Gladstone QLD - How is it Going????

[Jenko]

I think if the building of new dwellings stops or at least slows Gladstone will have a good future however the way things have been going it looks to me there will be a massive over supply. If they can 3000 new houses that's a good thing!

 

[Rooster]

...... I picked a wrong place and mistake is mine

Finally, you've taken some responsibility for your poor choices and investment strategy.

 

[sam_oz]

Finally, you've taken some responsibility for your poor choices and investment strategy.

Where is the real answer for all QUS !!!

 

[soccer]

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”

Hi Sam
Your local "expert" doesn't mention any experience or education relating to the real estate industry. He mentions a boom and bust that occured 20 years ago as though that alone is proof of what will occur again. The factors influenceing that boom and bust are undoubtedly different than what is occuring presently. The huge, unprecedented development currently occuring has no previous model to compare with. That is the definition of "unprecedented". The on line articles in local newspapers regarding the boom and it's effect on real estate are always followed by comments from other inexperienced poorly informed local "experts" predicting the imminent demise of this boom. I would suggest that you should not get your investment advice from them. The industries, infrastructure, job creation and associated developments underway in Gladstone have been highlighted throughout this forum. It is not neccessary to list them again. You should re-read this entire thread, and review your reasons for purchaseing in Gladstone in the first place. If you still have no faith in your investment after that, I get the impression that you will never be able to confidently invest in anything. As others have suggested, your extremely short term outlook is inappropriate for property investment. The current downturn in rents and prices is easily explained by short term events, such as profit taking by longer term investors, owner occupiers selling up to leave for greener pastures and a more peaceful environment, new stock being built (by experienced investors and developers who have done their research), workers relocating to the island, short term down turn in coal prices, and amongst other factors, panick selling by inexperienced investors losing their nerve. If you do sell, please let us know, as this will be a good indicator of the short term bottom of the market.

Cheers, Tony

 

[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”

Great. You've provided a quote from an anonymous person who probably has never had any skin in the game. Anyone can dish out throw away lines from the safety of a keyboard.

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.

New Auckland is not an emerging suburb. It's over 30 years old. Your property in Vantage estate is not New Auckland.

Rural town? Did you actually visit Gladstone before you purchased? If you can't identify the city centre then you're in trouble no matter what city you buy in. They generally build these little things called libraries, council buildings etc pretty close by. Try Goondoon Street in google maps.

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)

Your message is clear. It's just it's a terrible investment principle. It's burnt you once and it will do it again.

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

Peak of construction? You need to pull your head out of the sand and get up to Gladstone and see where it is actually at.


To talk about Darwin, come to that thread, I have lot more to discus.

I'm not into athletics so will leave that thread alone....

I've gotta ask again.... have you been to Gladstone?

 

[sam_oz]

I've gotta ask again.... have you been to Gladstone?

This is one more ideal example that you never read anything in full before you comment, go back and read it, you have answer below Genius

http://somersoft.com/forums/showthread.php?p=806316#post806316

New Auckland is not an emerging suburb. It's over 30 years old.

It is existing but new estates and other new development is going to be landmark for NALand in near future.

Vantage estate is not New Auckland

Ohh Really ?? Google daintree boulevard Gladstone and tell me what suburb it is

Rural town?

Place with 62000 population I would say it is town, but for you it may be cosmopolitan after NY. BTW what council building to do with family or inventors! Did you find any nice neighbourhood area within so called city centre for peaceful family life!!

Peak of construction?

If not, it is still danger , we shouldn’t see the declining phase before it comes to peak !

I'm not into athletics so will leave that thread alone....

Thank god!!

 

[mattnz]

“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.

Hi Sam,

I drove past G60 this morning (it is actually 97 units, the 60 refers to the street address). At 8am the car park was half full, so there are clearly tenants in there (and I imagine many more that were already on their way to work).

There are still a number available for rent there though. Definitely a good reason not to buy into such a large complex. Every man and their dog are trying to rent out similar properties that are dumped on the market at the same time.

Cheers,
Matt

 

[norwoodman]

New Auckland is a pretty large suburb. Yes, parts of it (the northern parts) are over 30 years old but large sections of the suburb are made up of newer and currently under construction estates - pretty much everything north of Kirkwood Road. You can't really generalise, it might as well be several different suburbs.

 

[Neil Richardson]

I have been to Gladstone 3 times in the last 9 days (some work some not) and am not seeing any major signs of a disaster

 

[Thanatos]

One month empty

Hi, Title says it all. Accepted a 6 months lease at $940, the tenants didn't renew and now the house has been empty for a month and I've been slowly dropping the rent... its at $860 now...

Should I dump my agent and go for a bigger agent like Ray White? Burn it down?

Any advice please? Am I just being impatient?

My Property:
http://www.realestate.com.au/property-house-qld-new+auckland-409617003

Furnished 4br Gladstone search results:
http://www.realestate.com.au/rent/w...unding=true&misc=furnished&source=refinements

Regards,
James

 

[norwoodman]

Hey Thanatos, I think you'll find that the Gladstone market in general is pretty quiet on the renting side of things. The number of 4 bedroom houses available for rent across New Auckland and Kirkwood is rather insane and there is still more supply on the way, even in Vantage estate.

(I live around the corner from Vantage.)

 

[mattnz]

Agree. The rental market is quiet.

I have been advised that there is little activity generally at the moment.

Renters have lots of options. I think the key is to be front of mind for the rental agency as they will have multiple listings on their books that they could show. Keep in regular contact with them, try to keep them onside.

Consider offering a couple of free weeks of rent rather than dropping price, then at lease renewal you automatically start getting the higher rent.

 

[Angel]

Hi Norwoodman

How is your bargain hunting going in Brisbane?

 

[Thanatos]

thanks

Thanks for the tips Angel and Matt.

I've just reviewed similar properties furnished 4/2/2 in Gladstone and am going to ring the agents now...

Cheers,
James

 

[norwoodman]

Hi Norwoodman

How is your bargain hunting going in Brisbane?

Started talking to and lining up some professionals - mortgage broker and accountant - and been following sales and researching a number of suburbs across Brisbane and Mackay online, but still looking for advice from advisors or buyers agents and haven't put down any offers as yet.

I'm going for a drive up to Mackay (via Rocky) in June to see what's happening on the ground up there. I was already in Brisbane for a few days over January snooping around - particularly on the north side.

I went for a drive around Gladstone the other weekend, took some pics of some of the new housing estates in Gladstone's south and unit developments around West Gladstone. Should get some on here if people want thing in pictures?

 

[Angel]

I don't want to know about the new housing estates, I already dislike them with a passion! What idiots keep building when there is no demand? We will be up there next week to see how our little house is after the storm damage is repaired. We had no trouble re renting it in March but had to drop the rent down a lot. I totally recant last year suggesting you buy anything in Gladdy .

 

[norwoodman]

I don't want to know about the new housing estates, I already dislike them with a passion! What idiots keep building when there is no demand?

Try telling the developers that... there still seems to be an ongoing belief amongst some parties that the Gladstone market is an invincible bottomless gold mine. I don't think the entire market is weak though, established houses in the older areas do seem to be holding solid from what I have seen.

 

[foxyleemoo]

Thanks for the tips Angel and Matt.

I've just reviewed similar properties furnished 4/2/2 in Gladstone and am going to ring the agents now...

Cheers,
James

Hi Thanatos,

Have you considered renting it un furnished?
I know you'd get less rent, but at least it won't be empty.
What agent is managing your property? I am an investor in Gladstone from WA and have also been looking at other areas in regional queensland, and I find some managers very frustrating. I ask them them for advice on the market in their area and what people are looking for,, ie, furnished or un furnished, and it really annoys me when the answer is, "it depends what you wanna do" or something along those lines. Lots are young inexperienced property managers/admin girls. The point is maybe you need to get a new agent, or put the hard word on your current agent and find out what option will get you a tenant quicker with the best (realistic) rent.

Goodluck!

 

[Thanatos]

Hi Thanatos,

Have you considered renting it un furnished?

Goodluck!

It would seem to be a pain to go un-furnished now that the place is brimming with furniture

But I've just had a long talk with the agent and am reducing the property to $740 to get a tennant asap.

I'll let the thread know what happens. Some 'on the ground results' from the agent, most recently let:

8 Bellbird Circuit (brand new 4x2x2) which was FULLY SELF CONTAINED for $740.00

12 Woodland Court (4x2x2) which was FULLY FURNISHED for $750.00 on take-over-lease.

Regards,
James

 

[norwoodman]

Hi Thanatos,

Have you considered renting it un furnished?
I know you'd get less rent, but at least it won't be empty.
What agent is managing your property? I am an investor in Gladstone from WA and have also been looking at other areas in regional queensland, and I find some managers very frustrating. I ask them them for advice on the market in their area and what people are looking for,, ie, furnished or un furnished, and it really annoys me when the answer is, "it depends what you wanna do" or something along those lines. Lots are young inexperienced property managers/admin girls. The point is maybe you need to get a new agent, or put the hard word on your current agent and find out what option will get you a tenant quicker with the best (realistic) rent.

Goodluck!

Customer service has largely gone out the door in Gladstone since the start of the boom. I'm not that old but I'd dare say that I'm older than most of the property managers around Gladstone! Our last landlord had trouble with our property manager (she didn't know about regular inspections or renewals) before selling the property to our current landlord who is also having problems with the same manager. Oh, and us as the tenants have also had problems with the manager on maintenance and renewals... she doesn't have a clue! Don't know everyone out there, but I can certainly provide guidance on which agents to avoid in Gladstone.

I think you'll find that most renters in Gladstone prefer houses unfurnished. Reason being is that most of the houses are being occupied by workers who have brought their families to Gladstone as well as all their gear from where they moved from. The individual workers who do move to Gladstone tend to be based closer to the centre of Gladstone or in the temporary work camps on Curtis Island or other towns near Gladstone.

I've seen plenty of ads giving the option of either furnished or unfurnished.