Any investors in Townsville?
What suburbs are you guys/girls considering or have invested in for capital growth and yield?
What type of property?My list:
Suburbs:
Kirwan and surrounds due to proximity to Thuringowa CentralGulliver, Hermit Park, West End etc due to proximity to CastleTown and CBD. Flood free.
North Ward if possible due to the Strand
AVOID:
North Shore and any large new developments like Oonoomba.Property:
3+ bedrooms, no pool, A/C, < than 15 years old or fully renovated recently, reasonable sized 450-800m2 block, low maintenance. Bottom third for price range.Duplex with the above but 2+ bedrooms each.
Not units due to high Body corporate fees and oversupply especially in the CBD
Thoughts?
I think you're on the right track- definitely Gulliver, hermit park and west end are likely performers. I am very hesitant on Kirwan due to the large indigenous population and the crime and social problems that come with it ( I certainly wouldn't like to live amongst it!!). North ward I see as overpriced but also seeing potential there in old blocks of units on single title.
Agree about avoiding the new development area in Oonoonba. I personally am invested in the old Oonoonba right next door to all this development in the form of a duplex on 1012m2 (all blocks around here are 1012m2!!), as well as Gulliver (house) and Currajong (unit).
There are some great opportunities around at the moment, even for positive cash flow (rare for Townsville) and I don't think it will remain like this for long. All the growth drivers are there, I'm leveraging up and holding onto my hat!
Hi mate, goods to see somebody talking about Townsville!
I live off golf links drive and think that this side of kirwan is great their is next to no crime here, but the other side of kirwan is quite different when it comes to crime and so forth.. i believe the best 2 suburbs at the moment would be
Garbutt-it seems to be a place for property developers at the moment a lot of renovating going on and the large blocks 800-1000 very close to the city it is slowly becoming modernized.
South townsville– also very close to the city and with the plans for a new stadium their i believe it has great capital growth opportunities. i would also stay away from units i believe Townsville has an oversupply.
anyway thats my opinion for the moment DYOR
hey bugeye,
I've lived in the "good" side (other side of Kern Bros) and have also had no problems.
South Townsville would be good if you could find a spot that didn't flood every year!
I agree with the oversupply of units too. Seriously large apartment buildings going up near the CBD. If I was to find a good deal for a unit, it would be in a complex of less than 20 anyway.
Hi Guys
Have had 2 Investment properties in the new part of Kirwan and would rate them as good steady performers over the last decade.
Nothing spectacular but no major headaches either
Cool thread. What sort of capital growth have you guys observed in the past 5-10 years in the Townsville area? I do fancy a QLD holiday, a bit of a tour of Townsville might be in order!
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
I spent 2 week sin Townsville researching the area in December last year.
I did like what I saw, Townsville is growing to become a major satellite Business City for Northern Queensland.
It does not rely on one sector and has a diverse demographic including defense, mining, tourism and aqua &agriculture
Like anything, the profit is made in the buying, look for a bargain with a motivated vendor.
Check out average days on the market and average vendor discounting. This will give you an idea of the difference between advertised and sale price along with slow moving stock which could equate to a more motivated vendor.
Hope this helps
Great local advice guys worth looking in to further
JacM average annual growth over the last decade has been around 10%, dependant on area of course. Prices are still down from their peek around 2008, rental market is very tight as population growth is surging ahead.
I disagree with the comments about an oversupply of units, you must bear in mind that Townsville has a larger than average demographic of young people, partly due to the large army base and university ( soldiers and students a plenty) and there is a huge demand for this sort of accommodation.
Bugeye I see what you mean about Garbutt, definitely gentrification taking place. In the early days Garbutt was an industrial area, it's also very close to the airport.
Also for non locals, Townsville and Thuringowa were separate municipalities with their own councils and the area was referred to as 'the twin cities'. The councils merged in 2008.
JacM if you come for a visit I'd be happy to show you around, if I'm available of course, currently working month on month off in Gladstone.
I'm another one on the Townsville bandwagon. I really think it is undervalued at the moment and has huge potential.
I bought a 3 bdr in Kingston Park, Burdell in Feb last year. Haven't seen much Capital Growth in the last year but the yield is quite good. And haven't had any problem with vacancy either. It's a long term hold for me and I am pretty confident in the Townsville market long term.
Hi Guys,
Can I ask why to avoid North Shore in the Townsville area please?
I would like to know this also. I've been told of someone doing quite well by purchasing H&L packages in North Shore. Also my friend has an IP in Bohle Plains and PPOR in Burdell that he says he is quite happy with.
My thoughts on Northshore is that there is too much land available in the immediate area. There are too many new houses for sale of a similar standard, on similar sized blocks, making them a dime a dozen and causing capital growth to be poor in the immediate future. Also, I have found yields to be quite low compared to some established places.
In saying that, a PM that I spoke to has informed me that northshore is in demand for tenants at the moment.
My thoughts only. If someone has a different opinion, let it be known!
markintownsville wrote:My thoughts on Northshore is that there is too much land available in the immediate area. There are too many new houses for sale of a similar standard, on similar sized blocks, making them a dime a dozen and causing capital growth to be poor in the immediate future. Also, I have found yields to be quite low compared to some established places.Yep my thoughts too.
The only way someone could be doing quite well from buying H&L packages there is if instant equity is realised on completion which I'm pretty sure is not happening out there at the moment. On the plus side, it is right in the middle of the growth corridor that is the northern beaches and infrastructure spending is certainly happening.
Rick sta wrote:The only way someone could be doing quite well from buying H&L packages there is if instant equity is realised on completion which I'm pretty sure is not happening out there at the moment.Yeah I was told he was getting 30K appreciation from signing of contract to full completion. Only word of mouth though so not sure if it's completely factual.
I've been thinking about aitkenvale pimlico area. Any thoughts?
Anybody finding cashflow neutral (or positive) properties in Townsville with the cost of rates @ 3k and insurance not much better?
What kind of prices are you paying, and what kind of rent returns are you receiving?
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