Gladstone finished or has some steam?

[Foxy79]

I am in a good position in that I have the opportunity to purchase an NRAS house and land package in Calliope (25min for Gladstone) for 45k less than what non nras are currently selling. I am I bit concerned about the recent oversupply of new housing there.

We all know it takes time for building to catch up with demand but it has overtaken now and vacancies around 5.6%. Because it is nras I am not as concerned with vacancy rates but more concerned with the future of the projects in the area and upward demand on housing and growth in the area over a 10 year period. Any words do wisdom will be well appreciated! Thank you in advance.

 

[sam_oz]

I am in a good position in that I have the opportunity to purchase an NRAS house and land package in Calliope (25min for Gladstone) for 45k less than what non nras are currently selling. I am I bit concerned about the recent oversupply of new housing there.

We all know it takes time for building to catch up with demand but it has overtaken now and vacancies around 5.6%. Because it is nras I am not as concerned with vacancy rates but more concerned with the future of the projects in the area and upward demand on housing and growth in the area over a 10 year period. Any words do wisdom will be well appreciated! Thank you in advance.

Situation there is very bad, that too buying in Calliope you are adding more risk I believe.

 

[Whishy]

Im a resident and to give you a good example, in the past 6 months Rent prices have dropped about 20%.

I have moved out of a rental property paying $750 per week to a similar property paying $420 per week.

It is pretty simple to understand that there is more jobs in the construction phase than there are during the operation phase.

Hope it helps mate.

 

[jud79]

I wouldn't be overly concerned, you have mentioned over a 10 year period. Gladstone is a resource town not a mining town it has a deep water port which attracts a diversity of industry. It has always had boom/bust periods. Although if you are in it for the long term I wouldn't be too concerned, I still think Gladstone has good future prospects over the long term not a quick dollar.

 

[Angel]

Gladstone in a nutshell...

I find it hard to believe that anyone is selling a property in the NRAS scheme at a different (lower) price than the other houses in the same estate that are not NRAS.

Why Calliope?
Sorry, but Calliope is to Gladstone like Werribee is to Melbourne. Last month when I was there, Calliope was a ghost town whereas the older parts of Gladstone were "business as usual". If you want to buy NRAS, go somewhere else. If you want to take advantage of the currently reduced purchase prices in Gladdy, get as close in to the CBD as possible. You wont make great profits straight away, but as others have said, in the longer term it is still a good place to park a few denari.

 

[DavidMc]

I would say go for it. Gladstone has a history of being volatile. Future prospects are still massive, however right now it's absolutely a buyers market.

I have been told of properties selling for $430k that were selling for just under $500k 18 months ago.

Funny thing is people will hear this and run for the hills, when it is precisely the time to swoop in on motivated vendors and buy with great cashflow and an excellent medium/long term outlook.

I foolishly bought after a year or two of great growth (late 2011). Lucky the cashflow is so great I'm still ahead!

 

[DavidMc]

I find it hard to believe that anyone is selling a property in the NRAS scheme at a different (lower) price than the other houses in the same estate that are not NRAS.

I'm looking at some NRAS stuff in other areas. It doesn't surprise me that new developments are lagging, I think NRAS is still quite misunderstood / avoided by many at this stage.

Couldn't they just remove the NRAS and sell for regular price? Perhaps the other houses in the estate are way overpriced?

 

[Angel]

I'm looking at some NRAS stuff in other areas. It doesn't surprise me that new developments are lagging, I think NRAS is still quite misunderstood / avoided by many at this stage.

Couldn't they just remove the NRAS and sell for regular price? Perhaps the other houses in the estate are way overpriced?

That's what I was thinking.
Anyways I believe an NRAS house will always be desirable to its renters and you will have tenants falling over themselves to get and keep it.