Sorry if this is a dumb question, but being a novice to the world of +cf properties I am curious to know why the (perceived) yields are so high in Rocky. I figure that the capital growth isn’t there, but with these yields does it really matter ?
Depends on what you want. Positive cash flow from hi yields, or capital gain to draw on for future investments.
BB
From an ex Rocky girl…it’s very prone to flood…just a thought[
]Thanks Suzie…..
…from an English bloke, still trying to come to terms with this vast geography [
]Rocky was going to be a very good area to invest as the QLD govt was going to help setup a multimillion dollar project in Stanwell. Unfortunately, that’s fallen through, so Rocky’s growth won’t be anywhere near as good as it might have been.
As for the floods, it’s really only around the centre of town near the Fitzroy river where it’s a problem. Some of the areas around Frenchville is pretty good. The Range area near the airport is also quite safe (flood wise).
If you’re looking at IP in the area, then Gracemere might be just as good. Properties tend to be a little cheaper, but get the same rental return as Rocky (or did a few years ago)
HI there,
I meant to reply to this post before I was sidetracked by my children wanting to play on the ‘Bob the builder’ website.
Anyway…
Prices just before I went overseas on my June holiday, went sky high as they had investors purchase site unseen over the phone. Co-incidently straight after Steve’s last seminar []
I think the last severe flood happened in 1981 (but don’t quote me). Just ask the real estate agent if it’s “In Flood” and they’ll know what you mean.Cheers
Sooshie []“small steps make the journey” (SAS)
I spent a week in Rocky in June (and I didn’t go to Steve’s seminar), there’s some good deals to be had still… a lot of the “over the phone” buyers have been a bit stupid and careless though, going on my discussions with agents when I was there… scott (another poster) would agree with me… if you do a search you might find our thread where we discussed rocky and buyer behaviour quite a bit… it makes me chuckle that when there is a place with high yields, people automatically think there’s something wrong with it… also, don’t assume there’s no capital growth to come… it might not be skyrocketing, but it’ll be there
cheers
rJust come back yesterday from 4 days in Rocky. While yields may be good, you also need to take into account the fact that they have very high rates.
As an example, my brother bought a place for $80K a few months ago (owner occupied). He is paying just under $1600 per year for rates. The basic rate seems to be around 2.4% of the UV every six months (plus fire levies, etc)
As a result, (assuming he bought it as an investment) he would need to find an extra $30 per week just to rent out his pretty ordinary place.
For my way of thinking, it means I need to find a lot more than 10.4% yield for it to be really worth my looking at.
why are rates so high in rocky??
The rates seem to be quite high in a few places in QLD, compared to VIC. One thing to consider though is that these include the water and sewerage rates as well, as these are done by the council. Unlike our seperate water companies.
Rod.
Rates do include water and sewerage, but at least here in Canberra you can pass the water usage charges onto the tenant.
I guess it really doesn’t matter where the charges are levied, cause your tenant does end up paying for the usage charges in one way or another.
But – it’s just something to keep in mind when comparing your 10.4% return in Rocky with a similar return in another part of the country where you can also charge the tenant a portion of the water rates.
Im not sure if its an issue in Rockhampton, but if yoy buy further north in say Cairns/Townsville, insurance is double in what it is down south, due to storms/cyclones.
If anyone knows an insurance company who will insure as the same prices as down south, im all ears!
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