Hervey Bay Qld for investment.

Hi everyone,
Have just paid off my mortgage on PPOR was looking to buy first IP. Was wondering if anybody had any thoughts on Hervey Bay Qld. Not sure what to buy yet thought I would research different areas first. Hervey Bay looks like a beautiful place, population around 50,000. Lots of schools and new shops. Not sure on Hospitals and work situation. IP would be a cheapie as our has is valued at around $400,000. Any ideas or advice would be great.

Thanx.

k71 said:

Hi everyone,
Have just paid off my mortgage on PPOR was looking to buy first IP. Was wondering if anybody had any thoughts on Hervey Bay Qld. Not sure what to buy yet thought I would research different areas first. Hervey Bay looks like a beautiful place, population around 50,000. Lots of schools and new shops. Not sure on Hospitals and work situation. IP would be a cheapie as our has is valued at around $400,000. Any ideas or advice would be great.

Thanx.

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I bought there in 2006 off the back of Residex's Future best capital growth suburb report. It was in top 5 Aus wide.

I havent seen any growth in the area since my purchase, however Hervey Bay is considered one of the best investment areas in SE Qld. The Hervey Bay council is one of the fastest growing councils in Aus, the incresae in tourist traffic has been astronomical each year (especially with the airport upgrade) and direct Virgin and Jet Star flights from Sydney and proposed flights from melbourne. The populations has grown from 38,000 in 1996 to over 52,000.

New Infrastructure includes a new $2 billion development along the beach, marina, Peppers resort, multiple shopping centres/ chain stores in Eli Waters, upgrade of the Charleton Esplanade and a number of very high end developments in Torquay and Scarness.

A potential draw back is the number of new stock (townhouses) that had been sitting in the market for a while creating downward pressure on any potential increase in values. Most of that stock is now gone.

API has a big feature on Hervey Bay in their latest edition. Definitely worth a read.

Harris

you can download a copy of the economic profile of Hervey Bay from here:

http://www.herveybay.qld.gov.au/documents/community/eco profile.pdf

Thanx so much for the information. Will definately have a read.

http://www.oceanblueherveybay.com.au/ may be of interest as well

For those who are familiar with HB, are there large tracks of land owned by developers just waiting for the explosion before they "flood" the market with stock so to speak? There might be lots of people moving up there but if the area is not sufficiently land-locked, its tough to get the surge in cap growth significantly over and above CPI. Any thoughts from the locals??

Hi there!

I live at Hervey Bay

I'm not sure about land owned by developers. There are a lot of new estates popping up all the time. The development seems to be moving out towards Dundowran area, where I live. There is a lot of spare land in between here and town which I'm sure will be developed with time and I know that there are/were applications in for some of it.

Hospitals. There is the public hospital which is quite a good modern hospital. And across the road there is the new St Stephens private hospital which currently only has day procedures, but there is a lot more extending to be done.


One of the shopping centres here is being extended to include big w and lots of speciality shops. I'm not sure what's happening with the other shopping centre, but there is something going on behind it. There is also a super mall thing going to be built soon. Hungry Jacks is also in the process of being built.

Um, what else. The house prices have been pretty stable I think the last two years. Retirement villages are a big thing here too with new ones popping up all the time.

I'm happy to answer any questions you have.

Christie

Thanx everyone for the response. Will be heading up there to check out the area in a couple of weeks. Hi Christie Lee, great to hear from someone who actually lives there. My only other question really would be about employment. Are there a lot of employment opportunities? If so what sectors?

For anyone thinking about Hervey Bay, please do some thorough research and be very careful. I have been studying the place solidly for the last twelve months and have been there three times in 2007 to make sure for myself. For the record and so people don't take this the wrong way, I will be buying there and I have a shortlist of properties I will be following up on as potential PPOR. I also have a 'long list' of potential IPs to consider.

I have compiled plenty of information particularly from real estate agents there and I have found that two more prominent 'local agents' (not any of the national franchises) consistently over quote property prices i.e. their final sales prices (if they sell at all....and a lot of them haven't) are $50K - $60K below what they are advertised for. Most of these places are still on the market after 12 months. So be very, very careful and don't believe a word of the media and agent driven hype surrounding the place, especially apartments and townhouses.

HB has had a big growth spurt, mostly 2004 - 2006, after which things have plateaued big time. So be very selective and be wary of over quoted pricing and rent appraisals from agents......don't get sucked in.

One of the 'spruiking' agencies actually sent out a Chamber of Commerce presentation from Herron Todd White with their newsletter. It makes interesting reading and is attached, I couldn't attach the PowerPoint presentation...sorry.

Bottom line is HB will be a good thing in the years to come, but it is going to take time. Just be very particular about what you buy into.

Cheers,

Ian.

2012 update

Hi there, I'm new to this forum and I came across these posts. I have been starting to look into Hervey Bay and I would be very interested to hear your views now that it's 2012.

What is going to increase the values of HB? And dont throw in shops, a beautiful place etc etc. The fundamentals I dont think are there for consistent long term growth.

Incomes and jobs arent there for values to rise. Stick to Brisbane, you'll do much better.

JennySilk said:

Hi there, I'm new to this forum and I came across these posts. I have been starting to look into Hervey Bay and I would be very interested to hear your views now that it's 2012.

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Properties returning 7-8% some times more if you get creative close to Gladstone Colton coal mine awaiting final green light several other explorations for the MaryBorough basin.

Most houses are brick not very old and selling for less then you can build

several suburbs ranked in top ten rental areas in Queensland

ranked 46 in top 100 places to rent and live 2 suburbs in top 100 was 3

however the smaller suburb no more have rated..

http://finance.9msn.com.au/suburb.aspx?suburbID=30514 ranked 46

absolute beachfront houses under half a mill and they are real beachfront

Tony abbot and Campbell Newman have both been to the area to promote in the last few months


council are campaigning live here work there campaigns their have been a few new FIFO companies come in a new small one in the last week
http://frasercoast.qld.gov.au/web/fraser-coast-opportunities/resource-sector

intrastate flights coming on board flying between herveybay-gladstone-mackay-moranbah-black water-emerald

new 100 Million hospital
http://www.frasercoastchronicle.com...ealth-project-new-hospital-fraser-coast-heal/
new school child care centre and supermarkets planned for Dundowran Beach
http://www.frasercoastchronicle.com...ouncil-development-approval-causes-confusion/
which is a few mins from Toogoom. although there are currently 2 schools including a high school less then 13mins down the road at the moment.
Destination Q announced by Campbell Newman Hervey bay
http://www.frasercoastchronicle.com.au/story/2012/04/04/premier-unveils-tourism-strategy/
current Mining explorations
http://www.blueenergy.com.au/_dbase_...te Final.pdf
http://www.guildfordcoal.com.au/kolan.aspx
http://www.tiarocoal.com.au
http://www.northernenergy.com.au
Other developments
800 million Marina Redevelopment
120 Million whyndham resort
http://frasercoast.qld.gov.au/web/fraser-coast-opportunities/tourism-opportunities
Solar farm
http://www.frasercoastchronicle.com...-farm-project-construction-begins-hervey-bay/

I do own property in Hervey bay and intend to buy more in the near future waiting for an op so holding off until recovered.

BernieLarkham said:

What is going to increase the values of HB? And dont throw in shops, a beautiful place etc etc. The fundamentals I dont think are there for consistent long term growth.

Incomes and jobs arent there for values to rise. Stick to Brisbane, you'll do much better.

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Plenty going on in hervey bay mines Gladstone overflow large developments marina getting revived etc

you would be surprised how many work in the resource sector and live in Hbay...

HB is primarily a tourist town, and with the GFC a lot of people have taken a hit, from the motels to the restuarants. Operating hours of these shops are being shortened due to lack of tourists and the money coming into the region which in turn means more people unemployed. My aunty and uncle have a motel there and are struggling to get people in. Even in peak times such as christmas they had vacancies which was unheard of a few years ago!

Take a look at unemployment rates for the region which is maryborough + hervey bay was at , 8.8% at dec 2011 compared to qld average of 5.5%

The major employment for the region is...

0.8% mining
10.8% construction
13.3% retail trade
9.1 % accomadation and food serices
12.9% health care and social assistance.


stats can be found http://statistics.oesr.qld.gov.au/qld-regional-profiles

prices for houses are getting below 2006 prices which seemed to be the boom town for the time.

I grew up in Maryborough, and was down at hervey bay in feb this year.

Rowena

rowena said:

HB is primarily a tourist town, and with the GFC a lot of people have taken a hit, from the motels to the restuarants. Operating hours of these shops are being shortened due to lack of tourists and the money coming into the region which in turn means more people unemployed. My aunty and uncle have a motel there and are struggling to get people in. Even in peak times such as christmas they had vacancies which was unheard of a few years ago!

Take a look at unemployment rates for the region which is maryborough + hervey bay was at , 8.8% at dec 2011 compared to qld average of 5.5%

The major employment for the region is...

0.8% mining
10.8% construction
13.3% retail trade
9.1 % accomadation and food serices
12.9% health care and social assistance.


stats can be found http://statistics.oesr.qld.gov.au/qld-regional-profiles

prices for houses are getting below 2006 prices which seemed to be the boom town for the time.

I grew up in Maryborough, and was down at hervey bay in feb this year.

Rowena

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as far as we are aware the Easter trade was up more then it has been in years I agree it has been down since 2007 until Easter this year lets see what the new mayor does...

10mill in funding is being sorted for airport infrastructure right now directly for the resource center.

as any towns there is markets within markets I wouldn't buy right in certain areas in boat harbour drive for nstance however I would buy in surrounding suburbs where people want to live.


also peppers, Ramada etc took quite a bit of trade from small motels I would think...

I also don't agree with only 0.8% maybe direct with mining however those stats most likely take in full time workers and not industries contractors etc that work indirectly with the resource industries and would not take into account colton project or tiaro if/when colton goes through maryborough basin is quite large I think maryborough-Bundy will do well in the future IMHO.

Hbay itself has people living here and working in the resource sector which is evident in councils research and campaigns

houses are selling on 7%+ returns I think the more that move here the tighter the market will get many agencies are asking for more rentals as there stock is dwindling

this one sold for 210k and returns $300 per week

http://www.realestate.com.au/property-house-qld-toogoom-110035721

rental prices creeping up

http://www.realestate.com.au/property-house-qld-toogoom-407609265

4-5 bedders getting $330-$400 and selling under $300,000
no way you would build these for that sort of money.
higher end if allowing pets

not bad rent for a place with no employment

"The smoothed unemployment rate for Fraser Coast Regional in the December quarter 2011 was 8.8 per cent."

of course slow do nothing council not pushing industry to much red tape which is being well cut...

which I have posted several recent links from 2012 above.

also loss of tourist was directly caused by the Fraser Island barge being moved to river heads

as the tourists are going from the airport to river heads back to the airport on down to rainbow etc the barge is rumored to be moved back to help the marina revival

many shops closed in the complex because of this..

as above destination Q was directly launched at the marina in hervey bay

http://statistics.oesr.qld.gov.au/r..._asattachment=false&__svg=false&__format=html

I would not put to much stock in 2011 stats talk to some locals agents etc to get a real idea of whats going on right now...

JB HI-FI are opening soon and employing quite a few people. surely they did some research before committing to the area as well as the renewal in projects in dundowran and stocklands...

James_w, I had a contract offer on the one in your first link. They were willing to sell for about 190k. A regional plan stopped me from subdividing it, so I moved on. Did you have a bite at it?

I agree that Hervey Bay has a low cost of entry. Value for money? It is a little bit in the eye of the beholder. My mates just bought an old two storey QLDer apx 750 sqm block with some views of the water that needed a fair bit of work.

They paid 145k and have moved straight in. Repayments are about $210 p/w.

Capital gains? Maybe. IF people's incomes in the area start going up, then it should have a big flow on effect in the Bay's property prices.

At the moment though, there aren't many people with a disposable income. I absolutely agree with with James_w that quite a few people who live in the Bay are employed in the mining industry. If more workers move to the bay then it will have a flow on effect.

Cheap entry. Value for money PPOR. Capital Gains? Your guess is as good as mine. I agree with pretty much everything james_w has mentioned.

Risky Business said:

James_w, I had a contract offer on the one in your first link. They were willing to sell for about 190k. A regional plan stopped me from subdividing it, so I moved on. Did you have a bite at it?

I agree that Hervey Bay has a low cost of entry. Value for money? It is a little bit in the eye of the beholder. My mates just bought an old two storey QLDer apx 750 sqm block with some views of the water that needed a fair bit of work.

They paid 145k and have moved straight in. Repayments are about $210 p/w.

Capital gains? Maybe. IF people's incomes in the area start going up, then it should have a big flow on effect in the Bay's property prices.

At the moment though, there aren't many people with a disposable income. I absolutely agree with with James_w that quite a few people who live in the Bay are employed in the mining industry. If more workers move to the bay then it will have a flow on effect.

Cheap entry. Value for money PPOR. Capital Gains? Your guess is as good as mine. I agree with pretty much everything james_w has mentioned.

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No I missed the one I posted in the link it seemed like a good buy I rang the town planner but never heard back from them and it was gone

regarding splitting interesting it wasn't allowed as a few blocks in that street are 1/2 acre blocks.

a few good buys around still but things are starting to sell reasonably quick

james_w said:

No I missed the one I posted in the link it seemed like a good buy I rang the town planner but never heard back from them and it was gone

regarding splitting interesting it wasn't allowed as a few blocks in that street are 1/2 acre blocks.

a few good buys around still but things are starting to sell reasonably quick

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Yeah, it was an interesting one. Previously two 2000sqm park residential allotments. House on one allotment. All looked really good for a subdivision but I had to chase up another rural overlay which prohibited any subdividing. Because the street was a tiny little insignificant street, the rural overlay was painted straight over the top of it. Shame. But a quick learning process.

Definitely cheap in the Bay. I just got some vals done. Some scary vals. Saw the equity evaporate in front of me.

So Hervey Bay hasn't been going well for a few years now.. What's the thoughts on a market improvement based on the resources boom and the councils push for FIFO workers to "live here-work there"..

Also just noticed the new $88m hospital is 6 months away from construction, due for completion by 2014. Supposedly going to be one of the most state of the arts hospitals worldwide.. See link below:

http://www.frasercoastchronicle.com.au/story/2012/07/03/hospital-start-date-six-months-away/

Plus there is a $12m boost to the region for the Building Better Regional Cities government incentive.

Does anyone/locals think the market is likely to turn around quickly based on these types of investment into the area? Any feedback from anyone who knows the market well would be great!

Cheers

Hervey Bay QLD reminds me of Mandurah WA