Gladstone QLD - How is it Going????

[Neil Richardson]

James

It sounds like you have done pretty well at this point in time to get $950/week.

From what I hear, current rents have dropped a couple of hundred $$ per week over what they were some months ago.

 

[Thanatos]

Hi Neil,

We had planned to lease unfurnished for $750 but listed at $720 and after a week or two identical properties were down to $670 still with no takers.

Had to make a change to differentiate the property and deciding to go furnished got me a tenant in a couple of days.

Can't complain at all for a cash flow positive investment and its all a bit pointless if there is not some capital gain in a few years!

Cheers,
James

 

[powderfingers]

Released yesterday NAB quarterly residential survey :

"For the seventh consecutive quarter, the harbour town
of Gladstone (Qld) was the most nominated response as the location expected to grow fastest in terms of capital values over the next 12 months."

 

[edge81]

Released yesterday NAB quarterly residential survey :

"For the seventh consecutive quarter, the harbour town
of Gladstone (Qld) was the most nominated response as the location expected to grow fastest in terms of capital values over the next 12 months."

Thanks Powderfingers. See this is what I dont understand. I live here and I can virtually guarantee that the next twelve months wont see a gain. Too many uncertainties have crept into the market this year which is why house prices are dropping. These include a glut of new housing developments, major projects changing their scope and the island camp ramping up.

As most investors dont live here, you look at Gladstone through different eyes. Do you come to this same conclusion (NAB's)? What I am trying to work is is to what to look for and not look for as I will be purchasing my first IP next year.

 

[mattnz]

As most investors dont live here, you look at Gladstone through different eyes. Do you come to this same conclusion (NAB's)? What I am trying to work is is to what to look for and not look for as I will be purchasing my first IP next year.

The way you talk about the Gladstone market, I thought you were never buying an IP there... maybe talking the market down till 2013?

If you are local and not earning alot, I would recommend buying into a place like Hillclose. Plenty of equity in the ULDA deals I have seen.

 

[edge81]

I wouldn't buy an IP here. I believe the time has passed and it is all downhill from here. I am trying to see what people look for in an IP as differnt conclusions are drawn by people who live in the area compared to those living further away.

ps. HillClose is know as povo-ville here due to the tiny houses on tiny land, yet still costing the same as a proper house. They sold so well that the government had to change the rules three time so as they could sell all the blocks for the first stage.

 

[mattnz]

Gladstone was just named the #3 market in the top 100 of Your Investment Property magazine from an expert panel.

 

[norwoodman]

It's been interesting watching rents on different types of properties in Gladstone over the past few months. Some of the 4x2x2 properties that were originally listed at $670-700 per week have now been dropped back to $600-$625 per week - seems to be mainly the Gladstone area properties that have dropped back and not the ones in BITS or Calliope. Nothing seems to have changed for 2 and 3 bed units though.

I'm considering breaking lease to move into an equivalent rental property just up the street that's asking for $75 less than what we're currently paying.

 

[Angel]

I spent last Sunday agonising over whether to buy or not, given that i know from my work the week before that Rio, for example, is renewing their leases at the same rental as the previous six months. I can also see on the net that rentals are offered at lower rates than they have been in the past when those guys at NAB abd API wrote their reports.

However sitting down reading that six page document about all the projects for Gladstone, and the expected numbers of construction workers, will show how many workers are required in the next couple of years. Now I challenge anyone who is concerned to make a list and do the maths.

Start with 14000 for currently underway projects. Deduct the 1350 from Yarwun. Deduct 6000. Add 2000 new residences. Add another 3000 for stalled projects. There are 5000 for pending projects. I didnt count workers on projects closer to Rocky or the railway out west.

As some projects complete, their workmen would move on to other projects or go back home. Is there stilll a net figure? This is up until 2017.

 

[ris4rob]

What is one to expect to receive in rent from a furnished townhouse 3x2.5x1 in gladstone an im not talking advertised prices actually leases being signed up??
Rise.

 

[norwoodman]

What is one to expect to receive in rent from a furnished townhouse 3x2.5x1 in gladstone an im not talking advertised prices actually leases being signed up??
Rise.

A lot of the fully furnished 3 bedder townhouses are going for upwards of $750 per week, far higher than the $550 per week or so for the unfurnished ones. Not sure how quickly they're going though, there are a ton of them entering the market in West Gladstone and South Gladstone where they are permitted at the moment.

 

[BillyGoat]

I have an IP in Gladstone and am considering furnishing it. it's an older 4x2 highset.

I have read up on the general pros and cons of furnishing but was hoping for some feedback from those who have furnished IPs in the Gladstone market. Was it easier or harder to rent out?

 

[Thanatos]

I have an IP in Gladstone and am considering furnishing it. it's an older 4x2 highset.

I have read up on the general pros and cons of furnishing but was hoping for some feedback from those who have furnished IPs in the Gladstone market. Was it easier or harder to rent out?

I got no bites @$720 unfurnished and told the agent I was willing to furnish it. He spread the word and I got a tenant in a few days at $940.

It cost close to 10K for the complete furnishing package but I through in a TV in each bedroom to secure the deal and it was all last minute purchases over the phone...

I'm happy ;-)

Cheers,
James

 

[BillyGoat]

Hi James, great feedback. I think I will advertise furnished and unfurnished price, I already have couch a few beds etc. did you buy stuff new or on ebay/gumtree. Did you fully furnish ie cutlery plates etc or just the main furniture items?

Does anyone have any thoughts on how much to increase rent per week for furniture, im going to list at around 630 without furniture.

 

[mattnz]

I got no bites @$720 unfurnished and told the agent I was willing to furnish it. He spread the word and I got a tenant in a few days at $940.

It cost close to 10K for the complete furnishing package but I through in a TV in each bedroom to secure the deal and it was all last minute purchases over the phone...

I'm happy ;-)

Cheers,
James

Hi james, where did you get the furniture package from? I'm going to be ordering 2 furniture packages there tomorrow.

Thanks,
Matt

 

[ris4rob]

Ive got one advertised 3x2.5x1 townhouse not too many bites yet for $850 gonna wait till settlement and readvertise with furniture installed and new photos fingers crossed.

 

[Rooster]

Does anyone have any thoughts on how much to increase rent per week for furniture, im going to list at around 630 without furniture.

An older set highset for $630 a week? What location?

You might hear crickets for a little while at that price.

 

[mattnz]

Ive got one advertised 3x2.5x1 townhouse not too many bites yet for $850 gonna wait till settlement and readvertise with furniture installed and new photos fingers crossed.

This sounds expensive unfurnished too.

 

[norwoodman]

Ive got one advertised 3x2.5x1 townhouse not too many bites yet for $850 gonna wait till settlement and readvertise with furniture installed and new photos fingers crossed.

This is the price I expect to hear for a brand new furnished townhouse in Gladstone, not an unfurnished one which would be at least a couple of hundred less.

 

[norwoodman]

With all the ongoing interest in the Gladstone region and not many people on the ground to give a visual of what's actually happening, I went and did a tour of the newer estates being developed in Gladstone's south.

To start off, the HillClose estate which is a UDA in the suburb of Clinton just off Harvey Road. Stage 1 is practically complete with the other stages progressing on the civil works.

Stay tuned for what's happening in the Little Creek, Vantage, Forest Springs, Stockwood and Vision Valley estates.