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Hi Seabreeze,
Appreciate your insights re. Hedland, just a question on this, what sort of issues make it so hard to increase housing supply there?
Thanks.
The thing to remember here is to keep the dollar values of the day in perspective. We moved to Ktha in 1996 when I could buy a 600 sqm block for $27K and build a 4x2 for the huuuuuge sum of $225K - $250K........and it was huge because I had only just built a well fitted out 3x2 in Adelaide on 450sqm for $117K (incl land). So $250K out back of bum$%#K was obscene I can tell you..........just like $1.3M out back of bum$%#K is now.
Back then, to buy an old State house (15 yrs old - chocolate brick) would set you back $265K or so, but you could rent it out for $420 - $440/wk. Sensational money at the time. Metro Perth for a similar low end property you would pay $170/wk rent.
I haven't been silent on the topic of Melbourne.
Would I buy In Ktha or Hedland now? No, because I can see sensational opportunities elsewhere round the country which although they might not provide the exciting results of our investments in Ktha, these new interests stand to do very, very well in their own right and even better in a SMSF environment. Yes we're still looking at an evil "mining town' (sorry Seabreeze, couldn't resist....I think it is a term left over from a 1940 Gene Autrey cowboy fillum about the Klondyke) but not at residential property.
So the game changes, our focus changes and our target market changes.......make sure you do the research, spread the risk, but whatever you do, make sure you take a risk or you'll forever have your thumb stuck up your bum hoping for a return on your Docklands apartment.
'Night!
As with most things you can't just point to one factor. Access to land is a key issue, particularly when you have big piles of dirt and salt in the middle of everything and industry crying out for access to large swathes for new stockpiles, ports, rail access, power line easements, etc etc etc. Of course red tape on native title is a problem but so are storm surges on high tide in a cyclone. It's pretty flat around there. Lots of land just can't be touched for one reason or another.
The strata meetings out back aren't an issue - we do all ours on email there's sweet FA involved. Insurance is $1500, Rates $2000 and I don't pay agents fees (self managed - there's nothing to manage with corporates in our case - money goes straight into bank).
Good point, eliminating PM fees like that would be a good saving.
Yes, a serious saving, but who'll look keep a close eye on these high maintenance properties? Ian I think has the right hands in town, but outsiders (like me) rely on the PMs to contact and coordinate. I'd much prefer not to pay the PM fees mind.
If you are a local or in the industry and/or have local contacts to reliable/reasonable/trusthworthy tradies then that's good, but if not, you may have to rely on a PM.
Though I don't think that a PM will have keeping costs low for you as a priority for them, given how many other properties they will be managing and that they will get their management fee regardless, so they may not necessarily help you.
Ian, Seabreeze, how do you manage this?
Is that aircraft carrier of yours in the driveway or on a mooring Seabreeze?
Ian, Seabreeze, how do you manage this?