Cyclones - a QLD buying consideration?

[Keen]

Hi all,

I am considering a 3 X 1 on the coast in QLD. I noticed that unlike WA that some towns sit a little inland and a local advised that these towns were built in their current locations to avoid cyclone activity.

Can someone confirm that this is right?

When buying in regional QLD should cyclones be a major factor in my buying considerations? Being from Perth this is unheard of over here.

I am looking for a 20k plus population (and growing) town that is not reliant on one main industry. I guess this rules out Cairns (Tourism) and Mackay (Mining, I think).

Townsville meets the initial criteria - but is a cyclone city?

Don't know much above Bundaberg (the coastal area), Hervey Bay, Gladstone and Redcliffe. Are they one Industry dependant places?

In W.A. rent yields are around 2 - 3%. So anything around 5% plus is a consideration. Would like to buy 2 Ip's upto about $300k.

Could entertain the idea of one IP $400k plus (in top coastal location) but only if rentals yields are decent.

Hope someone can help me speed up the "researching an entire state" process.

Many thanks in advance.

Keen

 

[sailor]

Hi all,

I am considering a 3 X 1 on the coast in QLD. I noticed that unlike WA that some towns sit a little inland and a local advised that these towns were built in their current locations to avoid cyclone activity.

Yeah, sure! The last Category 5 cyclone we had in Feb06, went right through the tablelands (100 klms from the coast), and caused havoc.

Can someone confirm that this is right?
See below...

When buying in regional QLD should cyclones be a major factor in my buying considerations? Being from Perth this is unheard of over here.
All my IP's are on the coast in FNQ (Innisfail and Cairns)...I don't even think about cyclones when I buy. I do however consider flood-prone areas...tis wise to look out for these.

I am looking for a 20k plus population (and growing) town that is not reliant on one main industry. I guess this rules out Cairns (Tourism) and Mackay (Mining, I think).
Check this out for Innisfail for exampe:
http://www.lgp.qld.gov.au/docs/corp...rofiles/demographic_and_housing/johnstone.pdf

...and for Cairns:

Without a doubt tourism is the number one industry in Cairns. Industries that service tourism have grown proportionally over the years with the most notable being the building industry. Cairns is home to a large commercial fishing fleet that catch prawns in the rich waters of the Gulf of Carpentaria and Torres Strait.

http://www.sd.qld.gov.au/dsdweb/v3/guis/templates/content/gui_cue_cntnhtml.cfm?id=23357


Townsville meets the initial criteria - but is a cyclone city?

Yep, Townsville occasionally gets a cyclone. Check out the BOM site for statistics.

Don't know much above Bundaberg (the coastal area), Hervey Bay, Gladstone and Redcliffe. Are they one Industry dependant places?

Yep, Bundaberg is a sugar town, Hervey Bay is a tourist town, Gladstone produces electricity, and Redcliffe is an outer suburb of Brisbane.

In W.A. rent yields are around 2 - 3%. So anything around 5% plus is a consideration. Would like to buy 2 Ip's upto about $300k.

I'm getting between 6% and 11% on my residential IP's up here. You would only get 2 one-bed units for that price. Better to get a 3-bed house in that price range...there are heaps of them. With our rental vacancies in Cairns running below 1.8% at present, you'll have no probs getting it rented. As for Innisfail, my PM is desparate for rental properties, she has tenants waiting in line.

Could entertain the idea of one IP $400k plus (in top coastal location) but only if rentals yields are decent.

Hope someone can help me speed up the "researching an entire state" process.

Many thanks in advance.

Keen

cheers
Sharon

 

[sailor]

Keen, here is an example of what I was talking about...
http://www.domain.com.au/Public/pro...rver=Emails&s_cid=HomeAlert:QLD&haprof=629042

This is a good area for renting this type of house.

 

[flyhigh8699]

Buy in costal QLD

G'day Mate
I have been living in Bundy for 15 years and have a nice IP in Bargara (just on the cost of Bundaberg) last time we had cyclone was in 1994 (cat1) once you move south of about Macky the wind factor is not as great but the rain factor (flooding) is the major concern. You have to check town planes for flooding zones as there are major restrictions on them which affect resale values. Population of Bundaberg is about 50k and Sugar industry takes only about 35% with light industry and manly truism the rest.
Cheers
Allen

 

[Shirley]

Townsville

We regard Townsville as rock-solid. Started investing in 2003 and purchase price/returns are as follows:

Duplex $275k - $500 pw
Units:
$89k - $190 pw
$75k - $190 pw
$77.5k - $195 pw
Houses:
$119k - $205 pw
$220k - $255 pw
$330k - $330 pw
We're more than happy with the return and the capital gain.

Townsville's population is approx. 150,000 and growing, has major industries, army & airforce bases, university.

Cheers
Shirley

PS Yes Townsville has been hit by cyclones - Althea was the last big one which hit one Christmas (1972? It was before we moved here). Anywhere along the Qld coast (north of about Bundaberg?) is susceptible to cyclones.

 

[Keen]

Guys,

Thanks for the very useful info. Thanks sailor for the links - looks like I'll be doing a bit surfing tonight.

Regards

Keen

 

[sailor]

From the BOM

Outlook for the Queensland Tropical Cyclone Season 2006-07


On the basis of the best available information, it is considered unlikely that the coming cyclone season will be quite as active as last season. In 2005-06, there were 5 tropical cyclones in the Queensland region with both LARRY and MONICA having severe impacts on the east coast.
The general climate pattern is typical of the developing stage of an El Niño event. Sea surface temperatures are cooler than average in the region and sustained negative values of the Southern Oscillation Index have been recorded. Furthermore, there is considered to be an elevated risk that these El Niño conditions will soon become fully established, and then persist through until Autumn next year.
The Regional Director of the Bureau of Meteorology in Queensland, Mr Jim Davidson said today that from a climatological perspective, cyclone occurrence on and near the east Queensland coast is lower during El Niño conditions than in Neutral or La Niña years. Accordingly, cyclone numbers this season are more likely to be below average. At least two cyclones are expected however and one of these may well be severe.
At this early stage, it is impossible to predict the likely onset, path or intensity of any individual cyclones that might develop. Historically, the first cyclone of the season has often occurred in December, but this is not always the case.
Mr Davidson reaffirmed that the most important advice that people can receive at this time of year is to be well informed of the dangers posed by cyclones, storm tides and floods, to understand the warning service, and to be sensibly prepared. It is also worthwhile to note that the steady growth in coastal development has served to significantly increase community vulnerability to tropical cyclones, with mitigation being a widely accepted strategy to reduce the impact.

 

[AnneDe]

Hi Keen,

Older houses would appear to be more vunerable to cyclone damage than newer houses. Stringent building codes are now used in North QLD for new housing construction. One would expect less damage in a 'newer' building because of these enforced building codes.

While living in North QLD several years ago, I noticed that the locals were well informed as to 'what to do' should a cyclone come upon them. Bowen was our nearest 'large centre' and had once been badly damaged by a cyclone. But since then, houses built to replace the originals were better designed to handle extreme climatic conditions.

A flood/storm surge map was given to all residents to inform them of 'where to go' should there be a need. As flyhigh8699 mentioned, potential flooding from cyclonic rains and storm surges is worth investigating. Local shire councils should be able to give you that information.

Cheers,
AnneDe

ps. Despite the threat of cyclones........we love North QLD

 

[mcdeyess]

My partner used to live in Cairns. I am a regular traveller with work to Cairns and Townsville.

Newer houses can be build to "cyclone code" you should look into this. They typically are lowset and built of cinder block and make great renters.

I think Cairns is gorgeous and has some good buys, the problem is the govt needs to spend money on infrastructure up there. When that next happens the place will jump in value.

Townsville has the army (a reason why to invest but never live there IMHO), mining and some tourism. Is is predicted to boom and keep booming for a while yet. More army moving up shortly and an international cruise terminal as well I believe (missed out on the airport ... sorry cairns rivalry coming out in me). Prices have already gone up quite a bit though. You should also know that Townsville is really two towns (the twin cities of Townsville and Thuringowa) due to the poor layout (no one goes into the city unless you work there as there isn't a shopping centre and you can't walk from the centre of town to "the strand" with ease) I would look at Thuringowa instead of Townsville.

Cheers,
[email protected]