WA Properties in Mining Towns

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

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  1. mrdobalina

    mrdobalina Well-Known Member

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    there's more to life than working
    Those rents have another 50% to fall from current prices. Particularly Newman. There is absolutely nothing there except a small town servicing iron ore.
     
  2. the world is your oyster

    the world is your oyster Well-Known Member

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    Duck that sucks pep
    I have one in Gladstone Iam thinking very serious about selling at a loss I have another property with some capital in it that will pay my loss but I then have lost every thing I ever had and have to start from scratch
     
  3. the world is your oyster

    the world is your oyster Well-Known Member

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    Hi angle
    What suburb are you in ? Iam in oasis Kirkwood
    I bought at 414k have loans for 455k and value of 320 k my rent was 330 lease expired it sat there for 1 month I got a Tennent at 250
    Ouch why agent are you looking at using ?
     
  4. the world is your oyster

    the world is your oyster Well-Known Member

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    Stil can take years to come back it hasn't really stopes falling and holding costs are ******** Iam thinking sell myself
     
  5. MTR

    MTR Well-Known Member

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    better to start from scratch than continuing to bleed, also any losses can be used against any CGT.
     
  6. the world is your oyster

    the world is your oyster Well-Known Member

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    Yeah I know that's y I would sell qld first them Melb to off set the capital gain
     
  7. Gockie

    Gockie Life is good ☺️ Premium Member

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    Its the way to go... if its not likely to have a near term turnaround I'd sell the loss maker.

    It sounds great to then have tax credits ready and waiting up your sleeve for later use!
     
  8. Blacky

    Blacky Well-Known Member

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    Dont throw good money after bad. If it is bleeding you dry, and no turnaround in sight, cut your losses - lick your wounds and move forward.
    The opportunity cost of continuing to feed the loss maker will cost you a lot more than the losses experianced to date.

    Never nice to lose money. But we live and learn.

    Blacky
     
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  9. Sackie

    Sackie Well-Known Member

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    Agree. And not only that, it will cost you a continued toll on your state of mind and attitude to investing.
     
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  10. Kate Moloney

    Kate Moloney Well-Known Member

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    If your investment is like the titanic you have two options... jump off onto a life raft or plug the leaks.
     
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  11. Jennifer Duke

    Jennifer Duke Well-Known Member

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    And sometimes the leaks get bigger faster than you can plug them!
     
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  12. Angel

    Angel Well-Known Member

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    This alone is more important than the $$$$
     
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  13. TMNT

    TMNT Well-Known Member

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    im not really a mining town expert, but for example ,lets say $800k prop is now worth $500k

    unless a a major project is unexectedly created or there is an amazing find I dont see it getting back up to $800k for at least another 10 years, assuming standard capital growth in line with CPI

    as for rents, I doubt they will ever go back to the previous highs
     
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  14. Kate Moloney

    Kate Moloney Well-Known Member

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    Thats often worse than losing the money itself. Some people don't care and move on, others hold onto the shock and swing from being a keen property investor to never ever wanting to do it again.
     
  15. hammer

    hammer Well-Known Member

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    Hey all, just wanted to say that as a newbie, hearing these stories is sooo important. Just starting out, your risk is so much greater.
    Hearing an honest account of what can happen really is priceless and will help hundreds if not thousands of nebies avoiding at least some of the pitfalls.

    It is so hard to get good information. The media is mostly noise or reported by people earng 50k who have no idea. It's honest accounts like this and the great discussion around it that really help.

    @Kate Moloney , clearly this has hurt you but your sharing will help a lot of people. Thank you. Can't wait to read the book.
     
  16. TMNT

    TMNT Well-Known Member

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    Let me say one thing.

    I was hearing and reading all of these stories of people buying heaps of mining properties getting stupid yields and almost instant capital growth

    And i was quite jealous
    However due to other stuff and a fear of surely this won't continue for ever and asking myself, what else is propping these areas up.
    Once something happens, i will be stuffed


    I am so glad that i didn't buy

    But admittedly it was hard seeing everyone else succeeding at this point in time
     
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  17. MTR

    MTR Well-Known Member

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    ......but TMNT, some investors did well in mining towns because they purchased years ago, some of these mining towns started booming as early as 2001.

    I get your point, but for those who jumped in from the beginning buying on a very low base, they will be sitting on cash flow properties and the values will still be more than purchase price.

    MTR
     
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  18. Kate Moloney

    Kate Moloney Well-Known Member

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  19. Gockie

    Gockie Life is good ☺️ Premium Member

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    Last edited: 17th Jan, 2016
  20. MTR

    MTR Well-Known Member

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    Kate
    Out West is not OK at all, especially those who purchased at peak around $1M, we are talking Karratha, Port Hedland, South Hedland and Newman, at least 25%+ drops - rent and value.

    That is huge amount of money tied up in a dead duck.

    MTR
     
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