Muswellbrook, top 10 hotspotting

[JT7]

The slow down in the coal sector is right up the east coast. Bowen Basin is feeling the heat has well. Baton down the hatches and wait this one out me thinks....

Hopefully we'll reach the bottom of the cycle sometime soon...fingers crossed!

Get rid of the carbon tax...what a debacle and bring some confidence in business back into the industry.....

Jack

 

[The Fence]

Lot of people in the Hunter traditional Labor voters.

We'll see.

Big drops on rents being reported here, just goes to show that regional investing involves a much wider sentiment than the more stable areas.
Or, you could say that some who invested at the right time in Muswellbrook have had a great run of overs on rents and now reverting back to norm.

 

[JT7]

Yes agree....I guess we'll have to wait for election night but that's another discussion for another time.

Interesting article in relation to challenges facing the industry in Australia Mining recently.... Not specific to the Hunter Valley however the comments are in relation to the industry in general.

http://www.miningaustralia.com.au/features/we-need-to-talk-about-kevin

 

[Truly Exotic]

in muswellbrook, obviously the rental demand has fallen significantly due to job cuts,

what most people need to see is that the majority of the demand has fallen due to fifo and contractors being laid off, the permanent staff for the majority still do have their jobs so that component of the rental market is still there,

that being said, these guys are also on big $$$ maybe not as stupid as those "$250k overpaid chefs to cook steaks or clean and wipe down tables",

these people are now buying/building new houses in the estates on the east side and hence the demand is also dropping,

I personally dont think there is going to be another rental/equity boom in the near future or 5 years, the rental market should recover once these job cuts get partially replaced, as the mining industry does often act irrationally or following market sentiment....which is usually negative at the first hint of issues

fully furnished i wouldnt touch at this point in time

 

[MsAli]

But Today Tonight (last night) said Muswellbrook is one of the two places in NSW that has held it's value and growing

 

[Truly Exotic]

But Today Tonight (last night) said Muswellbrook is one of the two places in NSW that has held it's value and growing

haha,
I have two words for you

"TODAY TONIGHT"

 

[JT7]

haha,
I have two words for you

"TODAY TONIGHT"

Lol good old media!

 

[knightm]

Yes agree....I guess we'll have to wait for election night but that's another discussion for another time.

Interesting article in relation to challenges facing the industry in Australia Mining recently.... Not specific to the Hunter Valley however the comments are in relation to the industry in general.

http://www.miningaustralia.com.au/features/we-need-to-talk-about-kevin

Great article.

 

[rockDr]

Great article.

Quite a few great points in there.

It's been extremely tough in mining. What a lot of ppl don't realise is that all commodity prices have been hammered. During the GFC gold held up, whereas this time around gold has been smashed as well.

This time around there have been job cuts across all sectors in mining, including the big gold producers. Newcrest for eg is barely breaking even at current costs.

The other sectors such as base metals, precious metals bulk commodities (well iron ore) haven't been able to soak up the job losses.

Will be a changing dynamic for a lot of property in these mining towns. I guess it could present a buying opportunity, but who knows how long the metal prices will be off the boil for.

 

[TMNT]

wow, this is cheap

http://www.realestate.com.au/property-house-nsw-muswellbrook-114590375

has the market really fallen over?

this renovated, will probably only fetch $170k-190k

 

[daniel cunningh]

TMNT,

that price is pretty standard for Wollombi Road as it is the housing commission area. Take a drive through that area. I'd steer clear

Dan

 

[TMNT]

TMNT,

that price is pretty standard for Wollombi Road as it is the housing commission area. Take a drive through that area. I'd steer clear

Dan

really? I thought comission housing in the area was about $170k neatish,and $200k for fully renovated

 

[daniel cunningh]

TMNT,

Ever since i've been monitoring the area the streets of Wollombi, Tobruk, Forbes etc you've been able to pick up something neat and tidy for around 160-180k. Looking at the condition of that property for 145k assuming a decent reno i'd say that's pretty on the money, looks like it needs a fair bit of work.

Dan

 

[TMNT]

TMNT,

Ever since i've been monitoring the area the streets of Wollombi, Tobruk, Forbes etc you've been able to pick up something neat and tidy for around 160-180k. Looking at the condition of that property for 145k assuming a decent reno i'd say that's pretty on the money, looks like it needs a fair bit of work.

Dan

ahh very good, i remember there were a few renovated brick ones on tobruk advertised for about $200-$220k, I wonder what they sold for, (one of them might have been a 4 bdr)

and there was a guy who bought a house that had basically burnt to the ground, for $50k, and all that was left was the base and about 2 external walls, and fixed it up quite well and was trying to rent it out for about $320 just a few months ago, I wonder what happened to that one

 

[mystery]

TMNT, .... I reckon you'd have to pretty much live in it while it was being renovated and then move out as the new tenants moved, otherwise I'd imagine everything would be destroyed or stolen if it was left empty, ..... Not sure I'd want the headache.

The boarded up windows sort of give an indication as to the type of location and prospective tenants that would live there. If you on-sold after reno then I still reckon you'd need to have it lived in until settlement to protect the property.

Mystery

 

[TMNT]

yes mystery, I agree with you, not the nicest part of town, in fact probably the worst,

that being said, where do you guys see the market and at what stage of the cycle do you guys think its in. Im a bit struggling to see whether its the start of a plunge, or the bottom and plateau for very little growth for ages, or back to norm whereh it used tobe pre boomwith prices to rise as per the state/region average?

 

[RetireRich101]

That property is a Housing Department.
Interesting 10 yr median growth for Muswellbrook though. Info from rpdata..

The following statistics apply to Houses in MUSWELLBROOK*

Change in Median Price (5yrs) is 21.5%
Annual Change in Median Price (10yrs) is 8.1%
Median Asking Rent for MUSWELLBROOK is $350 per week
Average Days on Market is 110 days

 

[TMNT]

That property is a Housing Department.
Interesting 10 yr median growth for Muswellbrook though. Info from rpdata..

The following statistics apply to Houses in MUSWELLBROOK*

Change in Median Price (5yrs) is 21.5%
Annual Change in Median Price (10yrs) is 8.1%
Median Asking Rent for MUSWELLBROOK is $350 per week
Average Days on Market is 110 days

yes, but what youhave to remember, is that from 09 to 12, there was a boom, and in the last 12 months, rental market has collapsed and the prices havent done well....

im just trying to work out how far the prices have fallen and at what stage we are at

 

[mystery]

yes mystery, I agree with you, not the nicest part of town, in fact probably the worst,

that being said, where do you guys see the market and at what stage of the cycle do you guys think its in. Im a bit struggling to see whether its the start of a plunge, or the bottom and plateau for very little growth for ages, or back to norm whereh it used tobe pre boomwith prices to rise as per the state/region average?

I really don't keep that close an eye on the property markets these days TMNT, so I can't really give you any helpful advice. I just allow what we do own to do what it needs to do while I focus on the current reno and sub-division build.

The only advice I will give you is "if in doubt, stay out". You seem confused as to where the market is positioned and where you want to invest, ... until you get a clear picture, maybe take the time to observe and do some meaningful due diligence until you believe the advantage is on your side.

All the best with your search

Mystery

 

[TMNT]

Thought id dig up an old thread,

I have a good old house in muswellbrook, not in the comission housing area,

unforunately, ive had a lot of maintenance issues over the past 12 months, namely electrical and termites,
the termites simply keep coming back, even after being treated, its a high risk termite area, the electrical I ended up fixing each individual issue and then replacing the switch board, but little things stuff up, eg thermostat, pilot, and other stuff,
its a very old home, in average condition,

the rental market is very poor, the agent is telling me to keep them at any cost, which I agree with,

im thinking of simply selling up whilst I have a tenant, but according to the agents, the market is the worse in 20 years, people paying $430k for and building a new house and offloading it for $400k 9 months later, without a bite, some even dropping it to close to $300k for the bargain of the lifetime for the buyer,

my one is in the mid to high 200s,

What would you do????? selling at mid $200s id get a pretty good chunk of equity because I bought well, but it might take months,

a few of the agents are telling me that even though actiivty and jobs arent picking up, a few good big signs of the big boys buying chunks of land and commercial projects in teh area, which might take 3 months or 3 years

im trying to work out, whether to hold and take the continual maintenance requests, (the property is cashflow positive without the maintannce)

ie im trying to work out, is this a small bump in the long journey or should I sell and let these current issues enforce the decision to sell