WA Port Hedland time to invest?

You're probably right, I dare say most probably wouldn't live there if there were no high paying jobs as there are better coastal areas along the west coast to choose from. But there are people who absolutely hate living in major cities.

 

My Opinion is there is potential capital growth opportunities over the next 5 years, key is buying very well (bank sales) RY is not to bad for a regional area, holding costs are high with insane insurance and water costs. Value add opportunities could not be worth it unless completed by yourself or close friend/family. Trade services in town are crazy high with low standards. If you time it right potentially could make a few bucks entering and exiting at right time.

 

Just watch out for Bruce

 

probably already missed the growth
when I checked a few weeks back all the $100-150k bargains were gone

Agree on the value add, must be done DIY.
Yields dont seem awesome at the moment but rental stock on market has fallen about 300% so should start to tick up

 

Stayed in Karratha for the last 3 weeks and it is a beautiful small town with good schools, Tafe, nice beaches, a golf course, a brand new art theatre and good cafes.
There is a brand new hospital opening up next week.
Most residents I met, actually came as FIFO but then they moved to live there.
There is a cyclone risk and the red dust goes up to the fifth floor balcony.

 

The Australian town where property prices once rivalled Manhattan is now gathering dust

In one of the most remote corners of the Earth, its real estate was more expensive than in Manhattan, service workers earned bankers' salaries, and its small airport began running direct flights to Bali, where miners bought beach houses to relax between stints in the red-stained Pilbara hills.

There were big plans, including a $152 million yachting marina, and the town was expected to become the largest in northwest Australia, enriched by trains more than two kilometres long that brought powdered rock from the mines to be loaded onto an endless stream of ships bound for China.

Those plans haven't materialised. Property prices have fallen about 70 per cent from their peak, the marina was downsized and delayed, and Port Hedland's resident population of about 15,000 people is some 6 per cent smaller than in 2013.

 

Haha get it - gathering dust?!

I do miss living up north though - I loved it up there!

 

Getting a good gig that isnt permanent, and then buying a property in bali with the expectation it wil continue for ever, is very stupid, unless the property is <$100k

 

Believe this an active movement in the town to promote living their as opposed to FIFO as there are a few projects on the cards in the next few years.

'We want something more lasting out of this boom': A mining city's vision for its future

 

Back in the 70s everyone had fun living in mining towns you worked 8 hour days and made good money. 12 hour days make living in a town a poor option. Back in the day if you went to work half ****** people laughed at you. Now if you miss a shift (sick day) from drinking the world ends and some places you get a written warning.

Also changes to fringe benefits make residential roles less attractive.

 

I guess that's the aussie culture! To go to work drunk or taking a sickie

 

Last week I was speaking to an old work colleague who has come back part-time.
She was telling me how her daughter and partner moved there during the boom and purchased a property.
Now it’s worth 500k less and there working there to cover the loss. Very sad stuff!

 

****........!!!!

 

Yep I was just thinking how much it would suck to have gone through the boom in one of these towns, buy a property at the top of the market and then still be holding that property today with a whopping huge loss that you still need to pay the bank back (with interest). Especially because most people made big $$ through the mining boom (even if they just spent it) but some unlucky buggers have come out financially ruined. Sure, stupidity for buying at prices like they were, but ouch.

The Perth Property Show podcast has featured the Port Hedland market a few times recently, including personal stories about what happened / went wrong in the big property boom and bust. Good listening

 

Yeah it’s brutal.
I don’t have as much sympathy for those who invested in these mining towns. That’s akin to loading up on the .com or bitcoin bubbles where some people are just blindly investing.

Others however went up there to create a life. Sure the lure of huge paychecks was a big driver but it’s buy a house or pay $2,000+ a week rent.
A lot of these people now have young families and a whooping 500k debt. A number of them from what I understand actually want to come home now but can’t because they will lose a heap of pay which they need just to try and get their heads above water.

 

One of my best mates is a valuer for HTW and flies up north once or twice a month for valuations.

He said it is pretty depressing sometimes chatting to the owners about them paying $800k+ for properties he knows he has to value at $400k.

 

House Prices Up 44.7 Per Cent In Port Hedland In 2021 | REIWA