Hervey Bay, QLD?

[bombers86]

Hi everyone,

Long time reader, first time poster.. I love this forum, the information on here is fantastic.

I'd really like to read some people's comments on what they think is happening/will happen in the large QLD regional areas. There has been a lot of talk on here about Gladstone, but what about areas like Hervey Bay?

I currently live in Perth and don't know much about QLD. Is the market down in regional QLD? Especially areas like Hervey Bay? It hasn't done much since the massive boom around 2002 from what I can find and currently there are heaps of properties for either sale or rent.. Not a great sign but surely things can only get better?

Anyone know the area well or have IP's there? I've read things like Hervey Bay is going to have the largest population growth (by %) out of anywhere in Australia (or maybe it was just regional Australia) in the next 20yrs or so.. So you would expect that would be good for investment but then there are things happening like the big fire-sale at the Peppers resort, which basically reduced the value of units in the area heavily.. Does anyone else see another boom (like the one in 2002) or are those days over??

Cheers

 

[MissMuffitt]

My husband is currently working on construction sites in Hervey bay... the guy he is working for has a heap of units and other building to be built before Xmas.
Just looking around you can see a lot of construction sites that are going ahead.
Looks positive to me.

 

[marg4000]

Several years ago a politician got into trouble by describing Hervey Bay as being a place for the "newly wed and the nearly dead".
Marg

 

[Bigtone]

Hi Marg,

I have a few in that area (bought 2007) and they have been the worst performed properties in my portfolio. Ranging from 0-25% growth over 3 years.

Hervey Bay is very different to Gladstone and other industry towns, it relies on hospitality and population growth. However the people moving. there have tended to be on low incomes and or retired, not like the mining wages elsewhere.

Next time Brisbane has a big boom Hervey Bay will almost certainly follow as it relies on prosperity of the capital city to boom.

There is a big oversupply of units and townhouses, definitely buy houses in this town. Anything under $300k beachside of Boat Harbour drive should be a good long term play.

Cheers

BT

 

[Risky Business]

G'day bombers86,

Hervey Bay is as depicted by the other posters.

I live here and it is a beautiful place to live. There are great value PPOR to buy. Investing is another story as rental returns are terrible. Not many people here have much of a disposable income. There are a lot of oldies and unemployed persons here because it is such a great lifestyle and value for money. Why be on the dole in Caboolture when it is cheaper to come up here and fish off the Urangan pier with your spare time.

Gladstone has/will have large amounts of money flowing through the region. Hervey Bay caters towards cheap holidays camping by the beach.

On the flip side, major retailers are moving into town and things are livening up and a proposed coal mine may inject a small amount of cash into the area.

The problem with living here is that every other region seems expensive to buy in comparison.

 

[Rob Williams]

Hopefully Tarah on this forum will share her Hervey Bay experience with you. I don't think her HB apartment has been a shining star in her portfolio in terms of CG or rent growth.
From what I've seen, there is quite a lot of stock there to be absorbed before prices or rents are under any pressure.

 

[bombers86]

Appreciate the comments everyone!

I agree that there is a massive oversupply of units on the market. It's strange that there is a lot of development going on like this when there are so many on the market. I still think it's a good buy if you were looking LONG-term as (from what I've read and pictures I've seen) it's a beautiful coastal area. Just wait for that Brisbane boom and see what happens...

 

[Rob Williams]

Appreciate the comments everyone!

I agree that there is a massive oversupply of units on the market. It's strange that there is a lot of development going on like this when there are so many on the market. I still think it's a good buy if you were looking LONG-term as (from what I've read and pictures I've seen) it's a beautiful coastal area. Just wait for that Brisbane boom and see what happens...

Not quite sure what the point would be in buying for such a "LONG" term?
By the time you factor in the opportunity costs along the way, there seems little point in making a clearly emotional investment decision, unless, of course, you can get an apartment for a fraction of it's current market value from a highly motivated vendor.

 

[Bigtone]

yes it is a beautiful area.

i have bit of a dilemma, there is a house for sale a few hundred meters form the beach, i own the house either side and buying it would give me 2600sqm of land. Current zoning means 1 property per block in the area.

Do i buy it at a time that i think is not right for buying in Hervey Bay and when zoning does not suit. A good long term play or a waste an opportunity to buy in another market?

Cheers

BT

 

[Risky Business]

G'day Bigtone,

Unfortunately the local council will not have a new planning scheme for a few years. I am trying to get a heads up from them but it's too far down the pipeline to be taking the risk.

People will always want to be near the beach though. Atleast you have the option of buying the house next door.

 

[RPI]

Hi All

I am about to project manage a reno on a family house in Pialba in Hervey bay. Selling as is, is not really a proposition as it needs too much attention.

Trying to look at 3 options at the moment.

Renovate, new kitchen, bath, add a deck and sell. (It doesn't seem a good time to sell from what I have seen)

Renovate, new kitchen, bath add a deck and rent out

Any thoughts

Raise build in underneath make it a large holiday rental property.

 

[Rob Williams]

According to Louis Christopher (SQM Research), Hervey Bay has a whopping 1,163 homes for sale that have been on the market for longer than 60 days.
If you're looking for motivated sellers ...

 

[james_w]

great palce to buy a ppor and a few just outside hervey bay well under replacement cost check another bargain in toogoom thread for an example

btw I know quite a few who work in gladstone and live in hervey bay

gladstone will of course get a better rent return I firmly believe hervey bay areas will boom in the near future, that's just my opinion

if looking to get into the holiday rental market there is 4 units for 70k each 1 bedders good location for holiday makers.

there is also 2 bed units at 150k a stones throw to hervey bay esplanade

food for thought....

 

[james_w]

Hi Marg,

I have a few in that area (bought 2007) and they have been the worst performed properties in my portfolio. Ranging from 0-25% growth over 3 years.

Hervey Bay is very different to Gladstone and other industry towns, it relies on hospitality and population growth. However the people moving. there have tended to be on low incomes and or retired, not like the mining wages elsewhere.

Next time Brisbane has a big boom Hervey Bay will almost certainly follow as it relies on prosperity of the capital city to boom.

There is a big oversupply of units and townhouses, definitely buy houses in this town. Anything under $300k beachside of Boat Harbour drive should be a good long term play.

Cheers

BT

2007 can't really tell long term perfomance after 3years and a GFC in a seside town

good time to buy in herveybay/riverheads/toogoom atm IMHO

in the same boat bought in toogoom 2007 built and had 0 growth in 2 years :-(

 

[james_w]

G'day bombers86,

Hervey Bay is as depicted by the other posters.

I live here and it is a beautiful place to live. There are great value PPOR to buy. Investing is another story as rental returns are terrible. Not many people here have much of a disposable income. There are a lot of oldies and unemployed persons here because it is such a great lifestyle and value for money. Why be on the dole in Caboolture when it is cheaper to come up here and fish off the Urangan pier with your spare time.

Gladstone has/will have large amounts of money flowing through the region. Hervey Bay caters towards cheap holidays camping by the beach.

On the flip side, major retailers are moving into town and things are livening up and a proposed coal mine may inject a small amount of cash into the area.

The problem with living here is that every other region seems expensive to buy in comparison.

coal mine looks promising few managers have bought in the area as of late...

still penty of places under costs to build...