Winter Newsletter 2020
Updated: Jun 24, 2020
THE WEST END BUY BACK SCHEME IS GOING AHEAD - FIND OUT HOW RICK AND HIS TEAM CAN HELP YOU!
Sales have continued to be consistent with strong local owner occupier buyers. We have seen a slight reduction in investors located outside of Hedland (explanation Covid-19 update on the next page)
Team Rick Hockey have put 51 properties Under Offer in the last four months averaging 12 per month (a very strong result) Our market has remained at a consistent level for the past two years and the indicators show that we are well positioned to have slow but steady growth when the effects of COVID-19 are fully realised and the global economy starts to move forward. We believe the future of our property market will remain strong and steady without losing ground. Some reasons why this will happen are detailed in our rentals activity and COVID article following.
Our rentals have not only shown strength but experienced growth with upward movement on new leases. 159 properties have been leased over the last four months averaging nearly 40 properties per month (a very strong result).
Currently only 78 properties are available for lease over Port & South Hedland and this reflects critical levels and the reason for moderate rental increases. Our rental vacancy rate currently sits at 3% with Hedland First National having only 20 properties available for rent in Port and 17 available in South Hedland.
You may have seen in the news recently that BHP are looking at options to increase their export capacity another 40 million tonne. This may include expansions and improvements to existing Infrastructure including Railway, Nelson Point hub and the Harbour. The application for extra export capacity has not yet been lodged with the Government which indicates it is some time away. Any construction works are most likely to be predominately FIFO until project completion.
COVID-19 AND THE IMPACT ON HEDLAND PROPERTY
The question I continually get asked is how has COVID-19 affected Port Hedland and the property market. Well it’s not all bad news in fact, it brings some POSITIVE news.
The mining companies are favouring a localised workforce rather than a Fly In Fly Out (FIFO) workforce during this period of uncertainty and restrictions.
The further good news is that whilst mining companies will still use FIFO workers, they now realise the business risks related to FIFO work so we may see more of a permanent mining workforce in town over the longer term. Also, less reliance on overseas workers to fill these roles.
With the Mining workforce being localised it has enabled our rental market to remain STRONG and it is also seeing more injection of funds into the local economy, a trend which will continue while the workforce remains in town.
During COVID-19 we have seen a slight reduction in investor buyers who have lost money in Super or companies and businesses experiencing a reduction in cash flow. However, many shares especially those in mining, are performing well and bouncing back already so more positive signs for our region.
ARE YOU UNDER FINANCIAL STRESS TO MEET YOUR MONTHLY REPAYMENTS?
Did you buy at the HEIGHT of the market?
Or borrow EQUITY from properties?
Or has Covid-19 impacted your cashflow?
HARD TIMES??? BUT THERE ARE OPTIONS!
Whilst there are no magical solutions that solve all the problems, there are OPTIONS that may be BENEFICIAL and certainly worth EXPLORING before it’s TOO LATE
Contact RICK for more INFORMATION
Contact TEAM RICK HOCKEY
Selling? Call RICK HOCKEY | 0438 934 093
Buying? Call BROOKE MATTHEWS | 0437 906 724
Download the full newsletter here. 👇🏼