Property - the Game has changed?

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..
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Sash, You know more about property than I could dream of. But I would bail up if you tried to tell me anything, uninvited. You rusted ons don't seem to understand this.

Mrs Fish has a young friend who is heavily involved in property. [She prepares hers and her husbands tax returns] Until/unless she asks my opinion, I am mute. I respect her privacy.
 
Agreed Sunfish....I forgot to mention they asked me for my opinion.....and I tried the gentle steering approach. Unfortunately.....they are more comfortable with a spruikers advice.

They seem to think that they will be able have a 100k in passive income in less than 4 years. Good luck to them....

Sunfish said:
Sash, You know more about property than I could dream of. But I would bail up if you tried to tell me anything, uninvited. You rusted ons don't seem to understand this.

Mrs Fish has a young friend who is heavily involved in property. [She prepares hers and her husbands tax returns] Until/unless she asks my opinion, I am mute. I respect her privacy.
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sash said:
Agreed Sunfish....I forgot to mention they asked me for my opinion.....and I tried the gentle steering approach. Unfortunately.....they are more comfortable with a spruikers advice.

They seem to think that they will be able have a 100k in passive income in less than 4 years. Good luck to them....
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Fair cop.

If asked i would also advise against believing spruikers.

Peace. :D
 
I don't understand what relevance a 50,000 population has? A city of 50,000 is not going to go up in price heaps, without lifting the smaller outlying areas with it.

Just as not everyone wants to live in the Big Smoke, not everyone wants to live in a big rural town. If say Wagga Wagga goes up in price, then all the other little towns will go up too, as once prices go up in the big town, it lifts the others with it as the demand will flow to the other towns.

People will move to the smaller towns, and for the same money get a nice house and 10 acres, instead of just the house and a quarter acre in the main town. Then on the 10 acres you can have a horse or two, build a few big sheds, have bon fires, no neighbours for a few hundred metres, etc.

The little place I live 16 ks from has 200 people. Land prices have gone up just as much or probably much more in 10 years as just about anywhere else, and returns would flog Sydney. And especially the 10 acre and 100 acre blocks. This is what everyone wants in the small towns. People can't wait to get out of the bigger towns and get some acreage in the tiny places.

Gunnedah would have gone up as much or more than Tamworth. Yet things as far as coal and gas are only just getting going yet. You have trouble even getting a motel room in Gunnedah these days, let alone a house to rent.


I think a lot of you blokes make all this stuff up just because it sounds a bit flash, but with no real reasoning behind any of it.


See ya's.
 
redwing said:
Interesting couple of maps ref: LNG areas

aust.gas-reserves09afp-420.jpg


Australia was touted as “the Middle East of Gas” at one point
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Just keep in mind once most these plants are built and operational they are effectively unmanned..
 
topcropper said:
Gunnedah would have gone up as much or more than Tamworth. Yet things as far as coal and gas are only just getting going yet. You have trouble even getting a motel room in Gunnedah these days, let alone a house to rent.
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I have been following Gunnedah for a few months and there seems to be a bit of a glut of rentals on the market these days with pages of 3-4 bedders for lease, rents seem to have dropped since the start of the year as well. Any thoughts on whats going on with the Gunnedah market?
 
I'm a great believer that once the spruikers have found an area it's too late for investors - and I include the Terry Ryder report (and similar) in that vein.

Unfortunately the mum and dad investors (and some higher up the food chain who should know better) believe these reports and think they're getting in on the tide ... when in fact the tide is already near full.

That's why you end up with oversupply in areas like Gunnedah - from memory it was on one of those fandangle reports about 6-12 months ago. Serious investors were in 3-4 years ago.
 
sash said:
It has been interesting to see how the spruikers are still saying that some regionals and mining areas are okay.


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???
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I guess all you can do is make sure all your insurances are up to date,stay away from risky financial planners,and you only have to look back in this site from promoters who actively were pushing their investment idea,s....
 
DaveMSydney said:
I have been following Gunnedah for a few months and there seems to be a bit of a glut of rentals on the market these days with pages of 3-4 bedders for lease, rents seem to have dropped since the start of the year as well. Any thoughts on whats going on with the Gunnedah market?
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Construction is about to start on some new coal mines. That might get things going again?


See ya's.
 
Weasil007 said:
Just keep in mind once most these plants are built and operational they are effectively unmanned..
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Almost certain you're a troll, but anyway.......

Construction workforces are almost exclusively housed in work camps as they are generally FIFO whilst operational workforce will be housed in houses. Once the construction is completed the work camps are dismantled and the houses remain. The exception to this is remote sites (e.g. Cloudbreak and Hope Downs in the future). Sometimes they develop into towns (like Newman, Tom Price etc) as the operations develop their own support industries.

IIRC, did some work for a project in Karratha looking at transport impacts. Construction workforce was about 3000 and operating workforce about 500. So assuming about 3 persons per dwelling, each new project will need about 150 to 200 new houses to house the permanent workforce.
 
I agree the plants don't run themselves.

Though the operations at BAU (Business AS Usual) will be a fraction of the construction phase. So if there are 2000 job at construction....the end demand will be more like 200-400 jobs for the ongoing operations of the LNG plan. You need to understand when to get in and out by.

Rooster said:
Absolute rubbish. You're trying to tell me an LNG processing plant is unmanned?

Wake up to yourself.

Rooster
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sash said:
I agree the plants don't run themselves.

Though the operations at BAU (Business AS Usual) will be a fraction of the construction phase. So if there are 2000 job at construction....the end demand will be more like 200-400 jobs for the ongoing operations of the LNG plan. You need to understand when to get in and out by.
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If you get in early enough, then you don't ever have to get out.

Rooster
 
Yeah its not the ASX hey...long term.

TC touched on this earlier....rural/regional property investing is no different in dynamics only that as the wave of investment activity derives mainly from the capital cities then slowly but surely floats almost all boats.

You also have the biggest demographic retiring right now and for many years to come. Now does anyone think they will all stay in their communities they worked in and spent most of thieir lives in.

No, many will "escape" to the country where the air is sweet and the traffic/noise/hassels/crime is far far less and the lifestyle perfectly suited to retirement.

fair enough the larger towns to me are the obvious pick as far as investment go, but many smaller towns are merely satellites of these larger and therefore less "risky" locations.
Take for example a person who lived all their life outer suburbs SYD and commuted to the city every day, took up to or over 1hr.

Go to say Quirindi or even Gunnedah and you are within 40mins of Tamworth, major regional centre with all the tricks and will only get bigger.

I only have to look at a map of the US and see all those major cities the size of our capitals dotted all over the shop and see the future we are heading for regarding this.

NSW has only 3 major regionals outside of SYD/NEWIE/GONG which are
Tamworth, Dubbo & Wagga.EDIT: I should say west of the Great Dividing Range, sorry to Muswellbrook & Singleton.

There is so much mining planned to happen right across the state and from each of theose locations you are only half a day drive or no more than 1hr flight to SYD.

I reckon many city folks need to go for a long drive (over 1hr...LOL...but anyway) and have a look around.

I remember reading or talking about (not sure if here or elsewhere, but) some folks from the city cant go past the metropolitan limits as they are too scared of open space....WOW...!!!:confused:

The game has not changed at all.
 
sash said:
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?
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Did your friend purchase in those areas Sash?
 
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