Thoughts on rockhampton

W

Whishy

Hi guys,

I am in construction and know of upcoming developments surrounding the area.

Although it may not be the best investment area, I am moving there for work and would like to jump from renting in the area to ppor whilst rennovating and then hopefully selling in 2-3 years with some gains.

Any thoughts on the rockhampton market?
 
Whishy said:
Hi guys,

I am in construction and know of upcoming developments surrounding the area.

Although it may not be the best investment area, I am moving there for work and would like to jump from renting in the area to ppor whilst rennovating and then hopefully selling in 2-3 years with some gains.

Any thoughts on the rockhampton market?
Click to expand...
Hi Whishy,

There is another thread which I created on this subject under the Main thread "Where to Buy"
 
Rocky rental market??

Hi Guys, I'm just wondering if anyone has any idea of the current rental market in Rocky? I can see that the vacancy rate is quite high ATM but I have been getting mixed messages from local PM's.
I have the opportunity to boot my tenants out however I'm not sure if this is the right time to make my property vacant? I have spent a small fortune on new paint, new floor coverings, new toilet and a new kitchen to keep them happy but now they want a $70p/w rent reduction! I feel p#ssed off with the tenants and would like to kick them out but I don't want to cut my nose off to spite my face. The property is a large 4bed, 1 bath, Queenslander in the city. Looking on real estate.com there is only one other available for $300 pw I was getting $360 pw.
Any advice would be appreciated.
 
Jenko said:
Hi Guys, I'm just wondering if anyone has any idea of the current rental market in Rocky? I can see that the vacancy rate is quite high ATM but I have been getting mixed messages from local PM's.
I have the opportunity to boot my tenants out however I'm not sure if this is the right time to make my property vacant? I have spent a small fortune on new paint, new floor coverings, new toilet and a new kitchen to keep them happy but now they want a $70p/w rent reduction! I feel p#ssed off with the tenants and would like to kick them out but I don't want to cut my nose off to spite my face. The property is a large 4bed, 1 bath, Queenslander in the city. Looking on real estate.com there is only one other available for $300 pw I was getting $360 pw.
Any advice would be appreciated.
Click to expand...

You're probably looking at low to mid 300s per week in the current market, given that it is still recovering from some weakness in the rental market from late last year. The rental market has stabilised now on the back of absorption of a massive number of rentals in Gracemere, but it certainly doesn't have the strength that it did 12 months ago (i.e. rents are still lower).
 
I'd be tempted to take a reduction, without really knowing what the actual property is, I'm only generalising. There's some real bargains to be had as a renter in Rocky at the moment, particularly out Gracemere way and parts of the northside.
 
Yes I'm leaning towards the reducing.. Dropping the rent to $290 and keeping the existing tenants... I have had a PM drop around and say the property would achieve $350 p/w but sometimes a bird in the hand is better then two in the bush.
 
Jenko said:
Yes I'm leaning towards the reducing.. Dropping the rent to $290 and keeping the existing tenants... I have had a PM drop around and say the property would achieve $350 p/w but sometimes a bird in the hand is better then two in the bush.
Click to expand...

The Rocky market is frustrating, seeing some really nice sale prices coming through at the top end, but at the IP end it's been pretty gloomy. Still have our IP rented at the same rate for the past 3 years, and it still *feels* like it's slightly above market value. :(
 
We had our tenants fall behind in rent to the point where I had to consider a notice to vacate. The agent said given the state of the rental market currently, if we let them go I'd have to spend a bit of money to get the property into a decent enough state to re-let AND have to drop the rent by $60 a week (from $330 to $270).
Issued the notice anyway but luckily this prompted them to pay up.
 
@Jenko,

Have you received the letters regarding the Levee to be constructed??

Surely this will kick up the median prices of the flood proned areas?
 
Whishy said:
@Jenko,

Have you received the letters regarding the Levee to be constructed??

Surely this will kick up the median prices of the flood proned areas?
Click to expand...


I'd say so.. We bought out of the flood zone so id rather the levee didn't proceed makes the flood free land more valuable.
 
Jenko said:
I'd say so.. We bought out of the flood zone so id rather the levee didn't proceed makes the flood free land more valuable.
Click to expand...

If you're on the south side, even if you're outside the flood zone you will be affected by changes to insurance as it will impact postcode 4700 in general.

It won't do anything on the north side in postcode 4701 though unless the North Rockhampton drainage upgrades proceed.
 
One of our Rocky properties has been vacant for 3 months, advised the managers to drop the rent until they get someone in there. Still no luck..

Was $270pw - I suggested $230-$240.

Maybe it's my managers? They have suggested that Teys are in the process of re-hiring bulk OS employees.

Can anyone recommend a decent manager/agent in town?
 
Icarus said:
One of our Rocky properties has been vacant for 3 months, advised the managers to drop the rent until they get someone in there. Still no luck..

Was $270pw - I suggested $230-$240.

Maybe it's my managers? They have suggested that Teys are in the process of re-hiring bulk OS employees.

Can anyone recommend a decent manager/agent in town?
Click to expand...

I'm hearing from various managers that it's taking around 4 weeks average re-let time at the moment, so 3 months is still way too long even in the current market.

Hold on tight unless it is really killing you... I think the situation on the rental front is around the bottom. Unlike the other areas in the regions, house prices in Rocky are rising even with falling rents (similar to Perth), but certainly not much. It should firm up again once Ergon, Aurizon and Coles start creating/shifting positions in Rocky and the other infrastructure works on the south side get going.
 
Icarus said:
Maybe it's my managers? They have suggested that Teys are in the process of re-hiring bulk OS employees.

Can anyone recommend a decent manager/agent in town?
Click to expand...

Not sure who you're with, but ours is with Ray White north Rocky. They charge top dollar in fees, but found a quality tenant willing to pay 10% above independent market appraisal in under 2 weeks (admittedly back in 2011 when things seemed a lot better). No dramas with the PM since, we just set and forget, and let the PM sort out minor repairs, and tenants are more than happy to let the PM know when something's broke.
 
Thanks for the tip about Ray White North Rocky Arnoldus, I'll give them a bell later on today.

Yes, it is shocking and I should never had let it get this far, there was just a sentimental connection with the current managers (in house). Got the better of me I guess. Time to try another avenue.
 
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