Buy in MACKAY.

With all the doom and gloom around the nation, talk of reccession and housing bubble bursting, Mackay is still a shining performer. i have included some links to give you an idea about the place;

http://www.mackay.qld.gov.au/__data.../Mackay_Population_Growth_-_Medium_Series.pdf

http://smh.domain.com.au/home-renti...-end-in-sight-for-renters-20110125-1a3ee.html

http://www.dailymercury.com.au/

http://www.dailymercury.com.au/story/2011/05/19/mackay-will-see-fair-share-bligh-infrastructure/

http://economics.hia.com.au/media/Mackay - March 2011.pdf

http://www.somersoft.com/forums/archive/index.php/t-70606.html

http://www.nexthotspot.com.au/page/22_march_2011.html

I have 10 properties here and am getting rid of 3, if anyone is interested. We have been living of equity ( a strategy discussed on this forum many years ago!) and want to square it up so we can retire. You can search for my previous posts over the years, on this forum. I am sure they will still be there somewhere. I have just finished a site for my private sale at ; www.sharedproperty.infoWould love some feedback from the pro's as to if this is a good way to advertise. Cheers. Bianca
 
Hi BV,
We are selling the first 3 to eliminate some debt,and prepare the "retirement' plan. We have been investing since 1998, with a plan, and the plan has been reached. We have used negative gearing against our business income, as a tax reduction strategy, and have also used our business to renovate and increase equity,in our properties, over the years.( I think I have given full insight into our strategy over the years on the forum) at the moment, land tax is killing us, as all our property is in Qld, mostly in Mackay.
One of our properties is our own home, which we have rented out for 5 years and must now sell or move back into to save any CGT applicable. I have no inclination to move back into it. It needs a little work, nothing that $10 k wouldn't fix, and then it is back to being an excellent house.It is on the "better' side of town, and has always been a higher end house. On the market for $689K, getting $600 p/w rent, more a CG house then cheapy. Last year, market value was in the mid $700's. Buyers market in Mackay at the moment, and I should hold on, but I can't.

The 2nd house is the latest renovation, has had about $150k spent on it,and will see a nice little depreciation schedule for the new owner. It is a ripper of a renter $350 upstairs with new appraisal for $370 , $300 downstairs, which has a long term tenant who would like to stay. It has never been vacant. Perfect for someone wanting to rent to the miners.It's upstairs downstairs, no strata possibility though. My son owns it ( builder who works in our company) and he wants to move to his bigger property on the beach, and needs the money to expand the business. Have a look at www.sharedproperty.info to see the property in detail.

address is on the site.$500k private sale( real estate market value at $539K) so $670 rent for $500k, plus depreciation.

The third one looks like it may be sold already, so fingers crossed.

We will take a year to downsize the portfolio, and start relaxing.That is the plan, anyway, and usually my plans follow through, one way or an other!:)
 
Buyers market in Mackay at the moment

Thanks Bianca
Yes it is a buyer's market so how negotiable are you? ;)
The yields seem good, is this due to the mining companies and is it the same all over Mackay or only in some suburbs?

cheers
 
Yup-the market has tanked. But, in my opinion, it will be short lived.
Reason?
We are feeling the after effects of the floods. The GFC didn't hurt too much,but the national doom and gloom has scared people. The floods hurt, in more ways then one. We had a period from December to April, where business was at a virtual stand still.Mines couldn't operate,for a limited time,development projects were halted,consumer confidence just plummeted.Everyone was just sitting scared waiting for the next cyclone. In our business, the work just dribbled in, no big projects. First time in 30 years. We were all just watching what the mines were doing.
Of course it didn't take them long to get back on track.
By then a lot of local business had suffered, and quite a number have gone to the wall. Over committed, dependant on continual turn over. Mostly has hit retail and building.
What has happenend is that out of towners have been arriving here in droves,wanting to get on at the mines, or just seeing the opportunities that are here , and no where else, at the moment. The Gold and Sunshine Coast are dead. Cairns is dead. From here to Townsville died during cyclone Yasi and Anthony.( Townville has recovered, and wont take long to strengthen) Rockhampton was flooded out ( careful buying there folks! We saw the suburbs, and the houses were not pretty in many places)
But the out of towners might suddenly be on huge pay packets, but they don't have much in the way of saving in the bank. They may WANT to buy, but they can't, so they spend it on toy's, and rent.

The locals are overcommitted, or alternatively, they can see blue sky, and are wanting to change scenery, and restart the projects that they have had on hold, but there are not enough cashed up , local,buyers, at the moment.
Now ,to add to the woes, the banks have tightenend their policies, and many locals want to sell to get their hands on their equity.
That is the reason why it is a BUYERS market here.

It was as if, in May, someone opened the doors and said, 'enter ye and go forth and continue on as usual". The phone hasn't stopped ringing. I am getting phone calls from agents tryng to find accomodation for project managers, etc, who are desperate. People are flocking in for the huge road and infrastructure projects. The Myer complex is full speed ahead. All the other shopping centres are doubling in size . And the people just keep coming in, relocating, for the work.( we, as locals actually hate it, and want to move!)
And we haven't even started on the New mines yet.
Last month,BMA were looking to house staff, and prepared to pay upto $1300 per week furnished, for leases upto 18 months! Agents were ringing everyone on their lists hoping for vacancies somewhere, anywhere.
Therefore, IMO,I can safely say, that come September, Mackay will be back on board. It will take a bit longer for the local market to plateau, after this panic adjustment, but the shortage of houses and the influx of people ain't going to hold it there for too long. If you are buying to rent, this is the place to be. If you are buying to hold, give yourselves a 5 year window to see some decent growth. The mining boom is a 20 year operation, and then some, so we aren't going anywhere, but up, as soon as it is all back on track.
If I was starting my portfolio over again, I would be seriously looking here, and not wait too long.
Gladstone is ok too, but it is small.It has nothing realy to keep the people there, once the work is finished.
The majority of people who 'discover' Mackay, end up staying, hence the forecast in population growth.( again, we locals do not neccessarily like this, but what can we do)
Final hint, the real estate prices do not neccessarily reflect what the vendors are willing to sell for at the moment. The agents are still doing their market appraisals at the perceived values of the vendors. We all know the values of our properies since 8 months ago, have decreased, but the agents still want to milk their commission.The majority of vendors are not willing to budge, until they realize that there HAS been an adjustment, and that the market is telling them that. Some properties are sitting for months without any interest at all, because they are over priced for the current market, by about 20K. Agents fault.Vendors mentality.

That is why I am trying to sell privately. I believe I have the prices right, and there won't be a lot of give, dollar wise. Already have taken the agents commission off, and a bit more ( it was listed last month, for a month at $539K- agent market value) I could be interested in some creative finance approaches, though, if anyone has a deal they want to discuss. it's $89 from brisbane(one way), to come and have a look!;)
 
Wow, that's a serious reply Bianca!!

Just want to quantify - Mackay's home for me, athough I only get back a few times a year.

Were BMA really willing to pay that much for furninshed properties? I'll have to keep it in mind when one of our properties become vacant - we've got a couple around the district and are currently building a few more in Andergrove - obviously they'd be chasing exec styed homes for that amount of $?

Also, don't count Rocky out, the suburbs that flooded there earlier in the year always flood with a decent amount of water coming down the Fitzroy - maybe not to that serious extent... The media gave these lots of attention and painted things in a very bad light. Same thing happened in Mackay a couple of years back, everyone steered away from North Mackay for a while - but the stigma soon passed and prices are back up again.

Rocky jumped last boom and if the demand's the same this time, will follow a similar trend.

Thanks for the update and GL with the sale.
 
A friend had a property for rent,a few months ago, and placed it in the local 'Pocket trader', as a to let. $380 P/W- PAID $340k for the house.80 calls in the weekend. She could have let it for $400p/w.
Just an example.

To answer the question as to whether this is all over Mackay BV. Pretty much, although there are some suburbs which are cheaper as a general rule. Slade Point is usually cheap( unless it is beachfront, or near the beach) Older houses -like the little fibro queenslanders are getting $360 upwards.
Northern beaches see the majority of rentals at about $500p/w, upwards.
Mt Pleasant and other north city central locations are in the $550- $650's. One of my houses there, has been rented for $650 for years.
People are doing a lot of share renting. You will get 2 couples sharing, or subletting rooms to their mates, at $150 per room. Perfect for the 4 days on 3 off scenario. Those guys working at the mines either have to rent a unit at $600+ a week, to spend their off days ( and many of them do as they have no choice)or rent a permanent hotel/motel room, or share.
They stay in the camps, in dongers during their 4 days on, and escape as quick as they can on their off time.
Average rent for average houses is anything from $380 up.
At the weekend there is not a lot of vacancy in the hotels.
 
Last month,BMA were looking to house staff, and prepared to pay upto $1300 per week furnished,

What's their definition of furnished? There's a market here in Townsville for "completely" furnished ie down to the flat screen TV, linen and cutlery. It would be even more popular in Mackay, I'd assume.
 
And they say Melbourne is overpriced!!! Out of interest I have just had a look at Mackay on RE.com.au - nothing decent under $500K!!!!
 
And they say Melbourne is overpriced!!! Out of interest I have just had a look at Mackay on RE.com.au - nothing decent under $500K!!!!

Yes they are not cheap and since the speculators and the majority of investors have now left the markets, we'll see further price falls and/or a long and painful price stagnation.

IMHO
 
Hay, guys! Please buy my over-priced and inflated property off me before it drops anymore so I can realise my gains!!!
 
Hay, guys! Please buy my over-priced and inflated property off me before it drops anymore so I can realise my gains!!!

Mate, what's the point of your post? Maybe parts of her post should have appeared in the caveat empetor section, but for the most part it was quite helpful.
Thanks for your 2 cents.
 
Icarus, you could have given me a kudos for that post! I haven't had one for a while.
Harbour side property, fully furnished, walk in walk out, was what they were looking for. I can put you in touch with the Real estate agent, if you need them. Sorry if I out this in the wrong section. i wasn't aware of the caveat empetor section. I must admit, I am a buy and hold type of girl, so this is all new to me. Please feel free to move this post if it is not appropriate. However,I hope some of the other relavant and honest opinion may help those genuinly looking to find the next place to park their dollars.
Bon and Cham-I guess 'overpriced"is relevant to the area you are looking at and the yield you would expect to get for that area. From the figures presented, I know the property I have brought to light is NOT overpriced, but relatively "bargainish". Especially if you take into consideration that it already has a $39k discount to eliminate agents fees, and then some.
As said by Cham, you can't find a decent property here for under $500k, and even at that price you will rent for $450- $500 max p/w. My house is a lot better performer then that!

And the rental rates here are not going to go down.
The front page of the daily Mercury yesterday- friday June 3 read;
"A land of jobs and prosperity" Mackay's economy surges upwards by 13.2%, Unemployment was 3.3%, anda 90% midweek occupancy rate at our hotel accomodation.
The Courier Mail today emphatically stated Mackay as having the lowest vacancy rates in Queensland! What more statistical info do you need as an investor? Do some research. This will be one of the only high growth areas on the Qld coast in the foreseeable future.
If, as an investor, you can see more value in buying a cheapie and getting an average yield, please go ahead. If that is all you can afford, by all means, do so. It is better to be in the market, then not at all.

BV- There is no way that you will see a 15% discount on any property capable of this kind of rental return. A purchase of a standard family house will not be able to achieve this. Our market may be slow, but I am not stupid!;) This is virtually a no risk deal.
As I stated, I am only trying this private sale thing out, to see if it is viable.

People are prepared to dish out the same dollars for a property in Moranbah and Dysart, and mining towns, with the promise of receiving huge rents for decades. Very risky move.The prices for these properties- IMO- cannot go up much more as a ceiling has been reached.I might eat my words in 5 years time, but i am not prepared to take that risk. Vacancies are already starting to show, and the more stresses are placed on the mining/resources industry, the more cost cutting will occurr. That means more dongers, more camps, more FIFO and more stressed investors not being able to get rid of their properties, which, in those places, truely HAVE been inflated to rediculous amounts.Dysart is a hole.Unless the mining dollars keep being spent on excessive rentals, and as soon as that stops, it will be the ghost town it always has been. We have seen that place fluctuate over and over agin, over the past 30 years. Moranbah fights on trying to ensure that it will remain a viable living area resistant to the big company's whims. But if people realy intend to stay there, they will eventually buy their own land and build, leaving your rental sit. That is what is happening now.It is NOt a city and never will be.
Mackay , however, ticks all the boxes. It has never seen a bust, and has been a steady performer for over 3 decades.The last boom saw a doubling in prices within a 4 year period. People who move here tend to stay, or return.
I have been pushing Mackay on this forum for the past 5 years, because we need smart people involved in our community, not only those with a miners mentality( sorry if i offend anyone)
We still have 12 houses and 7 units here, and know the rental market pretty well. The 2 on offer are PPI's and offer us CGT free equity we can use.

BON-No "quick offload of an inflated property' technique.

If you don't want to buy property, consider moving here, if you are smart. We could do with some more honest, intelligent investors /business operators , to add to the mix and give it flavour.
BV- offer me a 5% back end/carry back deal, and we will talk:D

(all IMO, of course)
 
BV- There is no way that you will see a 15% discount on any property capable of this kind of rental return. A purchase of a standard family house will not be able to achieve this. Our market may be slow, but I am not stupid!;) This is virtually a no risk deal.

Bianca

IMO the risk to the buyer is considerable and very real.
If the property was mine I'd let it go before the next hurricane comes ;)
You can leave it on the market for a while and see how you go.
You might find someone who wants to depart with his cash and you might not need to lower your price either. But how realistic is to find a buyer now and at this price range?

Personally I feel that Mackay prices are coming down so for me to buy a property there, it will have to be discounted.
I'm ready to buy though so if you need the cash I'm all ears.
I bought 2 in Sydney today and I plan to buy 2 in QLD as well

Cheers
 
Bianca

IMO the risk to the buyer is considerable and very real.
If the property was mine I'd let it go before the next hurricane comes ;)

-- Cyclones Bv, cyclones! And they never hit us in Mackay! They always end up north or south, touch wood.

Personally I feel that Mackay prices are coming down so for me to buy a property there, it will have to be discounted.
I'm ready to buy though so if you need the cash I'm all ears.
I bought 2 in Sydney today and I plan to buy 2 in QLD as well

Cheers

Well, I wish You luck. If it is still on the ,market by the end of the year I will give you an other opportunity, and think about discounting. Early days yet with this trial.If anyone needs any info about Mackay and suburbs, feel free to message me. Only too happy to help.
Aparantly something 'fishy" has gone on with the link I posted, and it has been delinked. Strange days indeed.:confused:
cheers all.
 
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