Property - the Game has changed?

[Deltaberry]

It's great there are people who get parted with their money. We can't all win yea?

 

[rchad]

My partner works in the mines and his mate just got a rental at Moranbah for $200 per week

It has been interesting to see how the spruikers are still saying that some regionals and mining areas are okay.

I have a friend who I am trying to steer away from certain mining towns but the he is insistent that the spruikers are correct. He is convinced that areas like Moranbah and Karratha are still goers. I guess a fool and his money is easily parted..they have to go through school of hard knocks.

The other thing I see is that there are people still putting money in towns like Moree, Gunnedah, Kempsey etc. Whilst these towns have great returns...has anyone thought of how easy it is to exit these towns?

Frankly it astounds me how little due diligence is being done. The game has changed and unless you are buying in a major city or regionals with at least 50,000 people you are NOT making a prudent decision.

The other thing is how some spruikers are inflating their networth. I recent example of a certain person saying that you can buy house Watanobbir for 195k reno for 10k and revlaue at 250k in a housing commission suburbs. Now that is a joke......most of these house are selling for 220-230 with a reno. After adding purchase costs you would be lucky to be up bu 10k! The return is okay about 280-300pw. On top they have paid some of these spruikers 5k in buyers agents fees. How do I know...because I own one there....I bought virtually a new townhouse for 232k in 2011...and have it rented it for 360pw. I know this in a best part but in firesale I could only get 270k for it.

Interesting....to read about all these people buying great deals in YIP or API....but I have good laugh when I find out how is actually making the money...the spruikers or the investor. Why are people so naive???

 

[sash]

Wow that is really low!

Just had a look ....holy sheepshiote....lots of older houses under 270pw. That means they have dropped almost 80% in terms of rental value for the cheapest stock.

Have not been looking at that market for a while now...feel sorry for the investors who paid $450k on a rent of 800-900pw. Now they are only getting $250pw in rent. That is like 2.7% gross yield!

My partner works in the mines and his mate just got a rental at Moranbah for $200 per week

 

[redwing]

From the 7:30 Report Coal price crash puts communities on edge

REA's talking of old weatherboard homes that at the peak were selling for $600k and renting for $1,800 per week, now struggling to sell at $200k

 

[strongy1986]

Wow that is really low!

Just had a look ....holy sheepshiote....lots of older houses under 270pw. That means they have dropped almost 80% in terms of rental value for the cheapest stock.

Have not been looking at that market for a while now...feel sorry for the investors who paid $450k on a rent of 800-900pw. Now they are only getting $250pw in rent. That is like 2.7% gross yield!

I'm pretty sure the 3 bed weatherboards were more like 650k renting for 1500
You can see the attraction

A lot of lessons learnt, land supply and building permanent housing for temporary work forces is a dangerous mix - double whammy , twice as many houses , half the people to fill them

Dysart you can buy a house for 100k - they were going for 450 renting at 1000 a week