Why rent when you can buy?
Thursday 23 June 2016
Locals who’ve seen the rise and fall of the coal sector before are predicting a recovery in the future and are prepared to put money on it.
According to real estate agent from Blackwater Real Estate Gerard Eising, the property market is active.
“There are quite a lot of sales happening in Blackwater at the moment, but buyers are not paying huge money,” he told the Blackwater Review.
“For a lot of people who have seen the ups and downs in the past, they are thinking it is a good time to invest, and also because the prices have fallen so much it is cheaper to buy than rent.
“Currently, you can buy a basic three bedroom house for between $80,000 and $100,000, during the height of the boom you were probably paying around $300,000.
“There is even the odd investor around looking to buy at the bottom of the market.”
So while the 60 percent fall in house prices is good news for homebuyers, it's heartbreaking for those that bought during the boom.
According to Mr Eising, there are a large number of houses being forced onto the market because the owners cannot afford to pay the mortgage repayments, so the banks are forcing them to sell.
“The vacancy rate is very high, unfortunately," he said.
"People paid a lot of money for them, and now their mortgage is more than the house is worth in some cases.
“But the banks aren’t selling them at any price; they are working off the property valuer recommendations.
“But there is a lot of pain out there.”
Nearby in Emerald, it’s a similar situation, although a more diverse economy is helping the town through the mining downturn.
While all property prices have fallen, the hardest hit sector is vacant land, with lots available, and very few sales.
“I guess people are thinking, why build when I can buy a new or used house at the bottom of the market?” he added.
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