Toowoomba Qld

[Brenda Irwin]

Was after some feed back on what you all think of Toowoomba in terms of investing.

I heard today that there has been a resumption of the tunnel building (started in Joe B-Peterson's day when he was premier of Qld) to make a passenger train link from Brisbane-Rosewood on to Toowoomba.

 

[kph]

Hell Brenda,
Based on your track record...if you are looking at Toowomba, it must be worth investing in !!

KPH

 

[shazza]

investing in Toowoomba

Hi Brenda
I'd have to agree really with KPH!
But... the latest (August) HTW report has both units and houses over-supplied and steady-increasing rental vacancy trend. A quick search on realestate.com.au shows 69 3bed houses between $100 and $300 for rent - seems quite a lot for the size of the town???
Also 'new properties sold at prices exceeding their potential resale value' as occasionally-frequently.
Seems to indicate that caution is required but you seem to be a very experienced investor.
cheers

 

[bicko]

In my humble opinion,
I would wait for confirmation of this tunnel building, before getting too excited about the area.
The yields and median price are quite comparable to that of the Ipswich area. Now that investor interest is slowing, we really need to look at where Retiree's and First Homebuyers/Affordable PPOR's are interested in purchasing. A viable passenger train link to Brisbane could bring renewed interest in Toowoomba.

cheers

bicko

 

[dwyerfam]

Brenda, dunno if this will help ya.

Capital Growth in postcode 4350, QLD
Period Change ($) Change (%)
In last 3 Months $9,000 5%
6 Months $27,000 15%
12 Months $42,000 25%

(Source: Commonwealth Bank of Australia Loan Application Data)

I have also attached a chart from the same website.

 

[Brenda Irwin]

Thanks for the input all. Um...what happened to the under $150k bargains?

 

[twodogs]

Hi,
There are still some cheapies left, I bought a 1985 3bed hardiplank for $124k last April, rent $170. Zoned for medium density too, handy for later. There are still some 3b for about $140k+ that rent for the same. OK, not CF+, but easy safe renters and the GC has been kind of late. Duplexes have become too expensive, returning 6% at best, nice houses are better bet. I keep an eye on the market via the internet and check things out twice a year. The council web site can show photos of each address, very handy, as well as sewer and zoning maps. You have to be quick through, about 14 days on market is normal.

Toowoomba has diverse industries, uni and large population base. Turning into big retirement town too.

As for too may rental properties, yes there are many, but the rental market is very larger there. I have had no vacancies in the two years I have had 3 properties there. To sum up, not as good cashflow as before, but I feel secure investing there, and it's a nice town too

 

[DD1]

Toowoomba

Brenda hi, there has in this financial year been an upgrade of $6.5mil to the Ipswich line in part preparation for the bris/toowoomba link. Start your calculator and look to places between, like Grandchester and Calvert, to be major stations and cities in the next 10 to 15 years.

DD1

 

[markpatric]

A train link through Ipswich is great but who would travel on it unarmed? haha.
Regarding investing out that way, these would need to be very long term imo, Toowomba and Ipswich are two places I have avoided investing in....how wrong I was!, especially regarding Ipswich but to be honest I don`t see these places appreciating much in the not too distant future, I`m more leaning toward anywhere North of Brisbane, anyone else have opinions on this, ie: where people will mainly move to in the future? and why.

 

[Sunstone]

The SEQ plan clearly sets out where growth will take place. It has been mandated that WESROC (Western Sub-Regional Organisation of Councils) (Which includes the Ipswich City Council area and Toowoomba) will get an additional 100,000 more in population than current trends whilst the area "North of Brisbane" (NORSROC) will get 85,000 less.

With regards to safety I personally would travel on the Ipswich train line anyday and regularly actually do.

If all the negative energies in the world were used to actually help people imagine how much greater the world would be.

I am one for a positive world and making it greater day by day.

Brenda -Some more current info on Toowoomba and Ipswich in the latest AcVal valuers report.
http://www.somersoft.com/forums/showthread.php?goto=newpost&t=18298

Cheers,

Sunstone.

 

[Jimmyjamjars]

Toowoomba

Brenda,
Some very good friends of mine asked me about areas to invest in, they had areas in mind and wanted to know what I thought of them, Toowoomba being one. I advised them to visit the area, drive around the town getting a feel for it, talk to agents, good areas V bad areas etc. They decided against buying there as the amount of signs on places saying "for rent" was overwhelming and this alone put them off. I would say to you, knowing how much research you put in to a deal, would be to go there and spend a bit of time "getting a feel" for the place, good luck.
JIM

 

[markpatric]

Giday Sunstone, yes I am aware of the plan and it definate does give some confidence to buying in these areas but it doesn`t necessarily translate to "the best area to invest" imo.

 

[Shire Gal]

Have recently re-visited the forum after a years absence, and saw with interest the topic of Toowoomba. My husband and I (who are Sydney-siders) missed the boat here, and by chance (and with some help from the internet) discovered Toowoomba, bought our first IP there last January and are due to settle on our second one there next week. We did our homework, rang numerous property managers to ascertain vacancy rates (consistently low, the agency we use sits around < 2% vacancy) and rental returns (very good). The appeal to us was that it is a big city with a wide range of industries, good retail facilities, strong educational base (uni, several private schools) defence force as well as place with a really nice feels to it and only 1 1/2 hours from Brisbane. We have purchased two very different properties. The first was a large home in a 'good' suburb, which would appeal to professionals (teachers, lecturers, bankers etc) transferred to town (5.6% return but good CG). The latest is a fully furnished town house opposite the uni, more geared to student rentals (has been achieving 6.5% return but the CG wont be as good). Toowoomba has a wide range of areas and price ranges, but prices have really increased in the 12 months since we first looked, and I don't believe the rents haven't kept up. However, do your homework and I still think that it is a good place to consider.
By the way, can anyone tell me how to put an avatar on? Have tried with no success!!!

 

[willair]

you can look at this in several ways,if the QLD Government want to push
many of the new residents into the western corridor around Ipswich
where there is sufficient long term land for development,THEN they may have missed one small item,ask yourself one small question do all the new Queensland migrants
want to live that far from the coast,when most come to qld for the coastal lifestyle.
maybe in april this year when the government releases its infrastructure plan for the area .
good luck
willair..

 

[Jimmyjamjars]

you can look at this in several ways,if the QLD Government want to push
many of the new residents into the western corridor around Ipswich
where there is sufficient long term land for development,THEN they may have missed one small item,ask yourself one small question do all the new Queensland migrants
want to live that far from the coast,when most come to qld for the coastal lifestyle.

Good point Willair,
This is something I too have been wondering about and it is for this reason and a few others that I have remained coastal with the majority of my IP's.
JIM

P.S Each to their own though.

 

[willair]

Jimmyjamjars,
IMHO,
i still likeToowoomba,if you target the small upmarket residential
areas on the top of the range as you drive in from brisbane,
then i dont think you can go wrong,also look at toowoomba from
this angle,there is only a few roads in and out of Toowoomba
i would look for the future motel sites on these roads,i have looked last year
at several future motel sites in this area.TOOWOOMBA is a old money town
and several large usa based multi nats are starting to come into this town
over the past years..
good luck for 2oo5.
willair..

 

[Redhaven]

Toowoomba, for us, has been fantastic for our investment properties. We have continually had tenants, and good ones at that, and Residex is only predicting even more capital gains for us over the next 5 years - almost double for the area we are in. There are wonderful little outer-areas of Toowoomba that are beginning to grow yet still cheap to buy in, and if you check the townplanning you'll find huge growth predicted even out to little old Goombungee.

We were Sydney-ites, and coastal ones at that! and have settled in well to the mountain climate here. The problem is not everyone realises Toowoomba is on the top of the Great Divide, they just think 90 mins inland of Brizzy - stinking hot!! but it's not. Everything you could want is here, apart from the beach but we will continue to invest in this area, in the knowledge that rentals are strong and reliable, and capital gains expected. With a good income we can afford weekends down the coast when we want them.

Redhaven