Boom and bust - real life examples

[Jesse B.]

I know there has been some discussion of what it might look like with the drop of the price of oil.  I also know there are several of us on the site who live or have lived in these areas and have first hand experience.  

Currently here in Western Australia we are in the middle of a crash in iron ore prices.  I thought this snippet in the paper said it all! Since the 2012 peak, average weekly rent in Port Headland has dropped from $2544 to $1133, with avg sale price dropping from $1.2m to $775k, and there is no bottom in site yet.  And this is arguably not the hardest hit town.  Good to take advantage of the high rents and rapid appreciation when we can in these areas, but it's a scary game!