Gladstone QLD - How is it Going????

[norwoodman]

Can you expand on what happened in Mackay in 2006?

After about 5 years of rapid price growth, Mackay's housing market went flat and didn't move much for a few years after everyone jumped on the bandwagon. It looks more interesting now since there is a lot of investment now planned for the ports in that region and other infrastructure such as the Mackay Base Hospital expansion (and that everyone else seems to have been distracted by what's already happening in Gladstone and Moranbah).

On Tannum Sands, the population of the twin township of Boyne-Tannum is currently somewhere around 12000. On some projections, the population is expected to increase to about 26000 by 2030, with a significant amount of that growth in Devine's new Riverstone Rise estate next door at Wurdong Heights, which recently commenced construction. Tannum Sands is quite a nice place, IMO - it's the only suburb in the Greater Gladstone Area that has a beach and a river!

 

[norwoodman]

One thing I could potentially see holding back Tannum Sands is that most of the employment is located around the Gladstone urban area and on the western side of the Boyne River. There's been talk of building a second bridge between Boyne Island and Tannum Sands to speed up commutes and reduce pressure on the (only) existing bridge between the two.

The travel times into Gladstone from Tannum Sands are getting longer by the year, and when accidents occur on Gladstone-Benaraby Road like a few weeks ago, commutes into Gladstone can easily more than double in time.

 

[Sesster]

Thanks for your reply norwoodman,

Were do you recommend then for an all round solid area?


cheers

sam

 

[norwoodman]

Thanks for your reply norwoodman,

Were do you recommend then for an all round solid area?


cheers

sam

New Auckland and Clinton have very good access to schools, shops, parks and employment services, as well as the airport. These are quite large suburbs, so the newer areas tend to be more sought after, but not so new that they attract the H&L premiums in the brand new estates - for Clinton this tends to be on the western side of J Hickey Avenue or Harvey Road, and for New Auckland it's the areas south of Sharyn Drive, and south of Cockatoo Drive. Kin Kora is pretty solid as well as it is a bit closer to the main employment and shopping areas, but this area is a bit older than Clinton and New Auckland.

In general from a living perspective, Gladstone is a bit of a hole, but some others are more of a hole than others. That doesn't say anything about its investment potential, however.

 

[DavidMc]

Hi Sam. I remember when I was first looking I was going into analysis paraylsis on the location. Really, any inner burb is fine IMO - New Auckland, Telina, Clinton, etc. Personally I wouldn't go for those properties out in Calliope and Tannum Sands, a 30 min commute each way really makes a big difference when you are working 10-12 hour days.

New Auckland was my pick.

 

[CHam]

Hillclose estate is good value too and well located in West Gladstone.

Hi Powderfingers,

Hillclose are only selling specific lots to investors. Apparently they are obliged (not sure if legally so or not) to only sell the better properties to owner occupiers.

Do you know anything more about this and if it is actually enforceable?

Cheers,

 

[powderfingers]

Hi CHam

They are selling some of the cheaper properties (2br- $340k) to people earning under $105k annually and intending to live in the property, and is a ULDA scheme to provide affordable accom to locals. However this offer ends in 10 days on 24 May, I presume thereafter all properties are available at Hillclose to investors, so maybe wait till then and see whats released after 24 May?

It looks like all their other props 3br etc are currently available to investors,

Cheers
Clint

 

[CHam]

Thanks powderfingers,

They only offered me a choice of 6 lots - which were all the same floorplan, being 3 bedroom townhouses. All of the other lots, whether they were 3 or 4 bedroom townhouses or homes, were apparently reserved for owner occupiers. I didn't see any deadlines on this (other than the Government grant which has now expired).

When I pressed further the salesperson couldn't provide any legal or contractual reasons for this, but it was the unwritten rule or something.

We are not quite in a position to buy for another few months so I am waiting until then to press further and see what is available. I think with the Government grant finishing sales may slow up for a bit - especially for owner occupiers.

 

[ironscythe]

Thanks for your reply norwoodman,

Were do you recommend then for an all round solid area?


cheers

sam

Clinton,New Auckland, Kirkwood are good central locations with lots of facilities coming up (child care, schools, woolies etc). Some of the agents have said that newer estates around glen eden are also popular as rentals due to them being closer to the town.

Also a home and land package is a much better option than buying a land and constructing as contructing in gladstone is a big headache and will take anywhere between 12-18 months. H&L packages usually are up within 4 months.

If stamp duty is not an issue it might be worth buying new houses which are almost complete.

 

[powderfingers]

Thanks powderfingers,

They only offered me a choice of 6 lots - which were all the same floorplan, being 3 bedroom townhouses. All of the other lots, whether they were 3 or 4 bedroom townhouses or homes, were apparently reserved for owner occupiers. I didn't see any deadlines on this (other than the Government grant which has now expired).

When I pressed further the salesperson couldn't provide any legal or contractual reasons for this, but it was the unwritten rule or something.

We are not quite in a position to buy for another few months so I am waiting until then to press further and see what is available. I think with the Government grant finishing sales may slow up for a bit - especially for owner occupiers.

Can't see how they could legally enforce it, but in case this will be irrelevant now.

Makes sense that they'd release to the general public now that the 10k building boost is no longer available and demand from first home buyers slows, and yes sales in general might slow a bit since boost ended, until more demand begins when lng train construction fires up.

It is a good estate though in a good location, next to a school and close to shops, airport etc, worth keeping an eye on.

 

[Sesster]

THANKS norwoodman and IronScythe!!

I know im getting to the analysis paralysis stage!!

I was told its better not to buy a H&L package becasue u pay a premium and if there is a firesale one day its those houses that lose value fastest and most.

I was advised rather to buy a 4-2-2 home thats 1-3 years old...

Any advice on that?

ALSO, i was reading an article on SANTOS site about how they are spending 19m i think it is to build 35 affordable houses etc etc... DO you think it will affect us as investors? would it bring rents/houses prices down? Do you think its significant?

thanks guys!

sam

 

[norwoodman]

THANKS norwoodman and IronScythe!!

I know im getting to the analysis paralysis stage!!

I was told its better not to buy a H&L package becasue u pay a premium and if there is a firesale one day its those houses that lose value fastest and most.

I was advised rather to buy a 4-2-2 home thats 1-3 years old...

Any advice on that?

ALSO, i was reading an article on SANTOS site about how they are spending 19m i think it is to build 35 affordable houses etc etc... DO you think it will affect us as investors? would it bring rents/houses prices down? Do you think its significant?

thanks guys!

sam

I would agree on the views regarding H&L and 4-2-2 perspectives, as they are most sought after by families and workers in Gladstone.

I don't think the 35 affordable homes in Kirkwood being organised by Santos will make much difference at all - at least 11 of them are already occupied. However, the workers camps which have gradually been opening up on Curtis Island over the past couple of months certainly will make a significant dent in demand as they intend to house thousands over there instead of in Gladstone, and will remove some people from the Gladstone rental market.

I doubt you'll see a price crash, there's some strong and diverse fundamentals supporting Gladstone's development, however, the amount of supply coming online is greater than many seem to acknowledge.

 

[Sesster]

Norwoodman are you agreeing that its better NOT to buy a H&L package and better to buy a home 1-3 years old?

Do you think despite the camps emerging Gladstone is still going to perform well in the long term say 10 years?

I know no one has a crystal ball but im interested to hear what people predict based on at least some educated guess.

cheers

sam

 

[norwoodman]

How long is a piece of string? And yes, I was saying stay away from H&L packages.

 

[Rooster]

Also a home and land package is a much better option than buying a land and constructing as contructing in gladstone is a big headache and will take anywhere between 12-18 months. H&L packages usually are up within 4 months.

That is the most poorly researched and uneducated view I've read in this thread. I only hope potential investors aren't following every bit of wisdom that has been dished out in this thread in recent times.

Rooster

 

[BillyGoat]

I am new to the forum but have been following this thread for a month or two.
What a fabulous thread, bigtone, rooster and mattnz your insights have been fantastic.

Just wanted to throw something out there. I recently put an offer in on a property in Gladstone. My offer was strong and I left the settlement time frame entirely up to the vendor.

The real estate agent submitted my offer. The agent came back to me saying the vendor liked the amount offered but would not accept. So I tried to structure my offer in other terms to be appealing to the vendor. When I called the agent I was told that the vendor had accepted another offer almost 10k below my offer because they did not want to sell to an investor and preferred to sell to someone local.

Has anyone else experienced this?

 

[ironscythe]

THANKS norwoodman and IronScythe!!

I know im getting to the analysis paralysis stage!!

I was told its better not to buy a H&L package becasue u pay a premium and if there is a firesale one day its those houses that lose value fastest and most.
sam

do your own research with this and you might be able to pick a good one.

I bought a H&L in the earlier stage of an estate. picked a house which was due for completion in 1 month and came with a 2 year rental.
The same builder is now selling similar houses atleast 40-60K more expensive now.
we made it a point to go there checked houses by 5 different builders and viewed mostly properties which are almost finished or just finished. We politely declined offers to view their display homes.

I was advised rather to buy a 4-2-2 home thats 1-3 years old...

Any advice on that?

sam

Depends on price difference to new ones. how much wear and tear has the properties . Most companies prefer houses which are less than 5 years old
might work if you have with a Lease on it as a lot of projects are yet to start and it might be a bit hard to rent out immediately.

ALSO, i was reading an article on SANTOS site about how they are spending 19m i think it is to build 35 affordable houses etc etc... DO you think it will affect us as investors? would it bring rents/houses prices down? Do you think its significant?
sam

19m for 35 houses = 542K each house. How is that affordable housing?

 

[ironscythe]

That is the most poorly researched and uneducated view I've read in this thread. I only hope potential investors aren't following every bit of wisdom that has been dished out in this thread in recent times.

Rooster

Thanks Rooster. I would love to get your educated and well researched view on investing in Gladstone.

Given that i have bought a H&L and am also trying to build a house there,I think I might be slightly more educated about whats better between the two options.

 

[norwoodman]

The first two stages of Riverstone Rise (120 lots + local park) are now under construction at the Boyne Island end of the site.

 

[powderfingers]

an update in todays paper:
http://www.gladstoneobserver.com.au/story/2012/05/18/70b-worth-of-work-gladstone-/