Gladstone QLD - How is it Going????

[recruit2]

- 4x2 brand new brick home is fetching between $600-$650 a week.
- 2 bedroom older units will fetch $300
- 3 bedroom fibro will get approx $350
- 3 bedroom older style brick about $400-$450

After its all said and done, pretty similar to the every day rents in Canberra.

Why wouldn't I just invest in the ACT instead where there IS a real land lock situation, i.e. fixed borders around the state and the government slow to release new land..

I guess if you got into Gladstone a couple of years ago when the prices were low, then you may have already benefited from a nice kick up capital growth. But why would I buy into Gladstone right now when the prices are already getting up there and the rents are the same as Canberra..?

 

[powderfingers]

http://www.theaustralian.com.au/bus...wo-speed-economy/story-e6frg9of-1226366187962

 

[DEC]

http://www.theaustralian.com.au/bus...wo-speed-economy/story-e6frg9of-1226366187962

Look to Indonesia to narrow the gap in two-speed economy

Highlight and right click the above and choose "search google for" to read full version.

 

[Rooster]

After its all said and done, pretty similar to the every day rents in Canberra.

Why wouldn't I just invest in the ACT instead where there IS a real land lock situation, i.e. fixed borders around the state and the government slow to release new land..

I guess if you got into Gladstone a couple of years ago when the prices were low, then you may have already benefited from a nice kick up capital growth. But why would I buy into Gladstone right now when the prices are already getting up there and the rents are the same as Canberra..?

That post was from a year ago, so I'd add a hundred dollars a week to each of those figures quoted.

Rooster

 

[Mikey88]

Absolutely no point having all those things but then paying upwards of a $40k premium for a turnkey product.

It's lazy and counter productive to go for these substandard house and land packages.

The high rents in Gladstone currently mask the poor investments from the good ones.

Rooster

Rooster what do you mean by a $40k premium? I am looking at buying off the plan in Emerald and/or Gladstone and it will be a turnkey product.

Whats every ones thoughts on using an investment firm for my first investment? The House and land would cost the same through an investment firm as it would if I went direct to the builder apparently?
Cheers

Mikey88

 

[DavidMc]

The House and land would cost the same through an investment firm as it would if I went direct to the builder apparently?

Who said that? The investment company?

This is not the case. The investment firm is getting paid somehow, usually this is in the form of a sales commissions from the builder.

When I approach builders and they usually ask 'are you an agent? No? Then take off $25k'.

If you feel their advice and hand-holding is worth it, especially as a first time investor, then go for it.

The $40k he was referring to would include 'new build' agents commission and builders profit, both of which aren't payable on an established.

On the plus side though you have lower entry costs (less stamp duty - in Vic anyway), any incentives from the government (there was $10k boost at one stage, think it's over now, not sure), much better depreciation, easier to rent out, less maintenance (in theory) and for some it's an easier to buy unseen this way.

Overall I think both options are comparable, it depends on which suits you better.

 

[drwright84]

Who said that? The investment company?

This is not the case. The investment firm is getting paid somehow, usually this is in the form of a sales commissions from the builder.

When I approach builders and they usually ask 'are you an agent? No? Then take off $25k'.

If you feel their advice and hand-holding is worth it, especially as a first time investor, then go for it.

The $40k he was referring to would include 'new build' agents commission and builders profit, both of which aren't payable on an established.

On the plus side though you have lower entry costs (less stamp duty - in Vic anyway), any incentives from the government (there was $10k boost at one stage, think it's over now, not sure), much better depreciation, easier to rent out, less maintenance (in theory) and for some it's an easier to buy unseen this way.

Overall I think both options are comparable, it depends on which suits you better.

The devil is in the detail, if you look closely at the inclusions materials fittings etc you will find for the same price as the package you can buy and land build a far superior house for your money. and if you believe it will take 12 to 18 months to do build like some people have suggested your on the wrong track. should only take six months if your finance is ready and the land you choose is titled. i would suggest a local builder as they have a reputation to uphold and will still be around after the house is built. consider buying as ppor if it is your first property as you can get the fhog and avoid the stamp duty you will pay if buying as a ip. this will probably save you 20-30k. if your from w.a. your probably a skilled worker so why not live in it for 12 months save the cash and jump onboard with a construction job in gladstone.

 

[edge81]

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.

You've got that right. Too many people only live here for the apparent high wages, only to spend their money in Rocky or Brisbane.

 

[BuyHotProperty]

Duplex and Gladstone

We are in Gladstone and involved in securing and developing properties with high returns in Gladstone

all our properties have risen in value and are in demand for rental

“”Duplex Designs” projects. The basis is by building one Duplex (a pair) selling one “Unit” on

completion, injecting the profit back and retaining the other “Unit”. Buy repeating this procedure with on-going Building

it builds up “Investor equity” and renders good tax benefits.

we feel the area is just beginning to flourish and agree that projects in the pipe will further support the investments in homes there

 

[Mikey88]

The devil is in the detail, if you look closely at the inclusions materials fittings etc you will find for the same price as the package you can buy and land build a far superior house for your money. and if you believe it will take 12 to 18 months to do build like some people have suggested your on the wrong track. should only take six months if your finance is ready and the land you choose is titled. i would suggest a local builder as they have a reputation to uphold and will still be around after the house is built. consider buying as ppor if it is your first property as you can get the fhog and avoid the stamp duty you will pay if buying as a ip. this will probably save you 20-30k. if your from w.a. your probably a skilled worker so why not live in it for 12 months save the cash and jump onboard with a construction job in gladstone.

Who said that? The investment company?

This is not the case. The investment firm is getting paid somehow, usually this is in the form of a sales commissions from the builder.

When I approach builders and they usually ask 'are you an agent? No? Then take off $25k'.

If you feel their advice and hand-holding is worth it, especially as a first time investor, then go for it.

The $40k he was referring to would include 'new build' agents commission and builders profit, both of which aren't payable on an established.

On the plus side though you have lower entry costs (less stamp duty - in Vic anyway), any incentives from the government (there was $10k boost at one stage, think it's over now, not sure), much better depreciation, easier to rent out, less maintenance (in theory) and for some it's an easier to buy unseen this way.

Overall I think both options are comparable, it depends on which suits you better.

I have been told by different investment firms that thier services will be at no cost to me which I find hard to believe. According to them there is 2 markets in the building industry, Wholesale and Retail. Agents and investment firms get the 'wholesale' prices and the public gets the retail prices. Does any one know anything about this? They say its illegal to have a two tiered marketing scheme?

As I'm in WA it is appealing to have someone pushing everthing along for me and as a first time investor/builder the whole process seems daunting when working big hours to be able to organise everything and not really knowing where to start!
Does anyone have any experience who has been in a similiar position? How difficult was it to build through a good builder from interstate? How time consuming was it?

DrWright, so what you saying is that the investment firm would have all the cheapest fittings, materials and finishings used to build? as opposed to if i went direct to the builder I would get all the better fittings, material etc for the same price?

Thanks

Mikey

 

[Bigtone]

I have been told by different investment firms that thier services will be at no cost to me which I find hard to believe. According to them there is 2 markets in the building industry, Wholesale and Retail. Agents and investment firms get the 'wholesale' prices and the public gets the retail prices. Does any one know anything about this? They say its illegal to have a two tiered marketing scheme?

As I'm in WA it is appealing to have someone pushing everthing along for me and as a first time investor/builder the whole process seems daunting when working big hours to be able to organise everything and not really knowing where to start!
Does anyone have any experience who has been in a similiar position? How difficult was it to build through a good builder from interstate? How time consuming was it?

DrWright, so what you saying is that the investment firm would have all the cheapest fittings, materials and finishings used to build? as opposed to if i went direct to the builder I would get all the better fittings, material etc for the same price?

Thanks

Mikey

y not use a buyers agent so the person working for u is paid by you and not the developer

 

[rchad]

After its all said and done, pretty similar to the every day rents in Canberra.

Why wouldn't I just invest in the ACT instead where there IS a real land lock situation, i.e. fixed borders around the state and the government slow to release new land..

I guess if you got into Gladstone a couple of years ago when the prices were low, then you may have already benefited from a nice kick up capital growth. But why would I buy into Gladstone right now when the prices are already getting up there and the rents are the same as Canberra..?

Given the multiple property markets that exist simultaneously across Australia I have noted from my research that Gladstone is heading to the 12 o'clock peak period - wondering if the H&L packages when as high as mid 500s as a starting point are rather steep esp when you include the additional costs associated with spruikers

 

[norwoodman]

Given the multiple property markets that exist simultaneously across Australia I have noted from my research that Gladstone is heading to the 12 o'clock peak period - wondering if the H&L packages when as high as mid 500s as a starting point are rather steep esp when you include the additional costs associated with spruikers

There's an ever increasing number of spruikers in the property market around here in Gladstone. Nearly everyday when I look in my letter box I have some advert inviting me to a property investment seminar.

 

[HotRod]

Not knowing the area, but if it is in the press and there are flyers in letter boxes telling Joe Public to get in on the Gladstone boom, the market has probably peaked.

Sounds like only mugs should be getting in now as it could now be over cooked and there's some steam to come out on the downswing.

JMHO.

 

[Bigtone]

Not knowing the area, but if it is in the press and there are flyers in letter boxes telling Joe Public to get in on the Gladstone boom, the market has probably peaked.

Sounds like only mugs should be getting in now as it could now be over cooked and there's some steam to come out on the downswing.

JMHO.

personally i think there is still a fair bit of growth left but i don't like buying so far into the upswing. on the downturn we could get back to here and quite possibly below so unless i was going to buy and sell at the peak or wanted to use $40k to access $125k in 18 months for other areas i wouldn't be buying now.

 

[Lawry]

rents

How is everyone's recent experience of the Gladstone rental market conditions, particularly renewals? We've got an IP, established older 3 bed unfurnished, coming up for renewal of 6 month lease

 

[Sesster]

Any thoughts?

Hi guys

I noticed some ppl questioning whether or not its still worth while buying in gladstone due to increasing prices.

This price still seems reasonable.. what do you guys think?

http://www.domain.com.au/Property/For-Sale/House/QLD/New-Auckland/?adid=2009733863

any feedback appreciated

Sam

 

[ems]

How is everyone's recent experience of the Gladstone rental market conditions, particularly renewals? We've got an IP, established older 3 bed unfurnished, coming up for renewal of 6 month lease

We rented our 3 bed house out recently on Toolooa Street! Due to a cockup with the agent the property wasn't put on the website for a good few weeks and we were wondering why we had no interest. After the mishap had been rectified we rented the place pretty quickly for $450 a week. Rented from May 2011 until November 2011 at $380 a week and then from November 2011 until now at $450 a week.

Cheers
Ems

 

[norwoodman]

A valuable resource into all the proposed industry and infrastructure in the Gladstone region, and the numbers involved. The area affected by new industry stretches all the way out to around Mount Larcom (Aldoga).

http://www.gladstoneindustry.org.au/wp-content/uploads/Dev-Rev-Matrix-March-20121.pdf

 

[DavidMc]

I noticed some ppl questioning whether or not its still worth while buying in gladstone due to increasing prices.

This price still seems reasonable.. what do you guys think?

http://www.domain.com.au/Property/For-Sale/House/QLD/New-Auckland/?adid=2009733863

I agree with you. I only just got in a few months ago myself.

That particular property should achieve around $700pw a week in rent.

At those 8-10% yields the market still has room to grow.

Once the yields are the long term average of 6% (through capital growth or a drop in rents) THEN it will be too late.

Between now and then - it'll be great!

Note: if a $530k property yielding 9% would need to increase in value to $780k for it to yield 6% (with rents staying the same). Even it just drops to 7% yield that's 669k.