QLD My investments in Rocky...

Discussion in 'Where to Buy' started by Deepsquat, 21st Sep, 2016.

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  1. Whitecat

    Whitecat Well-Known Member

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    These were the sorts of things advertised on the back of API magazine. Mackay and Townsville too.
    I have a simple mantra 'never buy OTP'.
    In my opinion there's always a better already-built deal. Always.
     
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  2. HUGH72

    HUGH72 Well-Known Member

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    The problem is Gracemere isn't really Rocky, it's a satellite suburb targeted by developers who swamped the market with H&L packages. Many of these were sold to investors.

    It will turn around over time as new developments no longer stack up, excess supply will be absorbed but not overnight. The area ran quite hard from 03-08 but is weak at the moment.
     
  3. TMNT

    TMNT Well-Known Member

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    I know rocky isn't a mining town but mining dependant but it's a area I looked to buy in a few years ago.

    Luckily I dodged a bullet
     
  4. See Change

    See Change Well-Known Member

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    Under 200 , you'd be having to look at units . Any houses I've seen recently around or at 200 are in dodgy areas or in dodgy position eg flood prone in ipswich , though if you were a hands on renovator ( wouldn't be worth it to pay someone ) there are those in places like goodna or ipswich around or under 200 .

    So does that mean rocky has never been a good place to buy ?

    Actually , rocky is not even mining dependant .

    Interestingly there are quite a few people around here who've made money in Rocky , myself and jacque being two who spring to mind . Reason ?

    TIMING .....

    Rocky , The next Big Thing ??

    Cliff
     
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  5. big max

    big max Well-Known Member

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    I've done OK of well timed otp but in general agree with you fully on this.
     
  6. TMNT

    TMNT Well-Known Member

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    Yes I agree.
    But let's look at it objectively.

    The town isn't mining town and nothing exceptional has happened economy wise.

    So property goes in cycles.
    If the area has shot up for a few years like Sydney. Then its likely to drop or plateau.

    Also got to compare with the rest of the state.

    It seems long term it has done ok but medium term it's behaving very weird
     
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  7. Whitecat

    Whitecat Well-Known Member

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    Yes plenty of people have done well. I just hypothesize they could have done better looking at an existing property. An otp completed in Sydney in 2011 would have gone great. But so would have an older place that hasn't been marked up to pay for the developer's profit. in the case of houses, for the price of the otp someone could have bought something older but in a closer suburb and probably got overall better CGs.
    Just looking at BNE at the moment and the price people are paying for OTP vs established alternatives with much better amenity, transport, land size etc.
     
  8. Phase2

    Phase2 Well-Known Member

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    It's behaving weirdly because it is historically an agriculture trading town. However, the past few years has seen an influx of cashed-up miners and construction workers, doing either DIDO or FIFO from Rockhampton to the coal-fields.

    The influx of cashed-up workers did the same as in Gladstone... overloaded infrastructure, drove up property prices and spurred further property development where land is abundantly available. I think Rocky was lucky the total effect wasn't as bad as Gladstone.

    Rockhampton actually had a declining population for quite some time. The amalgamation of local councils in QLD has completely screwed up the population statistics though.
     
  9. James G

    James G Active Member

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    Thanks for the insight. Yeah, I almost bought a flood zone property in basin pocket about a month ago for 200. I was out bidded by 10k or so in the end. So with 200k you would suggest units in goodna or Ipswitch over a house somehwere rural? I haven't researched units at all recently and I know there's an oversupply developing in BNE
     
    Last edited: 16th Feb, 2017
  10. See Change

    See Change Well-Known Member

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    Oversupply in central Brisbane .

    We have a unit in Wynnum but it's not under 200 , hopefully over 600 .

    when I looked at units in goodna the BC's were nasty .

    I'd be having an idea on what cities / towns to look in in terms of cycle and then spend some time looking on REA to see which have properties in that price bracket and then see whether they make sense .

    Cliff
     
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  11. big max

    big max Well-Known Member

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    Agree.

    PS some of mine have been overseas and the opt was basically just an option that have me massive upside in a booming market. Other one was in Brisbane before the last boom cycle. I agree that in general and right now it's not the best way to capture value in the oz market.
     
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  12. strongy1986

    strongy1986 Well-Known Member

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    Why do you think a property in caboolture which is 65 km from a town of only 2 million is a good proposition?
    You can buy the same in melton which is 37km from melbourne a town of almost 5 million for the same price
    Dont get me wrong im very pro brisbane but when your talking caboolture, burpengary, morayfield etc not worth it imo
    Id buy a house well located in townsville or cairns anyday. The chances someone with a bit of cash will want to buy it in 20 years are much higjer than a property in caboolture
     
  13. Whitecat

    Whitecat Well-Known Member

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    Because it's well connected by transport train line to a city of 2 million. Plenty of people commute from Caboolture in fact plenty of people commute from Nambour. Whereas the regional centres suffer from ups and downs economically much more than Brisbane does. We are seeing that right now.
    Someone who bought a house in Cairns with that sort of money wouldn't have done as well as someone who had bought a house in Caboolture with that sort of money (as longas by rail).
    As far as Melton goes sounds like a great proposition if it is connected by train. I really don't know too much about Victoria except that it's already had a good run and whilst that growth will continue it's much further into the cycle than Brisbane is.
    Caboolture would not be my first choice but given someone is looking for a property under three hundred thousand it would be a pretty good one on the basis that it's commutable and very cheap and with good yield. The particular properties that I am thinking of go for around $269000 for a 3/1/1. Plenty of properties in Caboolture by the train selling for over 400000 so plenty of people must be quite happy to live there and recognise the value of an express train
    The other aspect is confirmed future infrastructure with the university in Moreton Bay. I feel that Cairns Townsville Gladstone Mackay are very volatile and you have to really time it they don't have the diversity of economy and the density of demand that Brisbane has of which Caboolture benefits to some degree being attached
     
    Last edited: 17th Feb, 2017
  14. strongy1986

    strongy1986 Well-Known Member

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    Melbourne might be a long way into a boom but you can still pick up a place there for 270k.
    Its a lot closer to melbourne than caboolture is to brisbane
     
  15. bob shovel

    bob shovel Well-Known Member

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    Rocky you could compare to tamworth in NSW, a cowboy ag town that looks after itself but in recent times Rocky was in close proximity to mining works so that gave it a boost. Looking at the construction and oversupply you'll probably find gracemere was the buffer providing new accom for the influx of workers and families

    Like a lot of "mining towns" they dont just have a mine in the main street and that's why everyone goes there. sub 5000 pop and you need to be wary but these towns are 50k+ thriving metropolis's. You need to asses the town and the "mining" works coming to town. Rocky as mentioned was a DIDO FIFO outpost rather than direct mining or construction. Gladstone as its close inbred cousin had direct injection of $billions with construction work actually IN gladstone.

    Rocky is a nice town and with Yeppoon emu park nearby (25min) they are the spots to live, retire and/or holiday house locale. but also as mentioned Rocky town for investing... although land banking on this for the next Rocky boom. (oversupply at your own risk:))
    Paradise Grove Yeppoon Qld 4703 - Residential Land for Sale #201709978 - realestate.com.au
     
  16. dan2101

    dan2101 Well-Known Member

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    @bob shovel any thoughts/guesses on when things are likely to turn around for rocky and surrounds? been a hard slog the past 4 years!
     
  17. HUGH72

    HUGH72 Well-Known Member

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    I just think your timing has been out unfortunately, Rocky grew really well in the mid late 2000s. I think at one point prices were comparable with much of Brisbane, rents shot up and vacancies were non existent. It probably overshot fair value and developers increased supply.
    The population of Rocky is now over 80,000, it's not a one industry city as it's the service centre for CQ with a large hospital and university, two large abattoirs and is the regional Qld HQ for Aurizon and Ergon energy.
    It's not a mining city but has been affected by the madness in Gladstone and surrounds. I don't think there will be any CG for a few years, probably not until Brisbane really booms and the local economy improves in my opinion.
     
  18. Whitecat

    Whitecat Well-Known Member

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    As I said Melton seems like a good option. I don't have a detailed knowledge of the Melbourne market. If you can get a property for $270k close to a train in Melbourne then yes its a good option.
     
  19. See Change

    See Change Well-Known Member

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  20. HUGH72

    HUGH72 Well-Known Member

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