example of small growth in regional Qld

Discussion in 'Property Market Economics' started by CraigJ23, 10th Aug, 2021.

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  1. CraigJ23

    CraigJ23 Well-Known Member

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    Guy Sebastian sells Queensland investment property - realestate.com.au

    According to the above article, a property was bought in Hervey Bay (Qld) for $675,000 in 2007, and then sold this year for $735,000.

    That doesn't seem to me like good growth in value over 14 years. What is the reason for this? Did the vendor over-pay originally, or have they sold for less than what it's worth?
     
  2. Mulianto

    Mulianto ~~

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    He most probably overpaid for it then.

    The house is in Toogoom, its median has grown around 50% in the last 10 years alone.

    170 Kingfisher Parade, Toogoom, Qld 4655
    https://www.realestate.com.au/sold/property-house-qld-toogoom-136304258

    B6A96F20-3997-48BE-A616-17094D8F7E8E.png
     
    Last edited: 10th Aug, 2021
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  3. Lindsay_W

    Lindsay_W Well-Known Member

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    Bought in 2007 - just before the GFC
    It was bought in 1999 for $99K, so whoever sold it to Guy did alright
     
  4. Mulianto

    Mulianto ~~

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    Could be money laundering :rolleyes:
     
  5. Ruby Tuesday

    Ruby Tuesday Well-Known Member

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    As with any investment it depends on your point of reference and how you cherry pick an outlier . Wouldnt call it small growth the land was probably bought for 90k a fugly house build on it for maybe 150k, looks like from left over spare bricks laying around. After depreciation a 200% gain in 20 years, THE180% GAIN in may be 6 YEARS is a HUGE GAIN. Given the rent is only $390 a week . The property is only worth about $400k, why would you buy a very bland ordinary house for way more than that when you can rent it.
     
  6. Frenchie

    Frenchie Well-Known Member

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    Good value for a beachfront house. Think of land + build cost - ok it's not the best house, but lots of houses there would be overcapitalised and would be nice lifestyle buys


    Probably bought way too high, bad timing, and the "premium" segment in HB isn't what would have moved the most over this period.
     
  7. CraigJ23

    CraigJ23 Well-Known Member

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    I was talking about the $60K gain in 14 years.
     
  8. Angel

    Angel Well-Known Member

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    He bought it before the GFC when RE prices were ridiculous.

    Following the GFC, you could pick up a few waterfront 4/2/2 project homes from distressed builders in Toogum for $200k. Seriously. My husband wouldn't let me buy one and I was like.... WT?

    The only consolation is that last time I was in HB, in February, the long-term local we were chatting with said that up Toogum way is likely to be wiped out in any future tsunami event, but regular HB is less likely to be affected.
     
  9. boganfromlogan

    boganfromlogan Well-Known Member

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    Gotta love a spreadsheet!! The only way to describe boom bust boom as modest growth!!
     
  10. Frenchie

    Frenchie Well-Known Member

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    I don't know why, most of HB is pretty low, would flood and be very affected by a strorm surge or similar event. Maybe Fraser Island would protect better from a Tsunami?
     
  11. Trainee

    Trainee Well-Known Member

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    One example doesnt mean anything.
    Unless its your property.
     
  12. Boss

    Boss Well-Known Member

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    Exactly... but unfortunately some people cherry pick one comparatively low sale price...or one comparatively high sale price...within a specific timeframe...and extrapolate the number across the broader market.