I wonder how these people are fairing?

Discussion in 'Property Analysis' started by smallbuyer, 21st Dec, 2015.

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  1. Depreciator

    Depreciator Well-Known Member

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    We just did two Dep Schedules for a client who took delivery of two properties up there: a house in Karratha and one in Port Hedland. Nothing special, but they cost a lot. Bought off the plan about 18 months ago. And no tenants.
     
  2. strongy1986

    strongy1986 Well-Known Member

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    No sure ross there will come a time though.

    Dont believe what you read on re.com - south hedland 290 places for rent, population circa 10,000 and shrinking - will probably go back to 7000-8000
    Current asking rents there are not sustainable and will probably go down to $200 per week based on population and vacancys. You would need a population of around 30-40,000 to support current rental prices effectively
     
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  3. strongy1986

    strongy1986 Well-Known Member

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    I would say rents and values have dropped more like 50-70 percent

    Newman- 3 bed houses in late 2013 were selling for 7-800k renting for 2- 2.5k a week
    Today the same houses would rent for 250 -300 and will not sell. Current value i think would be around 150 -200k and based on the economics of the town it could go lower.

    However if iron ore picks up again in a few years you will cream it on the rents
    Its because of this i think some speculators will be buying in the coming 12 months and only expecting 6-7% yields

    Put it this way - is bhp currently a buy at 16 odd dollars?
     
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  4. Truly Exotic

    Truly Exotic Well-Known Member

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    I cant imagine someone getting 2.5k per week and now getting 300 per week,

    imagine you had bought it say 1.1million, and now getting 300 per week,

    ouchy ouchy ouchy, that would send most people bankrupt in a weeek

    strongy, can you show us an example, eg link to before and after
     
  5. strongy1986

    strongy1986 Well-Known Member

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    No not really just going off my memory which could be wrong

    Had a quick look on house ksou abd there were a few places asking 2500 - 3000 a week back in 2013
    Same places in 2014 were more likely 1400
    2015 - 800
    2016 - could be 400 and unlikely to sell