South Toowoomba - is this a good invesment

[Reaching]

Hi all,

long time reader first time poster.

I have been reading alot about Toowoomba and seem to think there are still good buys if you can find them. I have come across an opportunity I just wanted to get an idea if people think this is a good find:

Location: South Toowoomba
Brand new townhouse to be compelte (expected 4Q2014)
3 bedroom x 2.5 bathroom
Price $325,000
Pre rental appraisal is valued at $370 but who knows what the market will look like in a year.

I am looking for capital growth ultimatly and diversification of portfolio as I'm currently in WA and have 2 properties here but looking to go over East.

thanks in advance

 

[HD_ACE]

Why off the plan??

Cheers

 

[Angel]

What price are similar properties at the moment?

 

[Blueberry]

I suspect the rent will be quite a bit less (on today's figures, who knows about tomorrow) . Did they give you that figure?

According to that chart at back of API, new properties are being built at figures exceeding their resale value. I'ld be cautious building

 

[spludgey]

You can buy an existing house for less than that. In my opinion, not a great investment.

 

[JenJen]

I wouldn't buy off the plan. Ever. You have no way of knowing the true value of the property or the actual rental yield.

Also, Toowoomba is a rising market. I have just been looking at it as an investment area for some friends of mine. It is currently receiving a lot of investor attention, but it is already hard to find decent yields. I guess it's all relative, though.

Cheers
Jen

 

[mikezen]

I wouldn't buy off the plan. Ever. You have no way of knowing the true value of the property or the actual rental yield.

Also, Toowoomba is a rising market. I have just been looking at it as an investment area for some friends of mine. It is currently receiving a lot of investor attention, but it is already hard to find decent yields. I guess it's all relative, though.

Cheers
Jen

Many are selling before they go to market, once a week agents send me through a couple
I have noticed also that many more are appearing in the sold section and reports , that have never been listed

 

[murph14]

Give me any street, any house and i'll tell you if it's a good buy $325 for a townhouse in Sth Twba seems dear to me and risky as an OTP. Btw, middle eastern students like - no i should say feel entitled to - a brand new house near the uni and will pay good money for it, but won't exactly respect the place.

 

[Reaching]

I was thinking off plan to max depreciation, also its hard to view existing properties as overstate and can;t get on the ground.

Thanks for the input everyone. I have heard mostly that Toowoomba but east in general is heating up alot at the moment

 

[spludgey]

I was thinking off plan to max depreciation, also its hard to view existing properties as overstate and can;t get on the ground.

Thanks for the input everyone. I have heard mostly that Toowoomba but east in general is heating up alot at the moment

Fly over for a couple of days and inspect. Going for OTP because you don't want to inspect sounds like a very bad idea. Even OTP you should probably fly over and inspect similar properties built by the same builder.
I'm flying up to Brisbane on Wednesday to look at a few places. I know Sydney to Brisbane is a little simpler than WA to Toowoomba, but you might just have to bite the bullet.
Either that, or engage a buyer's agent that you can trust and get them to find something for you.

 

[mikezen]

Fly over for a couple of days and inspect. Going for OTP because you don't want to inspect sounds like a very bad idea. Even OTP you should probably fly over and inspect similar properties built by the same builder.
I'm flying up to Brisbane on Wednesday to look at a few places. I know Sydney to Brisbane is a little simpler than WA to Toowoomba, but you might just have to bite the bullet.
Either that, or engage a buyer's agent that you can trust and get them to find something for you.

Or u can get a local property manager to check it out and give their opinion

 

[Happydays]

Give me any street, any house and i'll tell you if it's a good buy $325 for a townhouse in Sth Twba seems dear to me and risky as an OTP. Btw, middle eastern students like - no i should say feel entitled to - a brand new house near the uni and will pay good money for it, but won't exactly respect the place.

Geoffrey St, Mount Lofty.

Good spot?? Probably to late to be asking now because I've already purchased. But ill ask anyway.

 

[Ninobart]

Mount lofty is a pretty good area, was looking at buying in the same street a while ago.

 

[orbitor]

6 months ago I lived in Mt Lofty. It's a great suburb with a good rep. Geoffrey St itself is a good location.

Mt Lofty is much more affluent than South Toowoomba, generally speaking.

That said, I'd never buy OTP.

 

[murph14]

Geoffrey St, Mount Lofty.

Good spot?? Probably to late to be asking now because I've already purchased. But ill ask anyway.

Yep, Geoffrey St's a good street in a good location. Any street up that way is really.

 

[swith]

Toowoomba suburbs

I've recently exchanged contracts on a property in Toowoomba and it is definitely a rising market - multiple offers on properties in their first week, and a lot of networking with agents to get properties that aren't listed yet.

The eastern suburbs (Rangeville, Centerary Heights, Mount Lofty) are the more desireable but with lower rental yields, North Toowoomba is less desireable but with higher rental yields.

Some of South Toowoomba has been rezoned which means there are some good development opportunities there if that's your strategy.

I eventually chose on Newtown as my preferred suburb - some streets form part of the historic toowoomba precinct and are period homes with a lot of character that are within walking distance to the CBD and you can achieve 6% rental yields there, felt like best of both worlds.

I hope thats helpful - you might benefit from my research as I've benefited from a lot of others here