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Australia’s biggest investor myth

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Your Investment Property | 30 Jun 2013, 10:00 PM Agree 0
On paper, this investment type offers a high return on investment, but in real life it often turns into a disaster
  • guyana | 02 Jul 2013, 12:33 PM Agree 0
    I have had a similar experience. You think you're going to get great returns in some of these mining towns, but then you discover that the only properties in demand are new houses that cost a bloody fortune. People say you make money if you are prepared to risk, but my calculations are that you wont even get the growth and rents they promise
  • Thong | 02 Jul 2013, 12:47 PM Agree 0
    Like they say, there's a difference between speculating and investing - it doesnt get simpler than that
  • Wayne, Real Property Advice | 02 Jul 2013, 01:04 PM Agree 0
    Property investors would do themselves a great service by taking full note of the sobering statements in this article and the other comments. Undeniably, some early buyers have done extremely well but if anyone is now considering non-metro locations then we agree that multi-faceted regional centres offer much more compelling fundamentals than a small town that has little more going for it than being surrounded by some very expensive holes in the ground. Caveat emptor indeed.
  • Jo-Anne | 02 Jul 2013, 04:04 PM Agree 0
    I have worked in the mining industry for over 20 years, and lived in a number of mining towns along the way. I caution investors who are tempted to look at only the last 10 years of data. We have just seen one of the biggest mining booms of the last 100 years - from 2004 - 2012. Many expansions have been done during this period but are winding up now - many towns should be expecting signficant falls in occpancy (Gladstone?) Coal in Austraia is a very risky proposition at the moment with the vast majority of mines marginal at best. It follows that investing in coal mining towns at the moment would be very risky - wait to see what is happening for demand - in other words you need to follow both the mining industry and the real estate market - and if you don't you will most likely get very burnt. If you are thinking about investing in a mining town - WAIT (maybe 1 to 2 years) until China and the USA are starting to improve economically and the aussie dollar weakens. Caveat Emptor!
  • Ian | 07 Jul 2013, 08:12 PM Agree 0
    Take a good look at Moranbah - the rents where outragous so the mines built their own townhouses and moved staff into those. A quick search of moranbah rental ABC (means ABC national news in Australia) shows the massive slump in rents from 1800pw in March 2012 down to 350 pw circa may 2013. Mining support jobs are falling like leaves now, a friend who is permenantly emplyed has to write a letter about why he should keep his job. Others only get to receive a DCM letter (Dont Come Monday). Cost cutting is reducing local staff numbers. I hope the outcomes will be clearer in 6 to 12 months. hopefully.

  • Development Approval Brisbane | 23 Dec 2013, 05:47 PM Agree 0
    Thanks for sharing the idea there would be some apprehensions from segment but i am up for it.
  • The Planning Place - Logan City Council Risksmart | 17 Jan 2014, 03:38 PM Agree 0
    There is no doubt that when great minds are put together to formulate a response to an issue they can achieve anything.
  • The Role of Town Planners in Brisbane | 20 Jan 2014, 04:51 PM Agree 0
    Wow, This is very interesting! I enjoyed reading your great post.Thanks for the valuable information and insights you have shared here.
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