ipswich, toowoomba,launceston!

Hello all,
after around 2 years of procrastination due to FEAR, I have organised finance and am ready to plunge into the investment pool.
I've been looking at Ipswich, Toowoomba and more recently Launceston due to the price point (230 k) and these areas seem to be able to be neutrally geared. I would much prefer to buy a house over a flat or unit.
I have reservations over Ipswich due to flooding and unstable ground, but for some reason keep going back.
Does anyone have any insight into other cautionary factors about these areas, or other areas to consider. I am a little freaked out by what I'm about to do so any support would be great.
Cheers.

 

Well done Mabelle !!
IMHO:
#Toowoomba is getting close to its peak for a while but does have a few reno opportunities
#Ipswich has heaps of land but many good opportunities for growth and development splitter blocks and still cheapies around and ability to keep cash positive
Tassy has some good opps right now too

 

Thanks Luke T, I thought as much re Tooowoomba, was looking a couple of years ago and think there seems less stock around now. Any insights in Tassie? Was looking at Launceston (Inverlay) but think I am being bamboozled by the sheer prettiness of some of them and obviously this is not a sound investment view ...

 

QLD - Toowoomba?

 

@Mabelle20 To minimise flood risk in Ipswich, just make sure you buy unaffected properties and get the appropriate insurance. Look at previous flood levels/areas online. Also my insurance premiums aren't unreasonable at all.

Regarding unstable ground, what do you mean by this? Reactive soil? Are you planning on buying house and land packages? If you buy older properties any issues with soil instability should be very obvious if not pointed out by a B&P inspector (movement/cracks/poor drainage etc). I bought a property that was built circa 1890 in inner Ipswich and it has no obvious related soil instability issues.

Like quite a few others, I see some good value in particular parts of Ipswich. You can still pick up good yielding deals but as a few are suggesting, the best are being snapped up faster, so just be ready to go when you spot a good one. I found vendors here often prefer a quick sale, so if you can meet this criteria with some creative negotiating, you can grab a good discount.

Other ways to possibly reduce risk in Ipswich (add more if you have them):

Buy o/o appeal houses on good sized blocks (>600m2)

Character properties/Queenslanders

Add value potential

Close to amenities/parks/cafes/schools etc

Inner Ipswich suburbs non flood affected

Family friendly streets with similar character properties

Have you driven through the area? Do you know what parts you like/can see the most potential?

 

Hi Danmich,
thanks for all of that information. I'm in Melbourne so would be reliant on an agent going through and giving feedback. I believe there is obviously a cost to this, so need to weigh up on such a low budget property whether it's good enough just to do building inspection and of course the good people of this forum for opinions! By unstable ground I've been told by a lovely agent up there about black soil and mining areas. I was looking at properties in east ip, Silkstone and surrounds. Would love a character property but most need a lot of work at the price point im looking at.
Will keep looking though. Any ideas about Launceston?

 

For Ipswich, check the flood maps. Both 1974 and 2011 are available online. East Ippy and Silkstone should probably be fine, it's more places like North Booval and Basin Pocket which tend to flood.

If these areas are too high for your budget, try Booval or Bundamba, a beautiful post war home near a station may pop up.

 

Thanks Gtown, was looking at Bundamba as well. Don't really know much about either. Noticed a lot of East Ipswich has had a bit of flooding also. Noticed too that Launceston also is a flood risk. Oh dear.

 

You could spend $500 on tickets and accom for a weekend and fly to Brisbane or Tassie and drive around to get a feel on the ground.

 

We have places in Launceston and ipswich .

Launceston just had its biggest flood in history and the banks around invermay held . Ipswich , flood maps clearly display risk areas .

As said , old properties with reactive soils are known and should be avoided.

If you can pick up a reasonable property in bundamba for 230 grab it ...

Both markets have tightened since we bought around a year ago , so less choice , but they haven't moved significantly . Both central Hobart and Brisbane are moving so I'd expect them to start moving at some stage , though whether it's this year or in 3-5 years ..... you don't know till it happens .

If you haven't been to either of them , I'd actually go there and check them out . Launceston is closer to Melbourne , infact Melbourne was founded by settlers moving from Launceston .

Both Launceston and Ipswich have their fair share of pretty , nice properties and " renovator specials " .

I couldn't make up my mind so bought in both , along with goodna .

Only difference is that we have had a couple of longer vacancies in ipswich and if I could buy now , I'd probably buy in Launceston , BUT , we have more in Brisbane than in Hobart .

Another thing that might sway me is that our pm in ipswich sucks big time and I've never heard great things about the others and ipswich rates are on the high side though PM rates are higher in Launceston . Around 9 % compared with around 7 %

Cliff

 

Thanks so much Cliff for all of that info. I have thought that maybe much better to actuallly go up/ down to each before committing to either. Will post if I end up deciding on an area but again, many thanks to you and others for input.

 

@See Change What property do you have in Ipswich, is it a 4 or 3 bedroom? Looking to the data vacancy rate is pretty low so it is a bit of worry to have long vacancy. Do you reckon it was the PM not good enough or due to market conditions?

 

Pm is crap .

We plan to move , but for various reasons don't want to at the moment .

They managed to loose a long term tenant by being over zealous . The tenant was a long term tenant who we inherited with the property . We met them and they were rough diamonds who were disorganised hence frequently got slightly behind in their rent , but always caught up . Both partners had long term employment at a business walking distance from the property . The new pm set breech notices each time they got behind . We discussed this with the pm and asked them not to do this , but apparently they didn't listen to us .

My assumption is the tenants got sick of getting breech notices , looked around and found something they liked and moved breaking their lease . Break cover by insurance and they go on ticka .

Property slow to rent . Told that people making appointments but didn't turn up . Last week we received a notice from the council telling us they had received complaints our property was overgrown and if we didn't fix it they would do that and send us the bill ....

Ring pm and they tell they have just fixed that . One week later the property has been rented .

Unimpressed .

Part of the problem with the pm is that the actual property manager doesn't go out to show the property . They have someone else who does that . They have " systems in place " and present well when you go to see them . The problem is their systems don't work .

Cliff

 

Well,

bit of shame they let go the previous tenants especially if it was not an issue for you guys.

With the PM you never know what they do and who you pick up, as always you need a minimal of luck too, especially if you are exploring new areas.

Anyway, the property I guess is doing well so not a big drama

Luca

 

If anyone in the inner Ipswich area would like a contact for a solid PM, let me know, happy to refer. Nothing but great service so far, quick communication and very professional yet personal service.....touch wood

 

Damn, thats a shame about the long term tenant. Would you be able to share the pm you are with? I've got one in the area and the 'system' your PM uses sounds familiar to mine.

 

If they're working well for you . No need . Will depend on which member of the team is looking after your property .

We had a few issues fixed up when our team member went on holidays and a senior member looked after our property .

Happy to share via pm , but only do that if your not happy with who you are with .

Cliff

 

Yes I know what you mean, I was down Launceston way last month to watch the football and gee some of those old houses are so darn attractive.

Somewhat cold this time of year though!