Bottom falling out of Australia's Mining town real estate..?

Discussion in 'Markets & Economies' started by QLDSILVER, Jul 21, 2013.

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  1. QLDSILVER

    QLDSILVER Member

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    QLDSILVER, Jul 21, 2013
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  2. Clawhammer

    Clawhammer Well-Known Member Silver Stacker

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    granted... it's a BIG BOTTOM to fall out.
     
    Clawhammer, Jul 21, 2013
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  3. mmm....shiney!

    mmm....shiney! Administrator Staff Member Silver Stacker

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    More like stupid developers hoping to jump onto the mining boom to make a quick buck in mining towns "have gotten ahead of themselves in terms of fundamentals."

    I have a friend in town who owns a piece of prime real estate, for the past 5 years or more he and his "acquaintance" have planned to redevelop the block into luxury units. Even with all the crap going on in the economy over the past 5 years, they have only decided to pull the pin on the project in the past 2 months!!!!!!!! After spending 10's of thousands on preliminary plans and applications. They should have realised it wasn't going to work in our current climate 2 years ago. :/
     
    mmm....shiney!, Jul 22, 2013
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  4. willrocks

    willrocks Well-Known Member Silver Stacker

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    It's more than just real estate developers. My brother was living in mining town in north QLD. Virtually every aspect of the town was in some way dependent on income from well-off miners. Rents were double or triple what they should have been. Some people were putting temp site sheds on their land and renting those out. Old fibro shacks were going for prices you'd expect in Sydney. Car dealers were selling top of the range models. Food, beer, ... became more expensive.

    It got to the point where if you weren't in the mining industry, or directly servicing the mining industry, you couldn't really afford/justify staying in the town.

    My guess is real estate in mining towns will fall back to price levels somewhere near before mining came to town.
     
    willrocks, Jul 22, 2013
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  5. Clawhammer

    Clawhammer Well-Known Member Silver Stacker

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    $750,000!!!!.... for a townhouse!!!.... in Moranbah!!!

    !!!
     
    Clawhammer, Jul 22, 2013
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  6. Naphthalene Man

    Naphthalene Man Active Member Silver Stacker

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    Singleton NSW has a huge number of houses and units for sale at the moment.
    The market price here is certainly dropping.
     
    Naphthalene Man, Jul 22, 2013
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  7. mmm....shiney!

    mmm....shiney! Administrator Staff Member Silver Stacker

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    Maybe even lower as FIFO or DIDO becomes the preferred source of workers.
     
    mmm....shiney!, Jul 22, 2013
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  8. Clawhammer

    Clawhammer Well-Known Member Silver Stacker

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    The mines are insisting on FIFO.

    Locals living in Moranbah are having to move to Brisbane to get work back in Moranbah.

    Local workers screw up the rosters... insisting on 5 day weeks so they can be at home to see their families, taking leave to look after sick kids etc. FIFO workers don't cause those problems... if your wife/kids get into trouble & you're 2000kms away there's nothing you can do to help directly.
     
    Clawhammer, Jul 22, 2013
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  9. Naphthalene Man

    Naphthalene Man Active Member Silver Stacker

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    Just walked past our LEAN Board - the message for this week is
    Work\life balance
     
    Naphthalene Man, Jul 22, 2013
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  10. puddleduck

    puddleduck Member Silver Stacker

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    Ha, ours is housekeeping! :)
     
    puddleduck, Jul 22, 2013
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  11. Maxwell

    Maxwell New Member

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    I can remember Moranbah houses on the market for between $15k and $25k after the last bust. in 2008 they were renting the same house to my company for $1600 per week.

    Mining/oil/gas is cyclical , always has been , I remember being laid off 6 months early on 1 job they decided to mothball instead of commission along with 2500 other people in the early 90's, basically signalled the start of that recession.

    Depending on how long you think it will be until the house of cards falls, it could be a good investment opportunity. Rents in Karratha are well over $1k per week for a very average 3/1. A lot of the big companies are tied into long leases and can't drop the rents. Like i said, if i were so inclined, i'd be starting to look at the opportunity.

    I love FIFO, why would any sane person want to live in a dustbowl full of halfwit CUBs with temperatures in summer that would BBQ steak on a car bonnet! working in it is one thing, but living in it ...........
     
    Maxwell, Jul 22, 2013
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  12. Clawhammer

    Clawhammer Well-Known Member Silver Stacker

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    Our is "Drug & Alcohol Testing will be conducted next Monday".
    We're expecting a lot of resignations come Friday ;)
     
    Clawhammer, Jul 22, 2013
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  13. willrocks

    willrocks Well-Known Member Silver Stacker

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    Or a lot of sickies next week?
     
    willrocks, Jul 22, 2013
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  14. Clawhammer

    Clawhammer Well-Known Member Silver Stacker

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    Photo courtesy of Willrocks...

    [​IMG]
     
    Clawhammer, Jul 22, 2013
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  15. mmm....shiney!

    mmm....shiney! Administrator Staff Member Silver Stacker

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    ^ reno porn :p
     
    mmm....shiney!, Jul 22, 2013
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  16. malachii

    malachii Well-Known Member

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    They tried that at my old work and the union reps said "No worries - we'll do it right after the managment guys are done". It was never mentioned again :)

    malachii
     
    malachii, Jul 22, 2013
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  17. Clawhammer

    Clawhammer Well-Known Member Silver Stacker

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    lol
     
    Clawhammer, Jul 22, 2013
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  18. Clawhammer

    Clawhammer Well-Known Member Silver Stacker

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    This pic has been vexing me all day.

    At first I thought I can't believe they bothered put a porch on it. But then I realised with a place that small you would need somewhere for people to put their boots and not tread mud inside.
    Also in a place that small and stuffy, the ability to sleep outside under an awning & a mozzie net would be bliss particularly in summer.

    It's also amazing to see how people lived in the olden days. A place like that would've been a taj mahal compared to a canvas tent.

    Very cool pic thanx Willrocks
     
    Clawhammer, Jul 22, 2013
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  19. mmm....shiney!

    mmm....shiney! Administrator Staff Member Silver Stacker

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    and somewhere for the dog to sleep
     
    mmm....shiney!, Jul 22, 2013
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  20. AngloSaxon

    AngloSaxon Active Member

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    From the rows in the plants leading to the porch looks like the previous dwellers raised crops or veggies right next to the house. Convenient, Ma could throw the dirty dish water straight off the porch onto the crops to water them.

    Don't see an outhouse....
     
    AngloSaxon, Jul 22, 2013
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