I recall an article in the Sydney Morning Herald by Nathan Bell titled 'A different kind of property bubble' discussed the true value of property trusts and how badly they were hit at the time of the GFC.
Paul Weightman, as then CEO of Cromwell Property Group is quoted as saying back in 2013 “"We are seeing a different bubble developing this time compared to 2006. We have an enormous amount of capital from offshore looking to find a home in the Australian market, but we have pretty poor underlying property fundamentals. Investors searching for yields have been bidding up prices.
Nathan Bell notes that a remark this candid from someone in Weightman's position is incredibly rare. Bell surmises Weightman plans to sell assets before the bubble bursts and sees "a very strong opportunity in the next couple of years to improve both the tenor and price of debt."
It is noted that the Sydney Morning Herald states that Nathan Bell is research director at Intelligent Investor and this article (cited above) contains general investment advice only (under AFSL 282288).
It was noted then that The Lowy family has built a $30 billion property empire but recently sold its entire $664 million stake in Westfield Retail Trust, despite a sale price at a 10 per cent discount to net tangible assets and Nathan Bell asks that if you own shares in A-REITs (Australian real estate investment trusts - the new name for … property trusts), at that time - you may want take another look.
He concludes that some of the biggest names in Australian commercial property, those with deep inside knowledge of the sector, at that time were selling assets. You may want to ask yourself why.
Mining Sector community housing
I’m providing an overview over the past few years. The mining industry on the other hand is disparately trying to accommodate its work force and their families. My article of June 2012 cited the ABC Television 4Corners program (Monday 28 May 2012) on this very issue, showed housing development for single person quarters by buying up and demolishing family homes in these mining communities. One statistic shown was that 80 families had left Moranbah in the past 12 months.
Men or women, for their own well-being and person-hood, need their partners and children nearby, even if that means, a few days away at a time, and a three hour drive home. Spouses (partners) and families civilise the community and too many of one (male or female) creates unhealthy and unwelcome situations. Recent history reveals how traumatic it can become.
Then the Carlisle Coast saw significant property housing movement in the Midge Point area (Carlisle Coast) for the mining families working across the Bowen Basin in Queensland. Reasonably priced housing, from a basic $280,000 for a three bedroom home on a house block, specifically catering for the mining family industry are selling. Readers were invited to check out the Carlisle Coast and its affordable sea-change housing.
The local developers saw at that time saw the mines as a draw card for families wanting minimal community living (away from the cities and large regional centres) but within reach of supermarkets and convenience stores. The Whitsundays airport is 20 minutes away, Proserpine is a 25 minute drive, Cannonvale's large supermarkets another 12 minute drive, whereas south to Mackay is a one hour and 10 minute drive. These drive-time allotments are about the same time it takes to go from Sydney's outer suburbs to Sydney airport or the city's CBD.
Now, a close inspection of real estate on-line sites recently revealed some real bargain prices in the realm of the lower $200ks for a three bedroom duplex in sight of the astonishingly beautiful blue waters of Repulse Bay. An article I wrote for Christian Today at that time spells it out.
Vision is part of being 'coastal and affordable'
Today, 2018 there is 4G on-line access as well as land line ADSL Internet access as many professional people today can work from their home office. There is a local school, SES, Bush Fire Brigade, a community tavern with published culinary acclaim, various community groups; and there is a good school bus services for high schoolers. The Whitsundays (Proserpine) airport is 20 minutes away.
A sea change can mean - “coastal and affordable” - if people have the capacity to vision what may be, or have the type of work that can be activated by the Internet, or willing to make something out of the multiple-hundreds of thousands of dollars they save from not buying in Brisbane, Sydney, Melbourne or the larger regional centres.
Interestingly, three bedroom two bathrooms duplex’s are selling around $180,000 (give or take as there are a small number of them). It is a buyer’s market right now.
It is certainly the ideal location for the Well-Being Australia missionary respite facility, and we've enjoyed a steady stream of mission people taking their own ‘time-out’.
Dr Mark Tronson is a Baptist minister (retired) who served as the Australian cricket team chaplain for 17 years (2000 ret) and established Life After Cricket in 2001. He was recognised by the Olympic Ministry Medal in 2009 presented by Carl Lewis Olympian of the Century. He mentors young writers and has written 24 books, and enjoys writing. He is married to Delma, with four adult children and grand-children. Dr Tronson writes a daily article for Christian Today Australia (since 2008) and in November 2016 established Christian Today New Zealand.
Mark Tronson's archive of articles can be viewed at http://www.pressserviceinternational.org/mark-tronson.html