What do people think about investing in each of these two areas and which do you think make a better investment choice?
Chinchilla(Surat Basin) Vs Mackay
- Thread starter foxyleemoo
- Start date
The one that will always make the better investment choice is the area & property that fits your purchasing criteria. The purchasing criteria is determined by your investment strategy.
What is your investment strategy?
I guess what I'm really asking is which of the two towns do people think has a better outlook for future growth, in the short and long term.
Cheers
Cheers
Odd comparison you've chosen... one is a town of about 5,000 and the other is a major regional centre of about 90,000.
Why have you picked these two places?
Mackay
Hi!
I pulled out of a new unit property in Mackay last thursday because I ring 2x rental managers and they both said the market is flooded and they have to reduce rental prices. good luck ! don't know about Chincilla but ring rental manageing agents and ask them what is going on. I know Mudgee rental is slow now and reducing rents
gogirl011
Hi!
I pulled out of a new unit property in Mackay last thursday because I ring 2x rental managers and they both said the market is flooded and they have to reduce rental prices. good luck ! don't know about Chincilla but ring rental manageing agents and ask them what is going on. I know Mudgee rental is slow now and reducing rents
gogirl011
Option 3 - none of the above
Like anywhere that was forecasted to be a boom market (gladsttone, mackay, etc) developers swooped in and flooded the market with new properties killing the under supply. So I would probably opt for option 3 myself.
Mackay is a dead duck, if I could I would be selling my unit. But i owe at least 40k more than its worth. Its only going to get worse before better.
Sounds like a poor purchase and sour grapes! I have done fairly well out of Mackay!
pinkboy
Not at all.
Just facts, my facts and reality.
I brought on the peak several years ago, then GFC came along and Mackay hasnt really recovered since.
Now with all the Coal Mines looking at winding back, I cant see Mackay booming any time soon, rather it will start to slide further down.
Just hope I am wrong.
Just facts, my facts and reality.
I brought on the peak several years ago, then GFC came along and Mackay hasnt really recovered since.
Now with all the Coal Mines looking at winding back, I cant see Mackay booming any time soon, rather it will start to slide further down.
Just hope I am wrong.
Mackay on the news tonight, not looking good?
Anyone think Mackay still a good investment?
To late for me to get out I think......
Anyone think Mackay still a good investment?
To late for me to get out I think......
Be patient and hang in there, Chinchilla is still a solid place to invest but there will be ups and downs along the way.
Coal still has a loooooooong way to go! Mackay Regional Council is a very proactive council regarding development and is diverse enough to stay afloat in the quiet times like now.
You are only hearing what the media is spinning. Have you been on the ground yourself up here? Today I got wind of 3x BMA mines spending $30-$40mil just on shutdown maintenance in a month or so now the calendar has ticked over into July.
My business continues to grow even in a falling mining market, and it aint from my wit filled charm and devilish good looks I can tell you. Contracts in place, mandatory and statutory work locked in, good men and service, low overheads and no debt are my ingredients for success up here. Pity most businesses have expanded taking on a lot of debt in the good times and coming unstuck when they cant make ends meet because they cant gouge their bread and butter.
I recall you are in Mackay with a dingy unit in a BC in the near vicinity of the city centre. No scope for development, little scope for creating equity by renovation etc, relying mainly on yield. Pretty sure the grapes are sour.
Things aren't good in Mackay...but they aren't that bad either. You're right, maybe too late for you to 'get out', but really how hard off are you if the place is tenanted and has been for several years?
pinkboy
Media hype and doom and gloom- massive FAIL
Mackay is witnessing a slight correction at the moment, in line with the state of the economy, the rest of Australia, and the temporary culling and restructuring of bad assets and deadwood.Don't believe the media hype as gospel.Unless you know the place, have been here for a long time, and have been involved in many previous real estate cycles. Doom and gloom sells many papers. Mackay is solid, if you buy in the right areas, and it has been so for over 3 decades. Out of various properties, we have dropped the rent for one, from $750 to $600, and an other from $420 managed to $380 self managed. Not a huge loss realy! Average rents for quality property is still anywhere between $420 to $500. As the previous poster pointed out, the oversupply of investment properties, to accommodate the mining boom personnel, has impacted on the overall release of vacancy figures.Companies were buying up houses in specific areas, to accommodate 5 and more workers, at a time, and with the culling process, the workers returned home, and the companies have been left stranded with with vacant properties in high worth areas . The specific suburbs have been visually devalued ( only visually, because the land values have remained stable and even saw increases) and the properties are difficult to fill, and will remain so until the economy lifts, or a new cycle of property owners invade the buyers market, and give the area back its appeal. Interestingly enough, values in adjacent suburbs, separated by a road, have not felt any impact, making it clear that knowledge of the area is of the utmost importance. People are still selling, and still complaining that they only made $80k rather then the $100 they had counted on, so PLEASE , do your homework, don't buy into the hype, and open your ears to other stories besides the " I have lost money, I can't sell " dilemmas. As investors we all make mistakes sometimes. Mine are at the Gold Coast, not Mackay! I would advise anyone to buy in now, for long term holds, while you still can. Check out the previous posts by " bianca" spanning over many years on the forum, to get an idea on the stability of the city.
Mackay is witnessing a slight correction at the moment, in line with the state of the economy, the rest of Australia, and the temporary culling and restructuring of bad assets and deadwood.Don't believe the media hype as gospel.Unless you know the place, have been here for a long time, and have been involved in many previous real estate cycles. Doom and gloom sells many papers. Mackay is solid, if you buy in the right areas, and it has been so for over 3 decades. Out of various properties, we have dropped the rent for one, from $750 to $600, and an other from $420 managed to $380 self managed. Not a huge loss realy! Average rents for quality property is still anywhere between $420 to $500. As the previous poster pointed out, the oversupply of investment properties, to accommodate the mining boom personnel, has impacted on the overall release of vacancy figures.Companies were buying up houses in specific areas, to accommodate 5 and more workers, at a time, and with the culling process, the workers returned home, and the companies have been left stranded with with vacant properties in high worth areas . The specific suburbs have been visually devalued ( only visually, because the land values have remained stable and even saw increases) and the properties are difficult to fill, and will remain so until the economy lifts, or a new cycle of property owners invade the buyers market, and give the area back its appeal. Interestingly enough, values in adjacent suburbs, separated by a road, have not felt any impact, making it clear that knowledge of the area is of the utmost importance. People are still selling, and still complaining that they only made $80k rather then the $100 they had counted on, so PLEASE , do your homework, don't buy into the hype, and open your ears to other stories besides the " I have lost money, I can't sell " dilemmas. As investors we all make mistakes sometimes. Mine are at the Gold Coast, not Mackay! I would advise anyone to buy in now, for long term holds, while you still can. Check out the previous posts by " bianca" spanning over many years on the forum, to get an idea on the stability of the city.
