Gladstone agents are rolling out the red carpet for tenants
GLADSTONE agents are rolling out the red carpet for future tenants, but what is the reaction from landlords?
The region currently has about 800 rental properties listed on domain.com and realestate.com.
Good quality units and townhouses that were renting at $600-$700 per week have dropped back to $450-$460.
Houses that were renting at $550 have dropped a further $100 a week.
But how do landlords feel about the price drop?
Gladstone investor Russell MacKenzie has two investment properties in the region which he has owned for 11 years.
The Melbourne-based investor said it is definitely a long-term investment.
"I suppose over the 11 years we've seen a couple of cycles with projects finishing and the company houses get dumped back on the market," Mr MacKenzie said.
"But it's not long until the next project comes up.
"There are peaks and troughs like there are anywhere."
Mr MacKenzie said his Glen Eden house has probably dropped $40 in the last 12 months as has his townhouse. But the investor did not seem concerned.
"It's about being flexible with your expectations," he said.
"At the moment rents we're getting now are probably much the same as we were getting two and a half years ago."
Mr MacKenzie said this was where people fell into the trap.
He said in the periods of high rental return they purchase and think what they buy is gold but they don't look at the longer term.
He said while the selling value obviously dropped since 12 months ago, his properties over the 10 year period have doubled.
"Roll with the cycles.
"And enjoy it when it's good."
Gladstone Ray White property management and leasing director John Fieldus said it is currently a tenant controlled market.
"Now Gladstone is extremely affordable for the little guy to come back to town as well," he said.
Mr Fieldus urged people look north when considering a move.
"During the boom people probably escaped to Bundaberg," he said.
"I would encourage them to look up north - don't be scared of the rumours.
"We've got 800 places here to move into immediately."
He said housing 12 months ago was in a position where you couldn't get one.
"Now it's in a position where, since six months ago, you have the pick of the crop out here if you want."
When asked about the over-supply of housing, Mr Fieldus said Gladstone performs at a high level.