IP's in Townsville

[aramz]

Hey,

Has anyone bought an investment property in Townsville? There are quite a lot of infrastructure projects planned or currently underway in that region (ports expansions, marine precincts, major roads and highways, barracks, hospital redevelopments and new convention center) along with revitalization of town centers, parks and shopping centers. It also has a diverse economy with military, tourism, university and resources all at work.

I am wondering if anyone else has invested there and what their thoughts are?

Vacancy rates sit at around 5% so I wonder how easy it is sourcing a tenant and are there long vacant periods? Also does the sometimes cyclonic weather patterns effect your investment or insurances/cash flow etc? Do ppl prefer central CBD suburbs or the north shore beach suburbs not too far away?

Any thoughts or experiences would be appreciated.

Cheers

Luke

 

[R377]

I own an IP there. I was looking around Douglas, Annandale and Idalia as these are close to the army base, uni and hospital.

My reason for this compared to older properties is maintenance - the weather is pretty extreme up there. I wanted something newer.

I decided against Douglas as the blocks are too small - narrow roads with rooftop to rooftop housing.

I bought in Idalia near Northview Lake where quite a few houses are $600+ ( I only paid $400k for mine and it has never been without a tenant )

Vacancies are usually higher around the end and the start of the year. You mentioned 5%. Idalia is 3.1% and Annandale is 3.2%. As said previously these are close to army base, uni and hospital so you will never be short a tenant there. There is also a top private school in Annandale.

Townsville market has been flat for the past 7 years or so, so its long overdue for some growth soon. I know Margaret Lomas mentioned Townsville again recently saying how strong the economy was and that it is due for growth soon. With Brisbane starting to take off, my guess is that Townsville will play follow the leader........

 

[parra1]

Hi there,

I have an investment property in Douglas, Townsville. Had it for 6 years now and as has been said - little or no growth as yet. The house is a quality house, in a nice suburb, close to Uni, Hospitals etc. The weather can impact on insurance costs etc but i think we are just waiting for our turn in the property growth cycle. I hope it runs like Sydney and then we can be happy with our investment.

I think all the ticks are there for a solid hold investment.

 

[aramz]

Do you think any of the northern shore estates will hinder capital growth at all? There is a fair of supply comin on, i'm not sure how quickly. Some if the estates are just over 10km away and offer new houses.

Agreed that the market there hasn't fine anything since 07/09 and is definitely due for a run!

Is it very hard to look for tenants around the end and start of the year? Mainly due to it bein Xmas/summertime holidays or also because it is the hot and stormy season over there?

Cheers