Hi All,
I am going up to Rockhamtpon in two weeks to have a look for my first investment property and just wanted to know if anyone could help me with some research on the area. I have a map of the area that shows major floods and real estate house prices for the last year. But was also after some help on what are the good, bad areas. This is my first property and I’m very excited and nervous at the same time. I just want to be sure I’m doing all the right things.
Any help is much appreicated.
Thanks AndrewIts a shit hole
Thanks for that incisive reply Yorker.
Drewster, do a search on rockhampton, it’s been discussed a million times on here. Also, there’s a brilliant thread on Rocky on somersoft.com’s forums in the Where to Buy section, started by a bloke called see-change… well worth a read.
Cheers
rHi,
why don’t you start talking to a few agents to check out the good and bad areas to invest in. Give them an idea of what you are looking for and see what response you get. See if you can get back copies of the Midwood report — will provide some useful background data on Rockhampton. Will also give you some idea of other areas to invest in. Speak to the town planner regarding issues such as flood plains. When you get to Rockhampton, don’t forget to speak to the locals. Often the best source of advice.Lots of luck with your first investment property. Enjoy the journey.
Regards,
HelenHi,
I just came across something which should assist you. Go to http://www.knightfrankglobal.com/research.On the top left of the page you will see “reports by area”. Click on australasia. When the page loads you will see a report under General Residential “Australian Residential Markets – North queensland market overview”. The report was compliled in 2002 — there doesn’t seem to be anything more recent on Rockhampton. Perhaps give them a call and see if any other data is available. Hopefully the report will be of benefit to you.
Regards,
Helen[biggrin][biggrin]i
Martin
Hi Andrew,
Over past 2 years I have bought a duplex in Frenchville and a house in Frenchville. Both place have always had tenants and the properties are positively geared. Talk to agents abou the best areas also talk to locals ie bar people, hotel staff people in shops etc, ask them where they would like to live and what ares to avoid. Visit the places, do the numbers and see if the property is worthwhile. Avoid Gracemere the magnesium plant has failed and so will the property. Rockhampton has bad areas but so does everywhere else. Get a good property manager. But most of all avoid people who say a place is shit without quyalifying their remarks. MartinMartin
Thanks for the advice everyone. This should help me narrow down my choice of property.
Cheers
AndrewHi Andrew,
I purchased a couple of properties in Rocky last year. My advise is to drive and walk the streets. When you are looking at a property, talk to the neighbours. You can tell the bad streets just by looking at them.
Don’t be put off by the lower class areas as these can offer the best yeilds and you will find you will have tennants that want to stay forever. There are many houses in Rocky that have had the same tennants for 10 years.
There is an area called Depot Hill which is in flood zone. We walked around the area and the locals have all lived there forever and love it and would not be anywhere else in the world. Locals say they don’t move and they don’t get divorced. They all said when it did flood in 1991 the water made it to just under their floor line and they got around in canoes. Most of the locals beleive it will not flood like that ever again as council has done a bit of work on the river since then.
Locals regard the better areas as Frenchville, Berkser, Allenstown, Nth Rocky and there are more just can’t think at the moment (sorry doing 50 things at once).
I didn’t go to Gracemere but my property manager said rents are slightly lower and it could take a bit longer to find a tennant than in Rocky.
Anyway goodluck, do lots of research and get to know the current market prices and talk to the agents with confidence.
Kylie
North Rocky is good, also around the hospital is a good area. I bought a place a few months ago in North Rocky near the Frenchville Sports club. It’s a good area. I got tenants immediately and it is cash flow positive. I had to do a little bit of work on the place, as it was a bit run down.
I’ve heard bad reports about Depot Hill, and I did not like the area myself, but it has had some of the best growth in the area and properties there seem cheaper. It may be an ok area to invest.
The old saying there is a price for locals and a different price for out of towners seems to apply in Rocky and there has been a big influx of southerners buying up in Rocky. I don’t care what anyone says, some of the realo’s up there love to hear your from out of town.
So I would be aware of that when you get there. If you don’t have accommodation, I would recommend this motel “the cosmopolitan” I stayed in a few different ones and this is by far the best talk to Margie the number is 49224933. (I have nothing to do with them and I don’t know them personally).
Also be aware that in QLD an electrical device, I think its called a power breaker must be installed, by law in a property that is being rented. The installation of this will cost between $120 -$190. Also most leases will require that there is a suitable lock on the front and rear doors (the place I bought was missing the key for the front door). Rents seem to be increasing in the area, however, the locals will not over pay for accommodation so make sure you get your facts right concerning rents. The good thing is that there are not many places to rent, my rental manager currently has 1 place only on his books.
Also the meat works is opening up again on low capacity to start so that’s a good thing.
Make sure you check the stove. Some of the old places up there have old stoves and an element for a stove can set you back about $90 so if there are two of them not working your up for $180 and so on.
One other thing, budgeting 5% for closing costs may not quite be enough as there is higher stamp duty on properties if their purpose is investment in QLD. My closing costs came in a bit over 5% of purchase.
My research shows that there is an estimated 8% cap growth for the area this year. Personally, I reckoned on virtually no growth as historically the growth for the area is crap.
I know it did well through the recent boom, but everything did well. If the area goes up strongly over the long term then great if not then that’s ok as well.
My investment is positve now and paying itself off on a P&I loan, about 50 000 people live in Rocky and you can get a tenant if you need it.
Good luck and let us know how you get on.
MarkyMark
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