Hi Everyone,
I've just signed up to the forum and this is my first post!
I have also been looking into South Hedland following a presentation with a similar deal. 2 bed, 2 bathroom unit at 550k. Independent valuation was 630k with a rental appraisal of $1200-$1300 p/w. $26,593.00 surplus income per annum + tax benefits.
My Father always used to tell me ?If something sounds too good to be true, it probably is.? And in the investment world, ?If something sounds too good to be true, it definitely is.?
They market this deal as unique as it not only offers positive cash flow but instant equity.
Some positive forecasts for the future - They predict iron ore to double in production by 2025, Large private companies investing in area ( Bunnings has just put forward a proposal in south hedland, Investment into civil infrastructure has also been significant as Government strives to support and maintain its booming population. Projects include the new South Hedland town centre, government-funded waterpark, sport stadium and youth centre. Further projects underway are the $152 million Spoilbank Marina precinct, $70 million airport upgrade and $100 million South Hedland 'New Living Urban Renewal Project (SHNL)'; proving to be one of the largest urban renewal projects ever undertaken in WA. Hedland also has the largest regional hospital in the Pilbara. Ontop of that you have the Roy hill project and the port expansion that will defiantly be constructed once Roy hill is up and running.
The negatives- Extensive land development taking place in the area, over supply? The falling price in iron ore, what affect will this have on the mining companies, they will be looking to save costs elsewhere, ie setting up own camps for employees. South Africa and Brazil now stepping up productions in iron ore, things could change over night if they make it affordable. Our own government, climate change and emission targets, has a direct impact on the mining sector.
I'm only 25 years young and am certainly no expert in investing...yet
Sukumar, have you made the trip upto South hedland yet to get a real feel into what is happening up there?
My short story- I'm an electrician by trade and currently have one property, purchased a development site in 2010 in Mitcham, Melbourne. Built 2 townhouses, sold one and kept one as an investment. Now have 250-300k equity, 100k savings. Looking for number 2 possibly 3....
PS - Sorry if i went overboard with my first response!
I've just signed up to the forum and this is my first post!
I have also been looking into South Hedland following a presentation with a similar deal. 2 bed, 2 bathroom unit at 550k. Independent valuation was 630k with a rental appraisal of $1200-$1300 p/w. $26,593.00 surplus income per annum + tax benefits.
My Father always used to tell me ?If something sounds too good to be true, it probably is.? And in the investment world, ?If something sounds too good to be true, it definitely is.?
They market this deal as unique as it not only offers positive cash flow but instant equity.
Some positive forecasts for the future - They predict iron ore to double in production by 2025, Large private companies investing in area ( Bunnings has just put forward a proposal in south hedland, Investment into civil infrastructure has also been significant as Government strives to support and maintain its booming population. Projects include the new South Hedland town centre, government-funded waterpark, sport stadium and youth centre. Further projects underway are the $152 million Spoilbank Marina precinct, $70 million airport upgrade and $100 million South Hedland 'New Living Urban Renewal Project (SHNL)'; proving to be one of the largest urban renewal projects ever undertaken in WA. Hedland also has the largest regional hospital in the Pilbara. Ontop of that you have the Roy hill project and the port expansion that will defiantly be constructed once Roy hill is up and running.
The negatives- Extensive land development taking place in the area, over supply? The falling price in iron ore, what affect will this have on the mining companies, they will be looking to save costs elsewhere, ie setting up own camps for employees. South Africa and Brazil now stepping up productions in iron ore, things could change over night if they make it affordable. Our own government, climate change and emission targets, has a direct impact on the mining sector.
I'm only 25 years young and am certainly no expert in investing...yet
Sukumar, have you made the trip upto South hedland yet to get a real feel into what is happening up there?
My short story- I'm an electrician by trade and currently have one property, purchased a development site in 2010 in Mitcham, Melbourne. Built 2 townhouses, sold one and kept one as an investment. Now have 250-300k equity, 100k savings. Looking for number 2 possibly 3....
PS - Sorry if i went overboard with my first response!
