WITH 282 rentals up for grabs in Emerald, and more than 350 in surrounding towns, it is a renter's paradise in the Central Highlands.
But for landlords, it is a living hell - with desperation at an all-time high as more rentals pop up onto the market.
Anna D'Silva has an investment property in Blackwater and said landlords were feeling the pinch and were forced to lower their rent or offer incentives to get tenants in their houses.
"I have offered free rent, offered tenants to tell me what you want to pay, within reason - I'd rather $80 than nothing," she said.
"I haven't had a tenant in the house for about four to six weeks.
"I call the real estate every other day, but no luck."
Ms D'Silva invested in the Blackwater rental home in 2008, and she has found recent times a huge struggle.
"My father suffered a stroke in 2009. He is still paralysed on the left-hand side and we are looking after him with physiotherapy," she said.
"The rent was helping me care for him at this point - and now it is back down.
"I have spoken to people; half of them are currently in rented property and landlords aren't able to make repairs because they can't afford it.
"They are really struggling to meet mortgage payments."
Ms D'Silva, who runs an online property investors group as well as blogs for a national property magazine, said FIFO mines and rates were the major contributors to the problem.
"I called six companies in Blackwater and they all told me 'sorry, we have got our own accommodation camps', and that was the end of the story - no sympathy, nothing," she said.
"They like to employ FIFO and it is just dragging the town into the ground.
"Investors will bring money to the place, they will subdivide, add dwellings, renovate, building economy.
"I have pleaded with the council (about rates), I don't know how people are surviving... if nothing changes they will drive people out of the town."
Ms D'Silva said if she could not find a tenant for her home, she would have to cut her losses.
"We will just put this down as a very bad mistake and move forward."
Len Rosemeyer has two investment properties in Blackwater and said the council was "rubbing salt in the wound" with its rates.
"If things don't turn to some extent, any signs of positivity, the town will go under," he said.
"What investors are going to want to come back? It's ridiculous; there are no incentives at all to be up there."
Local real estate agent Clinton Adams said property managers were also feeling the pain of the rental market.
"All agencies would be working very hard at the moment to get these properties full - it is a very emotional time for landlords and owners, and a lot of the property managers are feeling that too," he said.
"These are hard times, but they won't last forever. It will change again."
I expect many rural towns in or near mining areas in Qld and WA to struggle in what is now becoming a mining downturn, until we have the next mining pickup.
How are things in your area? Prices have picked up I believe.
Any expressed market opinion is my own and is not to be taken as financial advice
I expect many rural towns in or near mining areas in Qld and WA to struggle in what is now becoming a mining downturn, until we have the next mining pickup.
How are things in your area? Prices have picked up I believe.
Yeah I've been busy with the family so i haven't had too much time to post. I came across this and thought i'd post it up.
I used to live in Emerald around the start of the mining boom and the rents of houses were out of this world. And working for the govt I was one of the lowest paid in town. If we didnt receive govt accomodation we or any other govt employees could afford to live there.
They were thinking they were going to cash in on the mining boom and hiked rents accordingly, forcing significant numbers without high-paid jobs out of their hometowns just as they did here in Gladstone.
But what comes around goes around - no one gave two fucks about the "sob stories" as lower income earners were driven out because everyone's eyes were clouded with dollar signs. Now the boot is moving to the other foot, some of them sound as though they expect sympathy - they'll get none from me.
Ms D'Silva invested in the Blackwater rental home in 2008
Quote:
Ms D'Silva, who runs an online property investors group as well as blogs for a national property magazine
What better proof that all these so called experts know crap about property/investment ?
A good hint for anyone looking for advice for where to invest that he should rely on himself and his understanding only to make decisions ! not on magazines, specialists, experts etc...
A good hint for anyone looking for advice for where to invest that he should rely on himself and his understanding only to make decisions ! not on magazines, specialists, experts etc...
I agree. I firmly believe that if you don't understand an asset, don't invest in it.
They were thinking they were going to cash in on the mining boom and hiked rents accordingly, forcing significant numbers without high-paid jobs out of their hometowns just as they did here in Gladstone.
But what comes around goes around - no one gave two fucks about the "sob stories" as lower income earners were driven out because everyone's eyes were clouded with dollar signs. Now the boot is moving to the other foot, some of them sound as though they expect sympathy - they'll get none from me.
That boot is moving to the arse kicking foot. Peter
A good hint for anyone looking for advice for where to invest that he should rely on himself and his understanding only to make decisions ! not on magazines, specialists, experts etc...
I agree. I firmly believe that if you don't understand an asset, don't invest in it.
Those mining towns were always a gamble, but so is every other part of the Australian property market now. It's not where they bought that has undone many, it's how. If a landlord can't afford simple repairs after losing their rental income for a few months then I would suggest they are over leveraged. They, like 98% of Australians who bought investment property on interest only loans have nothing in reserve. It's why most small businesses fail of course, that and going into a business that is basically a hair brained idea.
I imagine many investors up there are using their own income now to service the loans. Pouring good money after bad to prop up a losing bet is an old old story.
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