lol i havent even settled on my first one and im talking about the 2nd haha
*dream-land*
*dream-land*
Karratha WA
- Thread starter phil
- Start date
i settle tomorrow!
yeah i guess it cant hurt to start doing some research for the next one
Motivatesi got some equity up my sleeve. bu tI think I ahve more equity thn knowledge ofwhta to immediately do with it- if I KNEW this /that (more than "heaps of money to be made up north!!) I'm sure I could wrangle another mortgage out of a lender.. but seeing as I don't, I keep window shopping here I learn as I'm entertained by picturesa
yeah good idea, theres no rush.
strangely enough I dont really want to see rent rises continue in karratha - is getting silly
http://au.news.yahoo.com/thewest/a/-/breaking/6570441/pilbara-rents-hit-3000-a-week/
http://au.news.yahoo.com/thewest/a/-/breaking/6570441/pilbara-rents-hit-3000-a-week/
Plus
- 200+ houses going up in existing stages of Baynton at the moment
- 79 odd lots just released which will have houses on em within 12mths
- another release of around 200 lots in Baynton due mid next year
- 3 grouped housing sites currently out via price only tender and an EOI (yeileds between of 8-40 dwellings across the lots)
- 200+ houses going up in existing stages of Baynton at the moment
- 79 odd lots just released which will have houses on em within 12mths
- another release of around 200 lots in Baynton due mid next year
- 3 grouped housing sites currently out via price only tender and an EOI (yeileds between of 8-40 dwellings across the lots)
unfortunately no where near enough to satisfy demand tho. The 79 lots recently sold wont even be titled till late next year (these are the owner occupier ones that sold out in 4 minutes?)
the apartments are really good IMO. Once again will take some time to be built. Basic infrastructure is so lacking it's amazing... buyers of the landcorp industrial land have to make do for some time with restricted power supply until they can get the resources to upgrade the supply. And the cost of contructing resi housing is so off the planet. Every man and his dog has had a go at finding cheap alternatives but I hear that even the transportable companies are hurting on their contract prices.
the apartments are really good IMO. Once again will take some time to be built. Basic infrastructure is so lacking it's amazing... buyers of the landcorp industrial land have to make do for some time with restricted power supply until they can get the resources to upgrade the supply. And the cost of contructing resi housing is so off the planet. Every man and his dog has had a go at finding cheap alternatives but I hear that even the transportable companies are hurting on their contract prices.
Agreed. It'll help but not solve the problems. Hopefully the Pilbara Cities announcement last week will also get things moving in the right direction.
Agreed on the infrastructure too. With the Industrial land, those lots each have 30kva of juice though. For some businesses that'd be sufficent even in the long term. For others needing more, this'll mean they at least can get on site and moving and then LandCorp's funding a majority of the power upgrade (up to 200kva per hec). estimated for 2011
More power and water is an issue for the whole of the area though and needs a co-ordinated all Govt. dept approach
i was thinking - rental yields in hi growth areas rarely abate.
however, values can go up and down.
we may be seeing the need for values to rise and rents to remain reasonably steady - it's the only sustainable way to bring yields "back" to 5 or 6% - state average - to make the town liveable.
in other words - it's gonna go one of three ways - nowhere (fine!), rents hold, values increase (fine!), rents drop, values remain the same (not so fine, but current 13% cash on cash yield...).
however, values can go up and down.
we may be seeing the need for values to rise and rents to remain reasonably steady - it's the only sustainable way to bring yields "back" to 5 or 6% - state average - to make the town liveable.
in other words - it's gonna go one of three ways - nowhere (fine!), rents hold, values increase (fine!), rents drop, values remain the same (not so fine, but current 13% cash on cash yield...).
Good analysis BC. I have a tough choice... do I hold for my 20% yield on cost or sell and bank $500k profit? I am thinking maybe rents of $2500pw are getting toppy and i should crystalise my gain. however if i were confident in capital values holding i would really like to hold for the cashflow. I am just a bit concerned as Ihave undersold the karratha market way too mnay times before, selling a house at $430k for example when members on this board were declaring what a risky market it was...same house now worth $1m.
i guess what i'm arguing for is that rents won't fall to bring yields back in line - rents may hold and values will rise to bring yields back to more traditional values.
if you weren't working in the town in a cheaper old house before 2001 - you won't be able to afford to now.
so i see a F*CKLOAD (more than a SH*TLOAD and four times as much as a B*CKETLOAD) of releases coming up now that it's cheaper to build than rent - EVERYONE is in the mix trying to get land. next small release is another 69 followed by another 200 - all pretty much 5x oversubscribed.
however - takes 6 months to get titles and another 6 months to get a house up there.
port hedland just gone up $100k in 3 months.
apparently MINIMUM val for a 3bedder is $850k - newer are more.
do you crystallise your CG? why not pay down MORE debt with the surplus cashflow and increase the buffer....?
i get itchy fkn fingers doing this. apparently i'm up to #3 on the list....of 30.
if you weren't working in the town in a cheaper old house before 2001 - you won't be able to afford to now.
so i see a F*CKLOAD (more than a SH*TLOAD and four times as much as a B*CKETLOAD) of releases coming up now that it's cheaper to build than rent - EVERYONE is in the mix trying to get land. next small release is another 69 followed by another 200 - all pretty much 5x oversubscribed.
however - takes 6 months to get titles and another 6 months to get a house up there.
port hedland just gone up $100k in 3 months.
apparently MINIMUM val for a 3bedder is $850k - newer are more.
do you crystallise your CG? why not pay down MORE debt with the surplus cashflow and increase the buffer....?
i get itchy fkn fingers doing this. apparently i'm up to #3 on the list....of 30.
Sounds like a terrible choice!
Seriously though even if rents are getting toppy they have to get that way to overcome all the impediments to new supply. The new supply will only come on to the extent rents and prices remain at these levels. If there is a fall back in prices and/or rents, you can say goodbye to the new supply, thereby stabilising the prices and rents...
To me the most likely scenario is that rents will just stick to their average over the last few years for at least the next five while prices will move around a bit.
But the most pressing issue is the question of where you propose to put your money to earn a better return, particularly after the CGT and selling costs? That sounds like the million dollar question!
Well after much stuffing around on the vendors, agents, conveyancer and my parts trying to get a legible contract finalised I finally hear from my broker today I have "conditional" approval on finance subject to the valuation being OK on my purchase in Sth Hedland.
If, as Blue Card suggests, that minimum value for a 3 bedder is now 850k, Id be happy as a pig in poo since Im paying 650k. I am hoping the property, at 1088m2 will down the track allow me to drop a decent 3 bedder transportable on it (STCA of course), plenty of room to do that. I dont want to subdivide and dont think I can with the easement but dual occupancy might be possible.
For now, I will just make the most of my 9.6% yield (bloody private lease until Aug 10) and hope the 1200pw goes up to 1400-1500 with a bit of cosmetic work. Looking forward to taking a month off work and do a family trip there to put a bit of work in and holiday at the same time.
If, as Blue Card suggests, that minimum value for a 3 bedder is now 850k, Id be happy as a pig in poo since Im paying 650k. I am hoping the property, at 1088m2 will down the track allow me to drop a decent 3 bedder transportable on it (STCA of course), plenty of room to do that. I dont want to subdivide and dont think I can with the easement but dual occupancy might be possible.
For now, I will just make the most of my 9.6% yield (bloody private lease until Aug 10) and hope the 1200pw goes up to 1400-1500 with a bit of cosmetic work. Looking forward to taking a month off work and do a family trip there to put a bit of work in and holiday at the same time.
congrats on the purchase!!!!
can't go wrong up there for the near term future.
can't go wrong up there for the near term future.
speaking of south hedland, did you see this?
http://au.news.yahoo.com/thewest/a/-/breaking/6570441/pilbara-rents-hit-3000-a-week/
http://au.news.yahoo.com/thewest/a/-/breaking/6570441/pilbara-rents-hit-3000-a-week/
ah see that's where personal circumstances come into play... I have a cap loss sitting there that can soak it up tax free. And I am itching to build my new beach house and lower my portfolio LVR in the process.
