I am currently building a house in Mackay and will have around 300k equity in this house when it is complete. I want to look into buying my first investment property and was thinking about investing in Mackay as it is a fast growing city due to the Coal Mining.
House prices seem quite high although rent is also very high, has anyone recently researched investing in Mackay and got any tips in what the future holds for this area in regards to capital growth over the next 5 – 10 years. And also what areas are the best value to buy in with good returns.I live in Mackay, have 3 properties here, plus also currently building our new PPOR.
I have a look at the property guides/windows, and ring an agent probably once a month if I see something that catches my eye, but at the moment, many properties are still seeking inflated prices.
Capital growth over the next 5 years looks promising at the moment though, with the mines steadily starting to spend again and (hopefully) another boom around the corner. I think 10 yrs is a little hard to predict in this area.
Areas to watch at the moment is probably Ooralea (close to Industrial Hub of Paget) and Mackay City/East Mackay (for increasing development opportunities), and for steady growth to a lesser extent probably West Mackay.
Rents have flattened out over the last 12 months, but again, with the mining drive, I think rents will start to increase steadily for the next couple of years.
Where are you building?
Thanks for the advice pinkboy.
I am building out a Plantation Palms Rural View, it's a way out of town although I'm occupying the property and would rather live a little out of the city and I believe there is alot of potential out the Northern beaches for good growth over the next 5 years or so. There is a fare bit of development planned out there so fingers crossed.
I have just sold a property in Emerald which had amazing growth over a 3 year period which has helped me to generate some good equity in this property I'm currently building hence the reason for wanting to start investing.
I was thinking Ooralea myself, Cutterfield estate seems like a good estate and I imagine you would get good rental returns for a medium sized family home. I'm not into reno's so looking for something that will be minimal maintenance?
My wife and I looked at Plantation Palms, but it wasnt for us – but it is high on our list of potential IP places in Mackay. There is a good mix of land sizes, close to schools and some shops, parks, 5 mins drive to beach, and about 10-15 mins to city.
Cuttersfield, Ooralea would be a good place to start, though you will be staring down a $600k property from new. I have seen several good older properties that will have thier value brought up by this estate.
Can I ask which builder you went with?
Yer I will definately look around at properties with a bit of age just don't wat to walk into a wreck that needs thousands of $ maintenance done to keep in livable.
Vandalay Constructions I looked around and Vandalay have a good history, reasonably priced, build nice homes and have been great so far so I would recommend them if you were going down the building path in the future.
We have invested in Mackay also as we see alot of growth still to be made. We have two IPs although one is on the market so hopefully soon we will be down to one. Our reason for selling is a change in family income that was unforseen so we are offloading a property that no longer suits us, and once its gone we will be once again looking in Mackay for a different type of prop.
My areas of interest are Ooralea and Beaconsfield. But not the side of Beaconsfield near Eaglemount Heights, more the side that is just near the big roundabout heading onto Mount Pleasant. So like Beaconsifeld Road and the surrounding area. I like Ooralea cos of the TAFE going to be built out there. I havent done any major research into that project because we arent ready to buy there yet, but the last I heard was that there was a TAFE going out there. I also think that Slade Point is losing alot of its bad reputation. The prices are still low compared to other areas in Mackay. As long as you buy in the right area of SP.
Our rent at our other props hasnt gone up in probably 2 years if my memory is correct. Its been a long long time. But hopefully that will change soon so we can start seeing a bit more cashflow from those props.
The next 5 yrs will be very interesting in Mky we think
Good luck with your investing!
I had the guy from Vanalay Constructions in my house, showing him plans etc for our home we are building, but we went with my uncle to build for the ability to help us out a little to get instant equity, so I can purchase a few more IP's. I have been in a Vandalay Construction home, and it was very well finished off. Solid choice.
I have a property in both Beaconsfield and Slade Point which have made significant growth over the last couple of years, and are getting great rental return. Beaconsfield is great as it is what I call '10 minutes to eveything' – beach, town, highway, and has plenty of schools, transport, little shops etc. Slade Point is not too bad of area these days. I run my business out of SP as well, which is (pretty) handy to everything we need.
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