How likely is it that the mining industry will keep performing strongly?
The expansion plans for our Pilbara region are a reality; it is a question of how fast the mining giants are expanding, not ‘if ’. The Pilbara has the largest port and iron ore mine in the world by bulk export, with the cost of production at a point where the large companies will survive under any likely macroeconomic scenario.
How long will China feature in the mining boom future?
In recent months China has reported slowing growth. But what many people don’t realise is that this is a direct result of the Central Government’s policy – they actually want the economy to slow a bit to avoid overheating and inflation. At the same time, they know that the key to power is to keep the economy moving and the people happy. This means a continued policy of moving people from regional to urban areas – about 15 million a year. All these people need to be housed which means China still needs our resources – iron, coal, gas, oil, copper, zinc and bauxite, and will continue to do so for many years.
How much can I borrow?
Our finance division can answer this question for you quickly and easily after getting a few details about your situation. Please don’t hesitate to contact us to get answers for your circumstance.
If I lock in a price ‘off the plan’, can it be increased if the property prices go up?
No, the capital gain is the investors’ benefit and the price of the property cannot be increased for the life of the contract regardless of how much the property’s value may have increased.
Who will rent it?
The MACRO Realty property management division will source you the best possible tenant and in the Pilbara these are typically mining corporates, government departments, or mining related industries that provide accommodation to their employees. It is extremely rare for leases to be entered into with individuals, who are typically unable to afford the cost of a lease in the Pilbara. Typically, an individual
will sublet a room from employees who have been provided with accommodation by their employer.
Can I use a deposit bond instead of paying a 10% deposit?
Good question. A deposit bond is a fee that typically costs between $800 and $4,500 (for most Pilbara investment properties) that you pay to a third party institution instead of the deposit (which is usually 10%). They in turn guarantee to the developer that you will have the deposit available at settlement. For most of the house-and-land packages and ‘off the plan’ purchases MACRO Realty are involved with, it is possible to use a deposit bond.
What size are the apartments?
The MACRO team is aware that mortgage insurers have specific size requirements in order for investors to be able to finance more than 80% of a property’s value. They will be much larger than a hotel room, with the benefit of being fully self-contained and are always greater than 50 metres on the title.
I have another question.
If your question isn’t here or hasn’t been answered sufficiently, please use the contact details below. The MACRO Realty team is here to help you.