Comments on: Boom Times in Port Hedland, Western Australia

By: Elisabeth Sowerbutts

Elisabeth Sowerbutts — Fri, 15 Aug 2008 08:54:11 +0000

Yes the rents are outrageous – for the record for exactly 1/2 the amount you are paying in Port Hedland- you could rent a furnished 2 bed 500m from the beach in Scarborough, Perth. You touch on another issue too – I wouldn’t like a remote landlord’s chance of finding a competent local property manager: anyone who is competent is probably already being well-paid to work in the mining industry! Good luck with your search and thanks for commenting

By: Simeg01

Simeg01 — Fri, 15 Aug 2008 06:16:15 +0000

I am looking into buying a property in Port Hedland to live in and after doing some research I have found the houses are 20-30% overpriced. Even if you take into account the phenomonal growth rates of 30% they are still overpriced. It appears the commision based real estate agents only have dollar signs in their eyes. The 2 bedroom property I am renting at the moment for $750 is going to be put up to $850 a week when I leave. They didn’t do anything for the $750 I was paying!!!

By: Elisabeth Sowerbutts

Elisabeth Sowerbutts — Fri, 15 Aug 2008 03:34:58 +0000

Steve-o – I agree – to be honest if you want to invest in the WA iron ore boom buy some shares in Fortescue or BHP – they don’t involve incompetent property managers and inconsiderate tenants! Its not like Port Hedland is going to have a second life as a retirement destination anytime soon LOL! There has been some recently publicized land releases in the Port Hedland area but you could buy in outer Perth for the same price LOL ! Thanks for commenting

By: Steve-o

Steve-o — Thu, 14 Aug 2008 18:18:07 +0000

The problem with Port Hedland is that although ROIs may be 10%, borrowing to finance it is running at 9-10% anyway. Your tenants will be paying your mortgage and not much else. House prices have already skyrocketed; they’re unlikely to rise much more before the additional subdivisions come online.

If you already had property in PH before the boom, you’re in luck. Getting into it now, though… I just can’t see the profit.

Maybe if you could lay hands on a blank patch of land there and arrange for a boatload of portacabins to be delivered in a ‘trailer park’ arrangement, you _might_ be able to make enough in rent to cover the cost of shipping and setup.

But I doubt it.

By: Elisabeth Sowerbutts

Elisabeth Sowerbutts — Fri, 11 Jul 2008 14:33:50 +0000

I am very familiar with the WA property market Hayden. The point you miss that the boom in places like Hedland is a 1 horse race :iron ore and China that’s it. Guess what the biggest minerals exploration program is in China? Looking for iron ore in China. There is no slowing growth in WA (thats a eastern Australia problem)- but if a) something happens to China’s economic demand or b) they find alternative, cheaper, sources of iron ore – it will negative growth and high vacancy in Hedland.
The art of property investment – is not to see where the boom has been but to work out where the next boom will be. And I like my property investments in areas which have a broad-based sustainable demand from more than one industry and certainly more than one employer

By: Hayden Bone

Hayden Bone — Tue, 08 Jul 2008 09:01:48 +0000

This person obviously has not done his or her research within the region. The pure concept of Property Investment is to buy in an area which has low vacancy, high yields, good growth rate and of course a sustainable future within the region. PH ticks the box in every area including ROI’s of over 10% in some cases, 0% vacancy, some amazing growth even with a slowing economy, and many years of growth ahead of it. The thurst of Iron Ore from China will not be stopping any time soon so my suggestion is get in quick before the prices get out of reach.