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QLD Rockhampton and surrounds

Discussion in 'Where to Buy' started by dan2101, 19th Oct, 2015.

  1. dan2101

    dan2101 Well-Known Member

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    Hey all,

    Just after some thoughts from those in the know on the future prospects of the rockhampton/gracemere area.

    I've got 2 IP's in the area. The one I'm looking at in gracemere I have a loan of $148k worth approx 300k and renting for $290/week. The rental market has definitely stabilised (down to about 3%) but I'm wondering if it would be worth selling (but keeping one) and investing elsewhere to diversify a bit more. I just feel like the money could possibly be working better for me elsewhere. They are problem free investments and always tenanted though so I'm in 2 minds!

    Anyone have any thoughts? If Brisbane remains solid is there any potential for that to influence the area?

    Thanks!
     
  2. Deepsquat

    Deepsquat Member

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    I also have 2 in Gracemere and keen for any opinions from those in the know?
     
  3. HUGH72

    HUGH72 Well-Known Member

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    Can you continue to purchase elsewhere without selling?
    Sounds like your investment there is cashflow positive, how long have you held property there?
    Rocky has suffered a little because of over building in Gracemere and Gladstone with H&L packages marketed to investors. The downturn in the mining industry has had a indirect affect to some degree as well.
    The vacancy rate seems to have come down and stabilised as you said so I think the worst is probably behind it
    We have had to drop rents in Rocky slightly this year for the first time I can remember but we don't have any properties vacant there.
    I don't know Gracemere as well but I think the whole area is likely to be flat for a while. We won't be selling as the properties are providing a decent income stream.
    Historically Rocky has grown after strong growth in Brisbane.
     
    R377 likes this.
  4. dan2101

    dan2101 Well-Known Member

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    Thanks Hugh,

    That's the issue. After buying 2 houses in Brisbane I'm down to zero funds. Weighing up whether I'm best holding onto both in rocky or selling one and having a good deposit ready to buy in Sydney when (hopefully) prices are a bit softer and I can secure a PPOR where I live.

    I sold a western Sydney IP just before the most recent boom so im a bit wary of selling again and missing out on any price rises! That one hurt!
     
  5. HUGH72

    HUGH72 Well-Known Member

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    Tough decision, I can't see any short term growth in Rocky so I wouldn't be buying there again presently but selling means lots of transaction costs.
    If you get some growth from your Brisbane properties over the next couple of years you may have some funds available.
    Opportunity cost vs transaction costs. :(
     
  6. DiligentPM

    DiligentPM Well-Known Member Business Member

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    Due to developers creating an over supply scenario the rents have fallen back a lot...we have a four bedroom home in the City Lights estate in Gracemere and the rent has only gone backwards
     
  7. C-mac

    C-mac Well-Known Member

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    Hi folks,

    (Hopefully) reigniting this thread about Rockhampton @dan2101 how did you go since October? Did you sell one, or keep both?

    Any other anecdotes about rental vacancies and 'word on the street' in Rockhampton?
     
  8. dan2101

    dan2101 Well-Known Member

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    Hey @C-mac still got both. Both still rented. Still considering selling one to diversify but market still seems flat.

    Agents are talking up a recovery but they always do. Was wondering if the announcement a week or so ago regarding the army base or whatever it was would make a difference?

    Anyone in the know?
     
  9. dan2101

    dan2101 Well-Known Member

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  10. strongy1986

    strongy1986 Well-Known Member

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    Dan

    Im sure you have realised this but the real problem i see is tgat your house is in gracemere
    If it was in frenchville or some other inner part of rocky i would say hold
    The problem is that you can buy a house in a better part of town , most likely on a bigger block for 250k.
    Unfortunately if you bought a new house in an estate your structure is always depreciating.
    I would be inclined to sell it while its still newish
    I just cant see any growth drivers gor gracemere, even if rocky boomed tommorrow. Tge developers would move in abd build a new estate wuth houses around the 320k mark. They are building them cheaper now
     
  11. dan2101

    dan2101 Well-Known Member

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    Cheers @strongy1986 i am leaning towards selling at least one. They basically pay for themselves but like you said growth is likely to be minimal in the short to medium term so may as well get the cash out and invest elsewhere. Don't mind holding one but it was a rookie error buying 2 in the same regional town. A lesson learnt none the less! Sticking to capital cities from now on.
     
  12. norwoodman

    norwoodman Well-Known Member

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    Probably worth noting that this investment is spread evenly between Townsville and Shoalwater Bay (north of Rockhampton), rather than in the one location.

    For Rockhampton in particular, one of the opportunities that hasn't yet been seized upon is to develop the military zone and infrastructure at the airport. Rocky Airport can handle the large Globemaster and 747s that are often brought in for the military exercises - it is technically classed as an international airport even though it only gets chartered international services. However, the infrastructure at the airport hasn't really yet been developed to handle the capacity. Likely some benefits to the tourism and services sectors as well.

    Rockhampton was declared one of the key FIFO hubs for the new Adani Carmichael mine should that project ever get legs through all the ongoing legal action.

    I do see improvement occurring in the already built up areas of Rocky - things do seem steady on the ground generally after some recent declines. Gracemere and parts of Norman Gardens/Parkhurst are still very much prone to overbuilding. Don't see a boom happening any time soon though.
     
  13. spludgey

    spludgey Well-Known Member

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    I've got two crappy ones that I can sell you!
    Personally, I see Rockhampton as my worst investment decisions. High vacancy rates, high council rates, high insurance premiums, negative capital growth since I've bought them.
     
  14. strongy1986

    strongy1986 Well-Known Member

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    I dont think its as simple as sticking to the capitals. The reason you bought in rocky was likely because people were making money there. You got on for the ride at the end of the line though
    You could make the same mistake in a capital city
    Work out where your selected destination is in the cycle
     
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  15. C-mac

    C-mac Well-Known Member

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    Thanks for the inputs and responses folks :)
     
  16. Xiao Hui

    Xiao Hui Well-Known Member

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    Don't give up on Rocky yet!!

    This report was published in Singapore's papers today. It seems Rocky stands to benefit from the latest defence agreement between the two countries.
     

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  17. See Change

    See Change Timing Lord Premium Member

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    We did well in Rocky last cycle . Bought in just as things were starting to Move which was after Brisbane had moved significantly ( including logan ) which is what it historically does. For me , it all comes down to timing .

    If you haven't already seen it , I did a post on Rocky in somersoft when I bought there in 2003


    Brisbane is starting to move but hasn't moved significantly .

    For me , it's too early to buy in rocky this cycle , but if I held something , as pointed out , the transaction costs eat up things , though you could make a case for selling and buying in Brisbane .

    Rocky does have a high vacancy rates which does make things more problematic in predicting how it will go and I haven't done any research except occasionally tracking the vacancy rates and glancing at properties for sale . My recollection is that there was one cycle historically when rocky didn't move much , but assuming it doesn't go as bad a gladstone , that's probably unlikely .

    If I was early on in my investment career , held a property in Rocky , and could get out without significant losses , I could make a case for selling and buying in Brisbane now , but as I'm not in that situation I don't know what I'd do , but it's a " conversation " I'd be having . BTW we have lots of " conversations " which we don't act on ...

    Cliff
     
  18. See Change

    See Change Timing Lord Premium Member

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    One of the interesting things about the rocky thread was the recurring view from other posters that rocky was a hole and wasn't going to go anywhere price wise , which proved wrong .

    cliff
     
  19. Whishy

    Whishy Well-Known Member

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    Sold my property at Allenstown for what I purchased it for in 2013.

    Cost me nothing but time. However, I should have sold sooner.

    Rocky is just dead at the moment. Which some would say is the perfect time to buy /hold. I sold as it was just too hard to keep tennants happy.
     
  20. Vultures

    Vultures Well-Known Member

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    SStar likes this.