one agent tells me he has one coming on the market within a week.
    Townhouses seem to have the best returns.
    Much happening in Broome so I hope I can find something as prices seem to be continually going up.
    Wish me luck !!!!!!