WA Properties in Mining Towns

Thanks Sash, yes, will have to do that in the next year. Seems like a good bunch on here.

haha.... all good, I can handle ********s .... have learnt not to take anything personally ...

 

mmm not now. Still more pain to come 2016. Council rates are $3200pa and insurance around $2000pa. Not a good return and a very risky bet unless your prepared to hang on with no return for 5-10 years.

 

totally agree, and this is where we need empowering leadership that keeps it real. I have my theories about what will happen to the property market, our currency and banks in the future, whilst I won't share it on here, I am concerned and think there is power in everyone standing up and admitting we all got it wrong, and then work together for a better solution.

We need bigger fines for spruikers and educators too. There should be a rule that makes them get an external audit annually on all their property success stories (including their own), so that people know the truth about all the stories they put up. Either that, or they shouldn't show any success stories at all (unless they want to put up the people who did their education and failed?)

There is nothing to stop me from lying to you and telling you all that I'm a multi-multi millionaire ..... (expect for my conscience) ..... so for the groups that do make big money out of selling the fantasy to the masses, there is no encouragement to change.

 

Holy sheep ****** batman........Kate are you able to share/verify the numbers, here is what I am thinking:

Purchase price: $350k
Loan: 300k @ 4.7%
Value now: $150k??

Rent: $10,400 ($200 pw)
Council Rates: $3200
Insurance: $2000
Mgmt Fees: $1000
Water: $1000
Repairs: $800
Interest IO: $14,100

So total negative cashflow before tax is $11,700....so if you owned 5...that negative almost 60k...am I on the money???

 

Yes...a few on here...who are also in fantasy land...also......

 

oh yes, I too was in the fantasy land, ... got a train ticket out two years ago ... best thing I did

 

At least you acknowledge it...the question is why?

We have become a society that only focuses on the positive...children are being shielded from the realities...so what are we producing now...people who can't compete in the harshness of the real world.

This is even translated into corporates where execs only focus on the positive at great peril...people who communicate bad news are sidelined. This is even driving poor behaviour by executives....the banks...in particular the CBA are notorious for this.

 

Can't really verify because purchase prices jumped so much in the boom. Generally speaking, houses were worth $450-$500k (renovated 3 x 1) in 2010 and by end of 2011 you were paying as much as high as $900k for these properites (particularly for dev properties or those with 3 year leases on). make your purchase price say $600k or $700k and you'll be more on the money for when most of the suckers got in.

Know of plenty of people paying $40kpa +++ negative cashflow on one property . and am very confident to say most are doing it on interest only loans

 

Beezus.......$40k negative.......you only need 2-3 to send you broke!!!

 

I would suspect that most people who boughr in these mining towns were with good intentions maximising leverage to buy as many as possible so would expect them all to be on IO except for circumstances

40k per property !!!!


Yikes!!!!!

That gives me a headache just thinking about it

Definitely firesale for people with more then 1

 

Thats so true.... yes, know of people with one or two that are broke. The sad part is their age.

 

Fire sales, if you can sell them. Properties are not selling.

 

You want to know why I woke up?

Your other comments are true, although I don't know if I would call the fantasy positive. Maybe just deluded ?

marketing has a lot to play in this role, this why TV can just be a form of brainwashing.... telling us why we need to buy a product or service to be happy

 

Keep talking Kate... and yes, I never switch on the TV. So much advertising. Even if you watch Better Homes and Gardens most segments of the show are an ad of some sort or another.

I'm trying to be anti consumer... and need to massively declutter. Huge task...

 

Too busy to have time to watch TV. Its trashy reality television shows and 'news' that seem to be on par with Jerry Springer.

 

A declutter is sooo refreshing. Good for you!

I woke up because in some sense, I've always been a real person, just put our trust in the wrong people/groups. When our financial problems started arising, we were seeking a solution, and just got told "you'll be right, stop buying into negativity, pay down your debts, go do a really-really good deal" None of them were viable options for our problems, (if your on the titanic, you will sink) and we were surprised by how defensive these people were when we honest about our circumstances.

The choice was, slap on a facade and continue to be a raving fan of the very games that contributed to our destruction, or wake up and leave, find our own way. When there is great pain, your more motivated to change. There was opportunity for me to stay where I was and potentially reap money from being a part of those games, but I just couldn't morally do it. Its a world that is built on hype, glitz, gloss and glamour. What people see VS what is truth can be two different things.

Waking up was hard, lost a lot of friends over it, but I'm glad we did it early. The longer you deny the existence of your problems, the more pain you will experience long term.

 

Well said Kate - we nearly jumped on the band wagon but unhitched our horses before the stampeed.

 

Were you with a different group prior to the one you got out of? I read recently that she got fined for claiming that your success was her doing when you actually joined very late in your investing journey.

I can see that it would be very easy to become part of the inner circle and how all consuming being part of a group like that can be. The pessimist in me has never gone head first into her mentoring or followed her strategies to the letter as it all seemed too risky. While I've never made it to her stage I can also say that I've been quite conservative with my buying and my sleep deprivation is due to my children rather than going in over my head.

 

Kate thanks for sharing
I dodged a bullet had a BA sourcing cash flow cows during boom times, recommending a commercial property in Black water, the yield was impressive but risk was way too high for me, some other investor purchased this property, no doubt they will be hurting.

I think there are still BA recommending mining towns for cashflow, what can I say....

 

Yes we were a part of a few groups, all as bad as each other... I get that everyone makes mistakes, have forgiven them (no one is perfect). What annoys me is how poorly they treated this situation when it went pear shaped.

Fine was a slap on the wrist with a feather.