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
    That's really harsh.
    I can't see the market recovering any time soon for the mining towns. Mining cycles are much longer than property cycles. The super boom we had was once a generation!
     
  2. Jenko

    Jenko Well-Known Member

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    No sorry no crystal ball, it's just a gut feeling nothing to bank on. Surely house prices can't drop much more than what they have. It's not as if Gladstone is solely reliant on one mining industry like Headland, Moranbah, Dysart, etc. I'm holding on to my Gladstone property. Of course it depends on your situation.
     
  3. Barny

    Barny Well-Known Member

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    Can you please share about your property in chinchilla. I looked into investing there 5 years back, but decided elsewhere instead. What has happened to prices and rents, population?
     
  4. Omnidragon

    Omnidragon Well-Known Member

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    Nope but in my job (finance), I sometimes go to mining towns.4-5 years ago when I went, everyone taxi driver was telling me how things were going gangbusters, compared with now when everyone taxi driver is talking about some empty house that they can't rent out even for a few hungy dollars.

    As one older gentleman who had lived in Mt Isa all his life told me few months ago, he's been around long enough to see these towns rise and fall at least 5-6 times.
     
  5. TMNT

    TMNT Well-Known Member

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    Yeah i think he was jamaican or something with dreadlocks

    I got a hint of arrogance from the article.

    Regardless. Very risky behaviour.

    I have one in wa in a mining town which has suffered big time and droppped. However if i sold now ill break even.

    Ill probsbly aell it
     
  6. TMNT

    TMNT Well-Known Member

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    I remmber the property mags special on emerald and me thinking it cant be thay good and where the hell is that and why would anyone want to

    I teckon if you invested in there. It was a cominbation of greed and inexperience
     
  7. 733

    733 Well-Known Member

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    Angel that is terrible news...really sorry to hear this...you are an incredibly resilient person which will help shape a better next investment
     
  8. MTR

    MTR Well-Known Member

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    I have a friend who purchased 3 in Karratha, South Hedland and Newman, similar scenario to you, she is currently wearing huge losses.

    She is just trying to make money from other property investments but it's hurting, problem she can not sell.

    I don't have any answers other than cut your losses and bail, but this may not be possible if your debt is greater than value of property.

    I hope things improve for you

    MTR:)
     
  9. sandyfeet

    sandyfeet Well-Known Member

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    when did you pick the weekender up? How did you manage to get such a good deal?
     
  10. MTR

    MTR Well-Known Member

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    That really sucks, sorry to hear this
    I mentioned my g/friend has 3 in mining towns all losses

    I hope you get rid of it asap

    all the best:)
     
  11. See Change

    See Change Well-Known Member

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    Picked it up just over three years ago when the market was dead . The week after we bought there was an article in the afr saying than Port Stephens had the highest rate of mortgage delinquency in NSW . It had been on the market for four years and the asking price was just over half of what it had been four years previously . When we were looking it seemed like every fourth house was for sale .

    At the peak of the boom the owners had revalued and used the money to buy some expensive toys and for all accounts were about to go bankrupt .

    We were looking for something cheaper , but the agent insisted on showing it to us . We had no intention of buying it and went around , saying , wow , you've got a really nice house here to the owners ( we don't normally do that when we look at properties ...) . We then spent the rest of the day looking at the properties we were interested in .

    We then discuss all those ones over the next couple of days but around the middle of the week we both said why aren't we talking about the first one ......

    We ended up selling our last two properties in Logan to make up the difference in price and haven't regretted it at any stage.

    Most weekender areas tend to have exaggerated cycles , going high then crashing down , so if you buy one , it has to be in the knowledge that if you have to sell it you may not be able to , or only at a significant discount . We have no intention of ever selling it .

    We only did it at a stage when we could use it regularly . No weekend sport for kids and I've organised work so I have a long weekend every second weekend .

    We paid it off when we downsized , though we've got an LOC on it which we are using for deposits for our current Brisbane purchases.

    Cliff
     
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  12. Angel

    Angel Well-Known Member

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    Thank You Renee and Marissa. I'm already feeling better about it since last week when I had to show Hubby that it's not the end of the world, we wont be bankrupt. We have made the same amount of equity in Brisbane over the last year or so. We will come out of it in the same financial position as when we started 2010.

    Do you reckon I should write a book about the pitfalls of purchasing IPs?
     
  13. lightbulbmoment

    lightbulbmoment Well-Known Member

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    An
    Please tell me how to get to sydney from port stephens in under 2 hrs?? Its more like 2.5 hrs
     
  14. MTR

    MTR Well-Known Member

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    I reckon write a book about the spruikers promoting mining towns when the boom was over, I believe Dymphia B was promoting this for cashflow to her clients, bet she has not one in her portfolio

    mtr
     
  15. See Change

    See Change Well-Known Member

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    We're in north arm cove . It's quicker to get to the north side than the south side . North arm cove is around five mins off the freeway.

    We also drive to avoid busy times .

    We're in Turramurra which is about five mins from the start of freeway . If we drive straight through its under 2 hours . About 1.50 .

    When the Hexham bypass is completed that will take around another 10-15 mins off the trip . http://www.rms.nsw.gov.au/documents...de/m1-raymond-terrace-project-update-1510.pdf

    Cliff
     
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  16. Omnidragon

    Omnidragon Well-Known Member

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    It's a tough one. It's the same story of knowing when to take some money off the table. I'm sure she was up a bit at one point.
     
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  17. Kate Moloney

    Kate Moloney Well-Known Member

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    yeah ... interesting story about that !
     
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  18. Kate Moloney

    Kate Moloney Well-Known Member

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    I would stay away from mining. Particularly in Bowen Basin. Next year it will only get worse.
     
  19. Kate Moloney

    Kate Moloney Well-Known Member

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    He needs to talk about it, this is how suicide happens otherwise. I own property in moranbah and probably in a worse spot than him. Happy to chat to him if he wants....I've written a book to address these mindset issues. Ignoring problems will not make them go away.
     
    Last edited: 25th Dec, 2015
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  20. Kate Moloney

    Kate Moloney Well-Known Member

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    Yes you should. People are generally deluded to the downsides.