Port Hedland desperate seller
- Thread starter Jess Peletier
- Start date
among other industries yes. this one is a goer, they reckon they can deliver at $45/t I think it was
https://au.news.yahoo.com/thewest/business/wa/a/25875695/rutila-heralds-state-govt-talks/
This is topical:
https://au.news.yahoo.com/thewest/business/a/25885176/wa-looks-to-beyond-the-boom/
Am not sure what original WA residents got for all the "boom" flash in the pan besides expensive coffees and bad service. most of the wealth went into building highways etc on the east coast
Royalties are state based, so they should have been spent by the state government on useful things for the WA public. Corporate tax (and to some extent GST revenue) would have gone to Canberra.
There are plenty of 'original WA people' who benefited well from the boom. Either way, I dont see why we are talking about 'original WA people' instead of 'people'
Did your property values go up? Surely you benefited.There was. A boom is defined as a "a period of great prosperity or rapid economic growth." We are definitely not in that space now. I dont call large unemployment, IO prices down by 70 odd %, tiny margins for everyone but the big miners a boom. So what you are saying is that a period of large growth is still rolling out as you expected? I can understand you seeing the situation rolling out as you expected (you must have made a bucketload predicting this), but to call it a boom is very optimistic!
Thanks for the link to the article to Rutilia Resources. They are still doing FEED so nothing special, however it's one project, compared to when there where many more in the boom period. Funnily enough their website doesn't even work!
Let's hope that WA can be a broader based economy. We've seen what falling commodity prices can do to a budget (1.28bn deficit) (or rather, wrong assumptions in your financial model).
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the second article discusses the strange pessimism that has befallen the WA public, I think you are suffering from it. All these enormous projects are only still completing or coming on stream. The WA economy has been diversified fora long time. I'm not really sure what the problem is,other than all the kiwis etc that are on FIFO may just stay at home now. The Perth property market has been stuffed for 8 years now and is only just starting to see some growth. Tho I did do well out of karratha but that will always be a great market to operate IMO
we are only going around in circles because people have different perspectives on things.... some seem to say "the boom" has ended, others don't. I can't change your POV. I refuse to run with the herd instincts.
Karratha has been an exceptional market since I started looking at it 1990 and nothing has changed. Declining or declined? Depends on your opinion, but I do know you need buyers and sellers to make a market.
Karratha has been an exceptional market since I started looking at it 1990 and nothing has changed. Declining or declined? Depends on your opinion, but I do know you need buyers and sellers to make a market.
Perth property stopped being stuffed 2 or so years ago, apart from a few niche areas. If anything now it's
Running out of steam
ok lets not get into that again, I know you are into dev sites and that's a different slice of the market. Fortunately the markets I deal in are just starting to really move. The south west is going exceptionally well
It isn't just devvy sites, you keep on saying it's only sta
ting to grow now, it's just not true from a general pov
again I disagree but we won't be able to change each others mind
Opinion is irrelevant when stats and sales records are available, along with other things like time on market and average discounting
that's a relief then
one measure we can't rely on tho is median pricing. The statistical distortion over the past 8 years made a mockery of it as any sort of informed measure
Of course, but my point is I would rather be jumping into a rising market, I expect most would want to do the same???
Why would any investor jump into Sth Hedland which has been going backwards for perhaps 2 years+ when during this period they could have jumped into rising markets such as Sydney, Perth (metro), Melb and made money.
Unless they lost their mind and decided the cash flow of xx is the better option, too bad the product drops another $50K this year, oops that's life it may come good in 10 years time, I'll just enjoy my cash flow.... oops, too bad I can not sell it, too bad I can not access equity as its worth less than my bank loan.
That is one reason why they make a very poor investment.
Yup agreed
I'm just very wary of developing in negative cashflow markets on the basis that they are rising, because that can stop very quickly (particularly over the life of a development project) and you can soon find yourself in a declining market with high holding costs and ultimately a forced seller
That is why you try to buy the land at the early stages of the cycle, you also then will probably have an option to sell the land and not build or build and make sure its cash flow positive. I guess it also comes down to what market you are playing in, I think its far easier to sell at anywhere sub $500K, more buyers at this price point??
