Gladstone QLD - How is it Going????
- Thread starter charlieandkath
- Start date
Gladstone isn't a mining town? It's an industrial town. Some of Gladstone does rely on mining however a few different types of mines so it would be farley rare for all of them to go belly up at the same time. I'm not sure what your saying time to buy or run like hell? Just one more thing, everyone has their own opinion of "long term" mine is around 20 or so years, not 150 years.
The point is it is the infrastructure required in any town undergoing a high growth period causes the growth. This has slowed and will continue to slow in gladstone which is why prices and rent are dropping. 20-30 years is far too long to hold property for as the infrastructure will be done and dusted far before then.
Hopefully I'm wrong for those that have property there. I don't like to see anyone lose money when there are so many much safer IP options in Australia.
Hopefully I'm wrong for those that have property there. I don't like to see anyone lose money when there are so many much safer IP options in Australia.
So you think Gladstone property prices will drop in 20 to 30 years? Sorry I don't think so. I would be worried holding on to a property in a little coal mine out in the middle of whoop whoop for any length of time however I'm pretty sure Gladstone will be here until the end on time. Sure there are times to buy and times to sell in the cycle however I don't think you can go wrong over the long term.
My opinion of course.
They have in other parts of the world where the jobs dropped off dramatically.
Look at Detroit as an example, major industrial town and now?
Gladstone has had and still has, major speculative building based on projected jobs that have peaked. And they still want to build more?
http://www.gladstoneobserver.com.au/news/another-worker-camp-for-gladstone-region/2008574/
Good news is Bechtel is looking for 500 more workers on Curtis Island
http://www.couriermail.com.au/news/...t-near-gladstone/story-e6freoof-1226654026717
Bad news for LL's in Gladstone is the 2600-bed temporary workers accommodation village on Curtis Island.
http://www.leightoncontractors.com....4m-curtis-island-village-and-site-facilities/
What you need to ask yourself is where is Gladstone on this line now?
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And between now and that IF, houses are sitting empty, LL's are bleeding cash and prices are dropping. I hope the banks are understanding.
Even if you bought at the right time you will still get slaughtered when the majority of the working population leaves for greener pastures leaving hundreds of empty $500k spekies rapidly dropping in value.
Best you could hope for then is an influx of single mothers on welfare with 7 children in tow as tenants.
No its not. Not all towns have a transitional workforce and overbuilding like Gladstone does. It hasn't always boomed there you know, there has been plenty of bust as you are seeing now.
Its happening now isn't it?
To many houses and not enough bodies to fill them
Supply and demand
Mining towns and even towns with mining and 'other' industries will continue to be boom and bust. If a town gains an additional mining contract regardless if the town has other industry. A large influx of population takes place to establish the infrastructure needed to support the exploration contract. Prices start to rise and snake oil sales organizations start to promote this much needed stock.
Once the infrastructure is in place regardless of how long the exploration contract or works are continuing the population will leave town. Remeber miners do not live in housing, they live in free accomodation called dungers.
Histroically up to 70% of the population vacate towns once infrastructure is in place to support the mine. Also note they don't vacate slowly. They vacate in droves.
Imagine what would happen to property prices in one of our capital cities if 70% of the population left town.
Once the infrastructure is in place regardless of how long the exploration contract or works are continuing the population will leave town. Remeber miners do not live in housing, they live in free accomodation called dungers.
Histroically up to 70% of the population vacate towns once infrastructure is in place to support the mine. Also note they don't vacate slowly. They vacate in droves.
Imagine what would happen to property prices in one of our capital cities if 70% of the population left town.
While I do agree that the nature of Gladstone's property market is very much boom and bust, this guy clearly knows nothing about Gladstone.
Even with the large FIFO and temporary workforce in Gladstone, it's not even remotely close to being 70% of Gladstone's population. I'll ask, how many people do you think live in temporary camps around Gladstone? And what's Gladstone's population?
You haven't even talked about Gladstone specifically, just rattled on about mining towns in general like an academic. How many mines are in Gladstone?
Academic. I've been called worse even though my education ended with year 10 metal fab.
I'm talking about the population increase when a contract or exploration kicks in. Not the entire population. It's the increased population that causes the prices to rise due to infrastructure needed and yes it is 70% of the gained population that leaves.
Sorry for sounding like an academic. I'm just a poor investor. What would I know.
Not all Gladstone property prices are declining at the same rate, inner suburbs and quality houses are still doing okay. Out of town mass produced houses are suffering the most.
Not 70% of Gladstone's workforce works at LNG and 49% of the LNG workforce live in camps and FIFO.
You have gotta expect some ups and downs in property investing, don't you?
Not 70% of Gladstone's workforce works at LNG and 49% of the LNG workforce live in camps and FIFO.
You have gotta expect some ups and downs in property investing, don't you?
You are right but the results will still be dire.
Bechtel for example has approx 10,000 itinerants working there. When the project is operational, there will be how many left? A few hundred?
How many thousands of empty houses will that be, and thats only one project.
How many months can investors hold out for praying for another project to crop up or a single mum on welfare with 7 kids to blow into town? I mentioned in an earlier post being told of an 8 mth wait so far. What are the repayments on a $500k house again?
Do you really think PI's expect those sorts of ups and down?
This guy certainly wasn't and I doubt he is alone.
Yes, but those people moving out of Gladstone are already out of the local housing market since they are in the temporary workers camps. A lot of the temporary workers have already been removed from the Gladstone rental market, which is reflected in the current high vacancy rates.
It's not going to become a ghost town though once LNG is done. There were already tens of thousands of people in Gladstone before LNG even came along.
This is Gladstone not Moranbah! You would have to been crazy to buy a three bedroom unit for $550k in Gladstone and to get $1000 pw! You would of had to ask yourself the question, how long will last? Wouldn't you? Investors don't do that! Well not the ones that make it.
I'm not saying that Gladstone is a good place to invest at the moment and with the oversupply might not be for many years to come. However there is a glimmer of hope for those investors that bought well. I dont think units or out of town massed produced housing was buying well.
69 for sale over $450k right now, some are even over a million, and that's after they have taken a bit of a hit.
http://www.realestate.com.au/buy/pr...greater+region,+qld/list-1?source=refinements
Like come on, its Gladstone FFS, land of coal dust fallout ,cancer clusters, 3 clawed crabs and two headed fish.
Yes you would and you would also have to ask yourself who will be left holding the bag when the music stops.
For many, that music has stopped and the bag they are holding is getting heavy.
And thats what I am getting at, many investors have been caught with a millstone around their neck sucked in by the promise of easy money. I wonder how many have enough money to bleed over the "many years to come".
The only winners imho were those that got in 5 or more years ago, built the overpriced properties and dumped the hot potato 12 mths ago.
There was a great graph getting around at one stage which I have been unable to find again showing the projects that were happening and the distinct spike and drop off of workers around mid to end of 2013. The writing was on the wall for those who cared to look and act.
At least they could possibly afford to drop the rent to at least attract a tenant that may cover their costs
Some fairly harsh words in here about Gladstone. I don't think those writing them really know much about the town and are comparing it to other towns vastly different in nature.
It's not a mining town. Gladstone has one of the most diverse industrial sectors that Queensland or Australia has to offer.
It's not "here one minute, gone the next". There is massive industry there that is not going to disappear.
Yes it's not travelling well at the moment, but it's going to tick along, over a period of time.
It's not a mining town. Gladstone has one of the most diverse industrial sectors that Queensland or Australia has to offer.
It's not "here one minute, gone the next". There is massive industry there that is not going to disappear.
Yes it's not travelling well at the moment, but it's going to tick along, over a period of time.
