Can anyone give my advice on the Townsville area and investing in a house and land package. A property company has informed me that Oakley Heights and a few other locations for new house and land packages $400-$430 turn key price is a good buy for long term capital growth and reasonable yields. I have done some research myself and originally looked at Gladstone through Emerald and north. I appreciate the Townsville has a broad economic platform for growth with, defence force, University, etc etc has less risk than purely relying on high yields and short term capital growth from the Gladstone type areas. Would I be better buying an established house less than 10 years old regardless of depreciation or for long term investment which I have in mind pay for a new house and land package and grab the qld $10K rebate before april 30?? Any thoughts
G.J what was the outcome of your research in Townsville ?? Have you decided if you are going to invest there ?? I am looking at my second IP and considering Townsville but not sure if that is the place to be although heard good things…
SamAus74. Well I have done a lot or research on this market now to the extent my finance broker says i have analysis paralysis. As a market itself it has no been designated qld’s 2nd capital city by the Governement with almost 200000K people and growing with 4K people every year. It is bigger than Darwin. What I really like about TV is that it has about 5 seperate but equally important economies that make up about 13% of the economy in each category, defence biggest army base in Aust, Lavarack barracks, Raaf base, James Cook Uni, Agriculture rich industries, mining, massive port facilites the export center for mount isa etc, strong retail establishment. So it has a strong mixed base NOT JUST MINING. Tourism about 5% so when downturns occur take a lot at Cairns. Best water supplied city in Australia only negative the occasional cyclone. Looking at the property location side of things I am sticking with a new 4 bedder house land package. I have looked at fairfield Waters (idalia) not much left overpriced, the village oonoonba (lack of detail available could become ghetto with unit blocks being build in precinct although close to cbd. From what I understand many people do not work in the cbd so distance is not such an issue like big cities in other states. I am now looking at the stockland North shore development which is $1billion over 15 years 1000 hectares 15 thousand residents with everything at your fingertips. In fact flying up tommorrow to check it out. You can choose you own builder or take house and land from mid to high threes to early fours. For long term capital growth i think this is sensible. Yields will follow capital growth and are not my priority. this development only allows 28% investors in each stage release which keeps yields stable and an ownership within the community. be careful of some developments with do not have caps as you will have 10 new houses for rent at the same time ie bushland beach. At @$400K for a package with $10K QLD stamp duty refund I will probably take it if I like what I see. I will also look at buying a h/l package near springfield brisbane in a SMSF trust next couple months. Not sure about NRARS as lenders do not like it and it could limit your lending ability for purchasing more properties down the track with equity. Every Fed Gov scheme often ends in disaster. You can pay a premium and get into Gladstone, mackay, chinchilla and the alike for a quick buck $$$$ but thats not for me. Long term strategies in good economic cities with forseable growth. good luckAntheaPropertyParticipant@antheapropertyJoin Date: 2005Post Count: 17
I used to live in Townsville. The Northern Beaches side of Townsville is racing ahead. After many years of talk there are new shops being built out that way. Smaller take-away complex, a Coles anchored new shopping centre, plus new shops (Woolworths) at the North Shore devolopment on the eastern side of the main Bruce Highway, which also has a McDonalds. and the existing Derragan shops (woolworths). I think Oakland Heights is on the western side of the Bruce Highway going north. The Stockland North Shore development will be an extermely large development. Already has new council swimming pool built. There is a new catholic primary school and plans for Townsville Grammar School to build out there by 2015. There is a police station at Deeragun/Jensen just up the road with plans for more police from the city to move quarters out this way. There is also a primary and separte catholic high schools (St Anthonys) and a state primary and high schools all in this vicinity. Only thing it lacks is a good bus service but everyone has cars these day. There are two hotels, one at Bushland Beach and oneThe Bohle. The Queensland Nikle refinery is further up the road at Yabulu. Ther are 2 service stations at Deeragun and another at Yabulu. The Townsville by-pass ring road starts opposite the North Shore development and takes one over the Ross River and to the James Cook University, Hospital and the Army Lavarack's Barracks. Only takes about 20 minutes to get there. You can also choose to go to the Willows Shopping Centre this way or head towards the city and go to the Castletown Shopping Centre. I believe the Defence Housing are having more than a few houses built at North Shore. It is a much bigger subdivision than Oakdale. I hope this helps.
Wow G.J. you have done you research… yes I was looking at NRAS but you are right what happens if the goverment changes and they scrap it or change the conidtions.. also i dont think the banks really like that sort of an investment for borrowing power… I have last year built a house in Marsden QLD which impressed me with a number of new developments in the area and the $ being spent in the region. So long term looks promising and also short term yeilds are good.. so looking at duplicating this for my 2nd IP. Was looking at something closer to home so as to avoid all eggs in 1 basket ( QLD ) scenario but I am leaning towards QLD again..
Looking at high 300K no more so not sure if this price range is a possibilty in TV. Let me know how you go when you get back from there – would be good to hear what you found. I built with Hayman Homes in Marsden and I cant speak more highly of them – from build to communication they were great… hoping the next one will be as painless and stress free as the first was… Yes also thought about the mining areas but I think this is great shorterm but I can see things going pear shaped here if mining suffers somehow and these 600K property owners all want to sell at once…
What I am not sure thou if purchasing my 2nd IP and they will both be negative geared how would I able to progress to number 3 – this is a great post and is exactly my questuon which no-one can answer it seems – understand everybody is different
and is exactly my question which no-one can answer… At some point you will also need a +ve cashflow or neutral property to offset the negative ones I would have thought.. but my question is where do get such investments ?? and is that the correct strategy to have some negative, some neutral and some postive? and how can you continue to purchase property if they are all negative geared – I suspect you cant. My concern is I dont want to get to Number 2 or 3 and then stop.
Your thoughts on this ????
Keep us updated.. thanks for the repy as well..
Thanks for the post Anthea. It reaffirms my weeks of studying Townsville as a solid long term place to invest. I am from Sydney and would steer very clear of NSW and VIC as both States are broke, new GOV and private investment in bugger all and affordability is dire. With mining boom mark2 about to begin you will see the majority of this money flow into QLD and WA and this can only be good for infrastructure spending and continued strong growth and large towns/cities.learning curve2Member@learning-curve2Join Date: 2006Post Count: 36
I grew up in Townsville and moved away over 20 years ago but go back every few months to see family. I bought my 2 investment properties there (contemplating a 3rd) and although, looking back, I had no real clue as to what I was doing, I knew it would be a winner as all you say about the stable, multi pronged Townsville economy is true. There is big money in that town…
On another note, I was wondering has anyone heard any further developments re: the defence force land buy up in Rasmussen? One of my houses would be just across the road from this and I would love to see a few more shops/school/facilities pop up
A few notes of caution – insurance is a little steep due to cyclones and remember parts of Townsville are built on a reclaimed land so watch for flooding. previous flood history is not reliable as the place has grown so much, the lay of the land (so to speak) has changed.
Feel free to ask any other questions re: the area. We are now up to the 5th generation of my family living in the region.
SamAUS74. Let me say I am certainly no expert invester or near. This will be my 1st IP on my own and I have been furiously locked to this computer driving myself mad trying to understand things. You are right to keep properties in different areas as I would like to buy 2 in townsville but would not take the risk. Thus looking at Augustine Heights near ipswich with MASSIVE development into next suburb on springfield, “check it out” from what Ive heard brisbane will take off again in about 24 months so good time to get in with h/l package in cheaper area. You can buy into northshore townsville for the price you mention. It may be a 3 bedder but I dont think that is such a big deal as people dont seem to have large families like they used to. Also if you rent do you really want to look after a 600-700 sq meter block of lawn and garden every week? You can do many things with neg gearing and cash flow set ups if you have know a very good financial advisor/broker. You can legaly set up accounts where your rent payments go into your own morgage offset account to reduce bad debt. I have been informed you must run interest only on all your investments including own morgage and hope to achieve max capital growth to keep purchasing. I like the look of nRAS on paper for pos gearing but other more informed are telling me to stay away. I will post when i get back from the north on monday and let you know how much of the banks money i have spent. remember the 10K qld grant can be put straight into your own morgage. nice little earner
regardslearning curve2Member@learning-curve2Join Date: 2006Post Count: 36
this just in the local paper today….
and a bit more about the DHA land purchase at Rasmussen
Thanks for info on local issue about north shore. good to know. If thats the worst issue so far thats a good thing.AntheaPropertyParticipant@antheapropertyJoin Date: 2005Post Count: 17
I am not a fan of -ve gearing. I've always needed an income and need to look at properties that have +ve cashflow. It is not a sin to pay tax. It means you have made money. I assume your ultimate aim is to replace your working income with passive income. You eventually need to pay tax. Another popular thing to do that is choose a property that will give you a lump sum and and possibly an income as well. There is plenty of info on this website. You look for bigger blocks of land that can be subdived/ sell the spare block/ build a second home and have 2 incomes/ buy flats. There's heaps of different things. But you are right -ve geared properties means you have to make that money with your wages before you can eat and do other things.
SamAus 74 for your info i’m back from Townsville and liked very much what I saw. Bought a land lot in Stockland North Shore development and putting 4 bedder on it. all up @ $406 plus stamp duty for 214sq new dwelling on 500sq good placed lot @$419 with stamp but i wil bank the $10K qld rebate in my morgage instead. check out north shore site on web for flyover of development. I checked out all my research during my 2 day adventure and basically struck off each one on the way. i did a full circle and had no problems putting a hold on this place. great spot townsville its got everything you need and very easy to drive around. you can see why so much growth is happening here/? Numerous new estates underway and popping up to accomodate 4000 new people every year but they will run out of premium space at some state as areas push way out of town. public transport does not exist as its easy to get around in a car which everyone does. As mentioned you want get the high reward high risk results like some smaller mining based towns but you will get good growth with better security over time. If I didnt want to use the spread your assests principle I would happily buy another property in townsville.
regardsmjbluueMember@mjbluueJoin Date: 2006Post Count: 14
Hi G.J, what's the expected the rent on the property? Also interested to hear anyone's views on the supply / demand dynamics. With what seems substantial amount of land been released in North Shore, Ascot, Ras etc …will there be adequate demand drivers to keep vacancy rates down? Or would the alternative be to buy in established suburbs like Kirwan which is already densified and can't be built out. Thanks for your thoughts.
MjmattstaParticipant@mattstaJoin Date: 2011Post Count: 604
so your financial broker says you have analysis paralysis?
I'd suggest o just make a decision.
If I were you, I would invest a new house and land package and grab the qld $10K rebate before april 30 – times a wasting to get this one though
good point mjbluue with north shore each stage is a staggered released locked at max 28% investor per stage on initial purchase. usually the smaller lots are better for investor packages which sit alongside the larger owner occ dwellings. i looked at kirwan at willowbank estate a few lots left. close to willows shopping and central location but no of the same standard set by north shore development. this was obvious by when driving around. good spot and popular as close to barracks, uni, hosp. north shore is a 10-15 year project by stockland who use this model elsewhere check out sunshine coast brightwater estate (smaller version). they are very good rolling out the infrastructer first which draws the people rather than the other way around.
Thanks GJ for the info – sounds very promising… would have to move fast to get the $10K bonus thou… but northshore sounds the pick of the bunch……… will check this out.. and keep you posted…
Yeah, you can still lodge the intent to claim rebate with the QLD OSR by just signing a holding on the land I believe but you must have the full contracts submitted by end of August. The rent @townvsville would be $410-430 perhaps 450 with a larger 4 bed house in lieu of smaller invester style 4 bedder. If you need more advice on Townsville you can contact me direct. All I need now is to find the next investment somewhere else in QLD?
Tried emailing you direct but it says you are not accepting emails !! Not sure what that is all about – I have recently purchased in the Logan Council area and pretty happy with it.. again long term, but rental is pretty good – in high 300s… has a lot going for it with its proxmity to both Brisbane and Gold Coast…
no worries I wil muck around with the profile set up later tonight. I was looking at augustine heights next to sprinfield in brisbane. massive infrastructure happening in sprinfield new train station 2013 etc etc etc but others will spear you toward mining towns and dismiss brisbane so little unsure as to what risk factor im looking at? also sunshine coast has some promising things happening around the new $2b unvirisity gold coast hospital. Not sure what other employment factors are around but the population is heading toward half million from 330K which is massive demand in general.PjevansMember@pjevansJoin Date: 2012Post Count: 7
First post !
I think i'm in a very similar position to most of you guys, spending most of my spare time on the net trying to find that right property. I've stumbled across a few properties in the Townsville area that has certainly suprised me. Particularly a nfew places in Hermit Park. Can anyone provide any feedback on that area ? I've recently returned from a trip to Cairns which also appeared to have a few + ve cash flow opportunties around but after speaking with several agents, picking the wrong superb within Cairns appears to be quite easy to do !
Appreciate any feedback