QLD How is Gladstone going?

You right Bob for most people visiting Gladstone mainly for work look at Gladstone as a industry waste land. However living here now for 7 years and doing of exploring the local area I have to say it surprising deverse and beautiful.
The area where they are looking at building the village has some great beaches in between rocky headlands with fringing reefs. I spearfish these reefs and the coral in places are as good as you'll see on the Great Barrier Reef. I normally spear crayfish in just over a couple of meters of water. Hopefully people will look at Gladstone differently as time goes on. I wonder what effect the cruise ships will have on gladdy?

 

Gladstone is not talked up enough by people that live there, they don't realise how good it is up there! Mostly I think it's too do with people being there for work so it automatically is mud. Which is unfortunate as it has do many parks and free events on, it is very family friendly. Very few places in Oz would have a water park like the new area they built at the marina.
Hopefully the slow down will get rid of the grubby subbys and the people that stay will help boost the areas name.
Plus the tannum caravan park will be the next big thing for travellers big plans there... Plus theyre fixing the phone reception!
And while we're at it the bam markets are probably best in Oz, anywhere I can sit and have a beer while the wife walks around ticks a box for me!

And how are the mozzies around hummock Hill?? Turkey beach isn't too far is it?

 

I haven't noticed any sandflies on the beach but I have heard they will carry you away at turkey beach which isn't far away from the inside of hummock hill.
Just hope this isn't like most things that makes the papers and then fades away.

 

Apparently it's approved now $950m
Government Approves $950 Million Gladstone Project - TheUrbanDeveloper.com

@Ems some info for you in this thread

 

I lived in Gladstone for 4 years and must admit I liked the place, especially being a keen boatie.

But visiting again this year was really disappointing at how much it was a ghost town

I work in construction so when it picks up again I will be putting my hand up in an instant.

 

Potential project with the red mud dam at qal. It's probably quite a few years away but sounds like interesting technology and good to clean up mess!

UPDATE: Pollies in push for QAL red mud dam plan

The red mud dam is huge, approx 4x3km plus another smaller one next to it


This is compared with the rest of Gladstone


They're pretty big.

The plan is to extract iron ore from the dam to produce steel.
The previous plan for boulder steel has been scrapped .

Also i believe construction on the aldi may be underway

 

Might be a good time to look into Gladstone / Central QLD. Number of Factors:

- Construction Industry at its slow point but certainly picking up
- Commodity prices cant get lower
- Bruce Highway will undergo extensive upgrade in Central QLD over the coming years.
- Property Prices should be at the drop bottom.

Although we wont see a spike in activity like 2011-2012, I would say there would be some improvement in the area over the coming years in my opinion.

Something to ponder.

 

That's good to hear.
Sometimes people can't imagine the market ever picking up again.
Can be a good time to buy when it bottoms out and sentiment is in the crapper.

 

In 2008-2009 I thought I would never have a job.... Made the most money of my life in 2010 and 2011 lol..

 

My 19 old son is looking at buying his first property here in Gladstone, to live in for a couple of years then rent out when he moves away. With the market still very fragile I'm obviously a little concerned I don't think the market can fall much further however we are constantly reminded of the low in the alumina industry and there are threats of maybe QAL and Yarwun shutting down which would have a major flow-on effect on the aluminum refinery (although I do doubt Rio will shut it down). This in turn would pretty much make Gladstone a ghost town.
I think the best way to decrease the risk (besides not buying) is to buy at the lowest possible price. Just wondering if anyone on the forum has access to mortgagee in possession sales list or knows how I could get access to one?

 

That must be pleasing to see your 19 year old son wanting to do that. I'm guessing he wouldn't consider buying elsewhere - maybe Brisbane - and renting in Gladstone? He'd be spoilt for choice renting.

 

I think @Depreciator has the right idea. Invest in somewhere with decent growth prospects now, and just rent a place in Gladstone (or board? Caravan in your backyard?)

I still think Gladstone is really not a good choice for the short/medium term, and only an OK one for the long term. There's so much new housing stock in the Gladstone area that I think CG and rents will stay depressed for a long time. Any new construction activity is likely to house workers in the FIFO accommodation created in the last boom.

My thoughts on the 2 proposed projects named above?

Pacificus sounds very interesting and it would be great if it happens, I'm just sceptical about these big-thinking projects. Most never come to fruition in regional cities. Note that it's only 30km south of Gladstone, but to get there is still over an hours drive from the Gladstone airport. It borders the GBRMP, but that's a maritime designation as opposed to a meaningful description of snorkelling beaches and beautiful corals. Employment opportunities will only be a few hundred jobs, not thousands (read the EIS submission).

The red mud dam steel project is a load of ********, being pushed by a well-meaning, but clueless local MP.
Reasons:
1. Most of the red mud is clay and silica, so extracting the low-grade iron ore will require processing just to be ready for steel production. It will require more tailings storage for the clay and sand.
2. Steel production has very high energy costs. Whyalla is on it's deathbed, and it won't be long before Bluescope closes the door on Port Kembla (next blast furnace reline time).

 

Thanks for your replies gents. Yes he does have Gladstone in his sights. He is on a budget maybe up to $350k mark which there are a number of houses.
I'm not sure he is ready to be a landlord and the responsibility that comes with it although he does have a couple of mates that want to rent a room off him if it goes ahead which will help put some money into a safety net. We have spoken numerous times of the lack of growth and the chance of further decline however how much lower can prices go?
He's looking at long term hold and hoping the property would stand on its own two feet in five or so years. Personally I have a good feeling for Gladstone but unfortunately it's only a feeling.

 

I guess the idea would be to get the best positioned house he can find as opposed to something on the outskirts. If things improve, it will be the houses in the better spots that do better.

 

I was born and raised there. It's a nice place to live and raise a family, but I've seen all the hyped-up projects come and go. Steelworks, nickel refineries, aluminium smelters, gas plants (oh they built those?). Lots of talk, very little action. Gladstone was lucky to get the gas plants and WCT. If govt approvals had taken another 2yrs, they'd have never been built either...

If his heart is set on buying in Gladstone I'd go for something cheapish that he can do some cosmetic renos while he lives in it. On a smaller budget I'd look for something central, and that has something unique/desirable e.g. hill-side location with ocean views is always sought after.

Maybe like this? 165 Oaka Street South Gladstone Qld 4680 - House for Sale #121372022 - realestate.com.au
Close to schools, walk to shops, stagger home from pub.. and it looks like cosmetic renos would make it nice.

Or 15 Central Lane Gladstone Central Qld 4680 - House for Sale #122039278 - realestate.com.au has immediate reno potential (live in and renovate) and long-term development prospects.

 

Then why spend the $350k there if there is "chance of further decline" and your assurance is only "how low can it go"?

Seems like the old "I bought across the road from my parents place" mentality, one of familiarity rather than investment..

I would encourage him to seek a property in a major CBD fringe

 

Wow they are bargains! Two great spots with good potential. That's what he should be going for, so in 5 years when he wants to hit it harder he has that ace up his sleeve

What's your thoughts on barney point? How long since you've been there? I think there it isn't as bad as people say. ...unless you're down the yarralla end lol but potential for some gentrification especially if you get something with water views or big block. And if they shut the coal terminal, which i think they should now wct is up and running it will help.
No price but nice views
21 The Esplanade Barney Point Qld 4680 21 The Esplanade Barney Point Qld 4680 - House for Sale #118127135 - realestate.com.au

@Jenko as a starting point it's probably not super awesome but it's better than nothing and some skin in the game. He has the pick of the town so the value add and future dev sites would be the go for sure like the 2 above.

 

I can see the son's perspective too.

When selling our house, the word from the agents was that the locals want to buy a nice house to live in, which they can select from a smorgasboard of lovely new homes. Most aren't interested in development sites - Gladstone is already saturated with new developments so why would someone want to do future developments, even a budding entrepreneur. >$300k will get something costing twice that much in Brisbane or Melbourne as a lifestyle choice.

 

I would not be touching anything new, they'll be falling apart just as quick as they went up! Workmanship and quality is an afterthought

 

Thanks for all feedback guys and girls.

meaning with the decreasing property prices the building of new properties have slowed considerably as you can imagine. If the property prices was to drop further that would absolutely kill any new build market they just can't build a new property on land for for much less the what the current prices are. So if the property were to fall how much lower could they go, $20k? Obviously at the bottom of market prices can't fall as much as they can at the top of the market so the risk of losing hunderds of thousands is removed.. I'm not exactly sure however Gladstone's genuine population appears to be growing going on the cars on the road, people in the shops, etc, so eventually these vacant houses will be taken up and yes this will take years.