Macleay Island

My wife and I bought land on Macleay Island a few years back before we knew anything about investment, due to family having a house on the island. We paid 110k and it’s now worth 30k approx.. nice lesson learnt!

We are now trying to figure out what to do. Sell and put that 30k in a market that is going to see decent growth, or hold the land and hope Macleay improves. The other option is to put a house on it and try to recover some of the loss. A 3 bed house is selling for around 260k.

A removable home would probably be the cheapest way to do this.

What would you do?

 

I think it's hit the bottom and it will only improve from there. The removable house idea could work. At least you could get some rent and I suppose the land could actually be worth more since its habitable?


But... not advice.

 

If you're talking about a removable house like this, how would you go about transporting it from the mainland? I've seen houses being transported in sections on big trucks but how would that work logistically on ships?

 

Ok, I did a search on Realestate for all the islands. So many blocks of land and so many houses for sale....


Perhaps the market will recover, but I can't see it realistically happening in the next 3-4 years.

 

You might be able to sell up and carry the capital loss forwards to future years and deduct it from future capital gains, I don't know all the laws on this, so best to consult with an accountant unless someone on here knows more.

 

I’ve had a passive interest in the islands for ~20 yrs.... In that time, many a person has been fleeced of good money, mostly due to naivety (no slur intended here...)

I can’t see any reason for any spectacular growth any time soon. I wouldn’t throw good money after bad. Either hold or cut your losses, IMHO.

Unless the socio-economic status of the island changes, how would you expect property values to rise. There’s nothing on the horizon that I’m aware of to attract the next tier of home owners, nor any real signs of positive gentrification.

My 2 cents

 

I was there over Xmas. I used to have a couple of blocks there. One I made coin on, the other a loss, so I have some experience here. My parents also live there.

The development in and around the island has been huge. And its all going to increase. Redlands has big development plans and the population if the island is increasing quickly.

However, the supply side of things is going to take a long while to sort itself out....

I'd sit down and work out if you can make your block positively geared with a house on it. If that works I reckon you at least have a case for keeping it. Otherwise it will just take too long to get your money back due to oversupply.

 

Yea the only issue with a removable home is getting a loan to pay for it, banks will only loan on houses that are connected to land I’ve heard. So we may have to save the entire amount or look at a personal loan.

Once the house is on our land and connected the property should be worth enough to cover all our losses. I think!? I personally don’t think keeping the house would then be a great move as I doubt property prices will rise unless a bridge is built to the mainland.

 

But wait, surely there's the bridge, and the bridge, and of course the bridge: "State Cabinet announced a proposed Stradbroke Island bridge would go via Russell Island"...

 

Tony, what's the vacancy rate like on the island? Is it worth putting anything on it, if there is little happening to attract people to live there. Spending money on a house that may stay vacant would be a big opportunity cost.

 

I know for a fact that @Jess Peletier can help you with this.

Oh. And fuggedabout the bridge....

 

May I know why it dropped so much?

 

$30k is the regular price for land on Macleay and Russell Islands.

 

Vacancy rate per SQM research is 6.30%

 

For the last 30-40 years every now and again someone talks about a bridge to link all the islands..I know several that bought on near-by islands for about 4k,the only problem was high tide and sand flies ..The ther problem will be as there where several in the public trustee sale site-plus the rates ect very hard to sell..imho..

 

how can u get a car to these island?

 

Barge, or you get one of these:

 

More easily than a removal house