QLD How is Gladstone going?

Discussion in 'Where to Buy' started by Angel, 22nd Jul, 2015.

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  1. strongy1986

    strongy1986 Well-Known Member

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    Gladstone council should be swimming in money by now
    Yes qld rates always sound expensive
    It's because they include all your water charges
     
  2. bob shovel

    bob shovel Well-Known Member

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    They're broke apparently!

    With the slow down they were on a mission last year to sack heaps of people. Border line harassment/bullying the way they were going about it to! I've never seem anything like it
     
  3. norwoodman

    norwoodman Well-Known Member

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    Sadly, I've also heard this as well from people I know who were previously working for Gladstone Regional Council.
     
  4. Arnoldus

    Arnoldus Well-Known Member

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    From memory the news was saying Gladstone Regional Council debt is around $170 million. A lot of that is against genuine assets like the airport, but it's still a mountain of debt considering the regions population is under 70,000.
     
  5. bob shovel

    bob shovel Well-Known Member

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  6. Greyghost

    Greyghost Well-Known Member

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    I have no pity for investors who are/were greedy and chose to stick it out too long in mining areas, they were never a long term hold option.
    Same thing could happen to the entire property market, but this was a no-brainer that a correction was coming..

    Easy come easy go! Don't cry poor..
     
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  7. HUGH72

    HUGH72 Well-Known Member

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    A little harsh don't you think? Have you been to Gladstone?
    Well before LNG trains were built in Gladstone it was a viable investment market with industry and jobs. Many people I'm sure would be long term investors in the area which has now tanked because of a greedy council and developers.
     
  8. Greyghost

    Greyghost Well-Known Member

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    I understand where you are coming from.
    I think that an investor cannot just put their head in the sand though. Understanding the economics and demographics of an area you have an investment in (both on a macro and micro level) shouldn't just be done when you purchase the property, but reviewed and analysed on an "x" basis..

    There have been red flags waving in some of these mining towns for some time now.
    I genuinely feel for owner occupiers in these areas, but not for investors who were lured there because of large yields and crazy cg.. To me that is gambling, not investing...
     
  9. HUGH72

    HUGH72 Well-Known Member

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    Definitely some warning signs but I look at Gladstone a little differently to Moranbah, Port Headland or Karratha. Its population is close to being bigger than all those combined. Gladstone is also not a one industry centre so in theory an argument could be made that it was a 'safer' bet.
    Prices and rents never reached the obscene levels of Karratha either.
    Without a greedy council and ridiculous levels of building things might have been sustainable.
    Hope the market improves for all who own property there.
     
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  10. Angel

    Angel Well-Known Member

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    I cant see how the market can possibly recover. When we purchased, I checked and double checked and triple checked all the info available at the time. It was safe. Even with the camp on Curtis Island, it was safe according to the info available at the time. The council enabled developers and the place went to pieces - like all those high rise apartments built in the inner cities - the developers don't care if there is no one to rent in the future as long as they can initially sell to unsuspecting out of towners in the first instance. All with council complicity, of course.

    We bought established in a desirable suburb close to school and a new shopping centre - followed all the rules. About a year later afterwards it was announced that there would be hundreds more houses built in the outer parts of town and the decline started.
     
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  11. Biz

    Biz Well-Known Member

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    Some pretty depressing stories here. Hope it gets better for you all.

    I looked at a block of units once there pre mining boom 10 or 12 years ago so i know where you guys are coming from saying it was a viable place to invest. Sounds like it has been thrashed.
     
  12. bob shovel

    bob shovel Well-Known Member

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    Gladstone is a different beast to mining towns but still suffers from the boom and bust periods. After spending time there talking to locals, they've seen it all before. Unfortunately people get burnt. But Gladstone itself will carry on with its bread and butter industry, which still pays a pretty penny.

    But the number of houses available is likely not to change in a hurry unless they start work on the next train soon but that is unlikely. Or if they reduce numbers on the island camps and move them into town. It would be worth calling council to find out if they are pressuring the island to close camps, or if anyone is doing anything to get people in town.
     
  13. strongy1986

    strongy1986 Well-Known Member

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    grey ghost,

    its a bit funny to say that people invested in gladstone because of greed.
    couldnt you say the same thing about any investment?
    4 years ago Gladstone was all the rage, seemed like a good idea at the time
    with smarter town planning it could of been sustainable, now all the council have achieved is to create a town with readily available cheap housing - egg on face
    regional aus has been cooked but a great time to buy if you can lift yourself off the canvas
     
  14. bob shovel

    bob shovel Well-Known Member

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    It was greed to hang in there so long. It was only short term that the mega rents would stay for. The work wasn't going to stay forever, anyone who thought it would are kidding them selves.
    As for the over supply, you can't just blame council, there would have been pressure from state and federal government plus private companies to provide housing. It did the job during the works now the pain is spread over a large number of investors.
     
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  15. Angel

    Angel Well-Known Member

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    It's not always greed, gentlemen. Naivety takes its toll.
     
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  16. norwoodman

    norwoodman Well-Known Member

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    John Lindeman has moved parts of Gladstone from his "stressed" market listing to "neutral".
     
  17. Jenko

    Jenko Well-Known Member

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    That's the problem isn't it. You buy a property and you don't know what's going to happen down the track. Gladstone and Chinchilla for me. I didn't realise that people would keep on believing property spruikers offering $800 pw on a $500k property well after the writing was on the wall. I remember calling my chinchilla property manager after seeing a full page ad in a property investment magazine advertising one of the $800 pw gems while my slightly older however modern 4x2x2 was only getting $550 I asked "who's paying $800 pw?" She replied, "no-one". Obiviously the developer had the rent top-up on the price. They were still selling like hot cakes.
    This had me worried however I decided to hang in there. Well that was a mistake! I think the mirror image happened here in Gladstone. So for White ghost to say greedy investors I would disagree I think it's more miss guided mum and dad investors ( trying to fund their retirement) and have been caught out by spruikers. Im sure most investors would of run from such a deal. I would love the government to step in and chase these people ( the spruikers) for false advertising but that's never going to happen. For me I put it down as a very valuable lesson. Lesson learnt.
    1. Look for a land shortage. 2. If there is a boom wait until the bust and buy yourself a bargain. 3. Etc...
    But yeah, what doesn't kill you makes you stronger.
     
  18. bob shovel

    bob shovel Well-Known Member

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    I wouldn't do that. Gladstone is back to 2009 prices with bucket loads of stock avail. Not much will be happening there for quite a few years. It will just plod along, maybe a ripple might flow up from brissy in 3years.

    For those areas it's about picking the roller coaster, you need to get on early and OFF early before the pain sets in. There was a 5ish year window where it was happy days but looking at the graphs you need to take a punt where the ride is at.
    And with those ads... If it sounds to good to be true, well it was true at one point I guess
     
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  19. norwoodman

    norwoodman Well-Known Member

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  20. bob shovel

    bob shovel Well-Known Member

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    Check out heron island. Beautiful place!
    Also 1770/Agnes waters one of the best holiday spot in qld.
    They have a really good tourism board largely funded by local industry. There is a lot to do up there, does require some drivinng and boat is handy.
     
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