How can it be developers hype when they are not a developer (in Gladstone anyway) and it is based on a CQU study.
Gladstone QLD - How is it Going????
- Thread starter charlieandkath
- Start date
How can it be developers hype when they are not a developer (in Gladstone anyway) and it is based on a CQU study.
Like I said, I didn't read it all.
From what I did read, I understood it was encouraging people to buy in Gladstone. The article reiterated that the city will need more and more new housing to cope with a massive increase in population (from the report). The same tables and graphs show that in a few more years the majority of the increased construction workforce will move out.
Did I miss the bit that the author demonstrates in his other article from Mattnz about demand for housing falling away after construction has peaked?
It read a lot like a long article I read a few months ago by Dymphna. If not developer's hype, then what about new release property sales hype?
What would you say, flatout81?
From what I did read, I understood it was encouraging people to buy in Gladstone. The article reiterated that the city will need more and more new housing to cope with a massive increase in population (from the report). The same tables and graphs show that in a few more years the majority of the increased construction workforce will move out.
Did I miss the bit that the author demonstrates in his other article from Mattnz about demand for housing falling away after construction has peaked?
It read a lot like a long article I read a few months ago by Dymphna. If not developer's hype, then what about new release property sales hype?
What would you say, flatout81?
The key projects with the greatest impact on permanent workforce are still to come (as shown in my earlier list). The original report from CQU demonstrated a multiplier effect that for each permanent new direct industry job, that others were also created (teachers, accountants, retail etc). We are now seeing some of this with the flow on effect to the retail sector through the Stocklands extension (660 construction, 400 direct retail and 1,000 supplier roles)
To quote the original CQU report:
" - Model of past economy in Gladstone LGA indicates that for each new primary job, another 3.7 jobs are created
- Model of future growth in region suggests multiplier will be lower from now on – for each new primary job, another 2.8 jobs are created"
Interestingly, the original report didn't even include the project with the largest permanent workforce, (the steel plant with 1,800 permanent additional workers), so the projections are very conservative.
The large number of LNG construction workers are largely in temporary accommodation which will be removed on completion. When Flynn wrote this original article 5 years ago, I don't think that he or anyone else realised that such a high proportion of workers would be in temporary accommodation.
As I have discussed earlier in this thread, there are a number of large projects still to follow, so peak permanent workforce which needs to be housed in permanent accommodation is still some time away.
By 2018 I would expect many more major projects to be proposed, or even under construction.
To quote the original CQU report:
" - Model of past economy in Gladstone LGA indicates that for each new primary job, another 3.7 jobs are created
- Model of future growth in region suggests multiplier will be lower from now on – for each new primary job, another 2.8 jobs are created"
Interestingly, the original report didn't even include the project with the largest permanent workforce, (the steel plant with 1,800 permanent additional workers), so the projections are very conservative.
The large number of LNG construction workers are largely in temporary accommodation which will be removed on completion. When Flynn wrote this original article 5 years ago, I don't think that he or anyone else realised that such a high proportion of workers would be in temporary accommodation.
As I have discussed earlier in this thread, there are a number of large projects still to follow, so peak permanent workforce which needs to be housed in permanent accommodation is still some time away.
By 2018 I would expect many more major projects to be proposed, or even under construction.
Last edited:
I was stuck in Brisbane because of the flooding.
The affected areas in Gladstone were the low lying areas on the Boyne River in Benaraby, Boyne Island and Tannum Sands (about 40 homes flooded). The main Gladstone urban area to the north was not impacted by the flooded rivers or creeks directly.
A potential oversupply of properties in Gladstone ? Observer article I have got to say I agree, new houses are popping up everywhere and the amount of units that have been built and are still under construction in the city (if I can call it "the city"?) just seems like an over kill, who is buying them and who's going to live in them? Unless something changes I think there will be a lot of vacant buildings in the near future.
As a tenant in Gladstone, there is an absolute bonanza of choices for rental properties on the market at the moment. My lease is also about to go periodic (I'm guessing the landlord is hoping I haven't noticed due to falling rents, but I have), so someone may be about to end up with a vacant property...
You are right
I bought it in 2011 and struggling to sell it now even with 30K loss.
Oversupply was much anticipated one but the disaster struck much earlier than anyone could imagine. ................very expensive learning!
Yeah Sam, I'm just wonder who is buying these new properties??
Your learning has a way to go unless you learn to invest for the long term rather than speculate in the short term.
Agreed, for short term speculation, try the sharemarket.
I expected this type of response, especially from you. You are one of the three folks here blindly supports this devastating market. I agree that I am selling very quickly but this is what I planned for; you name it whatever the way you like. That was the reason why I mentioned that I happy to sell with 30K loss, I want to know where else this can happen in Australia. I expected some tax benefit through depreciation, interest and 4 to 5% GC in 1 year, now everything is over; ready to sell with 7% loss still it is very difficult. Holding some more time is not a problem but getting tenants after 1 year going to be a nightmare unless I reduce the rent to 50 to 60% of current rate. On the other hand if I don’t sell it now, I may have to book 25 to 30 % loss to sell it after 1 or 2 years.
Ok this is the case with so called speculator, what about below comment from the person who lived in Gladstone for 30 years
“I do live in Gladstone and have done so for 30 years. I have seen three or four booms come and go and I do know what I am talking about. Have a look at the block of 60 units just completed on Glenlyon Road and then talk to the agent that has the exclusive agency to let them. They will tell you that out of 60 untils as at last week only one had been let.
Apart from living in Gladstone for the past thirty years, I have been in business here and I can tell you that this is the worst period for business I have seen in 30 years. Council panicked and feel for the hype from the GPC, the State Government and the LNG companies themselves. This has been the shortest boom we have ever had in Gladstone. We had a surplus of untis here about 20 years ago and they were virtually giving away apartments in The Pines. The same thing is going to happen again. Get out at night and take a look around”
The point that we are making is that the transaction costs in Australian property are very high. When you purchase you are basically -7% at day 1. Roughly 5% in closing costs and when you sell, another 2%+ in agency fees.
You would have lost money in almost every market in Australia trying to get in and out in the past 18 months, as very few have grown by more than 7% in that period.
The only way to ensure you make money in that timeframe is by adding value, i.e. development, renovation etc and even then you need to know what you are doing.
You would have lost money in almost every market in Australia trying to get in and out in the past 18 months, as very few have grown by more than 7% in that period.
The only way to ensure you make money in that timeframe is by adding value, i.e. development, renovation etc and even then you need to know what you are doing.
7% does not include agent fee 2% otherwise it will be total loss of 9%. I am dropping 30K from actual value ,I did not include conveyancing fee and buying cost. This is heartbreaking; I am not happy but much better than selling it with 100K loss next year
what happens in the market from here time will tell, u could be right, what can't be denied however is you bought a suckers property, off the plan in a new estate, what several posters for years have advised against in nearly every market but especially Gladstone so to blame the market for your mistake is a bit rich. realistically you normally pay 5-20% too much for a marketeer property and to sell in a year will almost always result in a loss
Aww Sambo, sambo, sambo.
What a pickle you have got yourself in.
This devastating market that I blindly support has given me a cracking return for the past 13 years.
You see, the difference is that I didn't read the hype in some poorly written investment property magazine, contact the first agent with a house and land package available and then pull the trigger.
The trigger of a gun that inevitably backfired.
You bought a house built by an out of town builder, on a smaller block and in a new development away from amenities and the centre of town.
The blame lies squarely with you.
How many of these 18 month turn around projects have you pulled off before?
I thought so.
I now see your trying to do the same in Darwin. Again, you're a year too late.
Most people are too nice on this forum to tell it to you straight. If you continue to try and invest like this you will go broke very quickly.
Remember this rubbish:
http://somersoft.com/forums/showthread.php?p=806316#post806316
And you still bought there after all your research??
What are you on?
Rooster
What a pickle you have got yourself in.
This devastating market that I blindly support has given me a cracking return for the past 13 years.
You see, the difference is that I didn't read the hype in some poorly written investment property magazine, contact the first agent with a house and land package available and then pull the trigger.
The trigger of a gun that inevitably backfired.
You bought a house built by an out of town builder, on a smaller block and in a new development away from amenities and the centre of town.
The blame lies squarely with you.
How many of these 18 month turn around projects have you pulled off before?
I thought so.
I now see your trying to do the same in Darwin. Again, you're a year too late.
Most people are too nice on this forum to tell it to you straight. If you continue to try and invest like this you will go broke very quickly.
Remember this rubbish:
http://somersoft.com/forums/showthread.php?p=806316#post806316
And you still bought there after all your research??
What are you on?
Rooster
Answer this first
“I do live in Gladstone and have done so for 30 years. I have seen three or four booms come and go and I do know what I am talking about. Have a look at the block of 60 units just completed on Glenlyon Road and then talk to the agent that has the exclusive agency to let them. They will tell you that out of 60 untils as at last week only one had been let.
Apart from living in Gladstone for the past thirty years, I have been in business here and I can tell you that this is the worst period for business I have seen in 30 years. Council panicked and feel for the hype from the GPC, the State Government and the LNG companies themselves. This has been the shortest boom we have ever had in Gladstone. We had a surplus of untis here about 20 years ago and they were virtually giving away apartments in The Pines. The same thing is going to happen again. Get out at night and take a look around”
New development away from amenities and the centre of town
New Auckland is the emerging suburb with all the new residential estates, parks, shopping centres and infrastructure. Properties in new estates slightly over priced but no doubt first choice for energy companies and new residence for long term lease. We are talking about 3 KM from airport; 6 KM from Gladstone Hospital, apparently there is nothing like CBD or city centre for this rural town, everything is outside.
I have had few old houses also in my list when I bought this one; they were considerably low in value and demand, less attractive to long term tenants, importantly selling at bottom of the market so loss is going to be same, only difference is price band.
I didn't read the hype in some poorly written investment property magazine
Is it anyway different than what you are doing here! End result is the same, Goebbels propaganda.
And you still bought there after all your research??
I am not surprised you ask this because you never read it full; there was a clear message in the thread (buy it now and sell it before 2014)
We can`t conclude the whole market with our two specific cases, but look at the general situation , 3000 houses approved but not going ahead due to lack of confidence with investors , 15% price drop in last 12 months surprisingly at the peak of construction, properties are sitting in market for 4 to 5 months. What are these indications? You might say wait until 2053 everything will change, I am sorry, If I have to wait for decades to get 4% GC then I picked a wrong place and mistake is mine
To talk about Darwin, come to that thread, I have lot more to discus.
