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...... I picked a wrong place and mistake is mine
Finally, you've taken some responsibility for your poor choices and investment strategy.
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
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've gotta ask again.... have you been to Gladstone?
“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 Norwoodman
How is your bargain hunting going in Brisbane?
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?
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?
Goodluck!
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!