QLD Regional QLD - Townsville - Cairns - Gladstone - Rockhampton - Bundaberg - Mackay

Discussion in 'Where to Buy' started by Jaccob Rodda, 13th Feb, 2018.

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Better IP location right now

Poll closed 20th Feb, 2018.
  1. Townsville

    50.0%
  2. Cairns

    8.3%
  3. Gladstone

    8.3%
  4. Rockhampton

    25.0%
  5. Bundaberg

    8.3%
  6. Mackay

    0 vote(s)
    0.0%
  1. Jaccob Rodda

    Jaccob Rodda Member

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    What are people’s thoughts on some of regional QLD's secondary sized city?
    Understanding these are all different with different growth drivers but most have improving economies with unemployment and house demand getting back to normal and regular levels. Which cities are worth looking at over the long term? What are some of the reasons for and against?
     
  2. See Change

    See Change Well-Known Member

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    I've done well in the previous cycle in Rocky and Townsville .

    Personally I wouldn't touch gladstone . I looked at it in the last cycle , but too many jobs in the building stage and not enough long term .

    I know where I'm going to buy , BUT , until Brisbane has moved significantly ( including outer ring ) I wouldn't go there .

    Cliff
     
    Last edited: 13th Feb, 2018
  3. Jaccob Rodda

    Jaccob Rodda Member

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    Purely for my judgement, how long have you been an investor and how many cycles in QLD have you gone through? So you're backing in Brisbane to grow before you see the regionals gain some growth?
     
  4. hammer

    hammer Well-Known Member

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    Regional Qld still has some serious employment issues. That situation would need to change substantially before i'd be buying there as an investment. Or you'd need to be there with your ears close to the ground.

    However if you can score a good job and move there....it'd be amazing buying. All the secondary cities in QLD have great infrastructure and lifestyles. As a PPOR it'd be a no-brainer.
     
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  5. See Change

    See Change Well-Known Member

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    Just last cycle - around 2001 ( in logan ) , but at that stage I looked at data going back for 30 years and started this thread on Rocky in 2003 .

    Rocky , The next Big Thing ??

    Cliff
     
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  6. kierank

    kierank Well-Known Member

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    @Jaccob Rodda, I would have voted for Toowoomba if you had it on the list ;)
     
  7. Kevvy7

    Kevvy7 Well-Known Member

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    I just picked up a place in Hervey bay.
    It's been dormant for 8 years now whilst recently the vacancy rate has shrunk and prices have started to move. It is high yielding, has a decent block of land and is only a 200m walk to the beach.
     
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  8. Jaccob Rodda

    Jaccob Rodda Member

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    What reasons would you have Toowoomba at the top of the list?
     
  9. Jaccob Rodda

    Jaccob Rodda Member

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    How was the local on ground sentiment? Was there a major reason you liked Hervey Bay over a couple of the other regional areas? Sounds like a great long term buy.
     
  10. kierank

    kierank Well-Known Member

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    I didn’t say top of the list, I said on your list :).

    I believe the area has a lot going on (airport, bypass, CBD development, Uni, ...) and it is near/at the bottom of the Property Clock.

    Once Brisbane has boomed, Toowoomba will surely follow.

    Also, my strategy is not to buy in Gladstone and to its north due to the risk of cyclones/major flooding. I have a sister who lives in Cairns so I know the risks and what can happen.

    So that only leaves Bundaberg on your list. I have a brother who lives in Bundy (tbh Bargara). I believe Toowoomba has a lot more going for it than Bundy.

    But I could be totally wrong - time will tell :D.
     
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  11. strongy1986

    strongy1986 Well-Known Member

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    Just spent time in all of the above mentioned towns
    Personally i didnt feel the vibe from mackay(sorry pinkboy), gladstone (sorry jenko) or bundy (sorry mr bear). Not for any investment reasons though. They just didnt feel like a great place to live which i guess is important long term to smooth out any boom.and bust cycles. Having said all of that if you can get a bargain and a good yield then it wouldnt stop me but i would look at the others first

    I am very biased towards townsville as we own there. There job vacancy has supposedly dropped from 11.5 to 8.5% since 12 months ago. Theres a bit going on there infrastructure and investment wise which you can easily find with a google. (Stadium, port, solar/battery, adani)
    We really liked rockhampton which was a bit of a surprise. Nice old town which isnt reliant on mining but its definately well positioned to benefit from upsides.
    Cairns - i actually dont like cairns and its surburbia a great deal. Edge hill is nice though
    Tourism is the game in cairns though and i think its a good counter cyclical investment as its still fairly cheap - bad aus economy = good for cairns
    Liked yorkeys and thise northern beaches and didnt mind the main tourist strip in cairns city

    Other smaller towns that have good potential are Yeppoon, Proserpine, Agnes, Port Douglas

    Of course Hervey Bay - probably the fastest growing town in Australia
    Toowoomba - never been but its up there in size with Townsville i believe

    Cheers
     
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  12. Jaccob Rodda

    Jaccob Rodda Member

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    Yeah from my research Townsville seems to have the best upside over the next 5 years but it was interesting to hear your thoughts on a few of these other cities.
     
  13. strongy1986

    strongy1986 Well-Known Member

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    No worries

    Townsville is ridiculous value for money.
    Quality of build (established housing) and land size is far superior to cairns and it is also cheaper. Population is larger, economy more diverse.
    Only ace cairns has is tourism but as i said it could still be a great investment if all doesnt go to plan aus wide.
    Biggest problem With cq/nq is vacancies but its all cyclical and years of downturn and low building volumes.is inevitabely followed by an increase in investment / jobs and a shortage in housing stock. Time to buy is now
    I think the other towns are ok but i wouldnt be rushing into them. I think cairns/ townsville will grow first
     
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  14. New Town

    New Town Well-Known Member

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    I have a house in Bundy and the tenant was arrested and put in Jail. This happened to a previous tenant of mine from the same house
    :eek::eek:

    Nice place tho :oops:
     
    Last edited: 15th Feb, 2018
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  15. New Town

    New Town Well-Known Member

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    Rates in Townsville ($3k plus) are higher than the rates on a house ten times its value in Sydney. You have to reconcile those sorts of things in your mind (and your spreadsheet)
     
  16. Ryan23

    Ryan23 Well-Known Member

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    I havnt found rates to be to bad in townsville as they also include water and half yearly when compared to some brisbane properties that are quarterly and then + water. Although i have no idea about Sydney so may be getting ripped.
     
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  17. Jaccob Rodda

    Jaccob Rodda Member

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    Wowee, Is this house in a lower socioeconomic area in Bundy? or was it just pure bad luck of that house?
     
  18. Jaccob Rodda

    Jaccob Rodda Member

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    Yeah i think you're correct rates might look higher in Townsville but they include water supply.
     
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  19. New Town

    New Town Well-Known Member

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    Not really - near town. The tenant has been pretty rough on the place and now the PM dolefully tells me "its the worst house in the street"
     
  20. bk1

    bk1 New Member

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    Hi,

    A few observations, recently sold our IP in Townsville at a loss. The property was always rented, near new and in good condition.
    Townsville has lots of land to build on, and new estates are going up all the time, this means that there is a great deal of choice of new property in the 4-2-2 range which therefore makes selling a standard property challenging, regardless of where it is located within Townsville. New estates with charming names, such as Bluewattle, cannot hide the fact that it is located in a notorious petty crime suburb.

    Rates are high, also, Townsville was on water rationing for months last year and this situation of insufficient pipe from the Burdekin dam has not yet been resolved.
    It will take more than one Carmichael mine to re inflate Townsville's economy, Flinders street still has shops empty and up for lease. The town cannot rely on the military to keep it afloat, one of the major banks or Telstra will need to return for any long term future optimism.