QLD Qld regionals

Discussion in 'Where to Buy' started by Thedoc, 14th May, 2019.

Join Australia's most dynamic and respected property investment community
Tags:
  1. Thedoc

    Thedoc Well-Known Member

    Joined:
    7th May, 2018
    Posts:
    59
    Location:
    Central coast
    I think it’s time. Plenty going on up there mining wise. Mine extension in the Bowen basin with 1000 jobs, Adani will get up, investors priced out of Sydney and Melbourne chasing yield. Will be happy times for Mackay, Gladstone, Rockhampton in the next few years I feel.

    Discuss.
     
  2. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

    Joined:
    14th Jun, 2015
    Posts:
    4,884
    Location:
    Gold Coast
    Met Coal is back in the black :)

    ta
    rolf
     
  3. wilso8948

    wilso8948 Well-Known Member

    Joined:
    23rd Jan, 2018
    Posts:
    140
    Location:
    Newcastle/Mackay
    Here at ground zero. On the ground.

    Lot of hype but not seeing it filter through. I'd still tread cautiously. Developers and land clearances have been moving for 6 months in preparation. I see new land release signs popping up. Vacant land being heavily marketed again. Sales are still slow. Rental market is tight.

    I think diverse economies that mining is a contributing factor and not something that underpins its success, will do well. Needs to have the lifestyle drivers and infrastructure to keep people. Not just the jobs.
     
    Cate Bell likes this.
  4. Thedoc

    Thedoc Well-Known Member

    Joined:
    7th May, 2018
    Posts:
    59
    Location:
    Central coast
    Agree @wilso8948 thats why I like Rockhampton. Has the cattle industry as well. Where are you located?
     
  5. wilso8948

    wilso8948 Well-Known Member

    Joined:
    23rd Jan, 2018
    Posts:
    140
    Location:
    Newcastle/Mackay
    I'm in Mackay. Probably a bit like Rocky. Enough to keep you interested with all the 'essentials' but I think it lacks on the lifestyle front to keep large populations here on a long term basis.
     
  6. Thedoc

    Thedoc Well-Known Member

    Joined:
    7th May, 2018
    Posts:
    59
    Location:
    Central coast
    Yeah interesting we will see I guess. It’s been a long wait hopefully some gains soon
     
  7. fols

    fols Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    430
    Location:
    Sydney
    There was an interesting piece in yesterdays (May16th) Australian by demographer Bernard Salt, showing changes in QLD long term population growth projections (2018 versus 2015), as prepared by the Government Stats office.

    Whilst the overall QLD forecasts didn't change too much from the 2015, there was some significant movement across the LGA's. These 2018 forecasts showed increases in Brisbane, Sunshine Coast, Moreton Bay and Logan LGA's. Conversely, population growth forecasts were slashed in Gladstone, Townsville, Mackay, Central Highlands and Fraser Coast regions

    Not my analysis, so take out of that what you will.
     
  8. wilso8948

    wilso8948 Well-Known Member

    Joined:
    23rd Jan, 2018
    Posts:
    140
    Location:
    Newcastle/Mackay
    Any link? Would be interested to take a read. Bernard Salt's 'previous' forecasts are actually spruiked a far bit up here and to press on priority development areas and infrastructure. As if there is going to be some sort of population boom when in reality diving into the numbers its actually quite conservative.
     
  9. fols

    fols Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    430
    Location:
    Sydney
    I don't sorry. I have hard copy. Online is subscription only. Go to Bernard Salt's Linkedin and you may be able to read directly from there.
     
    wilso8948 likes this.
  10. Cate Bell

    Cate Bell Well-Known Member

    Joined:
    7th May, 2019
    Posts:
    55
    Location:
    Australia
    My question is why would you buy in QLD regionals when there is plenty of good buys in Brisbane? I just wouldn't gamble on QLD regionals.
     
    My House QLD likes this.
  11. strongy1986

    strongy1986 Well-Known Member

    Joined:
    24th Jun, 2015
    Posts:
    701
    Location:
    VIC
    valid point
    however if you are an educated buyer and can buy in the 'best location' or a good development block in these regionals for the same price as an average area in Brisbane then its worth a look

    the inexperienced investor is better off sticking to Brisbane as its a bit more foolproof
     
    wilso8948 and Toon like this.
  12. Cate Bell

    Cate Bell Well-Known Member

    Joined:
    7th May, 2019
    Posts:
    55
    Location:
    Australia
    I am not seeing that on the ground. Under contract I have a 600m block, good development potential due to zoning ,with a house that needs a reno, walk to water, walk to rail, excellent location, 17km to Brisbane in one of the "hot spots" - $310K has previously returned $400 per week. Don't think it is about being "inexperienced", I think QLD regionals aren't stacking up.
     
    Willy likes this.
  13. strongy1986

    strongy1986 Well-Known Member

    Joined:
    24th Jun, 2015
    Posts:
    701
    Location:
    VIC
    im pretty sure you misinterpreted my post

    yes Brisbane is still a no brainer with good deals to be found

    i said inexperienced inbestors are better off stickimg to brisbane because they typically buy newer/ lower maintenance stock which is not a good idea in qld regionals

    i say this because the build costs are higher, the purchase prices are probably similiar to outer Brisbane but the land they have purchased/built on in a regional town is worth stuff all
    At least in Brisbane if they do this their land is probably worth circa $200k

    The reason i wouldnt rule out qld regionals is because noone else is interested at the moment. Good deals if people know what they are looking for

    FWIw im not a huge fan of Mackay, Gladstone, Bundaberg
    However over the last couple of years i have seen some crazy sales in the Gladstone market, Blocks of townhouses/ units selling for under 50k per dwelling etc

    So.i wouldnt rule anywhere out
     
    wilso8948 likes this.
  14. wilso8948

    wilso8948 Well-Known Member

    Joined:
    23rd Jan, 2018
    Posts:
    140
    Location:
    Newcastle/Mackay
    @strongy1986 makes very valid points. Absolutely no sense buying up here without local knowledge. The new land releases are developed on dump land. Think swamps, marshes and highly reactive soils. Take a look at Townsville. The major hit suburbs were new land developments.
    I wouldn't be looking at Qld regionals without some foundational IPs in place first. Even then I would stick to the majors ie. Cairns/Townsville>Mackay/Rockhampton>Gladstone/Bundaberg IMO.