QLD Oakey or Millmerran in Toowoomba region

Discussion in 'Where to Buy' started by Samj, 15th Feb, 2022.

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  1. Samj

    Samj Well-Known Member

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    Does anyone know about Oakey or Millmerran areas in Toowoomba. Any good or bad points?
     
  2. Samj

    Samj Well-Known Member

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  3. kierank

    kierank Well-Known Member

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    I wouldn’t invest in either but if I had to chose one it would be Oakey (by a country mile).
     
  4. Samj

    Samj Well-Known Member

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    I wouldn't consider if my budget wasn't below $200k. If want to buy a house with over 8% yield, where else possible around ?
     
  5. Icarus

    Icarus Well-Known Member

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    With a budget of $200K, and you want to buy in the Toowoomba region - I'd look at Dalby. It's a much larger centre (twice the population of both Millmerran and Oakey combined), has a new Bunnings, Big W, decent shopping centre - and it has the bonus of being a hub for a number of major CSG companies. It's surrounded by better farming land too (meaning more income for the region).

    Outside of that area, you can (just) jag something in Rocky for under $200k. With a clean up, it'd come close to 8%.

    I've learnt the hard way, but CF is not the be all and end all.

    The big $ comes with CG. A shortfall of $50 a week can mean 50% growth compared with 5% growth - and I really can't see any major growth drivers at all for Millmerran... or Oakey for that matter.
     
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  6. kierank

    kierank Well-Known Member

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    If one is looking at buying in Dalby, check the property’s flood situation.

    The Myall Creek floods every time someone pees in it ;).
     
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  7. Samj

    Samj Well-Known Member

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    I agree, couple of people told me the same story which makes sense. Thanks.

    Do you have any idea how the Inland Rail will help for these areas? Looks like places such as Inglewood going to become transport hubs?
     
  8. Mark@Inverell

    [email protected] Member

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    Inglewood floods frequently. Pretty small. As a freight hub, would be agricultural, and the line goes through bigger grain regions not far away.
    Narrabri & Moree as examples.

    Nice enough small rural Town though.
     
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  9. Icarus

    Icarus Well-Known Member

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    Yes - very important! Check the flood maps, or talk to long term residents before purchasing in Dalby; or buy a high-set if you wanted extra piece of mind.

    We have a couple of cheapies in Dalby, one only a few hundred metres from the creek, it's "only" had water go through the block (it's a high-set) once in 15 years - but on the other side of town our other place is physically closer to the creek, and has never seen water.

    Inglewood has one of the best bakeries in QLD, but was inundated with water last year. As [email protected] said, it's quite small.

    My 2 cents of advice, for what it's worth... stick to larger centres - 50,000+ population minimum. You'll almost always have tenants in smaller centres, and rental return is usually higher... but we bought our Toowoomba and Dalby properties within 4 years of each other, similar houses, similar sized blocks, the Toowoomba purchase price was maybe 15% more than Dalby at the time of purchase.
    Our Toowoomba place has more than doubled in value, Dalby is lucky to have moved 10%. Rental return has been better in Dalby since day dot (always cf+), but it's not much of a consolation when you're comparing hundreds of thousands of $ difference in current value.

    Maybe Dalby is on the up and up? I hope so; but I should have spent the extra $ in Toowoomba initially, and got better properties.
     
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  10. Samj

    Samj Well-Known Member

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    Thanks, so Dalby hasn't got much increase in last couple of years?

    There are some fairly new (~2011) houses 4/2/2, for around $350K. Rental would be nearly $400/wk. What do you think about that kind or properties? Looks like price has already increased a fair bit...
     
  11. Icarus

    Icarus Well-Known Member

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    You'd want to do your due diligence if you're looking at those newer properties - some (not all) were built hastily during the last boom, and being a slab construction on black soil, there might be a few (current or future) underlying problems with the structure.
    I prefer to buy properties on adjustable stumps, with better returns.

    Prices have moved, but they're still well below the peak of last decade's boom. Will they continue to move? I don't know? Our rents have moved up 20% in the last 12 months, and vacancy rate is low... whether this will remain so is anyone's guess.