Toowoomba Qld

[Brenda Irwin]

Is there anyone familiar with Toowoomba IPs?
Are there areas really bad/great for investment?
I thought I might checkout the market there but it's a big place.
Could anyone reccomend a good property manager I could ring & discuss the Toowoomba market?
Thanks in advance,
Cheers Brenda

 

[kierank]

My wife's mother-in-law lives in Toowoomba and there is no way that she will allow me to buy an IP in Toowoomba!!!

 

[pjb89]

Hiya Brenda

I am a Toowoombarite and if you want to pm me I will try to assist.


Pedro

 

[Ross Sondergeld]

Never... say never...

Hi,


Who were you listening to ???

Never say never... it could cost you $$$$$$$$$$$

Toowoomba is Ok... (cash-flow and growth)

Prices have risen... people are retiring there... it's almost a commuter city... and yes it's worth a look...

All the little cheap houses... well i think you'll find there going... going... gone...

But do your homework...


Ross Sondergeld
Ross for Property

 

[DaveP]

I have an IP at Towoomba

Out near the University Darling Downs/Westridge Areas are good renters for uni students....

But you hvae to be acerful with students....

Cap Growth has been slow nbut is moving now in last 18mnths....

I suggest keep out of the smoggy areas...


Happy to comment further. if necessary

Dave ZP

 

[twodogs]

I bought a 5 yr duplex there last year. Nice town with many attractions for renters. Duplex returns about 8% gross with appears typical, but I'm not expecting huge capital growth. I found some areas better than others but all agents I dealt with where good (a lot better than Sydney slimes). I keep an eye on market via internet and there still appears to be good options available. Duplex or small blocks of flats give good returns but sell quickly at a higher price than the total of indivual units. I think the best ones don't make the RE window so you will need to be on there marketing list or lucky, I was. I purchased thru Nationwide and they were OK, Elders also give a very good service with a good email list.

 

[Brenda Irwin]

Have checked out Toowoomba more extensively.
Newtown seems to be the cheapest suburb with the Range the most expensive.
Prices anything from $90K to $395K with rents $130-$300pw.
Gets very cold (for Qld) in winter so insulation, heating needs to be taken into account.
Not many cashflow IPs around at present but will keep an eye on it. Likewise for Ipswich.
As Robert Kiyosaki says 'When everyone else is buying madly, don't buy then.''
Cheers Brenda

 

[astroboy]

Sorry for the thread deviation, but Brenda, I found the same with Ipswich. Bought recently and although I would like to, I can't reproduce it. Things have really hopped, bummer, wouldn't have minded a couple the same.
astroboy

 

[Sunstone]

Dear Brenda,

"When everyone else is buying madly, don't buy then.''

There is some validity to this argument. However when this is the case it is simply time to put on a new set of glasses and relook at the situation:

Does one:

1) Look at different opportunities in the same areas? Should you be looking at conversions, dual occupancies and other methods to get the same type of yields?

2) Look at how you can further value add your existing properties or spend more energies to extract more value from them?

3) Find another area/location to use your traditionally successful strategies?

This has been the case for me, I am applying new methods and just signed another contract today which gets the yield I want. If one simply stays out of the market then how long does one wait?

Cheers,

Sunstone.

 

[Brenda Irwin]

Nice to hear Sunstone, someone is still buying.
Found it very stressful but exilarating too, buying. Did it 15 times this last 12mths and am quietly re-researching the market with multiple sets of glasses.
Am looking to top my past investment deals but RE is moving up so quickly everywhere that its a hard act to replicate.
Must sort out the tax return before committing to anything else. The amount of records, QS reports, statements etc are keeping me pretty busy at present. My tax agent said unless I sorted a fair bid of it myself, I'd need a personal loan to cover her fee for time involved sorting it for me.
Cheers Brenda

 

[Olly]

This may be a little bit out of date but will give it to you anyway in case it's of help.

My friends bought 5 acres with 4B BV house about 20 mins outside of Toowoomba and 8 years later sold for $1000 more than what they paid for it!!! As far as I know there is nothing exciting going on in Toowoomba (I'm in the building industry) - it is what it is and that's all. Best rental market is probably the students as has been mentioned already.

To clarify - my friends sold in Toowoomba 2 years ago which is why this may be a bit out of date (although my building comment is accurate). They are not investors. From Toowoomba they then moved to Batemans Bay and rented - bought land at Long Beach (new estate near a beach) built a lovely home which they moved into and sold less than 18mths later making over $150,000 and the gardens, driveways and fences weren't finished. They've now moved to Bribie Island and bought a "mansion" only 6 months ago and have already made money on it.

Hope this helps
Olly

 

[Sunstone]

Dear Olly,

This is why investing is not emotional and based on specific investing criteria.

If you do not have any goals or criteria chances are you will not get to where you want to be going.

20 minutes outside of Toowoomba and a Mansion on Bribie. If these were made as investments and not as PPOR's.........

Would either of these qualify as good rental properties????

Capital growth is one part of the equation but rental yield is what pays the bills on daily basis.

How close is either of these to transport, shopping centres, employment, or schools?

If decisions are made ONLY on capital growth it opens up cracks in ones strategy.

Cheers,

Sunstone.

 

[phm]

Hi there.

There is Ackland? Mine, somewhere on the outskirts of Toowoomba. I'm not sure but I think it is a new one. I believe it is closer to Highfields.

Hope this helps someone.

 

[JPM]

Brenda,
I was wondering if you had found any more IP's recently around Ipswich. I guess that answers my question. I can't believe how prices have just kept going and going in the past months!!!
Problem is CF+ are few and far between these days.

Food for thought in what Sunstone says though.

Jason

 

[Brenda Irwin]

Although I still look in Ipswich & Toowoomba deals are just a bit more expensive than I'd like. Don't want to wait years for +ve cashflow. Was a couple in long w-end Ipswich paper for $110-$118k but was too lazy to look thru them. Have signed up for 3 in SE QLD small town $52k ea with rents of $110pw. Will know Tues if bank will let me have em.

Cheers Brenda

 

[JPM]

Brenda,
What is the vacancy rate like in that town?

I've come across a couple in Rosewood that would be CF+ but I am a little worried about the amount of tenants around those areas.

Was speaking to a fellow investor on the weekeend and he mentioned about Stanthorpe, a lot of CF+ properties around apparently.

What are your thoughts?

I looked thru the Saturday 'Qld Times' but I didn't think there was any CF+ possibilities.

Jason

 

[brains]

Sunstone, You are a very active property investor. I think youve signed 3 contracts in the last month. How do you find the time for all the value adding you do?

Originally posted by Sunstone
Dear Brenda,
"When everyone else is buying madly, don't buy then.''

There is some validity to this argument. However when this is the case it is simply time to put on a new set of glasses and relook at the situation:

Does one:

1) Look at different opportunities in the same areas? Should you be looking at conversions, dual occupancies and other methods to get the same type of yields?

2) Look at how you can further value add your existing properties or spend more energies to extract more value from them?

3) Find another area/location to use your traditionally successful strategies?

This has been the case for me, I am applying new methods and just signed another contract today which gets the yield I want. If one simply stays out of the market then how long does one wait?

Cheers,

Sunstone.

 

[jasonc]

Toowoomba units

I purchased 4 units in a block of 6 in east Toowoomba around 15months ago. Large Block of land in a good area.

Purchased at $55 000 each and renting at $110 per week.
The intention was to eventually purchase the remaining 2 and redevelop the lot.

Recently spent $10 000 on a full internal reno on one of the units and have been advised that it is now valued between $100 000 and $115 000. We did the reno as bit of an experiment to see how it would effect the rental return as well as the value of the unit.

Rent is expected to now return $140 - $150 minimum.

We are considering what to do next... Reno the rest and sell...Reno, revalue, rent and use the equity... Purchase the remaining 2 and do a more extensive reno on the externals as well.

All in all Toowoomba seems to be moving along nicely.

Jasonc
(nice to be back)

 

[JPM]

Jasonc,
Can you give us a bit of a breakdown on the $10,000?

I have a block of units myself and am wondering how to increase rents (and value of course)

Jason

 

[Sunstone]

Dear Brains,

Sunstone, You are a very active property investor. I think youve signed 3 contracts in the last month. How do you find the time for all the value adding you do?

Having a degree of scepticism is not unhealthy. Prudently asked questions help maintain the quality of advice afforded by those on the forum. At the same time this must be balanced with giving those who you believe are credible and have proved themselves through giving practical and helpful advice the benefit of the doubt.

Normally I don't, but to partially satisfy your curiousity.

My purchases in the last month:

-16th of May signed contract 3brdm on good corner block -860m2. High profile position, medium density zoning, close to shopping centre and train.
-14th of May signed contract on duplex that I will relocate onto one of my existing blocks. Aluminium cladded, good condition. Same price as a normal house to be relocated with added bonus of it being a duplex (2brdm x 2).

Three contracts in the last month......... no. Contracts on three dwellings in the last month.............yes.

Finding the time for value adding.......... This comes back to what type of value adding you are doing. The type of value adding that I am doing takes time and council applications. A dual occupancy I have under go has taken almost four months so far in the approval process (Normal processing time plus 4 week extension by them plus now two weeks overdue by them.) Sad to say but when building activity rises local councils do not proportionately increase the numbers of staff required to process applications. Thereby making approvals more valuable and an ongoing incentive to push them through.

The question is how many projects and council applications should you have on the go at any one time? There is a fine balance between budget and the optimal best utilisation of time.

Brains, you know the Morayfield/Caboolture market well. Should one ever "leave" the market?

I was asked the question the other night by someone who assumed that I was no longer looking in my market. The reality is that I am always looking. If you are not always looking then how do you know what is happening the market and how will you know when a "great" deal comes up?

Enjoy the journey.

Cheers,

Sunstone.