Not that uncommon, I recently secured a $100 a week decrease as a tenant in Gladstone down to market rate.
Gladstone QLD - How is it Going????
- Thread starter charlieandkath
- Start date
Not that uncommon, I recently secured a $100 a week decrease as a tenant in Gladstone down to market rate.
The thought did cross my mind. I got on to Realestate.com and called a couple of other PM's that had rentals available in the same area (Kin Kora). They both said that if I was to lose the tenant the property would more then likely sit empty for awhile and I may only end up with that price anyway. One told me that there was 360 rental properties available in Gladstone last month and now the number has increased 600! They had a dredging company hand back 42 properties that morning!!
ouchy!!!! I had to drop my rent on one of mine by 20% recently, from 350 to 265! which represents a drop of almost 25%
Wise words. Everybody gets spooked thinking whatever happened in the last 6 months is what will continue to happen forever (booms and busts). Look at the history of Gladstones house prices, it's very boom and busty, but the long term fundamentals are solid. To say it's 'crashed' is an overstatement IMO - http://www.sqmresearch.com.au/graph_median_weeks.php?postcode=4680&t=1. It's just been flat for 2 years and rents have dropped a bit. Still easy to CF positive if you buy wisely. Be lazy and order a H&L package via email and you won't do so well.
This is our countries Industrial muscle city that still has excellent long term prospects (if you have nerves to ride out the bumps along the way).
I could sell out today and probably come out ahead (only slightly) but I'm not going to.
'Our lands abound in natures gifts'.... coal, alumina, aluminium, cement products, Sodium Cyanide and Ammonium Nitrate. The LNG comming out of Gladstone is so significant on a global scale they even brand it 'GLNG'. We supply 30% of the worlds coal. There is also a huge agriculture and tourism industry as well.
P.S. The Japanese just shut off their last nuclear power plant due to the tragic Fukushima experience... what is the next best 'clean' fuel source and who has that?
We've been advised by our PM to lower our rent from 480 to 380 otherwise she believes the tenants will move on to somewhere else, due to lowering rents they have many choices. They are looking after the place well and are good tenants so we will agree. This house has DA for a 4 townhouse development which we hope to complete when the market improves.
We also purchased an OTP unit which due to time delays will be completed early next year. We've put 10% down and are now worried due to supply the value will come in lower then what we paid. I know this can be an issue when buying OTP so I just hope we can get finance when needed and that we can find tenants.
Hopefully this is just a short term correction and we can ride it out but it's certainly scary times ahead for some investors invested in Gladstone.
We also purchased an OTP unit which due to time delays will be completed early next year. We've put 10% down and are now worried due to supply the value will come in lower then what we paid. I know this can be an issue when buying OTP so I just hope we can get finance when needed and that we can find tenants.
Hopefully this is just a short term correction and we can ride it out but it's certainly scary times ahead for some investors invested in Gladstone.
Not entirely accurate. Just one project by Santos is called GLNG. The other two are QCLNG and APLNG. All have different stake holders but are being built by Bechtel.
This graph tells the story pretty well: http://www.sqmresearch.com.au/graph_median_rent_weeks.php?postcode=4680&t=1
Small jobs boost for Gladstone next year, the new shopping centre at Kin Kora is commencing construction.
http://www.gladstone.qld.gov.au/c/d...b-fec7-4330-b215-7e8ecc0d9e09&groupId=1570002
http://www.gladstone.qld.gov.au/c/d...b-fec7-4330-b215-7e8ecc0d9e09&groupId=1570002
Just got a call from PM saying the tenants will stay on if we decrease the rent by $100 PW.. Nice of them to give us the opinion I guessOuch.. That's gunna hurt! Well I won't have any problems lifting the rent when the time comes.. If the time comes??
Have you already decreased the rent $100 a week earlier this year?
No I have only decreased it $100 pw this year.
Do you mean decreased the rent just now?
I dropped mine in April but fortunately it is a one year lease so I'm hoping it stays the same as this next year.
Wait till you get your new Insurance premium! I just spent $4600 last month to pay both the rates and the insurance. It's enough to make one want to sell up and leave town.
I dropped mine in April but fortunately it is a one year lease so I'm hoping it stays the same as this next year.
Wait till you get your new Insurance premium! I just spent $4600 last month to pay both the rates and the insurance. It's enough to make one want to sell up and leave town.
If that's rates paid annually and insurance, you'll find that it's still more than that in quite a number of other regional centres further north! If it's half yearly rates, then...
Yeah the lease is up on the 25th of October
Our tenants moved in in April on a twelve month lease because they were so happy to be moving closer in, from Agnes Waters, and wanted the stability. Remember they are paying $150 a week less than the group who moved out, down from $650, although I thought $600 would have been fair at the time last year. The current lease has a typical "rent review clause" after six months, so they want to know if we will drop it another $50. Who do they think they are? The house is a kilometre from the new Woollies shopping centre and the other shops and two schools at Sun Valley, not on 400 m2 at Calliope or Benaraby.
Does this mean they have the option of leaving if you dont drop the rent? I dont remember having these clauses when I was renting but it may have been there.
Also rent here is dropping fast. 4-2-2 are back under $500 (in Gladstone, Calliope is under $400) so you need to start doing something to make your house stand out. By xmas I can see this being under $400 just by going on the amount of houses that are under construction.
They think they are tenants in a market where the tenants have the upper hand. And from reading this thread, it seems they could be right.
SQM Research has the vacancy rate for postcode 4680 at 7.1% for September, with the median asking rent for 4+ bedroom homes at $500 per week, down from nearly $700 a week 1.5 years ago.
