WA Broome WA Netting 8% Pus Rental Returns

Honestly I'm pretty sceptical about Broome at the moment. Yes lots of sales volumes but also lots of new listings and I'm not sure how the future growth will be sustained, apart from the currently high rents.

Reminds me of some of those high rent mining towns tbh.

Also make sure you watch out for the high strata/insurance costs.

 

Many thanks for your input.
Broome is part of the Smart Cities plan which to me is a huge positive for the future.
Many infrastructure projects have been completed with more starting for example the float wharf the prison is being relocated 12 kms out of town, sand mining in Dampier is about to begin, BP has begun the hydrogen project, Shell has begun gas offshore, new land being subdivided for housing, tourist are hear every year, international airport in the process of a major upgrade. New commercial land up for sale and Bunnings will be relocated with a new huge store being built.
The dirt track up to Dampier Peninsula has just been sealed.
Broome also has direct flights to Indonesia which I was not aware of. Apparently its only for 2 weeks in July with the possibility of increasing if it becomes popular.
Many events throughout the dry season, Country horse races, International Polo on Cable Beach, Shinju, Stair Case to the Moon, Court House Markets, Town Beach Markets, Heaps of live music, many venues to eat, the list go on and on, broome also has a university which also surprised me.
The Moscow Circus was in town as I left.
For me, the future for Broome has a very healthy future.
From what Ive seen, Strata cost vary a lot and insurance is included in strata. Insurance for the Kimberley region is being reduced by 40% by the end of this year.
Ive taken everything into consideration including doing the math for returns on costs, i'm just waiting on the right property, hopefully this coming week will be my chance.

 

I believe the Shire knocked back the Prison move proposal and the floating wharf's been on the cards for the last 5 years, Thunderbird Minerals Sands is still in the early days also - I hope it all happens though and Broome gets a leg up

BP project is proposed for an area between Port Hedland & Broome

Sealing the Cape Leveque road didn't do too well last year's wet season, they are still doing repairs now

 

I've been to Broome twice - and both times there was a power shortage. LOL

beyond all that said in the thread, Broome (and many towns there) have no issue with "space" or proximity. i.e. can always build newer/nicer houses. heaps of land.

 

Unlike most of Australia power station has plenty of gas seems WA is now the place for cheap reliable power and affordable lettuce

 

Hi,
One of the real estate agents has contacted me with a property that's in my price range, a townhouse in the location of Chinatown and with a 6% plus net return on price.

The property is not advertised as yet but has invited me for a private inspection with a few other interested buyers.
Is this normal? I've never experienced this format before.
Any tips or suggestions?

 

I wouldnt call Broome a mining town. Some mining jobs (mainly ppl FIFO or DIDO from Broome) but likely to increase with nearby projects. Huge amount of govt workers in town, health etc Sure mining makes it go up and down a fair bit but not the extremes (-ve and +ve) of places like pt hedland

From what I hear govt and companies are really bidding up the price of rentals. List price vs actual rental price are two different things in most cases. Agents don’t even list most of them just send them to the govt/corporates they have on file as looking for rentals. Lots of people are buying as they cant find a rental.

Someone I know with a unit there rented in late Nov last year (usually a dead time), multiple offers above asking, 6 mths rent in advance, 2 yr lease etc

Regarding insurance I hear other places (pt hedland etc) have far higher insurance. Also hopefully that govt insurance pool will help reduce this over time.

 

The big amount of free land in Broome in called 'Broome North' going out towards the tip. Yes the estate is potentially huge however its going out of town and not as good in my opinion (outer suburb problem). Also it seems rather hard to build at the moment and i would be sceptical about the quality of any houses built at the moment as builders/trades are so stretched. I certainly well be very reluctantly to buy anything built 2021-2023/4 (or whenever the shortages of traders ends). Seen some horror stories from the constructions quality in previous big booms.

 

So did you end up buying a place? How was the private inspection process? Was it remote or where you in Broome?

 

Sorry I haven't responded for a while.
Well ive been priced out of the Broome market.
The complex I was looking at in Chinatown has jumped in price due to rents skying rocketing and many owner occupiers buying up.
The townhouse I was interested in is now appraised at $900 per week locked in for 2 years.
The sale price of townhouse is still reasonable with 8% net return but I just cant afford it.
I didnt strike when the iron was hot!!!!!!!!!!!!!!!!!
Dam!!!!!!!!!
Im spewing to say the least.
News is coming out that Perth, and Broome property prices are rising. Thunderbird project in Dampier Peninsular has the go ahead requiring 280 workers, off shore gas mining is back in business. Land is being snapped up quicker than you can blink.
DAM!!!!!!!

 

Nah, my personal observation are that things have slowed down a bit up there. Lot's of new listings, and properties that aren't amazing deals tend to take a bit longer to sell.

It's the busy season up there at the moment, but I suspect this coming spring and summer will herald a bunch of new listings and actual price drops because of demand just falling away.

 

Are you familiar with bus stop theory?

Miss one and another will be along in 20 minutes....

 

Quite a few for sale listing not sure on prices rises/falls but stuff still seems to be selling though. From what i hear a lot is people who cant find a rental are buying. No rentals prices insane, $1200-1500pw for decent houses i hear. Seems almost everything goes for a lot over list price (the ones that actually get listed many just go straight to govt/corporate)

 

Broome renters forced to sign leases they can't afford, or end up homeless - ABC News

 

I agree that there are lots that are finding it tough to find a rental in many parts of the country, but that headline is just clickbait. If the market is so tight, there's multiple applicants for each and every property. A PM isn't going to approve someone who can't afford a property. They will pick the best applicant.

 

Pretty sure govt can afford it, they are renting most houses. People who cant afford no chance except very avg properties.

 

How do you go about finding a government tenant for your rental property in Broome?

 

Realestate.
In order of best tenants and who has them on the books or did have.
PRD
Ray White
Hutchinson
First National ( notorious for not managing tenants or property very well)
BELL ( more corporate and the above agents also have corporate on the books)

 

Just have a fairly decent house available for rent Usually agents have lists of govt/corporate looking