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This Is A Warning
Be very careful about investing in Gladstone due to its long term potential
Finding Investment Suburbs For Under 450K
Gladstone in regional Queensland has been heating up for months. However I advise investors to move with caution as the long term prospects of Gladstone remain concerning. Please read :)
Suburb Details:
Suburb | State | Postcode |
|---|---|---|
Gladstone LGA | Queensland | 4680 |
Investors who have missed out on Townsville are beginning to target suburbs in Gladstone expecting the same growth. Despite the short term data showing signs of strength including days on market, stock on market, its long term data is what is concerning. Suburbs including Kin Kora, Clinton, & Glen Eden are some that are exponentially growing in growth and does not show any signs of slowing down. This is leading some investors to think that it is the next Townsville and Mackay.
Key Data Metrics
Metric | Actual | Trending |
|---|---|---|
Days On Market | 47 | Falling |
Stock On Market | 0.96% | Falling |
Vacancy Rate | 0.65% | Falling |
Current Population | 37,703 | - |
Online Interest | 78 | Trending Up |
Vendor Discounting | -5% | Flat |
Proportion Of Renters | 31% | Flat |
Location & Infrastructure
Gladstone is a coastal city in Queensland, Australia, located approximately 550 kilometers north of Brisbane. It is a key industrial hub, primarily known for its large port facilities, which include the Port of Gladstone, one of the busiest in the country. The city's infrastructure supports its industrial activities, with significant investments in transportation, including road, rail, and maritime networks. Gladstone is also home to various educational institutions, such as Central Queensland University and numerous primary and secondary schools. Health services are comprehensive, with the Gladstone Hospital providing extensive medical care. Recreational amenities include parks, beaches, and the Gladstone Marina, offering a blend of leisure and lifestyle opportunities.
Other Important Factors:
Council rates are incredibly high compared to other investable locations. On average they exceed almost $3500. This will have a serious impact on your net rental yield - Source.
Gladstone is being primed to become the next renewable energy hub with a lot of interest and investments from companies and the government. However these are merely plans and plans can change.
Its economy is not well-diversified and if one industry fails it can lead to job losses increasing vacancy and crashing property prices in the area. This has happened previously hence Gladstone is know for its cyclical boom bust nature. - Source
Nearby Major Projects:
Why Buy Under 450K?
The reason I started I looking for properties under $450,000 is because it takes forever to save enough cash for the average worker. With about $45,000 (10% Deposit) and paying Lenders Mortgage Insurance (LMI) you can enter the market today in a regional location. And when you pick the right property in the right location you make some serious equity!
Example Property:
Metric | |
|---|---|
39 Sutton Street, Barney Point QLD 4680 | |
Purchase Price | $400,000 |
Stamp Duty | <$18,000 |
10% Deposit | $40,000 |
Expected Rental Price | ~550-600/Week |
Expected Rental Yield | +6% |
*Note: These calculations are purely estimations, but overall numbers will vary depending on your deposit, interest rates and other factors.
Pro’s Of Investing In Gladstone
You will have short term capital growth (1-3 years).
Strong rental yields with low vacancy rate.
Days on market is average however supply is low → Strong Demand.
Con’s Of Investing In Gladstone
Highset homes can be a number of problems, do building inspections.
Gladstone falls under a flood zone. Higher insurance costs. Higher council rates.
Poor economy, not well diversified. Hinged on becoming the next renewable energy hub.
Gladstone known for its cyclical nature, boom and bust location.
Ultimate Verdict
Gladstone in the short term will make money, however the long term prospects aren’t ideal. For investors on their 4rth, 5th investment this may seem worth the risk. However people looking for their investment property should think twice about investing here and don’t fall into the hype. Remember there is always another deal!
Who Am I?
I am not a buyer’s agent, property guru or anything, just an individual playing the property game just like everyone else. I have a passion for identifying high growth investment suburbs where they you purchase property for $450K, why $450K you ask? Because it means you can enter the market with about $45,000 (10% deposit + LMI & Stamp Duty) and begin to reap the rewards of capital growth.
Remember Past Performance Is Not An Indication Of Future Performance. Do Your Due Diligence
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Disclaimer: The information provided in this article is for educational and informational purposes only. It is not intended as financial, legal, or professional advice. Always do your own research and consult with a qualified professional before making any decisions. The opinions expressed here are solely those of the speaker and do not reflect the opinions or views of any other organization. By using this information, you agree that the creator of this content is not responsible for any financial or other losses you might incur.
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