[QUOTE=Basil135;1134039]I would have to say that it is the laws of supply & demand.
When banana's were in short supply, up went the price. When potatoes are short, up goes the price.
What are the food prices like in these towns? Are they at their normal levels, or have they increased due to the demand as well?is more expencive to live but it is because of transport issues not demand i think.
As has been said, a property, or a banana for that matter, is only worth what someone is willing to pay for it. If the companies subsidising these rents feel that they are getting ripped off, then they have the option of not paying them and making alternative arrangements. there are no alternitive arrangments. unless you are BHP you dieout. you think a building company of three or four workers can afford to pay FIFO for there workers
Additionally, look at the flow on effect. Higher property values mean that local councils get to charge more for rates. Governments reap more in sales tax when the property changes hands, and for those that are renting out their houses, the tax they pay is greater.
Providing the authorities re-invest their new found windfalls into the local communities, then it goes on to benefit everyone. New roads, better parkland's, new shopping centres etc.Good luck with that!!! altho there has been some inprovnment since beibg up here
However, as was said in the article, the flow on effect flows through to the cost of the end product, that most of us will use in one form or another.
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At what price point does rent change from reasonable to exhorbitant?...
And who gets to decide?...
Jon
Its easy, when you have to pay is when it gets exorbitant
Lol
You're kidding me aren't you ??
With the rents charged in these places, and the chronic lack of almost anything BUT camp style accommodation (even that is in short supply), how do you think these places would survive without FIFO.
You claimed that the housing prices are driven up by greed - and particularly mentioned the control or influence that the council members have on the property market. Well guess who elects those same councillors into position. Obviously the majority of ratepayers are pretty happy with the arrangement, so lumping the blame solely onto the councillors is a bit rich.
As it happens - I don't think that the prices are driven by greed. I agree with others who have said that housing (and other) prices are purely market driven.
As for FIFO workers "raping" the town - I've heard this rubbish before and always have a chuckle. Why on earth should those FIFO workers be expected to "support" the businesses etc of the towns when the attitude of the town people towards the FIFO workforce is so obvious, and when those same workers return home on a regular basis where they can purchase their needs at much more realistic prices.
The "freight cost" justification claimed by so many businesses in country WA (and not just in towns where they have FIFO populations) is a farce, and is simply a blatant justification for ripping people off. Simply look at the real cost of transport, and divide that cost over the load of the truck or road train - the maths is pretty simple, particularly for bulk commodities, like fuel.
The bottom line is - many people commute to places like Karratha and Port Hedland because that's where the jobs are at the moment. These towns do not have the accommodation and infrastructure to meet these requirements, so FIFO becomes a necessity. Much of this workforce would not ever entertain the idea of living in these towns, particularly when the job they have there is a relatively short-term position, which is always the case when there are major construction activities going on. Personally, there is no way that I would ever consider living in either Hedland or Karratha, but I'm a FIFO worker into Karratha at the moment, and I live in another regional town that also has quite a large FIFO population.
But I really can't see the point in the locals of any of these towns (including the one that I live in) constantly whinging and blaming the shortfalls of their own communities on the FIFO workforce. Maybe they should be looking a little more closely in their own backyards first.
Cheers .........
BMKAL
Sorry i might of misguided you I am from victoria and have moved over to hedland 2 years ago. so im no local I love the town and proberly stay for a long time. only thing that worries me is the lack of quality schooling for my children (once I have Them) which is why FIFO workers give me the irrets
What is it you do?
Why do you have a FIFO role?
I am genuinely intrested not just trying to get ammo
Im not trying to stir you up but There is plenty of jobs that are not FIFO and even some with subsidised housing.
Talking to a lot of my workmates Who are FIFO agree that there only up here for the money so how is that not greed
Im up there for money and more so life style but i think im doing it a bit more sustainabley
The world runs on greed
Hope i dont upset anyone cos i hate getting mised judged for things on the net.
Is it greedy to want the best for your family's future?
I think if you can get the work and put up with the time away from home, then go for it.
BTW I do a lot of remote area work, so I do have some idea of it all. I also lived in Alice Springs for 4 years, so I have that side of the experience equation too.
While I agree the prices are exhorbinant, I also agree with supply and demand. Alice Springs and Darwin are showing constant increases in rents and properies also, making it harder and for many now, impossible to get into the market.
But if the landlords are greedy, surely the folks who owned these old fibro houses befrore the boom are greedy too?
Should they sell their home for the material value of about $100k instead of $1m?
Would you?
If one is greedy then all are greedy.
FIFO has come about because Mining Companies and the associated contractors were expected to build a town complete. Then when the resource was no longer viable, an entire town and its utilities became worthless and the waste was incredible.
The people, local councils, states and companies have been given, and made a choice according to the free market. This is the result.
As hard as it is for some to hear and others experience, this is an opportunity for a handful to be financially independant for thier retirement where as they may have been struggling otherwise. Good planning or good luck make no difference.
Hands up if you were selling your Landy anyway and could get 30 times its value, would only sell it for Redbook?
cheers
im all for people taking the step and seting up themself for the future
Hell i did it myself but in my limited Short time view and a outcommer looking in FIFO is just not the answer and is just a cheep way for big buisness to rapidly expand and not have to worry about the social economics of a town.
im not juging the people just the system
Sure it may not build a town in a traditional sense, but Mining is a business too. In all cases these towns would either not have existed or been anything more than they were in the first instance.
FIFO is an important tool. Which enables the mines to attract and keep staff far easier and cheaper than it used to be to try and attract a bloke and his family to a remote and usually harsh environment.
NW WA happens to have some nice spots so doesnt seem that bad a place to be.
cheers
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