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Doing the research that I have Karratha is one of the top +ve geared places in WA.
But I am always hesistant to buy there at the moment due to the fact its almost solely dependant upon the mines.
G'day Petal & All,
Probably a bit too soon to gauge any major impact from loss of jobs here presently as most companies are holding their ground. I don't know if too many local Rio staff will be impacted just yet. There doesn't seem to be too much rumbling from other companies....yet!!
I was just talking with a local tradesman this morning and he has a mate (local RE agent) who knows investors based in Perth, but working in mines, who bought here over the last three years and have now been retrenched, so he is actively sounding them out and making very low 'rude' offers to 'ease' them of their financial burden. Morally I would disagree with this......if I had morals.
My clear impression is there are $hitloads of properties up for sale in Karratha presently. We are back up to six pages of newspaper listings, when only early last year an agent would be lucky to have 10 listings. Prices are coming down slowly, some of the better presented properties are selling shortly after listing, whilst others are floundering.....but most seem to sell and from what I hear, without too much discount taking place.
Rents are still exceptional and supply of housing is not yet outstripping demand. With newer residential construction underway (but most of it committed to Woodside, Rio, Indigenous groups, State Housing) I don't believe we will see an over supply as such. Another land release at Baynton West is about to take place, but I believe it won't cause too many issues as out of town investors will either be scared off Karratha, or are afraid of losing their own jobs so will hold tight without further acquisition. To that end by time the ballot takes place, I would not be at all surprised if it fails to be fully subscribed and may well face a delayed release.
Another good thing to come out of it will hopefully be some of the multi apartment style developments proposed at the old drive-in site (with stunning views over the old dump and light industrial area....God help us!!) and for the Tambrey complex may be withheld by developers for some time.
Once Woodside finish their Pluto construction, there could be a reasonable number of 3 & 4 bedroom houses they are currently leasing from private investors come back onto the rental market......how many?....I don't know, but I do know these leases are not going to be renewed at expiration of the optioned period......unless the project is delayed for any reason. Some of their staff are already FIFO with others to follow, but some will stay as permanent residential in housing outside of the camps.
My view is there will be some really good buying opportunities for people who research well and target distressed vendors, but bear in mind the local agents, God bless their darling souls, will be hell bent on keeping pricing sky high.
I say, it's us against them!!......Lock 'n load hombres!! Aim for their knees, cut 'em down!! Let's see blood in the streets........Yeee haaaaaa!!!
Bugger off Wayne & Moorey, get back to your panel!!
Cheers,
Ian.
Congratulations Hi Equity.
Getting money out of credit nowadays is a job well done.
Naturally I have to ask....the 11% p.a. gross yield translates to a nett yield of what % p.a. once outgoings are taken out ??
All the best.
the cost of funds is about 2.5% lower than CIP rates from what I can tell right now and the leverage, at 80% LVR (full doc - I think credit like the job more than the assets...), is about twice as much as we can get for a CIP at the moment (60%?). So, together with the depreciation, it was a compelling proposition.
The difficulty is finding a big ressy place to park your funds in that will produce a decent yield.
well mines... and burrup fertiliser and the massive LNG fields and dampier salt etc. Houses here are selling at or below replacement. The DHA ones were a rip so not sure why they sold so fast - plenty of stock on the open market to choose from
We shall see about the quality of property mgt as I have heard horror stories in this neck of the woods... however the cost is reasonable and we have lived in the area and been on the receiving end of this property manager b4 so we know they were doing quality work then. I sometimes didn't keep the garden quite as tidy as I could have and they were straight onto it with a breach notice that I deserved!
Hi HE... who is the PM please? just wonderign who is good to use up there
Hi to all.
Just joined about half hour ago. So bit new to this posting process.
Been reading whats been said about Karratha and wanted to let you know that I'm about to sell a property I have up there.
I lived up there for 37 years before moving to Perth where I've been for the past 2 years.
The house is a 4 bedroom 1.5 bathroom with office, patio front back and pool all sitting on a 800sqm + block. It's rented out to great tenents at $1600pw and is signed up for the next 3 years.
Will be putting $799 000 ono on it and see how I go.
If anybody out there is interested drop me a line. I'll be calling the agents up there on Monday so if want to know anything about it please feel free to ask a question.
Well hope this is my first of many entries and I get to talk to you all again.
Cheers