Buying a house that flooded in Townsville

Discussion in 'Where to Buy' started by Buzzyear, 14th Feb, 2020.

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  1. fumid

    fumid Well-Known Member

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    Hermit-Park is quite close to city and nice shop, restaurants around, it's impacted by 2019 flood but news said a lot of people back to buy/rent in that area now.
     
  2. Heinz57

    Heinz57 Well-Known Member

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    The experts say never to buy on an island. But I live on one so maybe not the best person to ask!
     
  3. strongy1986

    strongy1986 Well-Known Member

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    It was Brisbane that got rolled by La Nina last time round, not Townsville

    i own property in both so no bias here
     
  4. fumid

    fumid Well-Known Member

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    Great to know you live in an island, you are the best person to tell us the pro and cons to buy in a island:)
     
  5. Lollie

    Lollie Well-Known Member

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    I'm doing the research on duplexes for my son in Townsville. He's looking around Condon, Kelso, Rasmussen areas. Good yields, long-term tenants in place, some are in nice streets away from housing commission and don't flood. Are these worth considering do you think?

    I worry about long-term capital growth but the yields are really good.
     
  6. fumid

    fumid Well-Known Member

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    Hi Lollie, I am looking for similar property, how do you know those away from housing commission?
    For flood, I found some house is OK but front street or around the house have some flood, would you consider that?
    And do you have a Townsville solicitor for this? How much they charge?
    For my research, have to be aware that high rates and insurance, if you deduct those, rental yield might not that high.
     
  7. Lollie

    Lollie Well-Known Member

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    I rang the council, gave them the address and they will tell you if the property itself would flood and where else in the street could possibly flood.

    I would prefer not to buy in the general area that floods because there's no guarantees about flooding. Water moves differently in different floods for reasons such as new levy banks being put up etc.

    I have a Sydney solicitor but will probably seek recommendations for a townsville solicitor, I would prefer a local solicitor. QL is very different to NSW

    Yes, rental yield needs to be high, above 8 percent because, rates on a duplex are $6000, then insurance
     
  8. fumid

    fumid Well-Known Member

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    Thanks Lollie, I called council, the flood map not include the 2019 flood cause they are 1 in 100 yrs but they can check for you the area.
    And they said all duplex and multi-units on a single dwelling are classified as cat 3 which has higher rate. 8% is quite high, that means a 350k house need to be rented for $540.
    I have checked you definitely need a QLD solicitor to settle down, NSW one wouldn't work, a TSV one will be good, pls let me know if you get one and how much they charge, a agent said she can recommend one charge around $1400.
     
  9. Lollie

    Lollie Well-Known Member

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    $1400 seems ok for a solicitor. You could also ask for recommendations on the forum for a Townsville solicitor, or conveyancer. Do you live in Townsville? I'm on the everything townsville facebook page. You could ask for solicitor /conveyancer recommendations on that.

    As well as the high rates and insurance costs, I worry about capital growth on duplexes in the outlying suburbs, hence searching for higher yields
     
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  10. wilso8948

    wilso8948 Well-Known Member

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    Few of my thoughts for points I've noted from posters here:

    - I wouldn't be making investment decisions based on weather cycles. Buy high and dry. Check flood maps. Most "new" estates are really just cheap land developments in low lying swampy areas.
    - I would be avoiding duplexes in outer Townsville. Those closer in to the Strand, CBD, etc may be ok. Would need to be cheap and have very good yield. Pure cashflow play. Target clean, easy to rent, big blocks and maybe some privacy from other tenant.
    - Magnetic Island is for holidaying not investing IMO.
    - If you are concerned about cyclones in FNQ buy brick/block houses only. Timber etc also needs more maintenance with higher humidity.
    - Don't overcomplicate it. Most people target houses with some room for kids, cars, pets etc.
    - Remember that Townsville is not Brisbane but it is also not Blackwater. 25kms from the CBD, stadium and The Strand is considered far out.
     
    significance, fumid and Lollie like this.
  11. fumid

    fumid Well-Known Member

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    Very good point!
    When I quote insurance with Suncorp, it asked a lot of Cyclone preparation questions,
    so will you guys check these 'Cyclone preparation' before buying house?
    Or will add some 'Cyclone preparation' to the house after purchasing?