Gladstone QLD - How is it Going????

I have just finished building a 4 bed home in Kirkwood. We curently have it on the market to rent out at $650pw but are struggling to get anyone in.
Is anybody seeing a slow down up there?
Could it be that I am asking too much per week or is it just a slow time of year coming up to Chrisssy?
Link to the property is below:

http://www.realestate.com.au/property-house-qld-gladstone-406255556

Any feedback much appreciated.

It looks cheap quality frankly. I'm guessing your an out of town investor who has bought a house and land package?

The combination of the lead up to xmas and the increase of rentals available are working against you.

There are also better quality 4x2 bedroom homes available at that same price point.

You've also gone with a lesser known PM, who possibly doesn't get the same foot traffic as the more established offices in town.

Rooster
 
Thanks Rooster & Lawry.
yes I am an out of town investor, and a novice.
I did purchase a house & land package.
This is my first ever IP and it has been a steep learning curve.
 
Thanks Rooster & Lawry.
yes I am an out of town investor, and a novice.
I did purchase a house & land package.
This is my first ever IP and it has been a steep learning curve.

If it were me, I'd forsake trying to let it at $650 per week and drop it straight to $600 per week.

You only have a small window left before xmas to secure a tenant. In 6 months time it will be a whole different ball game.

You've done well to get a foot on the ladder and chosen a growth area currently.

Unfortunately I've seen lots of these 4x2 slapped up and on sold to interstate investors. You don't get the same level of input regarding the quality of the fitout and facade as a local would.

It's never too late to change PM's either.

Rooster
 
a crushing blow

Hi all,

Just saw this today. http://www.gladstoneobserver.com.au/story/2011/12/08/toolooa-uda-site-gets-green-light/

This is a crushing blow to a budding developer like myself. You do everything right, then the government intervenes to kill any profit margin that was rightfully yours, from making the correct moves at the correct time in a booming market.

If they price 1200 houses well below market value, no developers will bother investing further in Gladstone as its not worth the risk and those that have bought recently will get killed trying to resell at a profit.

Typical labour government, one set of rules for those making money for themselves and another set of rules for those looking for a handout / free equity.
 
Hey Mattnz, how does the UDA work? does the gov subsidize/ cut taxes? hard to see how they can build houses and sell them below median market value in a town where they cant get enough tradies, otherwise.

We have an IP in Toolooa so this will be on our doorstep... guess the effect might depend on how strong the population growth is going to be in the next few years (i.e. will it nearly double by 2030 as mentioned in the article)
 
answering my own question to some extent:

http://www.ulda.qld.gov.au/_dbase_upl/HousingStrategy2011.pdf

The ULDA improves housing affordability by reducing the
cost of development through streamlining the development
approval process and removing impediments to public and
private housing and urban development providers enabling it
to bring urban land to market quickly.

It also achieves housing affordability by requiring a variety of
lot sizes and dwelling types within a development. Smaller
house and lot types result in lower price points relative to the
traditional lots being produced in the market.


... so does this mean the reason they will be below median price is becasue they are smaller land / units?
 
Hey Mattnz, how does the UDA work? does the gov subsidize/ cut taxes? hard to see how they can build houses and sell them below median market value in a town where they cant get enough tradies, otherwise.

We have an IP in Toolooa so this will be on our doorstep... guess the effect might depend on how strong the population growth is going to be in the next few years (i.e. will it nearly double by 2030 as mentioned in the article)

Household income under $105k (i.e. most current residents of Gladstone) will qualify

http://www.ulda.qld.gov.au/01_cms/details.asp?ID=513

I can't find it now, but read earlier today that they are trying to make alot of the housing less than the median of $398k!!

If they are selling 4x2s for $370k, good luck to developers trying to sell at $570k to walk away with a profit.

It will quickly become a 2 tier market, with no price consistency.

As you rightly point out, there are already too few tradies, so adding 1200 more houses will also increase build costs for the developers. The government already owns the land, so can price it as cheap as they want to.

This is the same government that is also trying to introduce rent controls. Just get out of the way and let the market determine fair value or all sorts of anomolies will be created.
 
I should add that I would have had no issues with them releasing more land at fair market value for development, or building government owned social housing at cheaper rent for the less fortunate, they would both be desirable outcomes, but this is really just going to create uncertainty and bad outcomes all round.
 
I can't find it now, but read earlier today that they are trying to make alot of the housing less than the median of $398k!!

If they are selling 4x2s for $370k, good luck to developers trying to sell at $570k to walk away with a profit..

... yeah, agree, but don't they mean they'll be trying to offer places 'below the median for the area' by making smaller subdivisions and bringing more 2 bed units, duplexes, apartments etc to market? not 4 x 2s
 
... yeah, agree, but don't they mean they'll be trying to offer places 'below the median for the area' by making smaller subdivisions and bringing more 2 bed units, duplexes, apartments etc to market? not 4 x 2s

You could be right, but even if a 4x2 is $449k as Sam pointed out examples of earlier here http://www.realestate.com.au/property-house-qld-gladstone-108901721 which is also a ULDA estate, at $100k+ less than current sale prices, would you be buying off the developer at full price?

Governments subsidising those on modest incomes with significant asset discounts (not only $100k lower price, but also $10k building grant and $7k first home owners boost) is terrible policy. If you want to reduce cost of living for those on lower incomes (i.e. less than $105k!!), simply means test their rental income with a government subsidy that applies in markets which are booming. This would also allow targetting to the poorest i.e. pensioners, those working at kmart, service stations etc who dont even qualify for loans.

Undervalued asset gifting to the middle class reeks of vote buying.
 
As someone mentioned below the article The UDA area looks like it sits under high voltage powerlines. Blocks will be packed in....looks like a nice gov cash grab to me.
 
You could be right, but even if a 4x2 is $449k as Sam pointed out examples of earlier here http://www.realestate.com.au/property-house-qld-gladstone-108901721 which is also a ULDA estate, at $100k+ less than current sale prices, would you be buying off the developer at full price?

Governments subsidising those on modest incomes with significant asset discounts (not only $100k lower price, but also $10k building grant and $7k first home owners boost) is terrible policy. If you want to reduce cost of living for those on lower incomes (i.e. less than $105k!!), simply means test their rental income with a government subsidy that applies in markets which are booming. This would also allow targetting to the poorest i.e. pensioners, those working at kmart, service stations etc who dont even qualify for loans.

Undervalued asset gifting to the middle class reeks of vote buying.

very true.....
 
Gladstone Housing Market has slowed

Whats going on in Gladdy?

Having just made a purchase my buyers agent and real estate letting agent are both saying the market has slowed with rental and purchase prices coming back!

Is it a Christmas blip or are we in for a bump.. I read this today http://shrvl.com/YI4nR and I perfer to believe in the longer term, but not keen on prices going backwards when I've just made a purchase! :confused:

Any comments?
 
I've just purchased and Gladstone via my man on the ground there. Buying right now before Xmas was perfect, things had quietened down just enough to secure a great deal.

The number of houses available for rent has increased and things generally have slowed in the lead up till Xmas (if you can call most good properties selling within 2-3 weeks of listing at asking price 'slow'). I expect any increased rental supply to be exhausted again in Jan/Feb as people start new work contracts.

Prices haven't zoomed off just yet, however rents have. I'm looking at almost 10% yield on a regular style 4/2/2 house that is furnished. I usually find that price increases follow rent increases.

I believe the boom in Gladstone is yet to even start and that it's not too late, with only 1 of the 4 mega billion LNG projects only having just had the started it's multi year long construction phase.

My thoughts are consistent with what Terry Ryder from Hotspotting had to say http://soundcloud.com/hotspotting/gladstone 3 months ago.

Of course, take everything I say with a grain of salt as I am now biased, however I have put my money where my mouth is. I'm even thinking of a second one there.
 
Whats going on in Gladdy?

Having just made a purchase my buyers agent and real estate letting agent are both saying the market has slowed with rental and purchase prices coming back!

Is it a Christmas blip or are we in for a bump.. I read this today http://shrvl.com/YI4nR and I perfer to believe in the longer term, but not keen on prices going backwards when I've just made a purchase! :confused:

Any comments?

Prices going backwards? What are you talking about?

I'd suggest it is vendors with inflated listing prices realising that they are still above where the market is.

Rooster
 
Prices going backwards? What are you talking about?

I'd suggest it is vendors with inflated listing prices realising that they are still above where the market is.

Rooster

I would agree with this assessment Rooster. A house very similar to what I just paid $369k for was listed this month at $550k in the same suburb. Definitely some dreamers out there.
 
Hello there, I just read the entire thread. I live in Gladstone myself and work on the LNG project. Unfortunately I was unable to purchase an IP previously and am wondering if it would be too late now? What is people's opinion?

Thanks!
 
I'm heading up to Gladstone in early February to see what all the fuss is about. I'm being relocated up there from Adelaide for work - not looking forward to trying to find share accommodation!
 
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