Investing in Mackay QLD

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Tom017
Member
@tom017
Join Date: 2011
Post Count: 17
May 11, 2012 - 3:09 am
Hi All,
I am looking at investing in Mackay QLD. There are 2bed, 1bath, 1 car units being sold off the plan for $410 – $430,000. The agents are quoting a rental return of $600 -$650 per week. The apartments are in the CBD or just on the edge with good views etc with completion due around the end of next year.
Has anyone researched Mackay in any great depth? Do these figures sound realistic or is it just a beat up by the selling agents?
From What i can gather there vacancy rate is excellent for investing and with the industry around Mackay it should be strong for a while yet.
If anyone can shed some light on Investing in Mackay for me i would love the feedback.
Looking forward to your help.
mattnz
Participant
@mattnz
Join Date: 2007
Post Count: 574
May 11, 2012 - 12:32 pm
At least go for 2 bed 2 bath. 1 bath devalues its rental potential significantly.
Mackay is my next safe boomtown pick
moxi10
Participant
@moxi10
Join Date: 2010
Post Count: 194
May 14, 2012 - 12:05 pm
hi Uanwin2
First of all, you need to do more research. A good place to start would be to read Portfolio PI thread "Queensland mining region….willing to help." From there go to Josh's blog….there is a great review on Mackay, which amongst other things has a comprehensive list of projects around Mackay. I, and obviously many others on this site, have found Josh's information and insights very informative and accurate.  But you should do your own follow up research, contact council, check Government sites listing projects, study flood maps, compare advertised prices for purchase and rent of properties similar to the one you're interested in, check local newspaper on Line http://www.dailymercury.com.au/ etc. Then, if possible, go there before commiting, have a look around. A lot of the town is flood prone, obviously something to be considered.
  I bought in Mackay recently. Established and renovated 4 bed 3 bath house. Now managed by Mackay rentals- so far they are doing a good job. Paid $455,000 for house, rent of $700 p/wk unfurnished.
At first glance, entry price and rental appraisal you mention sound a little high. Compare. Also long time until completion… a lot can happen before then, including delays. Mattnz is right that second bath holds a lot of appeal for contractors and miners sharing accomadation.
Economy in Mackay is diversified and pumping right now. Obviously benefiting from mining, but many other "pillars" supporting the town. Vacancy rates tight, rents high. Easier to get accomadation in hotels and motels on weekends than during the week because the miners and contractors book them out on weekdays.
   I will be in Mackay for business and pleasure, mostly the latter, for a week from !8/5/12 (this friday). I would be happy to look at the area of your proposed unit, or other properties you might be interested in. Happy to help anyone else interested in having someone on the ground to check things out. You can PM me.
Cheers, Tony