We are looking to buy in a matter of weeks in Gladstone. I would just like general advice on house and land packages. What people think of the general idea, what to be wary of etc. We have found house and land packages can vary (in the same areas) by almost $100k. I would like to know the important things to look at when we view house and land packages to see if it is worth spending more money or not. This will be an investment property and we live in Perth, so we are looking for something solid so we don't have any major problems as we live so far away but at the same time something basic as we will be renting it out and never living in it. If any one has any specific information on house and land packages in Gladstone that would be great too. Thanks in advance, Natasha
Hi Natasha,
If you don't mind, I'm going to post the same advice I sent to you in the private message in which you asked me for advice:
If you are both brand new to property investing I see young couples run into two areas of trouble. The first being equity and the second being servicing – this happens a little down the track on property 3 or 4. These two problems can be resolved through a few tips:1) Buying in a high growth area. We look for individual properties that have something good happening to them in the near future (2 year mark). Wether it be a zoning upgrade (allowing more properties to be put on the same block) or an upgrade in infrastructure (new shops/cafes or a nice council precinct being set up). Getting good growth is the key to getting the equity for property 3 or 4.
2) Some way to add value. We look for older properties (never new) that are easy to cosmetically add value to. If at property 2 or 3 you have purchased new properties all the way you will be stuck as there isn’t anything you can do to them to increase rent or equity. However, if you look for older properties in better areas you spend a little bit of money and either go back to the bank with the increased rent or go back with the increased equity and ask for more equity for your next purchase.
3) Buy in areas of low supply. This is what gets 90% of first time investors. Buying a new house and land package sounds good, but 2 min down the road in a year’s time, another investor will be getting sold the same thing for the same price. Then in 2 years, 4 min down the road, another investor will be getting sold the same thing for the same price. And then again in 3 years, 6 min down the road … and so on… Be sure to buy in an already established suburb as close as you can get in to the city.
4) Finally, being a first time investor, keep it simple and have measured risk. Being your first house you don’t want to muck up on this one because it will put you back many years. Keep it simple, stay away from much of the hype and buy smart. By hype I mean (developing, property options, mining towns and so on) these have higher returns because they are substantially riskier. You can get the same returns in a capital city, but you just have to be a little smarter when you buy.
If you’re not 100% confident when reading this, I’m exactly like yourselves just before I started in the industry. There is so much conflicting information and you don’t know who to turn to for advice. I can say the market isn’t going to run away for the next 6 months (despite what property spruikers will say – especially the ones selling brand new stuff) so use that time to educate yourself.
If you want to know good areas to learn stuff, let me know.
To your success,
KentSo you wouldn't be inclined to buy in GLadstone?
We were told new houses are more valuable than old houses in Gladstone as opposed to Perth's housing market.
You're right, it is very confusing. As you mentioned in your PM I would love to meet with you. My boyfriend will be here wednesday-friday. If we could make a time to see you it would be great. I will send you my number to your inbox.
Hi Natasha,
I flew into Gladstone last Wednesday to see the Gladstone market first hand for myself. I had a good friend of mine buy a house & land package in Gladstone last Sept and the home is being handed over this week so I did the inspection on behalf of my friend. (A formal building inspection was also done by a licensed builder)
Gave me a good chance to see things first hand…spoke to local taxi drivers and they gave me a great insight into the rental market and what’s happening locally. FYI…when my friend signed the land contract the expected rent as $450 per week…..now rented for $550 per week for 6 months as agents expect rents to rise again once all the work starts. Having seen the standard of finish I am now going ahead with the same builder. PM if you would like more details that I can pass onHi Natasha,
We have quite a few clients coming in from WA as they are very like minded to us QLD'ers although i'm a ring in from south of the boarder. Gladstone is a great region to buy in and yes you do have to be wary of what you buy but what you probably dont know is there is 5 main builders in the area with 2billion real estate/marketing companies competing for peoples business and its very cut throat.
Kent gave some sound advise in saying look for things that may add value to the property in years to come, simple things like larger land mass that may be able to be further subdivided in the future, a external flat or shed goes a long way along with furniture packages.
If your interested in knowing more we are more than happy to help you out even if you don't purchase one of our packages. My one question to you would be what is your main reason for investing into Gladstone?
Here's a post from another thread:
https://www.propertyinvesting.com/forums/property-investing/general-property/4336587
May help with some considerations and direct your further research and due diligence
about the Gladstone region.Careful with brand new in regional centres. Haven't been to Gladstone to investigate personally (YET), however my
slant is older box on decent infill land where they can't make any more. Then there is potential to value add as others have suggested. Whilst Gladstone SEEMS to have good fundamentals and enough projects to keep things buzzing for a few years, this would not be a long term buy and hold if it were me. Milk the (likely) cap growth of the next few years whilst enjoying reasonable rental return, however at/near the top when the market is saturated and the prices get silly, I personally would get out and take my proffits to put them into a metro area……..merely my 0.02.Hi Natasha,
Just read your post and I was/still looking at Gladstone to invest, the areas to be careful about that i have read in newspaper articles, are those suburbs that have fumes from the mines that have caused some problems for families- may have to investigate exactly where they are!
Good luck to you
Jo
Yes I am aware of this thanks, from the top of my head I remember Toolooa or something is not a good area for those reasons so I guess surrounding areas also will be the same.
Good luck to you as well Jo
jojo42 wrote:Hi Natasha,Just read your post and I was/still looking at Gladstone to invest, the areas to be careful about that i have read in newspaper articles, are those suburbs that have fumes from the mines that have caused some problems for families- may have to investigate exactly where they are!
Good luck to you
Jo
Jo,
Ther are no mines in Gladstone. Zero, zilch, none. It is not a mining town.
It may export mining products through its port but it has no mines. People don't seem to realise that.
The areas you are talking about in Toolooa and south Gladstone are the areas that are close to QAL. QAL is an alumina refinery. The majority of issues that arise from QAL are caustic releases. These are few and far between. Years, but they happen sometimes during plant anomolies.
The other issue with Gladstone can be the coal dust from the port. West Gladstone is an area that gets affected but it is also one of the best areas to live.
Do not believe a word that you read in the Gladstone observer articles or the letters to the editor in that publication. Some of the poorest journalism and one eyed contibuters.
The LNG is coming on a scale not seen before, however, that still means that you need to do your research and work out what your plan is.
The next five years will see unprecedented returns and growth but it will not last forever.
Michael is right in that you need to look at future add value properties. For now, new houses are the priority for the construction companies who are sending their workers to Gladstone. These new developements are on the outskirts of Gladstone and some of them are on very minimal size blocks.
Bigger blocks, closer to the centre of town with development potential are the way to go in my opinion.
I have however built 3 houses this year and only because my blocks were purchased previous to the LNG announcements.
The rents have risen $200 per week to an average of $600 a week now.
If you are looking for a quality builder in Gladstone then I can't say enough good things about Craig Price at Coastal Homes in Gladstone.
There are many spruikers offering house and land packages on this and other property forums. If you're happy to pay a $50k premium to sign up with them then you are off your rocker.
Good luck
Austy
Thanks Austy for your info about the fumes in Gladstone- i guess you have to be a bit impartial about what you read in the newspapers. Back to the drawing board.
Regards
Jo.
I believe Gladstone is going to be an incredible performer with Santos and the billions of resources money going into Liquid Natural Gas (LNG) and coal but never forget the basics provided to you below.
BASICS FOR THE BEGINNER PROPERTY INVESTOR
Take a look at a map of the region you are considering, identify the local CBD and draw a circle 15 kms around the central point. Start looking for your property within the circle.
Research, Research, Research! Review data showing median sale prices and rental yields on comparable properties.
For affordability, stay within the second and third quartile of prices in the suburb for both price and rent.
Check demographics, especially population numbers, growth and density.
Is the property within close proximity to schools, shopping centres, university or business hubs that are well established and likely to appeal to good quality tenants?
Does the area have an established public transport network and is it close to the main arterial road network?
Check the local government website for developments planned for the suburb/region, e.g. high density dwellings.
What is the land size? Is there potential for subdivision (or to increase the size of the existing dwelling) at a later stage to increase the marketability?
The newer the property the better the depreciation benefits for tax minimisation benefits.
Unit – best features: minimum two bedrooms, built in robes, bathroom + ensuite, internal laundry and lockup garage.
House – best features: minimum three bedrooms, built in robes, two bathrooms, lockup garage (parking for two), extra storage, low maintenance fully fenced yard.
Is there a current tenant and if so are they paying market rent?
Invest time to find a quality property manager.
I trust this is of some help to you and good hunting!
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