Australian Politics Forum - Mining town experiences property crash

Bobby.

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Re: Mining town experiences property crash
Reply #30 - Oct 16^th, 2014 at 6:56pm

Aussie wrote on Oct 16^th, 2014 at 6:31pm:

Redmond Neck wrote on Oct 16^th, 2014 at 6:03pm:

Aussie wrote on Oct 16^th, 2014 at 5:51pm:

I have a close family member, a retired Magistrate, who, in the last year, paid big money for an 'off the plan Unit' now worth almost nothing in Moranbah.

I guess Aussie it depends if he bought it outright or borrowed money for it.

If he bought it outright he may have to sit tight and hope the mining comes good in ayear or two. If he borrowed the banks may want a significantly larger deposit as the value has collapsed

Not great whatever way one looks at it!

He paid cash. Big loss. This is really about FIFO. Mining towns cannot be sustained without a community living there.

Dunno what the solution is. You can hardly expect a young bloke with his wife and young family leaving the comforts of life on the Sunshine Coast, to pick up sticks and live in a dusty mining town.

Yet, if he does not, and flies in and flies out, he is very likely going to lose his family, and Moranbah goes down the gurgler, other than as a hole in the ground.

It is a personal judgement call.

If I were King................ban FIFO. Make them live where they work, build a community, frontier like. Short term personal pain with huge financial gain, long term personal gain, long term financial gain, and a community is built.

I once was sent by my company for 3 weeks to a in a mining town in Queensland.

Believe me - you would hate it.

I couldn't wait to get back to Melbourne.

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Sir lastnail

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Re: Mining town experiences property crash
Reply #31 - Oct 16^th, 2014 at 9:07pm

John Smith wrote on Oct 16^th, 2014 at 6:50pm:

Vuk11 wrote on Oct 16^th, 2014 at 6:43pm:

Property managers and those in property insurance have been talking about the bubble for years and now these signs of rent/property values taking hits in some areas. Hell they're even talking about that show "The Block" with the shocking final auctions as more proof.

As a property manager, I can tell you that your first comment is a load of bollocks. The only ones going on about a bubble are those that have no idea. Sure some areas are overpriced, and adjustments are necessary, but thats part of the normal cycle of property.

If you buy in a town where the whole town is built on mining, it stands to reason that as soon as mining stops, the town stops. No news here, it's happened hundreds of times and will continue to happen. Investing in mining towns requires good timing ... you have to know when to get in and more importantly, when to get out .... as soon as that mine closes, unless you bought pre the opneing of the mine, you are screwed.

As for your comments re the block ... the reserves were simply set too high. Unless you suddenly think $1.3 million for a unit is cheap?

yep we certainly have no idea. Wink

tick..tock..tick..tock..tick..tock.......

http://www.australiandebtclock.com.au/

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debtclock_043.gif (28 KB | 57 )

In August 2021, Newcastle Coroner Karen Dilks recorded that Lisa Shaw had died “due to complications of an AstraZeneca COVID vaccination”.

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John Smith Gold Member Offline Australian Politics Posts: 72336 Gender:	Re: Mining town experiences property crash Reply #32 - Oct 16^th, 2014 at 9:11pm Property makes Australians the world’s richest , says Credit Suisse http://www.smh.com.au/business/the-economy/property-makes-australians-the-world8...
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Sir lastnail

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Re: Mining town experiences property crash
Reply #33 - Oct 16^th, 2014 at 9:14pm

John Smith wrote on Oct 16^th, 2014 at 9:11pm:

Property
makes Australians the world’s richest
, says Credit Suisse
http://www.smh.com.au/business/the-economy/property-makes-australians-the-world8...

and 1 in 7 are living below the poverty line. You can't eat a house john no matter how overinflated and debt ladened it is !!

asset rich and cash flow poor is not a sign of prosperity Sad

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In August 2021, Newcastle Coroner Karen Dilks recorded that Lisa Shaw had died “due to complications of an AstraZeneca COVID vaccination”.

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John Smith

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Re: Mining town experiences property crash
Reply #34 - Oct 16^th, 2014 at 9:16pm

Sir lastnail wrote on Oct 16^th, 2014 at 9:14pm:

John Smith wrote on Oct 16^th, 2014 at 9:11pm:

Property
makes Australians the world’s richest
, says Credit Suisse
http://www.smh.com.au/business/the-economy/property-makes-australians-the-world8...

and 1 in 7 are living below the poverty line. You can't eat a house john no matter how overinflated and debt ladened it is !!

asset rich and cash flow poor is not a sign of prosperity Sad

1 in 7 below the poverty line ... imagine that, 1 in 7 don't own property either Cheesy

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Our esteemed leader:
I hope that bitch who was running their brothels for them gets raped with a cactus.

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gone

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Re: Mining town experiences property crash
Reply #35 - Oct 16^th, 2014 at 9:34pm

John Smith wrote on Oct 16^th, 2014 at 9:16pm:

Sir lastnail wrote on Oct 16^th, 2014 at 9:14pm:

John Smith wrote on Oct 16^th, 2014 at 9:11pm:

Property
makes Australians the world’s richest
, says Credit Suisse
http://www.smh.com.au/business/the-economy/property-makes-australians-the-world8...

and 1 in 7 are living below the poverty line. You can't eat a house john no matter how overinflated and debt ladened it is !!

asset rich and cash flow poor is not a sign of prosperity Sad

1 in 7 below the poverty line ... imagine that, 1 in 7 don't own property either Cheesy

As long you haven't paid off your mortage, you don't own the house. Wink

How many Australians actually own a house debt-free
? You got any numbers? And how many of them own a few hectares of fertile land with water on top of it? A house without fertile land and water won't be worth much in the future when we get food shortages. Wink

We will see whole city suburbs turning into ghost towns once the SHTF and people are forced to move closer to food sources.

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ian Gold Member Offline OzPolitic Posts: 9451	Re: Mining town experiences property crash Reply #36 - Oct 16^th, 2014 at 9:40pm another fruit bat posting from his fortifed concrete bunker.
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John Smith

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Re: Mining town experiences property crash
Reply #37 - Oct 16^th, 2014 at 10:14pm

gone wrote on Oct 16^th, 2014 at 9:34pm:

As long you haven't paid off your mortage, you don't own the house.

true, but with a mortgage, your repayments will slowly decline until you are one day debt free ...

the alternative ..... no mortgage and you'll be paying an ever increasing rent for the rest of your life ... cheap rent on the Gold coast where I live is currently about $400 week, what will it be in 30 yrs time? do you think pensions will keep up with the rate of increase?

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Our esteemed leader:
I hope that bitch who was running their brothels for them gets raped with a cactus.

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Sir lastnail

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Re: Mining town experiences property crash
Reply #38 - Oct 16^th, 2014 at 10:18pm

John Smith wrote on Oct 16^th, 2014 at 10:14pm:

gone wrote on Oct 16^th, 2014 at 9:34pm:

As long you haven't paid off your mortage, you don't own the house.

true, but with a mortgage, your repayments will slowly decline until you are one day debt free ...

the alternative ..... no mortgage and you'll be paying an ever increasing rent for the rest of your life ... cheap rent on the Gold coast where I live is currently about $400 week, what will it be in 30 yrs time? do you think pensions will keep up with the rate of increase?

How many people will still have a job in 30 years time when so many jobs are going offshore ?

By throwing good money after bad into a non productive asset such as property makes our current standard of living totally unsustainable in the future !! You will need a lot more than overinflated house prices to sustain our current standard of living.

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« Last Edit: Oct 16^th, 2014 at 10:28pm by Sir lastnail »

In August 2021, Newcastle Coroner Karen Dilks recorded that Lisa Shaw had died “due to complications of an AstraZeneca COVID vaccination”.

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gone Gold Member Offline Australian Politics Posts: 744 somewhere Gender:	Re: Mining town experiences property crash Reply #39 - Oct 16^th, 2014 at 10:20pm ian wrote on Oct 16^th, 2014 at 9:40pm: another fruit bat posting from his fortifed concrete bunker. YOU ARE
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gone

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Re: Mining town experiences property crash
Reply #40 - Oct 16^th, 2014 at 10:40pm

John Smith wrote on Oct 16^th, 2014 at 10:14pm:

gone wrote on Oct 16^th, 2014 at 9:34pm:

As long you haven't paid off your mortage, you don't own the house.

true, but with a mortgage, your repayments will slowly decline until you are one day debt free ...

the alternative ..... no mortgage and you'll be paying an ever increasing rent for the rest of your life ... cheap rent on the Gold coast where I live is currently about $400 week, what will it be in 30 yrs time? do you think pensions will keep up with the rate of increase?

There is no great alternative. We are heading towards a world wide revolution and most nations will go bankrupt. It's gonna be very hard to hold onto any assets. Of course if you can easily afford fertile land then you should buy it. But getting into big debt to buy property in Australia now is foolish. Property prices will fall 50-90% in Australia in the next few years. If you have money to invest but not enough to buy land outright then it's better to invest it otherwise, like gold for example. But that can be taken from you too. So you need weapons. And a good social network. People who you can trust.

The richest and most powerful in the world have been building bunkers for themselves in the last few years. They are organizing private armies for themselves, as we speak. They KNOW what is coming.

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Datalife

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Re: Mining town experiences property crash
Reply #41 - Oct 16^th, 2014 at 10:59pm

gone wrote on Oct 16^th, 2014 at 10:40pm:

John Smith wrote on Oct 16^th, 2014 at 10:14pm:

gone wrote on Oct 16^th, 2014 at 9:34pm:

As long you haven't paid off your mortage, you don't own the house.

true, but with a mortgage, your repayments will slowly decline until you are one day debt free ...

the alternative ..... no mortgage and you'll be paying an ever increasing rent for the rest of your life ... cheap rent on the Gold coast where I live is currently about $400 week, what will it be in 30 yrs time? do you think pensions will keep up with the rate of increase?

There is no great alternative. We are heading towards a world wide revolution and most nations will go bankrupt. It's gonna be very hard to hold onto any assets. Of course if you can easily afford fertile land then you should buy it. But getting into big debt to buy property in Australia now is foolish. Property prices will fall 50-90% in Australia in the next few years. If you have money to invest but not enough to buy land outright then it's better to invest it otherwise, like gold for example. But that can be taken from you too. So you need weapons. And a good social network. People who you can trust.

The richest and most powerful in the world have been building bunkers for themselves in the last few years. They are organizing private armies for themselves, as we speak. They KNOW what is coming.

Your prediction is that property prices will fall by by half or up to 90% in 2016? I will take that bet.

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longweekend58 Gold Member Offline Australian Politics Posts: 45675 Gender:	Re: Mining town experiences property crash Reply #42 - Oct 17^th, 2014 at 7:38am Aussie wrote on Oct 16^th, 2014 at 5:51pm: I have a close family member, a retired Magistrate, who, in the last year, paid big money for an 'off the plan Unit' now worth almost nothing in Moranbah. so he was an idiot... your point?
Back to top	AUSSIE: "Speaking for myself, I could not care less about 298 human beings having their life snuffed out in a nano-second, or what impact that loss has on Members of their family, their parents..." IP Logged

longweekend58

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Re: Mining town experiences property crash
Reply #43 - Oct 17^th, 2014 at 7:41am

John Smith wrote on Oct 16^th, 2014 at 6:50pm:

Vuk11 wrote on Oct 16^th, 2014 at 6:43pm:

Property managers and those in property insurance have been talking about the bubble for years and now these signs of rent/property values taking hits in some areas. Hell they're even talking about that show "The Block" with the shocking final auctions as more proof.

As a property manager, I can tell you that your first comment is a load of bollocks. The only ones going on about a bubble are those that have no idea. Sure some areas are overpriced, and adjustments are necessary, but thats part of the normal cycle of property.

If you buy in a town where the whole town is built on mining, it stands to reason that as soon as mining stops, the town stops. No news here, it's happened hundreds of times and will continue to happen. Investing in mining towns requires good timing ... you have to know when to get in and more importantly, when to get out .... as soon as that mine closes, unless you bought pre the opneing of the mine, you are screwed.

As for your comments re the block ... the reserves were simply set too high. Unless you suddenly think $1.3 million for a unit is cheap?

spot on. absolutely correct. as usual, renter-nail is simply quoting a singular worst-case scenario while ignoring the rest of the market. and as for aussies 'friend'. If you are stupid enough to buy into a mining town while the industry is in freefall then you are too stupid to keep your money.

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AUSSIE: "Speaking for myself, I could not care less about 298 human beings having their life snuffed out in a nano-second, or what impact that loss has on Members of their family, their parents..."

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longweekend58

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Re: Mining town experiences property crash
Reply #44 - Oct 17^th, 2014 at 7:42am

Aussie wrote on Oct 16^th, 2014 at 6:56pm:

John Smith wrote on Oct 16^th, 2014 at 6:50pm:

Vuk11 wrote on Oct 16^th, 2014 at 6:43pm:

Property managers and those in property insurance have been talking about the bubble for years and now these signs of rent/property values taking hits in some areas. Hell they're even talking about that show "The Block" with the shocking final auctions as more proof.

As a property manager, I can tell you that your first comment is a load of bollocks. The only ones going on about a bubble are those that have no idea. Sure some areas are overpriced, and adjustments are necessary, but thats part of the normal cycle of property.

If you buy in a town where the whole town is built on mining, it stands to reason that as soon as mining stops, the town stops. No news here, it's happened hundreds of times and will continue to happen. Investing in mining towns requires good timing ... you have to know when to get in and more importantly, when to get out .... as soon as that mine closes, unless you bought pre the opneing of the mine, you are screwed.

As for your comments re the block ... the reserves were simply set too high. Unless you suddenly think $1.3 million for a unit is cheap?

I agree generally with that. But.......

Moranbah has been a mining town for decades, and it is far from depleted. There are centuries (poetic licence there) of mining to be done. FIFO stuffing is stuffing it up.

Ban FIFO.

ban freedom of choice???? how... Joh of you.

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AUSSIE: "Speaking for myself, I could not care less about 298 human beings having their life snuffed out in a nano-second, or what impact that loss has on Members of their family, their parents..."

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