QLD Rockhampton

The local market is in what I would call a stabilisation phase after a extended downturn with rents and prices going backwards for several years. More potential upside for houses first as there is less oversupply compared to units.

We have had a rough year there with a low life tenant who we took a chance with cause considerable damage. He then refused to leave and stopped paying rent. A QCAT ruling and police visit eventually did the trick.

Thankfully between the insurance payout and QCAT decision we won't be out of pocket. The tenant was listed on TICA but to my surprise he found another rental straight away. I would love to know which agency accepted an application from this low life.

I think this market has turned the corner but don't see a lot of upside despite Adani until the Brisbane market booms first. The local market
Can absorb extra FIFO workers but rents will start to rise IMO.

 

Yes who excepts tenants like this? Some poor landlord is set for some pain ahead.

Had a tenant do about $3500 worth of damage to a property at Agnes Water. They moved straight into another property in town, pretty sure with same real estate agent but I cant confirm that. A tenant I just evicted at Chinchilla had no bad history either (apparently) but they were always behind in rent and the house was a mess. Makes you wonder what the hell is going on.

Back to rocky, I'm not sure if you have seen this Rocky's rental vacancy makes mega turn-around
Increasing rents would be nice.

 

Load up and ride the wave?

Rocky real estate rise: 3 coal projects inject $330m into CQ

 

Adani not likely to go ahead

Ogmore is relevant to Rocky. The other two projects, I fail to see any tangible impact on Rocky.

 

Sounds like Gladstone talk a few years ago.... look how that turned out.

 

I'm more familiar with Mackay than Rocky but generally the economies of the regions are picking up talking to the some local business owners- coming off a v low base of course
Adani is much more likely than unlikely to go ahead as people in the regions need jobs and Indians need coal- any comments to the effect that commencement of Adani mine is a "long shot" are just wishful thinking me thinks

 

I lived in Rocky for a while and if buying there for investment would definitely only buy the most upmarket of streets. I would not be buying something in the lower rental pricing because its not worth the risk of tenant it will attract.

I found that the mid-range area's where people bought and maintain nicely, unfortunately there is that one house that housing commission came and bought and that house is poorly maintained bringing down the whole street. A lot of streets in Rockhampton have that one in house in the street sadly.

 

Rockhampton real estate growth tops the Queensland market

Thoughts?

 

I don't buy it. While things are finally looking a little bit better, I'd be extremely surprised if this was anything more than a statistical anomaly.

 

I've seen some sales there of late that were pre-GFC prices.....cant work out how they passed val. On the flip side some really cheap stock also...We shall see.

 

Any views on how Rocky has been going? Vacancies are down, which is good, but prices don't seem to have moved much in the past 6 months.

 

Yeah I’ve had the same observations. Vacanacy rates have definitely stabilised but prices still seem flat. Interesting that a few of the other qld regionals have picked up but rocky seems a little behind still. Hoping for some gains in the next 12 months or so we will see.

 

sqm shows vacancies are down to 2.4 % which is a good start , but no major downwards shift in stock on market and prices seem to be going down .

I still don't think there will be a major shift until Brisbane booms

For someone who is prepared to wait ( who knows how long ) might be a good time to bottom pick for a bargain. Personally , given how it's harder to get finance and extend yourself , I'd still buy else where . Might make for sense for a hands on local to make lots of low balls and pick up a reno bargain .

Which places are starting to pick up ?

Cliff

 

Free Suburb Profile report for Rockhampton QLD (4700)

This shows Rockhampton houses down 10% in the last quarter.

 

Sometimes you have to be careful looking at stats which show unusual swings . I've seen sharp changes like that in markets I know and when you looked , there might have been a previous increase due to a couple of high sales or a more expensive development selling etc .

Not saying it's not true , but be careful .

Actually , Part of the reason is further up the post when Rockhampton topped growth rates . Reversion to mean

Cliff

 

Agreed - Rocky has been having a rough time of it lately though I've heard, lots of local businesses closing and uncertainty. You know things are bad when even the local Leagues Club can't survive.

 

Mackay is one that has done well last 12 months @Sea Change

 

Over the past 6 months I've seen the very cheap houses, circa $150k, no longer as available in the good areas of Happyrock. Endless summer back again!

(problem of course is that rents are still low)

 

Compound negative growth of 5.9 % ... though uptick in last year ( rockhampton has a similar uptick according to REA.com .au )

It might have bottomed , and gone up a bit , but stock levels appear to be trending up at the moment .

From an average of around 400 to around 250 in the last years ....

Though Vacancy rates are way down , which is a good sign . Mixed messages .

Cliff

 

We looked into Rocky a year ago.
Suburbs such as Beserker and Frenchville (better).

One of the main problems with Rocky (IMO), as an investment, are the costs.
Insurance and rates take up a very large percentage of the rent.
You may find places with a 7 or 8% gross yield, but nett yield is close to 4 or 5% at best.