Port Hedland IP

[Shahin_Afarin]

Hi Guys,

I have a customer wanting to buy an IP in Port Hedland. He wanted my advise but I'm not familiar with the WA market. Does anyone have any experiences or advise with IP's in the area? They are looking at a medium to long term strategy, i.e., holding it for at least 7 years.

 

[Rolf Latham]

Hi Shahin

there are a couple of people here that "specialise" in PH,im sure they will jump on.

There are a couple of caveats from your side, some of the properties are "portables" and we knowhowmuch lenders like them, try and stick with Lenders that have DUA if u need lmi, CBA NAB Homeside et al if you need above 80 %, and keep right away from the second tiers like ING.

ta
rolf

 

[HotRod]

Having invested up there for some time some of the things to consider are:

Rezoning in South Hedland from R20 to R30 will bring more housing stock onto the market.
BHP just canned the outer port
Yields are generally 11 to 13%
Expensive to buy in with $1M not uncommon for 4x2
Lots of money being pumped in from the royalties for regions funding
The shire and state want to grow greater PH into a city of 50000 by 2030 (currently 20000)
If China decides to ease back on Iron ore then PH will take a hit

About all I can think of for the moment (as I type on my iPhone waiting to pick up my daughter on s rainy Wednesday night)

Maybe more later.

 

[Shahin_Afarin]

Thanks Rolf- Yes I spoke to CBA about application and the security but luckily the client has a very low LVR.

Thanks Hotrod - very valuable advice! I will pass it onto them.

 

[HotRod]

Hi Shahin

there are a couple of people here that "specialise" in PH,im sure they will jump on.

There are a couple of caveats from your side, some of the properties are "portables" and we knowhowmuch lenders like them, try and stick with Lenders that have DUA if u need lmi, CBA NAB Homeside et al if you need above 80 %, and keep right away from the second tiers like ING.

ta
rolf

What is "DUA"?????

About the use NAB Homeside for the first time. Are they any good in terms of turn around etc. My last dealings were with StG are they were very ordinary in response times.

 

[Brady]

What is "DUA"?????

About the use NAB Homeside for the first time. Are they any good in terms of turn around etc. My last dealings were with StG are they were very ordinary in response times.

Deligated Underwritting Authority,

It allows the bank to approve loans without having the mortgage insurer look at the deal.

 

[Rolf Latham]

What is "DUA"?????

About the use NAB Homeside for the first time. Are they any good in terms of turn around etc. My last dealings were with StG are they were very ordinary in response times.

Homicide are ok, BUT everything depends on who your broker has as a file runner.

St George in my experience has rarely been good, but then Im not a high volume user of them. Always found them to be wanting to play with the big boys, but chicken.

ta
rolf

 

[someguy]

http://au.news.yahoo.com/thewest/re...s/14078038/pilbara-development-to-house-5400/

Hi all, first time poster, thought I would come out of the woodwork to flag the above annoucement which could be relevant for anyone looking to get into the Hedland market now.