Woohoo! Finance came through!
- Thread starter Belbo
- Start date
Hope it works out,24%cg for the last 10 years
,, my argument always been if you want to control the price of something you have to make it more available,and if you look at the numbers for something like this for the next ten years,and the problem with all statistics is they only tell you what's happened,2-6 months or 10 years ago..at first I was like 11%! pfffffftttt!!!!
But then a quick re.com search suggests that the rents for sh*tboxes in South Hedland are expectional high due to the mining boom.
but it always makes me wonder...
What happens when the boom ends?
What happens when mining companies find an alternative to paying $1,500 - $2,000pw for a 3 bdr transportable?
what happens when the shortage is met by supply?
What happens when rents return to normal?
at the end of the day if the high rent and the boom disappears you have a property in a ghost town worth nothing.
but of course the boom will never end and rents will be maintained at this level for ever. or at least until you time it perfectly and sell at the top of the market.
but anyway hope you make a stack of cash, good luck.
But then a quick re.com search suggests that the rents for sh*tboxes in South Hedland are expectional high due to the mining boom.
but it always makes me wonder...
What happens when the boom ends?
What happens when mining companies find an alternative to paying $1,500 - $2,000pw for a 3 bdr transportable?
what happens when the shortage is met by supply?
What happens when rents return to normal?
at the end of the day if the high rent and the boom disappears you have a property in a ghost town worth nothing.
but of course the boom will never end and rents will be maintained at this level for ever. or at least until you time it perfectly and sell at the top of the market.
but anyway hope you make a stack of cash, good luck.
It's a yeild play, and any CG will be a bonus (but rents go up every 6mths by around 10%, so that's a nice price driver right there).
NB: It's my second one in Sth Hedland. The first one bought a few months ago cost $890K, also yeilding 11%.
I'm otherwise invested in Sydney, which isn't exactly exposed to the mining boom, so Hedland balances the portfolio up.
Sure it's a tad speculative, but I'm in a hurry and so am happy to take a bit of risk to get there.
It's not for everyone, I know, but it suits me and the missus. We'll diversify going forward, and hopefully do some CIP down the line, as you do.
Who knows what the future holds?
PS. I think there's a few more decades left in the developing world's demand for our resources yet, so I don't fret too much about the propect of tenancy demand collapsing up there. If I did, I suppose I'd just want to sit on the sidelines too diddling trinkets and forewarning all of the coming collapse . . . . but that'd make me a complete and utter pillock, so out of politeness to others I'd probably just end up muttering profanities to myself about the world passing me by in the safety of my broom cupboard instead.
NB: It's my second one in Sth Hedland. The first one bought a few months ago cost $890K, also yeilding 11%.
I'm otherwise invested in Sydney, which isn't exactly exposed to the mining boom, so Hedland balances the portfolio up.
Sure it's a tad speculative, but I'm in a hurry and so am happy to take a bit of risk to get there.
It's not for everyone, I know, but it suits me and the missus. We'll diversify going forward, and hopefully do some CIP down the line, as you do.
Who knows what the future holds?
PS. I think there's a few more decades left in the developing world's demand for our resources yet, so I don't fret too much about the propect of tenancy demand collapsing up there. If I did, I suppose I'd just want to sit on the sidelines too diddling trinkets and forewarning all of the coming collapse . . . . but that'd make me a complete and utter pillock, so out of politeness to others I'd probably just end up muttering profanities to myself about the world passing me by in the safety of my broom cupboard instead.
They say fortune favours the brave.
You're braver than me Belbo (not that that would be hard - I'm a wimp).
Best of luck to you.
Caroline
You're braver than me Belbo (not that that would be hard - I'm a wimp).
Best of luck to you.
Caroline
My sentiments exactly!
I assume you are young and have enough time to recover?
Howdy Belbo,
Congrats with the purchase, hopefully works out in your favor
Congrats with the purchase, hopefully works out in your favor
Hopefully it will, otherwise the lender wi'll be happy to take his Syd property off his hands.....
Belbo
Ok good age, You're a bit younger than me and a lot braver
The other day I was going to buy a property in South Syd and keep it for my retirement but when I did the numbers and considered landtax plus the weekly shortfall I would have been -ve by $30K/pa so it didn't make sense to proceed.
If I had bought a few IP's in mining towns, things would have been much different so your current strategy could be what I need as well but I'll wait till the next cycle starts, in a few years time..........
Belbo
Ok good age, You're a bit younger than me and a lot braver
The other day I was going to buy a property in South Syd and keep it for my retirement but when I did the numbers and considered landtax plus the weekly shortfall I would have been -ve by $30K/pa so it didn't make sense to proceed.
If I had bought a few IP's in mining towns, things would have been much different so your current strategy could be what I need as well but I'll wait till the next cycle starts, in a few years time..........
No, you and I both know that every single investment decision is a brave commitment, and you are just making the entirely correct point that I am NOT a sensible example for the average reader here. I agree.
Dear readers: I am trying to correct my own property investing mistakes. I bought heavily CF- to begin with, so must buy heavily CF+ now to balance it up. This is what BV understands completely, but you may not.
DO NOT even think of buying in risky mining centres unless, like me, you have no kids, a working wife, and a bloody good combined income. You'll be ripped apart. Replacing a light-bulb costs $75 up there, and just forget about ever getting a roof repair!
So, BV's whole point is the important one: Don't do the crime unless you're willing to do the time. I, stupidly, am. But that's because I'm not on your average salary earner's wage. That's why I can - and some of you can't - ignore BV's warnings. Unless you have a very good combined salary and no long term commitments you will not enjoy this. Agreed, BV.
Belbo
I like your disclaimer
I wouldn't enjoy it for sure.
I cannot sleep now and I'm not even -ve geared.
You can imagine what a Newtown IP would do to me.
Take care mate
Bill
