Purchase in Ingham QLD

Hi

Wondering what peoples thoughts are for investing in property in Ingham QLD with this Bio Energy plant pending for 2017?

Looking at a property in low $200's.

Open to thoughts.
 
Hi CARCNS,

You're from Cairns so I guess I don't need to tell you that Ingham is a pretty sleepy town. From my casual browsing or re.com.au it seems property stays on the market for quite some time waiting for a buyer. A lot of the youth leave town looking for employment and never return (which is a shame since it's a good place to live). So at the moment I wouldn't think it's a great place to invest.

From what I hear the bio-plant is still looking for financers so I'm not sure it will even eventuate. Assuming they do get up I can't see it creating a lot of long term jobs. Sure during construction but after that? The new mill will be taking cane that would normally go to Victoria or Macknade mills. I think the Herbert district crushes around 5 million ton per year with the lion's share going to Victoria (who employ around 300 staff) and the rest going to Macknade (who employ around 150 I think). If the new mill takes 2.5 million ton per year (which I hear is their plan) Macknade might cease to operate so many of the "new" jobs created may actually just be jobs taken from the other mills.
 
Look carefully whether any property you are looking at can be insured and for a reasonable premium, my concern would be whether it was in a flood zone.
Are there any other economic drivers than what you mentioned in the area?
Population growth? Looks like solid yields but market looks a little illiquid with properties staying on the market forever.
 
Not all of Ingham is flood-prone. There are parts at both ends of Lannercost St which aren't as subject to flooding as the main shopping centre strip. I know one such site which had duplexes built - the ground had to be raised above flood level (also backs onto the creek). Both have rented quite easily.

Plenty of people travel to Townsville for work or to the local mills at (Lucinda/Halifax).
 
Not all of Ingham is flood-prone. There are parts at both ends of Lannercost St which aren't as subject to flooding as the main shopping centre strip. I know one such site which had duplexes built - the ground had to be raised above flood level (also backs onto the creek). Both have rented quite easily.

Plenty of people travel to Townsville for work or to the local mills at (Lucinda/Halifax).

Agreed not all of Ingham floods but appropriate D/D is required as large parts of it do. IMHO the attractive low prices and high yields especially on small unit blocks/duplexes need to be considered against potential for CG and insurance costs.Yes some people would commute to TSVL for work for lifestyle reasons etc but it is a long commute by regional standards.
I don't think the pop is large enough and economy doesn't have enough vibrancy when you could obtain a similar yield in large regional centres in Qld,NSW or VIC or Adelaide/Logan with less risk.
 
Yes some people would commute to TSVL for work for lifestyle reasons etc but it is a long commute by regional standards.
Yeah, I don't know if I'd say "plenty" of people commute daily to Townsville for work (or Uni). I don't live there so I could be wrong. Yabulu nickel refinery workers used to commute (and I assume still do) but Yabulu is a little north of Townsville so the trip is a little shorter. In any case that's still not a big group of people.
 
Those Ingham flats are a bit buyer beware

The rents are low and the rates and insurance is through the roof

Most of them would not be cash flow positive
 
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