‘Now is the time’ to invest in a property
NOW is the time to invest in Gladstone’s property market, Ray White Gladstone director Andrew Allen says.
Mr Allen said it had been a “remarkable” period in Gladstone as of late.
“We’ve been seeing people pick up great investment properties, which is certainly something that was unheard of five years ago,” Mr Allen said.
“We felt a change in the sale market early this year, but since July the evidence has emerged.”
He said it was the influx of imported workers that flooded into the area to support the massive gas plant construction in 2011 that contributed to the property market.
“The market was overcooked,” Mr Allen said.
“So when the gas company work was completed, the property market collapsed.”
Gladstone investors have managed to score some remarkable buys lately, including a duplex on Aerodrome Rd that sold earlier this year for just $140,000 and is now tenanted at $140 a week for both units.
Mr Allen said a declining local vacancy rate would eventually push up rents.
“A property that you would rent in Gladstone for say $200 a week, could cost you double that in nearby Bundaberg,” Mr Allen said.
He believed it was a matter of time before those rates were realised in Gladstone.
Opportunities in the property market include a small apartment at 5/32 Elizabeth St, South Gladstone which is currently on the market for $75,000.
Another property currently on the market is a contemporary single-level duplex located at 27 Mylne St, West Gladstone for $290,000.
The rental return on that property is expected to be $320 a week, including both sides.
Mr Allen said that return is expected to move toward $400.
Number 3 Telopea Place, Kirkwood is a four-bedroom, two-bathroom home on a large block for just $349,000.
“That is a very nice property indeed,” Mr Allen said.
“The building alone would cost $300,000 to build, so you’re only paying $49,000 for the land.”
“If it were in Bundaberg you would be paying $450 or more, and the asking price would be around $430,000.”
The current rental return expected is about $370 a week.