Gladstone QLD - How is it Going????

[mattnz]

Arrow also in the news today, confident their LNG will go ahead in 2013 in Gladstone.

Yes more here http://www.smh.com.au/business/arrow-confident-of-lng-project-green-light-20121018-27tix.html

Certainly a number of huge projects still to come in the pipeline.

 

[ems]

Yes more here http://www.smh.com.au/business/arrow-confident-of-lng-project-green-light-20121018-27tix.html

Certainly a number of huge projects still to come in the pipeline.

Good to see

Ems

 

[flatout81]

http://www.gladstoneobserver.com.au/news/almost-130-jobs-lost-refinery-qal-restructures/1595312/

 

[mattnz]

I read that earlier today. Was surprised to see only 35 redundancies.

 

[ris4rob]

are people still seeing gladstone as a good buy???? i would have thought things have possibly stabilised but not going backwards???

 

[mattnz]

are people still seeing gladstone as a good buy???? i would have thought things have possibly stabilised but not going backwards???

I just rented out a 4 bed, 3 bath furnished townhouse for $1100 per week. If you have the right product, you can achieve a great yield.

 

[ris4rob]

cheers matt the product is a 3x3 townhouse will be the 2nd one i have in Glad so fingers crossed it goes smooth

 

[DamienJ]

Telina is closer to the CBD that Stockwood estate by about 2min drive. I have not looked at that end of Kirkwood Rd in a while so I dont know if they have started clearing any trees for Stockwood yet. I will look on Saturday and post back.
The only spot on Bradford Rd that this estate could be build would back onto a railway line. It is near Kin Kora Primary School and a SuperIGA shopping centre.

Hey edge81, thanks for the reply and from what you've described it seems like the Telina IP would be a better place to go for. I have yet to visit the place myself as I've been busy with work. Atm, I'm still doing my research on the place.

On a side note, I recently read article which was published last Friday about property shortage in Queensland. http://www.abc.net.au/news/2012-10-19/rental-property-shortage-continues-across-queensland/4322796

 

[billie]

Hey guys, if you had a choice between a brand new apartment in west gladstone for 420k or a 4 bed new house in kirkwood for $470k - which would make a better IP?

 

[Jenko]

Rents dip in Gladstone

http://m.gladstoneobserver.com.au/news/rent-costs-drop-slightly/1600046/

 

[Neil Richardson]

Hi all. I have started adding better photos to my Facebook page of what construction etc. is going on in and around CQ. To give those who don't know the region a bit of an insight.

Cheers

 

[sam_oz]

What went wrong?

Hi Guys

I don’t understand how everyone here is very positive about Gladstone market whereas reality is something different

I bought a house in Vantage last year; it is 4 BED / 2 BATH property, price was 512+18=530K, rented with Bechtel for 2 years for $670. Now I want to sell it because I need some cash in hand, I spoke to almost all of the real estate agents in Gladstone but the response is not encouraging, nobody is confident that I can sell it for the same price I bought it last year.
The realistic price what they say is 490K which is heart breaking

Also there is no room to hold it for long time as it will be very hard to find tenants once the LNG construction is over, if I cant sell it now , then may have to wait for another boom , could be another 10 years !!

What went wrong !!

 

[Rooster]

Hi Guys

I don’t understand how everyone here is very positive about Gladstone market whereas reality is something different

I bought a house in Vantage last year; it is 4 BED / 2 BATH property, price was 512+18=530K, rented with Bechtel for 2 years for $670. Now I want to sell it because I need some cash in hand, I spoke to almost all of the real estate agents in Gladstone but the response is not encouraging, nobody is confident that I can sell it for the same price I bought it last year.
The realistic price what they say is 490K which is heart breaking

Also there is no room to hold it for long time as it will be very hard to find tenants once the LNG construction is over, if I cant sell it now , then may have to wait for another boom , could be another 10 years !!

What went wrong !!

Nothing went wrong.

You've held the property for less than a year, the market has cooled and you want it gone.

That's not investing. It's speculating.

Rooster

 

[mattnz]

I bought a house in Vantage last year; it is 4 BED / 2 BATH property, price was 512+18=530K
QUOTE]

What is the $18k you are referring to? Is that the stamp duty? If so, you can't expect to get that back from the next buyer.

The difference is only around $20k and you are competing with new stock, which for some buyers comes with a $15k grant.

The market is flatter at the moment in Gladstone, which makes it a good time to buy, not to sell.

Also, if you had furnished it and were getting $900+ per week on a 2 year lease you wouldn't have any issues with getting your money back. $670 isn't a great yield for an investor at that price point. I am getting up to 10% yield furnished, at purchase price in Gladstone. ($1,100 per week just signed up for a 4 bed, 3 bath townhouse).

 

[sam_oz]

Nothing went wrong.

You've held the property for less than a year, the market has cooled and you want it gone.

That's not investing. It's speculating.

Rooster

How you are confident that market is going to improve in near future when 1500 properties available for sale in last 6 months as an average, I had a plan to hold for 3 years but I want to understand how I will be able get same 6% rental return after 2014

One agent she was able to sell only 5 out of 75 properties in last week that too priced very well below the market rate, same thing they are suggesting me !

 

[sam_oz]

I bought a house in Vantage last year; it is 4 BED / 2 BATH property, price was 512+18=530K
QUOTE]

What is the $18k you are referring to? Is that the stamp duty? If so, you can't expect to get that back from the next buyer.

The difference is only around $20k and you are competing with new stock, which for some buyers comes with a $15k grant.

The market is flatter at the moment in Gladstone, which makes it a good time to buy, not to sell.

Also, if you had furnished it and were getting $900+ per week on a 2 year lease you wouldn't have any issues with getting your money back. $670 isn't a great yield for an investor at that price point. I am getting up to 10% yield furnished, at purchase price in Gladstone. ($1,100 per week just signed up for a 4 bed, 3 bath townhouse).

Hi Matt
18K is stamp duty, anyway it went out of my hand and i guess it should be added in to the price.

When the market is nearing it is peak, if we can’t sell it now then when it is possible!

 

[mattnz]

When the market is nearing it is peak, if we can’t sell it now then when it is possible!

I'm expecting the market should pick up early 2013, with the next influx of workers, leading to a tighter rental market and the announcement that Arrow will go ahead with their LNG plant.

 

[sam_oz]

I'm expecting the market should pick up early 2013, with the next influx of workers, leading to a tighter rental market and the announcement that Arrow will go ahead with their LNG plant.

ATM I will be very happy if I can get that same 530K back in my pocket , do you think it will happen with in another 12 months !

 

[mattnz]

ATM I will be very happy if I can get that same 530K back in my pocket , do you think it will happen with in another 12 months !

The concern for you is that if the market picks up and rents improve, you are still stuck in a 2 year lease at $670 per week, which won't appeal to potential investors.

 

[Neil Richardson]

I see quite a few properties sold to investors out of the state, by the Marketing Machines that (in my opinion) were too dear to start with. Often they were sold sight unseen.