QLD East Gladstone for investment

Discussion in 'Where to Buy' started by kvellimalai, 18th Jul, 2021.

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  1. kvellimalai

    kvellimalai Well-Known Member

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    Hi All
    I have a budget less then 400k and looking for a positive cashflow. came across a property in East Gladstone with a good rental return.

    What is your thoughts on this area? is it a good area and does it have a positive cashflow etc.
     
  2. kvellimalai

    kvellimalai Well-Known Member

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    Hi Guru's
    Any comments on Gladstone area?
     
  3. Boss

    Boss Well-Known Member

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    Gladstone has a booming South Eastern suburb called Agnes Water.

    Need around 500k to buy a decent house though.
     
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  4. Indifference

    Indifference Well-Known Member

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    Do a forum search…. Many tales of woe litter this forum….. markets can & do change however I’m not sure the dust has settled there just yet.
     
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  5. couq

    couq Well-Known Member

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    there is unfortinately a tale of buying in mining towns at the peak. Do take the advice and read the forum topic
     
  6. alanyin

    alanyin Well-Known Member

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    For cities north of Brisbane with a population of more than 50000, Gladstone has the worst fundamentals.

    Do I believe that it will go up, along with other costal cities in Queensland? Absolutely. Will I invest in Gladstone? No. There are definitely better options with much lower risk. Look at the median house price trend in the last decade. It has dived from ~$450k at its previous peak in 2012 to ~$160k in 2018. Anyone who bought at the peak, would have seen 65% of the purchase price wiped off their portfolio 6 years down the road. If that is not perceived as risk, I don’t know what is (I know Port Hedland & Karratha would be worse though).

    If a 65% decrease doesn’t sound scary enough, let me tell you that it takes a 200% increase (which means the price would have to triple) to make up for a 65% decrease.

    Cities with good economic diversity should never do that. A mild 10-20% decrease is acceptable during economic downturns.
     
    Last edited: 21st Jul, 2021
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  7. Boss

    Boss Well-Known Member

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    It's comparatively easy to rattle off numbers in view of past performance (look through the rear vision mirror).

    I think, however, most are now starting to accept the idea that COVID isn't a minor blip on the radar; what occurred in many areas of Australia over the previous 10 years is largely now irrelevant in terms of what is likely to occur over the next 10 years.
     
  8. Frenchie

    Frenchie Well-Known Member

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    Do sea changers move to Glastone, or are there things there to retain them? My recollection is that most of the economy is reliant on the port, and primarily for coal and LNG export. And it's not a particularly attractive town.
     
  9. Boss

    Boss Well-Known Member

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    Gladstone to some extent is a smaller version of Newcastle.

    Newcastle too is a city historically built on heavy industry and mining but in more recent years has morphed into a popular lifestyle destination though.

    Gladstone has access to the Southern Great Barrier Reef (and some islands). So some great fishing, diving, sailing and boating options.

    Tannum Sands (beaches and Surf Club) is not far from Gladstone and there are also National Parks in the nearby Boyne Valley and of course 1770/Agnes Water are 90 mins away for a day drip/weekend getaway as well.

    And stock on the market, asking prices and vacancy rates have all moved in the right direction over the previous 12 months:

    SQM Research - Property - Residential Vacancy Rates - 4680

    Personally, I'd buy Gladstone over either Bundaberg, Rockhampton or Mackay.

    More bang for your buck from current price levels.
     
  10. Colin Rice

    Colin Rice Mortgage Broker Business Member

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    Many people got burnt in the last boom so let history guide you.

    Why not consider a capital city purchase at that price point?
     
  11. wilso8948

    wilso8948 Well-Known Member

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    Gladstone is not a smaller version of Newcastle. Newcastle was indeed a working class blue collar city but the lifestyle drivers and the fact that it has a behemoth global city just down the road helps a little..

    Gladstone is a **** hole.. pardon my french.
     
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  12. Boss

    Boss Well-Known Member

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    Despite attempting to cast of its blue-collar roots some may say Newcastle is still a ****hole.

    Go out for a few beers in Newcastle and immerse yourself in the still dominant working class culture and associated violence, blood and vomit and you may agree with them.
     
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  13. Boss

    Boss Well-Known Member

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    Oh, the ever so sophisticated and chic Newcastle...where locals think a chicken parmy is cordon bleu:

    The most violent venue in New South Wales, according to Government assault statistics, has had its late night trading hours cut after police urged liquor authorities to take action.

    The Sydney Junction Hotel in the Newcastle suburb of Hamilton, also known as SJs, has been on the list of violent venues for more than a year, and is now in the highest tier of restrictions.

    'Most violent venue in NSW' cops trading hours cut from liquor authority
     
  14. New Town

    New Town Well-Known Member

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    Its the time in the cycle to buy. The mining downturn - which was severe and punished a lot of southern and WA investors, has passed.

    The issue is if and by how much will values and rents rise. Its obviously the big question for any location. Rents are still fairly low and holding costs are high with rates at about $3k pa

    I'll say your $400k purchase had better be blue chip.
     
  15. 27649

    27649 Well-Known Member

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    Gladstone at the bottom of its cycle right now. The data is certainly starting to look better. Rockhampton and Mackay would be less of a bumpy ride plus provide you with similar yields.
     
  16. wilso8948

    wilso8948 Well-Known Member

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    Seem to have struck a nerve. Everyone is entitled to an opinion.

    I embrace Newcastle's blue collar history. As a born an bred Novocastrian who has worked in steel/coal/manufacturing I am extremely proud of its roots. However I am not oblivious to its transformation into a economically diverse city.

    You cannot seriously compare Newcastle to Gladstone. They are half a century apart. I'm bullish on many areas in Nth Qld and have vested interest being a resident but Gladstone is coming off an extremely low base. Decent money has already been made. In my view there is no long term growth drivers. High salaries can be made in the area however everyone I know is looking for the first ticket out of there once they've reached their earnings peak. Take a look at the house and land estates on the town fringes to the West. They are in a paddock next to nowhere. People who invested in these areas at the highs deserved to lose money.

    Ps love a good punch on at SJs
     
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  17. B7B

    B7B Well-Known Member

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    Angus Waters is no where near being a suburb of Gladstone. It is over an hours drive away.
     
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  18. Boss

    Boss Well-Known Member

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    There's no pulling the wool over your eyes :rolleyes:

    And it's Agnes Water o_O
     
  19. B7B

    B7B Well-Known Member

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    Given you described it as a "South Eastern Suburb" other may actually be inclined to believe you.
     
  20. B7B

    B7B Well-Known Member

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    Gladstone also services Aluminium smelters, Alumina refineries, Power Station, some also DIDO to mines to the west even to the northern Bowen Basin mines.
    It is a town trying hard to clean up its "dirty" reputation. Some nice parks and public spaces.
    Has slowly grown to west to the extent there is not much of a delimintion between Gladstone and Calliope, also extending South towards Tannum Sands/ Boyne Island and Benaraby.
    The area north towards Yarwun seems to be zoned industrial, has a Smelter, refineries, shale oil plant.
    There's talk of a meat works and solar plant as future developments.