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Whilst it costs $800K for a quality 4x2 it will keep on renting for $1200 to $1500pw. That's probably be the underlying price support. Sure, they'll be things less than that, but that will be older less sought after stock.

Yup. The best you'll probably get is 80% LVR and only 6% maximum yield. Might be how the banks view things going (20% drop in prices to a 100% LVR to then equalise to an 8% yield [6%/0.8]).

Sort of agree. The markets in the NW are finally having the correction that was bound to happen with construction investment winding back. Karratha has come off about 20% in prices and rents, so the yields are still about 10%. Has been that was for 10-15 years and will probably keep at those...

Agree with that assessment. That is the support mechanism for the sale market. Not too sure about the rental market. Might just come back to historical yields of 10% which will be about $1550 to $1600pw for high quality new 4x2.

Coming out of the wet season, projects being pushed back, RIO taking hits, land being released are all taking the heat out of the market.

Karratha is probably what the Hedlands and Newman will be like in a year or so. Rents have come back and thus yields on the old prices and now prices are adjusting to bring the 10% yields back.

Which the will be as land is opened up as native title issues are resolved. All NW mining towns will be going through this process with the double whammy of the mining "downturn".

That will take a hit as property prices in Karratha have been around the 9 to 10% yield range, so a 20% rent drop should equate to a 20% drop in value. Taditionally propery is sold on the high yield as the attractor. BUT, the cost to buy a block and build a reasonable house should set the...

Thinking the same. Go play in your own thread you east coasters. :)

Just found out this morning speaking to an agent. I'd imagine they will be on the market in the next day or two after their owners have come home from hospital after being told by their agents. :p

Yup. Costs about $800K as a minimum for a 4x2 (land/build/fitout/landscaping). Historically yields have been about 10% for 15 years so, you'd expect a minimum $1600pw rent on the newer properties compared to about $2400+ now.

Bad for some, good for others I guess.

In Port Hedland companies are handing properties back to owners. One company has just handed back about 30 in Port Hedland that would have been geetting about $3000pw. Word is that they'll be lucky to get $2500pw back on the market. :eek: This from a change in economic fortunes (my guess...