Join Australia's most dynamic and respected property investment community

QLD Macleay Island - when to sell?

Discussion in 'Where to Buy' started by jaybean, 4th Aug, 2015.

  1. jaybean

    jaybean Well-Known Member

    Joined:
    20th Jun, 2015
    Posts:
    981
    Location:
    Melbourne
    Mum bought some land on there about 20 years ago, she was ripped off. Paid about 20-30k I think. It's literally worth the same these days. In fact you'd probably have to drop it to around 15k to get a "quick" sale.

    Anyway it shot up about 10 years ago when it got some coverage on Today Tonight or something. I think they were selling for like 40-50k. Our plan is to wait for the Brisbane boom and then try to offload it for whatever it's worth at that point.

    Does this make sense? Or is there any logic in hanging onto it? For this small amount of money you could argue it's almost worth holding onto as a gamble in case some ambitious developer ever comes along to do something worthwhile, but on the other hand I think she's keen on just moving on from this dud.
     
    Azazel likes this.
  2. mcarthur

    mcarthur Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    539
    Location:
    ACT
    I remember visiting Macleay many years ago when living in Brisbane.
    I think anyone believing in a boom is going to be one of the investors in the new vehicular bridge.

    I love that every 10 years or so, when the little memories have died a little, a developer or councillor or local paper revisits the bridge and prices soar for a moment as the locals and those burnt last time find some amazingly gullible people who didn't do any due dilgence. You may as well talk about a tunnel across to Stradbroke via MacLeay; or a car-carrying submarine costing $5 a journey.

    This is to give you some idea that there is likely no link between a Brisbane increase (let alone boom) and prices on any of the islands.

    The best chance you've got is to visit the library and look when the last time a bridge was mooted, then buy some space in the local paper(s) with advertorial as a "bridge construction commentator", then - and this is the most important - buy space in the Tele or even SMH citing the bridge story in *cough* reputable Qld papers. You've *never* going to sell the idea to Brisbanites (?!), but to cashed-up Sydneysiders you may have a chance!
     
  3. mcarthur

    mcarthur Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    539
    Location:
    ACT
    ...on the other hand, given what little I remember about the size of the rates (high), I'd immediately offload it for whatever you can possibly get and move on.

    Oh, unless it really does have water access, in which case boasting of owning a tropical property on which you can beach your multimillion $ boat may be worth a cache in the deep south (hey, I'm in Canberra so I can say that).
    Note that "water views" mean stuff-all on the islands where it's often less politely termed "mangrove views", "smelly", "mosquito central" or just "below the king tide line" :D
     
  4. Azazel

    Azazel Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    8,113
    Location:
    Brisbane
    I've been watching the market on Russell Island since about 2006, Macleay seems to be fairly similar.
    Once all of the land has been sold, there's not going to be any more. It's pretty much the cheapest coastal land on the East coast of Australia. But the thing is with a block of land and no house on it, you have to pay all of the outgoings like rates, but don't have rent coming in.
    It looks like it's gone down a lot since it peaked in 2008-2010 (RE.com - keeping in mind I'm not sure how they separate houses and land only from the values), but it looks like RI has recently bounced off the bottom, and is starting to increase again. You will probably get the ripple effect from Brisbane.
    If it was me, I would hang on to it at least until it goes up a bit, maybe gets near the top in this long cycle. And don't have a short memory I guess if you're definite on selling and then Mum decides she wants to hang on to it.
     
    Last edited: 4th Aug, 2015
    mcarthur likes this.
  5. willair

    willair Well-Known Member Premium Member

    Joined:
    19th Jun, 2015
    Posts:
    1,717
    Location:
    Brisbane..
    I had a look at a property over there about 6 months ago,large block 2 bed weekender but back in the back blocks,and it was very cheap maybe less then someone paid 15 years ago,but I walked around after the agent did their normal run from the high end properties down too the small blocks
    then walking me over the property..
    Maybe just look at the holding costs over time,every now and again "THE-BRIDGE" comes into media streams,but apart from the people that travel on the water taxi each morning and night to work there seemed to be a lot of people outside the bottle shop with a tallie and a winnie blue in the mouth with several young kids in a double pram..
     
    mcarthur likes this.
  6. jaybean

    jaybean Well-Known Member

    Joined:
    20th Jun, 2015
    Posts:
    981
    Location:
    Melbourne
    That's the idea yeah.
     
  7. Ed Barton

    Ed Barton Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    1,131
    Location:
    Brisbane
    Is it dry? Or is it one of those island blocks that is underwater literally half the time? Can you stick a caravan on it and rent it to some local welfare's?
     
  8. jaybean

    jaybean Well-Known Member

    Joined:
    20th Jun, 2015
    Posts:
    981
    Location:
    Melbourne
    Never even thought of renting it to a caravan park guy. Good idea. But rent collection might be hard. If they didn't pay we probably wouldn't even bother chasing it up lol

    And yeah it's dry. It's inland. At the time she had the choice between a water front property and an inland one. She went for inland in case of floods. Which was the wrong move because if there was a big flood the whole place would be screwed anyway since the island is pretty flat.
     
  9. Ed Barton

    Ed Barton Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    1,131
    Location:
    Brisbane
    I think it was Russell, and not Macleay where they sold off a load of blocks that looked great during low tide but became sea during high tide. Even on these islands the higher points are better.

    Talk to the local agent and store. The bay islands are full of poverty stricken welfare recipients who would be quite happy with a van on a block for digs. Not sure if the council would be as happy, or even care. For $30k you could probably get a van, plonk it on the land and get at least $100pw. It's not going to set the world on fire but might solve your problems.
     
  10. jaybean

    jaybean Well-Known Member

    Joined:
    20th Jun, 2015
    Posts:
    981
    Location:
    Melbourne
    Insurance would be difficult though right? Probably safer to just rent use of the land?
     
  11. Ed Barton

    Ed Barton Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    1,131
    Location:
    Brisbane
    The type of clients on the islands won't rent land. They want a caravan on land.
     
  12. jaybean

    jaybean Well-Known Member

    Joined:
    20th Jun, 2015
    Posts:
    981
    Location:
    Melbourne
    Ok thanks. Even that might be tough to insure?

    I was thinking it might be a good idea but the main problem would be securing it. Would be so easy to steal?
     
  13. Fernfurn

    Fernfurn Active Member

    Joined:
    24th Jun, 2015
    Posts:
    36
    Location:
    by a Bellarine beach
    I had a girlfriend who shifted up there 6mths ago. Bought a house, installed a pool, big artistic community. absolutely loves it.
     
  14. Azazel

    Azazel Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    8,113
    Location:
    Brisbane
    I'm not to fussed on the bridge talk, doubt it will happen.
    Is there a police station on Macleay Island? I know Russell/Canaipa has one now.
     
  15. willair

    willair Well-Known Member Premium Member

    Joined:
    19th Jun, 2015
    Posts:
    1,717
    Location:
    Brisbane..
    Yes there was one I walked past on the island,and when they need backup they chopper extra people in,and by the look outside the bottle shop that may happen often..
     
  16. Azazel

    Azazel Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    8,113
    Location:
    Brisbane
    Haha, do you really think that happens?
    I've never heard about riots on the islands. Logan however...
     
  17. willair

    willair Well-Known Member Premium Member

    Joined:
    19th Jun, 2015
    Posts:
    1,717
    Location:
    Brisbane..
  18. Azazel

    Azazel Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    8,113
    Location:
    Brisbane
    While that is sad to hear, I'm sure it's as rare an occurrence as the murder that happened on Norfolk Island years ago.
     
  19. Azazel

    Azazel Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    8,113
    Location:
    Brisbane
    Yeah, that was the ripoff scam from back in the 80's or something.
    They're changing the name to Caniapa Island, partly to shake off some of that stigma.
     
    clint05 likes this.