When it is Townsvilles Turn

[parra1]

Hi there,

Looking at various reports and commentators stating Toowoomba is the fastest selling region, where Brisbane, the Gold Coast, the Sunshine Coast, Toowoomba and Cairns , all showed rising annual median house values of approximately 1.5 to 1.9% on average each quarter over the past year.

I have a nice property in Townsville. Is has done basically nothing since 2009. I am wondering where people see Townsville in terms of the Property Clock , are there any signs that it is going to pick up ? Vacancy rates are around 4.00% but the town has a lot going for it IMO.

Considering many often claim that Townsville is the states 2nd capital city, I am surprised how far down the pecking order it is in terms of growth and recovery.

Thank You.

 

[Sailesh Channan]

Good time to accumulate good properties in Townsville now while prices are low. Townsville growth lags behind Brisbane.

Queensland growth starts in the inner city suburbs and runs for approximetely 3 years then it expends to the outer surburbs and then spreads to Logan, Ipswich and Moreton Bay, etc. The growth period is usually shorter here.

Townsville then takes off after the outer suburb growth has begun.

Property growth is usually caused by an unusual number of sales interest. This input comes from investors and panicked owner occupiers. However, the investors provide most of the input.

Therfore, it is the extra sales volumes from investors that creates a property boom.

 

[see_change]

We bought in Townsville last cycle , but my understanding is that insurance is now excessive .

As you have a property up there , could you please give an update with regards to that . 7 k was a figure that rings a bell ....

Cliff

 

[GreyGhost]

Good time to accumulate good properties in Townsville now while prices are low. Townsville growth lags behind Brisbane.

Queensland growth starts in the inner city suburbs and runs for approximetely 3 years then it expends to the outer surburbs and then spreads to Logan, Ipswich and Moreton Bay, etc. The growth period is usually shorter here.

Townsville then takes off after the outer suburb growth has begun.

Property growth is usually caused by an unusual number of sales interest. This input comes from investors and panicked owner occupiers. However, the investors provide most of the input.

Therfore, it is the extra sales volumes from investors that creates a property boom.

Fly in Fly out workers were using Townsville as a hub instead of going home. This cause price rises in the unit/apartment market over the past few years.

With the mining industry downturn on the horizon I am weary of the effect this may have on prices in Townsville....

 

[R377]

Cairns has hot a nice little boost the past 12 months with the oz dollar falling. (just saw an article cairns as a whole had 7% growth) Some of the more popular suburbs got 10-12% growth.

I expect Townsville to get that ripple effect (also from brisbane should flow over)

 

[hugh72]

We bought in Townsville last cycle , but my understanding is that insurance is now excessive .

As you have a property up there , could you please give an update with regards to that . 7 k was a figure that rings a bell ....

Cliff

Don't know about insurance in Townsville but its possible to get house insurance in Cairns for around 2k-3k depending on excess and location so Townsville would have to be similar if less. Its more expensive nearer to the coast generally

 

[hugh72]

Townsville weathered the GFC better than Cairns but its not getting the kick along from the improvement in the tourism industry. It also is more affected by government department cutbacks at both levels of government due to it having a large number of employees on the public payroll IMO.
Building ground to a halt for about 5 years in Cairns limiting supply unlike Townsville.

 

[clay973]

We bought in Townsville last cycle , but my understanding is that insurance is now excessive .

As you have a property up there , could you please give an update with regards to that . 7 k was a figure that rings a bell ....

Cliff

We have a 4x2 IP in Townsville and pay $2500

 

[see_change]

We have a 4x2 IP in Townsville and pay $2500

Clarification

Is that a 4 bed , 2 bath house

Or 4 * 2 bed units ?

Cliff

 

[Sailesh Channan]

Townsville weathered the GFC better than Cairns but its not getting the kick along from the improvement in the tourism industry. It also is more affected by government department cutbacks at both levels of government due to it having a large number of employees on the public payroll IMO.
Building ground to a halt for about 5 years in Cairns limiting supply unlike Townsville.

Yes, Cairns economy is linked to tourism similar to Gold Coast so the cycles here are different.

Although Gold Coast will see an extra boost from the Commonwealth games as the infrastructure projects pick up.

 

[parra1]

Hi Cliff

Ours was similar off memory about $2500 for the 4 X 2 House in Douglas.

Some great replies so far thank you. Just wish there was more incentive to keep holding on for that ' run ' to happen. Been 6 years without a cracker of a rise. In that time rents have dropped and bargaining power with it due to high vacancy rate. Of all my investment properties this is the one that looks the best but has been the slowest in all areas.

The latest report from HTW indicated we were at the start of the recovery stage of the cycle which would be 6pm on property clock ?

Cheers

 

[hugh72]

IMO it depends on what your holding costs are like and if its holding you back from investing elsewhere, if not I would hold.
People like to talk about opportunity cost and that's true but if its not costing you much if anything I wouldn't like to give a RE agent 2-3% to sell in a depressed market and buy elsewhere paying stamps again etc.
The local economy is probably the most diverse outside of Brisbane, I can't see a quick turn around but long term it should be a reasonable investment

 

[parra1]

Thanks Hugh,

Can afford to hold it, but If I decided to sell it now - I would definitely record a slight loss after factoring the selling costs etc.

Suppose I am hoping for the place to go bang and get a great run like other places such as Darwin did, Sydney etc...

Looks like I may just ride the storm a bit longer. I have quality tenants in there now keen to stay on, good real estate agents who keep a close eye on the property. The House is an a recently expired DHA house, so all new carpets, painting inside and out and maintaince is spot on.

Come on Townsville time to wake up from your slumber LOL

 

[WattleIdo]

For a while there it sounded like Townsville was a great place to migrate to. Sounded like there were lots of young people there and lots of jobs to be had. Is it a great place to live? Is there a modern outlook there? If so, it will pick up and be exciting again.

 

[miximitosis]

For a while there it sounded like Townsville was a great place to migrate to. Sounded like there were lots of young people there and lots of jobs to be had. Is it a great place to live? Is there a modern outlook there? If so, it will pick up and be exciting again.

There is inner city development occurring which is exciting. City Lane and other projects in the mall are definitely leading to other businesses having a crack in the CBD. The council is trying to secure federal government funding (state already chipping in $100m) for the proposed city stadium/Ross creek waterfront developments. Until something of this magnitude or the Adani project commences however (and workers base themselves in Townsville), then I can't see prices rising significantly.


Edit: As you can see city lane is quite impressive for a regional town

http://citylane.citylane.com.au

 

[hugh72]

There is inner city development occurring which is exciting. City Lane and other projects in the mall are definitely leading to other businesses having a crack in the CBD. The council is trying to secure federal government funding (state already chipping in $100m) for the proposed city stadium/Ross creek waterfront developments. Until something of this magnitude or the Adani project commences however (and workers base themselves in Townsville), then I can't see prices rising significantly.


Edit: As you can see city lane is quite impressive for a regional town

http://citylane.citylane.com.au

I found the new football stadium funding interesting, sounds like the newly elected Labor government may be trying to backtrack fairly quickly on this one saying that fed government funding is also required?

 

[miximitosis]

I found the new football stadium funding interesting, sounds like the newly elected Labor government may be trying to backtrack fairly quickly on this one saying that fed government funding is also required?

Don't quote me but I'm pretty sure Labour only ever promised to fund approx $100m with the project needing another $100m from the federal government plus a portion from the NRL

 

[hugh72]

Don't quote me but I'm pretty sure Labour only ever promised to fund approx $100m with the project needing another $100m from the federal government plus a portion from the NRL

Yes, and when the feds don't stump up their contribution the state government can blame them and back out no doubt.

 

[clay973]

Clarification

Is that a 4 bed , 2 bath house

Or 4 * 2 bed units ?

Cliff

a 4 bed , 2 bath house - $2500 p.a.

 

[strongy1986]

For a while there it sounded like Townsville was a great place to migrate to. Sounded like there were lots of young people there and lots of jobs to be had. Is it a great place to live? Is there a modern outlook there? If so, it will pick up and be exciting again.

We have a place in west end

When we went up to check out townsville last year I was shocked - in a good way
I think long term it will prove to be a very good investment

Currently the job market is soft but I think the city will just keep growing as it's a nice place to live