Chinchilla - hold or run?
- Thread starter korringal
- Start date
Hi Guy's
It's' been a while since my last post : )
I have been in Chinchilla since Christmas, when there were only 15 rentals available to choose from, but now I think there's maybe 230 available.
The projects with QGC and Origin are coming to a close, and by this Christmas most of the works will be completed.
The hope is that Arrow energy will commence it's projects out here which will boost things, but who knows when it will start. The rumours are April/March next year.
Fingers crossed.
It's' been a while since my last post : )
I have been in Chinchilla since Christmas, when there were only 15 rentals available to choose from, but now I think there's maybe 230 available.
The projects with QGC and Origin are coming to a close, and by this Christmas most of the works will be completed.
The hope is that Arrow energy will commence it's projects out here which will boost things, but who knows when it will start. The rumours are April/March next year.
Fingers crossed.
Thanks for the update Dubstep. My property is now vacant we have dropped the rent from $550 to $300 pw to try and attract a tenant. My property manager said she has seen a slight market improvement over recent weeks so fingers crossed, it won't be easy with 5 other houses in the same street sitting vacant and I think that our property manager manages all five houses.
Unfortunately these are the sorts of stories we are hearing about the mining towns and have been for some time now.
Areas like Karratha, Port Hedland have also been hammered with 25% drop in values and rents same, and oversupply.
The problem is even if you try to sell, take the money and run, who will buy, its not like investors will be jumping in as they know its the wrong time in the cycle. I heard that recovery is much harder in mining towns.
I guess batten down the helms and just try to keep the properties rented, even if you must reduce, better than being vacant.
MTR
Areas like Karratha, Port Hedland have also been hammered with 25% drop in values and rents same, and oversupply.
The problem is even if you try to sell, take the money and run, who will buy, its not like investors will be jumping in as they know its the wrong time in the cycle. I heard that recovery is much harder in mining towns.
I guess batten down the helms and just try to keep the properties rented, even if you must reduce, better than being vacant.
MTR
My property is with first national.
And with port headland there is a company that is spruiking that the town is at 6-7 o'clock and its time to get in the market.. The same company has continuously be floggng properties of headland and surrounds for as long as I can remember. Gee some of their clients that bought in at the peak a year or so ago would of been burnt. It's funny how the market is always changing and some how it's always "the best time to buy".
And with port headland there is a company that is spruiking that the town is at 6-7 o'clock and its time to get in the market.. The same company has continuously be floggng properties of headland and surrounds for as long as I can remember. Gee some of their clients that bought in at the peak a year or so ago would of been burnt. It's funny how the market is always changing and some how it's always "the best time to buy".
This company is probably in bed with the developers and they just take cuts from the deals they offload to investors/buyers.
Unfortunately they are pretty good sales people but have no clue and don't care whether the properties are good or bad.
A red flag that investors/buyers should watch for is when the banks have an issue providing loans for these, or will only provide loans a higher LVR 30%+, time to walk away, but I guess this time was about 3 years ago.
I hope anyone who is stuck with this type of stock can move forward, at least hold, without too much pain.
Properties in Karratha/Port Hedland, by this I refer to houses in the peak were selling for around $900,000-1,000,000, with a drop of 25%, we could be looking at end values now of around 650,000-700,000 and perhaps still falling?? as too much of the same stock just drives prices further down.
MTR
Unfortunately they are pretty good sales people but have no clue and don't care whether the properties are good or bad.
A red flag that investors/buyers should watch for is when the banks have an issue providing loans for these, or will only provide loans a higher LVR 30%+, time to walk away, but I guess this time was about 3 years ago.
I hope anyone who is stuck with this type of stock can move forward, at least hold, without too much pain.
Properties in Karratha/Port Hedland, by this I refer to houses in the peak were selling for around $900,000-1,000,000, with a drop of 25%, we could be looking at end values now of around 650,000-700,000 and perhaps still falling?? as too much of the same stock just drives prices further down.
MTR
wbc now has max IP lvr to 70 % in the PC, with no MI available
ta
rolf
ta
rolf
So your saying that to buy in at Chinchilla you need a 30% deposit with no morgage insurance available?
That's a good and a bad thing.
? Bad because banks think it's high risk.
? Good because it might stop clowns from building new properties out there.
It will make it harder to sell properties and might drop the prices further.
That's a good and a bad thing.
? Bad because banks think it's high risk.
? Good because it might stop clowns from building new properties out there.
It will make it harder to sell properties and might drop the prices further.
im guessing there are stll lenders that will do a 90 % lend .................
but with the many 2 tier marketers selling new stuff these days you never know
ta
rolf
Our property is still vacant I've been advised drop the rent to $280pw...
Is there still a compelling narrative to justify holding onto IP's in Chinchilla? I'd hate to be pulling the plug and crystallising losses but at some point it must have crossed your mind.
I'm not waiting for a market recovery to try and sell my PPoR in Emerald (fingers crossed it'll sell sooner rather than later), running the numbers on holding costs until a *potential* recovery make the risk vs reward not worthwhile in our case IMO.
Yes the thought has crossed my mind a few times. I not sure if I should cut my loses or hang in there. To be honest I haven't felt to much pain as yet but looking into future $280 pw is going to put some hurt on my investing.
We're in the same boat, built 2 x 4 bedroom townhouses in miles, been sitting empty for 9 months now costing us $700 per week to hold, a lot of pain and many sleepless nights. Have advertised to rent and to sell at very low prices, well below what it cost to build, still no luck and running out of ideas. Really hoping things pick up soonish and this is the bottom of the market.
Have to say it wasn't long ago people like Terry Ryder were spruiking the crap out of places like here and Gladstone etc, then when things changed they're the first to shout about the areas to avoid, useless.
Have to say it wasn't long ago people like Terry Ryder were spruiking the crap out of places like here and Gladstone etc, then when things changed they're the first to shout about the areas to avoid, useless.
Terry was spruiking Emerald in 2012 around about the time the market peaked. I guess he didn't foresee the massive oversupply that was working it's way through the market at that time, followed by a pretty hard landing for the local mine workforce.
http://www.propertyobserver.com.au/finding/residential-investment/suburb-spotlights/16809-resources-boom-and-attendant-property-price-rises-only-beginning-terry-ryder.html
I would have thought he'd try and squash this article from June 2012 headlined "Resources boom ? and Emerald property price rises ? just beginning: Terry Ryder"
Exactly, he said the same about all the boom areas at their peak: "just beginning"
? Bad because less people can buy in if they have to get a 30% deposit. Less demand = less capital gain
Yeah like I said.
Perhaps the Melon Festival in Feb could be the catalyst to lift the mood of the town.
I hope that all those invested have a viable exit strategy, or the resources to hold on in hope for a recovery.
