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WA Properties in Mining Towns

Discussion in 'Where to Buy' started by MTR, 28th Oct, 2015.

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  1. MTR

    MTR Well-Known Member Premium Member

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    Anyone holding properties in mining towns ie Karratha, Moranbah, Port Hedland etc

    I hope you are doing OK, survived the crash

    I just checked out Moranbah, I guesstimate 40-50% drop from peak/mining boom... OMG, am I right?

    Not sure but Karratha perhaps 30%

    Not a pretty picture

    MTR
     
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  2. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    I visit Port Hedland regularly, and there's definitely some pain there. It seems that many people who work in mining towns also like to invest in mining towns (not necessarily the one they live in) which is interesting.

    Pain made all the worse when they're x-coll, have a IO terms coming to an end and are planning/trying to leave the industry...:eek:
     
  3. Jamie_

    Jamie_ Well-Known Member

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    Port Hedland folk are definetely hurting. We deal with many in the construction game up there and it's not looking pretty...nobody is investing up there which is killing the town(s). Many of the older builders have all closed up, and many trades can't pay their accounts..
     
  4. pinkboy

    pinkboy Well-Known Member Premium Member

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    Moranbah worse than your guesstimate. Dysart even worse. Emerald, Middlemount, Clermont, Nebo and Blackwater hugely affected too.

    pinkboy
     
  5. Pins

    Pins Well-Known Member

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    Does anyone remember that young couple cover story a few years back on YIP? They won investor of the year I think and had bought $2M+ of property/developments in Moranbah and made a motza then. I wonder where they're at now...hopefully it's not all gone.
     
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  6. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    It's a catch 22 - no-one is going to invest when there's a 25% vacancy rate, which means the houses aren't selling and the construction workers are leaving which in turn opens up more vacancies (along with the fact that BHP are building heaps of new places for their staff which takes them out of the private market)...BUT - if you can buy the kind of property that is in demand and price it right there are tenants there. Just not at $2000/wk any more.
     
  7. Jeah_

    Jeah_ Well-Known Member

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    I used to frequent Blackwater once every three weeks a couple or three years ago. Many times the only accommodation we could find was in the Village on Blain. Basically dongas, 500 of them, with a single bed, bar fridge, tv, toilet and shower. Barely enough room to turn around for $150/night.

    They were solidly booked for a good twelve months that I know of. Do the math on that..
     
  8. catsteve

    catsteve Active Member

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    i just had a look through the listings for port hedland.

    $1.1m for a 4 X 2 on 650sq meters... ouch. it aint claremont.

    with over 300 listings in a small town, its fire sale time.
     
  9. Liam Blanden

    Liam Blanden Well-Known Member

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    went to one of Steve McKnight seminars recently and he was offering cash purchases for 450k homes for no more then 200k. As this town was blacklisted so finance wasnt available. He is getting houses that probably cost 350k to build for 200k. ****s rough as.
     
  10. rhinsor

    rhinsor Well-Known Member

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    I was very close to purchasing in South Headland last year. I'm so glad I didn't it would of stuffed up my investment plans for a while.
     
  11. Barny

    Barny Well-Known Member

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    Mate has one in emerald. He doesn't want to talk about it as it makes him depressed. House is sitting there at the moment doing nothing. Feel for him.
     
  12. radson

    radson Well-Known Member

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    Im in Karratha every 2 weeks as a FIFO worker. New airport is nice. Just in time for the downturn. :) Certainly not a ghost town but very different from its hey day.
     
  13. Icarus

    Icarus Member

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    I was in Emerald a few weeks ago, it's a far cry from it's peak of 6-7 years back. Every 5th house or so in the new estates had a sign in front of it. Poor buggers.
     
  14. norwoodman

    norwoodman Well-Known Member

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    Even worse news today for those out in Chinchilla who have properties that were damaged by hail and storms yesterday.
     
  15. Pep

    Pep New Member

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    I have a house in one of these areas(WA). with a massive loan and massive expenses.
    was suppose to help me pay off my PPOR. but is now taking up most of my salary.
    Anyone with some sort of expertise know what the future holds for these areas? Anybody else on here with the same issue?
    What's the people doing?
    yes i'm not sleeping either.
    rent gone from 1400 per week to 350 per week (just)..
     
  16. Jenko

    Jenko Active Member

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    Yes I'm still waiting to here how much damage my property has sustained from the hail storm. The last hail repairs cost the insurance company $35k. Won't be long until the premiums go through the roof to I guess. My property in chinchilla is a very expensive lesson in property investing.
     
    Last edited: 31st Oct, 2015
  17. Angel

    Angel Well-Known Member

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    We just placed our house in Gladstone on the market. We will lose about $150K if it sells before the current lease expires. I cant think about what happens when the tenant moves out in the new year with all the expected redundancies coming up.
     
  18. Jenko

    Jenko Active Member

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    You can't hang in there? I feel the market is almost at the bottom and then the only way is up.
     
  19. See Change

    See Change Timing Lord Premium Member

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    At the right time in the market you can get deals like that in nice places , so no way would I think that is a good deal in a potentially crap area . In the trough of any cycle houses in Sydney will sell for less than replacement value .

    We bought our waterfront weekender on port Stephens for around 50 % of its replacement value . I accept that when the market isn't good they are hard to sell , but when times are ok , a waterfront property less than 2 hours from Sydney and commuting distance from Newcastle ( and soon to be closer ) is always going to be ok , while a house in a mining town is going to be problematic .

    Cliff
     
  20. Angel

    Angel Well-Known Member

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    Please tell me more. What does 2016 hold?