[laminarialesParticipant@laminarialesJoin Date: 2012Post Count: 9]

March 28, 2012 - 1:23 am

schmoo wrote:

I heard a rumour that prices have dropped by 30% in Moranbah and surrounding areas. Is this true?

I’m about to sign on the dotted line for a place in Moranbah and reading this thread is making me think twice and looking more towards Mackay for coastal living and more diversity and growth, or Emerald as a more affordable option.

The trouble is… neither of these provide the cashflow to enable further investing in the short term.

By the sounds of it there has been a price drop in Moranbah, as suddenly there are more places on the market. Why not hold off from signing and take advantage of this. Check out the other places.

I spend a fair bit of time in Moranbah and the surrounding camps. While many have fears that house prices will drop dramatically i am not so sure about this. There are thousands of workers staying at Mac Camps which charge $150 per night, per person. Many companies (mine included) would prefer to rent a house for $2000 a week if there are 4-5 workers (compared with $150 per night *4 people* 7 nights = $4200 per week at a Mac Camp). Not to mention the other benefits of houses such as additional storage space, a nicer environment etc. While BMA and the like don’t seem to mind wasting money, surely the camps will be vacated before the houses.

[laminarialesParticipant@laminarialesJoin Date: 2012Post Count: 9]

February 20, 2012 - 11:43 am

Thanks for the advice. I have decided to go ahead with Jamie
Also, the thing that made me kind of think maybe i should go down another track (and make this thread) after getting a call from the REA’s mortgage broker was how super confident he was that i would go through with his deal. After he said he’d come over to my place, i confirmed with him that i have no obligation to go with his offer and he said that he knew he would leave my place with me having chosen him as a mortgage broker. I would almost have decided against him simply for saying that. Just my thoughts.

[laminarialesParticipant@laminarialesJoin Date: 2012Post Count: 9]

February 15, 2012 - 10:15 am

Absolutely it would seem like a poor deal given that it is off the plan, is part of a large block of apartment and well, it is not student accommodation but is similar. That’s why if it were not NRAS (practically guaranteed CF+) it would be a terrible purchase. The agent said there would be good capital growth because of the area. But really, even though it may be in a good area the style of property is not conducive to capital growth. I will call the agent tomorrow and see if he has any opposing arguments. CF+ may be good but if there’s going to be negligible capital growth to use as equity for future properties it is not worth it.

Thanks for your thoughts Brad!

Any more ideas about capital growth of off the plan units in this kind of area very welcome.

[laminarialesParticipant@laminarialesJoin Date: 2012Post Count: 9]

February 14, 2012 - 11:30 pm

Thanks for the reply Lefty.

Would you be able to elaborate on why the return is restricted and what these costs are? I had thought the return was the best part of the NRAS deal. It is well above all other similar properties in the area.

I have no time or desire to renovate properties (Although i certainly appreciate the tactic, it just doesn’t work for me). As i am quite young and have a reasonably high income + low expenses, my strategy is to buy and hold allowing for capital growth over 10+ years (While buying more with the equity). The only reason these units came to my attention is because a friend of a friend offered them. They are not part of my buying strategy, but i could hardly fault them apart from possible lack of capital growth.

Any more thoughts are very welcome!

Cheers,
Marcus

[laminarialesParticipant@laminarialesJoin Date: 2012Post Count: 9]

February 14, 2012 - 11:58 am

Based on my recent experience, CBA will go to 90% on buildings over 40sqm… At 51sqm I think you’d be fine with anyone.

[laminarialesParticipant@laminarialesJoin Date: 2012Post Count: 9]

January 15, 2012 - 1:09 pm

Thanks for the reply. The idea of the building depreciating is one i hadn’t put much thought into and will certainly have to take into consideration.