Viewing 19 posts - 1 through 19 (of 19 total)
  • Profile photo of deerinpjdeerinpj
    Member
    @deerinpj
    Join Date: 2006
    Post Count: 5

    Hi all,

    I'm about to enter the IP world with a property (or two) in Toowoomba. It's currently long-term tenanted, rented at $270pw, valued at $230K. I was just wondering what people thought about the CG prospects in Toowoomba with and the Gas & mining nearby.

    Ta

    PJD

    Profile photo of fredo_4305fredo_4305
    Participant
    @fredo_4305
    Join Date: 2009
    Post Count: 336

    Thats a shame nobody has answered yet.

    Toowoomba is a great location to buy and has come up alot in hotspot articles and various other articles.

    It is a nice city and will benefit from the secondary effects of mines, ie it will be the nearest business centre and provide alot of maintainanc and logistical support to the mines. It has experience good capital growth over the years but has suffered just like the rest of non mining qld in the last 5 years. It got a bit of a lashing in the floods by the media. I can't see that weather event happening again. Like with the rest of qld it will hopefully pick up soon but due to a diverse economy, mining prospects, a nice city, proximity to ipswich and brisbane I think it will be better positioned than most.

    Profile photo of deerinpjdeerinpj
    Member
    @deerinpj
    Join Date: 2006
    Post Count: 5

    Thanks Fredo. Much the same as I was thinking. Now to find some properties…smiley

    Profile photo of fredo_4305fredo_4305
    Participant
    @fredo_4305
    Join Date: 2009
    Post Count: 336

    What suburbs are you looking at?

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,018

    Sorry for the delay but been flat out last couple of days.

    Was actually up in Toowoomba on Tuesday looking at a property for a forum client and then the following day got a contract in from another member.

    Second biggest City on Qld and certainly the gateway to all towns East.

    There are certainly some excellent areas and some i would probably steer clear of.

    Have had problems with the mortgage insures in Toowoomba so want to make sure your Broker runs off a valuation prior to lodging the deal for you to ensure there is nothing adverse in the Risk ratings.

    Rate of return is about right so if the suburb is ok not a bad start to your portfolio. 

    Cheers

    Yours in Finance

     

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me | Phone Me

    0-40 Properties in a decade with a unencumbered portfolio value in excess of $40M. Ask me for a copy of my API Interview.

    Profile photo of deerinpjdeerinpj
    Member
    @deerinpj
    Join Date: 2006
    Post Count: 5

    Thanks for the advice. Valuation will be part of condition and looking to borrow only 80% against IP, balance against own house. Any suggestions on invest/don't invest suburbs? Looking to buy 2-3 properties sub or low $200K.

    Profile photo of deerinpjdeerinpj
    Member
    @deerinpj
    Join Date: 2006
    Post Count: 5

    Just 'Toowoomba' at this stage. Had an opportunity to buy in Wilsonton Heights And Mt Lofty but both fell through. I believe Wilsonton Heights isn't so good but it was PG with good long term tenant. Been in touch with an agent and need to visit the city next week.  Any suggestions? indecision

    Looking to buy 2-3 properties, sub to low $200k.

    Profile photo of fredo_4305fredo_4305
    Participant
    @fredo_4305
    Join Date: 2009
    Post Count: 336

    In and around East Toowoomba is the way to go, sought after, good reputation, very nice area, with access to great schools, hospitals, cbd, parks, cafes etc. Im not sure if 200k would cut it in this area though. People are generally very city proud which is nice to see and better than some other regional towns. 

    Rental returns are generally good and a well maintained property in the right area generally rents quick for a good price. (which is no different to most cities)

    There are also alot of opportunities for sub-division lot reconfiguration.  There are many properties in Toowoomba that are on two titles which means you can conduct a lot reconfiguration, which is much cheaper than conducting a sub-division. Council is good to deal with.

    I would be looking at East Toowoomba and immediate suburbs, Inner South Toowoomba, Inner North Toowoomba, Newtown, parts of Harristown.

    Richard, just wondering why mortgage insurers run a mile, I know it is probably be the flood, but the flood went down the main street and that was about it. I know they don't care but I would be very very surprised if 150mm of rain in 30mins would land in that exact same spot with the same conditions again.

    Profile photo of fredo_4305fredo_4305
    Participant
    @fredo_4305
    Join Date: 2009
    Post Count: 336

    PJD,

                I have used a Real Estate Agent in Toowoomba before to find me a property before. Ashley North, Elders Real Estate. He knows the market and area extremely well and will find you what you want and will tell you if a property is rubbish or not. He is also happy to conjunct.

    Might be worth giving him a call.

    Profile photo of deerinpjdeerinpj
    Member
    @deerinpj
    Join Date: 2006
    Post Count: 5

    Thanks for the suggestion/advice Fredo. I emailed a few agents about differnt properties and now intend to go meet the one who provided me with the most comprehensive answer. As she went to the effort of doing more than just responding I thought I'd try her our first. But I'll also keep your guy in mind if I'm not happy.

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,018

    Deerinpj is there a reason why you would limit the lvr to only 80% ?

    I am assuming you have bags of equity in your PPOR and don't envisage running out of equity to fund future acqusitions.

    Whilst you may save a couple of deductible dollars on LMI it might also be a lost opportunity cost going forward as extracting the equity on the IP's down the track may be harder than you think.

    If required it is always a lot cleaner to take a 90% lvr from day 1.

    In regards to valuation remember the valuation figure provided is only 1 small component of what a lender looks at.

    The valuation can come upto purchase price and the deal may still not get doe as it is the emphasis on the Risk Ratings that lenders and insurers look at.

    I agree i prefer East Toowoomba or even Mt Lofty and that side of the range.

    Cheers

    Yours in Finance

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me | Phone Me

    0-40 Properties in a decade with a unencumbered portfolio value in excess of $40M. Ask me for a copy of my API Interview.

    Profile photo of ConnollyConnolly
    Participant
    @connolly
    Join Date: 2012
    Post Count: 49

    Hey guys- looking for someone from toowoomba as looking to pick up a couple in next few months. Can someone tell me why Wilsonton and Wilsonon Heights are such bad places within the area? Does anyone have an investment property in any of these suburbs an if so how have you found putting tenants in etc. cheers 

    Profile photo of ConnollyConnolly
    Participant
    @connolly
    Join Date: 2012
    Post Count: 49

    Hey guys- looking for Someone from toowoomba as looking to pick up a couple in next few months. Can someone tell me why Wilsonton and Wilsonon Heights are such bad places within the area? Does anyone have an investment property in any of these suburbs an if so how have you found putting tenants in etc. cheers 

    Profile photo of bullet46bullet46
    Participant
    @bullet46
    Join Date: 2011
    Post Count: 51

    Hi Connolly,

    I live in Toowoomba (Highfields) and we have an investment property in Inner-North Toowoomba.

    I can provide you with a lot of information regarding Wilsonton, simply because I lived there for a large chunk of my life. Wilsonton has a large housing commission estate right in the centre of the suburb. People of Toowoomba tend to stay clear of the area as it tends to be a higher crime suburb. In saying that, investing in Wilsonton may be fine providing you stay on the western side of the suburb and you are not chasing capital gains. While Wilsonton may experience some capital gains in the future due to its close proximity to the airport, I would suggest that there's better suburbs for similar $$$ such as North Toowoomba, South Toowoomba or Mt Lofty. Consider this – North Toowoomba and Mt Lofty are both up and coming suburbs with new infrastructure currently being built such as a Coles shopping Centre. It is 5 minutes from the CBD and is building quite a good reputation as the boundaries of Toowoomba expand.

    My wife and I currently have our spec home in Highfields on the market. When it sells we plan to buy some more investment properties in Toowoomba. We will be buying in North and South Toowoomba due to their close proximity to the CBD. Wilsonton and Harlaxton will be far from our list of future choices. Keep in mind that this is just my opinion and assumptions. I'm sure others have had better experiences in Wilsonton. 

    Profile photo of GiumelliGroupGiumelliGroup
    Member
    @giumelligroup
    Join Date: 2010
    Post Count: 73

    Toowoomba is a great place to invest into for two reasons 1. its in Brisbane and 2. its location to the Surat Basin and what is going on throughout that region. We have had clients achieve fantastic returns in both Toowoomba and the Surat basin for a number of years now and it is still priced very well even after there has been growth already.

    Profile photo of ConnollyConnolly
    Participant
    @connolly
    Join Date: 2012
    Post Count: 49

    Bullet46,

    Thanks for taking the time to scribe your thoughts and local knowledge of the area.

    Have crossed Wilsonton Heights off the list and have a place in Newtown under contract.

    Again thank your prompt response

    Profile photo of moxi10moxi10
    Participant
    @moxi10
    Join Date: 2010
    Post Count: 193

    "Toowoomba is a great place to invest into for two reasons 1. its in Brisbane "?????

    Even if that were true, it would hardly be worthy supporting evidence that it's  "a great place to invest". Perhaps being in the Southern Hemisphere makes it "a great place to invest"

    Profile photo of PEACHYPEACHY
    Member
    @peachy
    Join Date: 2004
    Post Count: 78

    We have bought in the better western side of Wilsonton Heights and for two years have had our golden tenant aka. the best of the three properties we own. Hasn't improved much in terms of capital growth but doesn't cost us much and a rent increase has just been issued. Steer clear of the Wine Street name suburbs.

    Can also say that the tradies in Toowoomba have also been very honest and helpful which makes a huge difference when you live in Sydney. Hasn't been the case with our other QLD property!

    Profile photo of bradkappywestmanbradkappywestman
    Participant
    @bradkappywestman
    Join Date: 2014
    Post Count: 1

    Hi all
    I was wondering if you think Highfields will benefit much from this so called hot spot capital growth apparently hitting Toowoomba in 2015.

    I am living in Sydney so i dont know the area to well but am thinking of investing and possivly moving in the future could anyone help do you think Highfields is just as good as Toowoomba and will it see the same growth…

    Sorry guys i am a newbie.

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