Hunter Valley or Gladstone

[one day]

Looking at buying our 5th property to a max of about 550k. We are wanting to purchase in a resource orientated location, preferably backed by other industries.

Reckon the choice is out of Gladstone or Hunter Valley (Singleton, Maitland or Muswellbrook).

Prices are cheaper in the Hunter but with lower rent returns also.

Any thoughts on the comparison.

 

[spludgey]

Why would you spend that much in those locations?
If you can't decide and have $550k to spend, why not buy one property in each location?

 

[JT7]

Why would you spend that much in those locations?
If you can't decide and have $550k to spend, why not buy one property in each location?

I'd have to agree in some part. IMHO Spending $550k in the Hunter Valley might be over capitalising. I'd be doing some serious research 'one day.' Each of these two locations has very different dynamics. At a glance if you were determined to spend $550k in one location and wanted to exposure to resources action Gladstone would be a good place to start although it's a hot market ATM. Muswellbrook would offer exposure to the resources sector for less outlay. Both areas have great potential for growth.

Best of luck 'one day'.

Jack

 

[one day]

Thanks for the comments.
To date I have always purchased new. Given that I am looking at a 4 x 2 the way things are running at Gladstone, I think I would be in the 500 - 550k range.
To do the same at Muswellbrook I am probably looking at 400 - 420k.
Rent appears to be a lot stronger in Gladstone at present.

 

[Outback Nomad]

I have a mate that just moved to Muswellbrook a couple of months back for work and he had a hell of a time trying to find a house he could aford to rent. From what he told me the mines seem to be renting alot of stock in town and pushing rental prices up and I think you will still see some good CG. Have considered investing there also.

Good luck with whatever you decide.

Mick

 

[porp_e]

Thanks for the comments.
To do the same at Muswellbrook I am probably looking at 400 - 420k.

How about buying a block in Muswellbrook and building a 4x2 on it? Looks like you could save a lot of $ rather than buying established?

 

[Property Trader]

Hi there,

Since you are interested in the Gladstone market, you might be interested in this article that was in the local Gladstone newspaper.


Gladstone Prices Soaring
David Sparkes | 23rd August 2011

TIMING is everything, especially when you are buying a house.

Research from the Real Estate Institute of Queensland shows Gladstone's house values rose 10.8% during the 2011-12 financial year, more than any other region in the state. With such a big increase, last year's buyers could be forgiven for
breathing a sigh of relief, while those now hunting for a home must be kicking themselves for not buying earlier.
Lisa Sweeney and her husband Brent, 29, bought their home in October last year.

Mrs Sweeney said they timed their purchase well, as the Federal Government announced in October it had approved Gladstone's LNG projects. Most real estate agents in Gladstone agree that announcement was the pivotal date from which property values began to soar. "We signed the contract a few weeks before the announcement," Mrs Sweeney
said. "We'd been having a bit of a look. This time last year there was a whisper the announcement was coming." She was understandably happy that property values had gone up some 10% since they bought their home, but she sympathised with young people trying to break in to the Gladstone market now. "I can't even imagine trying to buy something now," she said The Sweeneys bought their home through Ros Waters, at RE/MAX in Gladstone. Ms Waters said the announcement on October 23 sent Gladstone's property market into overdrive. "Six months prior to that the global financial crisis was still affecting the market," she said. Ms Waters estimated the increase was actually more than the institute's figure of 10.8%.

Good timing
Lisa and Brent bought their home, in New Auckland, last October for a price 'in the low 300 thousands'. Lisa said it is hard to know what her home is worth now, but she estimates it has gone up about 20%.

Full Article & Comments:
http://www.thesatellite.com.au/story/2011/08/23/gladstone-prices-soaring-real-estate-inistitute

Kind regards,

Jason Moore

 

[spludgey]

Research from the Real Estate Institute of Queensland shows Gladstone's house values rose 10.8% during the 2011-12 financial year

Did the newspaper also have the lotto numbers for September of that year?

 

[knightm]

Looking at buying our 5th property to a max of about 550k. We are wanting to purchase in a resource orientated location, preferably backed by other industries.

Reckon the choice is out of Gladstone or Hunter Valley (Singleton, Maitland or Muswellbrook).

Prices are cheaper in the Hunter but with lower rent returns also.

Any thoughts on the comparison.

Hi One Day
I am interested in both markets also. I think with Hunter you are getting in earlier, but the rise will be less dramatic. I have a vested interest in glastone, have had a rental there for last 7-8 yrs and just got back from a huge 2 week renno to put it on the market. Its a 4x1 in Boyne Island (trawl Re.com if keen 41 Edward St).

I digress. The main gist of my message is having just been there, yes Gladstone is hot. Yes you need to go now if you are going to buy. Yes you run the risk of already missing some/most of the growth but I actually think there is a lot of room for it to grow yet (at least thru 2012 and 13). Every agent in town said some of their main buyers atm are investors from Karratha NW WA who either have way too much equity and want a same same but different market or else are looking some same job same pay but better lifestyle for family.

Everyone I met was making a lot of money, and bragging about it (like young tradies just relocated on 200k plus in their SS utes). So rents and prices are both moving, and the players have the money to keep moving them a bit further yet.

 

[charliebean]

I don't know what the rents are in Gladstone but we bought a 3 year old duplex in Singleton for $315k and it's renting for $395pw adding tax deductions and after expenses we are pretty much cash flow neutral.

 

[mattnz]

If you fully furnish, yields in Gladstone are up to 9-10%

 

[recruit2]

Is that furnished or unfurnished Charliebean?

 

[charliebean]

Unfurnished.

 

[Suraj]

Is that furnished or unfurnished Charliebean?

what r the best areas to buy in Gladstone to get benefit of mining boom?

 

[Rolf Latham]

Just got a val back on a 5 bedder in Gladdy

land and build 736 k rental lease for 1500

Valuers all good with and many lenders fine to 90 %

It does look like nice stock and there is still plenty of that stock around because most investors dont have the resources for these more exxy ones

ta

rolf

 

[Marty McDonald]

If the prices get really silly up there (Glady) wont people start building a bit further out? Is that a danger?

I know Agnes Waters is only 1 hour away for example and that market is still kaput isnt it?

 

[knightm]

they wil and when up there last month i met locals who had moved south for cheap rents but if work starts at 5am who wants to drive 100km's before shift? =premium.