QLD Rockhampton, Townsville and FNQ

Discussion in 'Where to Buy' started by Ryoka, 15th Nov, 2021.

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  1. Ariyahn2011

    Ariyahn2011 Well-Known Member

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    Hi mate, I hear ya. I do think both offer a similar climate and lifestyle. Only difference is Townsville is a bit cooler. University and public hospital is better in Townsville. Darwin wins on close proximity to SE Asia. Townsville wins on having more affordable flights and connectivity to Melbourne, Sydney and Brisbane. Not knocking Darwin, just think NQ offers a more affordable and attractive life style based on Darwin valuations.
     
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  2. Ryoka

    Ryoka Well-Known Member

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  3. Deuce

    Deuce Active Member

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    Congrats @Ryoka!

    I just came across this thread when I was looking to buy an IP in Bundy or Rocky. As a first time investor I have a few questions for you if you don’t mind.

    1. When you made your offer was it subject to finance or only building and pest inspection?
    2. Let’s say my offer is not subject to finance but only B&P. when defects are found after building and pest inspection how do we negotiate reasonably with the vendor to fix those prior to settlement? Will a standard clause on building and pest on the contract suffice for this purpose?
    3. Do you have any recommendations on building and pest inspectors in Rocky and how long was the wait time? In Bundy wait time it is almost 3-4 weeks to get building and pest done.
    4. What’s the standard settlement period -45 days?

    tia
     
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  4. Ryoka

    Ryoka Well-Known Member

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    1. When you made your offer was it subject to finance or only building and pest inspection?
    - Both. Regardless of which location or how old the house is, NEVER skip B&P day :)

    2. Let’s say my offer is not subject to finance but only B&P. when defects are found after building and pest inspection how do we negotiate reasonably with the vendor to fix those prior to settlement? Will a standard clause on building and pest on the contract suffice for this purpose?
    - If you find defects, you can either ask seller to fix, or ask for a discount. Usually, the seller doesnt want to waste time fixing stuff and delay the settlement...so usually they go for the reduced price. Negotiation and bargaining skills come with experience....so i cant tell you how to neg, but if i can give you a tip is to not sound desperate....if you show signs that you're really eagar to buy the house, the seller can sense it and may decline your request for a discount.

    3. Do you have any recommendations on building and pest inspectors in Rocky and how long was the wait time? In Bundy wait time it is almost 3-4 weeks to get building and pest done.
    - I've used C&Q Building and Pest 3 times.
    Good timing, you asked... I literally made an offer last week in Rocky LGA (yes, again) and the wait was only 1 week. Things have slowed down... when I purchased last month, it was a 3 week wait on B&P.

    4. What’s the standard settlement period -45 days?
    - 21 days finance. 21 days B&P. 35 days settlement.

    Good luck!
     
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  5. Deuce

    Deuce Active Member

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    Thanks for the advice and congrats again!! 3 in a row

    Can I also ask if you had a PM inspecting the property on your behalf? I am looking for a PM there.

    Any reasons for the market slowing down a tad. Recent rise in interest rates?
     
  6. Ryoka

    Ryoka Well-Known Member

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    Ask for Helen at Mr Real Estate. Shes amazing.
     
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  7. Ryoka

    Ryoka Well-Known Member

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    Here's a quick comparison between Townsy and Darwin in reference to the new defence projects.

     
  8. Ryoka

    Ryoka Well-Known Member

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  9. REAddict

    REAddict Well-Known Member

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    Seems dangerous to invest in these markets now. These would be the top markets to avoid for me because of this quick and massive growth.
     
  10. Ryoka

    Ryoka Well-Known Member

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    I agree that the best time to buy was last year.

    But I dont agree that its dangerous now. People have been shouting "market crash" for about 30 yrs straight.
     
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  11. Ariyahn2011

    Ariyahn2011 Well-Known Member

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    It's still quite cheap relative to comparable life styles. At least in NQ and SEQ.
     
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  12. Ariyahn2011

    Ariyahn2011 Well-Known Member

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    I still think it's more dangerous in Sydney, Melbourne and Darwin personally. Adelaide has a bit more steam in it. Can't comment on the other capital cities.
     
    Last edited: 4th Jun, 2022
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  13. REAddict

    REAddict Well-Known Member

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    Something which has grown close to 30% in a years time is a big risk for me(that too, when through govt stimulus and QE, not because of natural sustained growth). Sydney got 15% correction back in 2019, so there could be similar outcome or even worse who knows. Crash is a subjective term where people may attach it to different percentage corrections, but market which may have potential to correct more than 10% is dangerous to me. No one got crystal ball though but parts of SEQ could fall under this category too.
     
  14. REAddict

    REAddict Well-Known Member

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    Agree on Sydney, Melbourne and Darwin. I personally feel Adelaide may pull back soon, as it had a good run. Let's see how things pan out. One thing is certain though - With interest rate rising, the demand for IPs in areas with higher yields will increase and it would give those market some uplift. I am not sure what criteria people look at while investing, but if an area has grown over 25% in last one year, it's a complete no go for me.
     
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  15. REAddict

    REAddict Well-Known Member

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    Are we expecting more growth in areas like Gold Coast, Sunshine Coast in nearer term ? Long term(10 years or more) everything may uplift as real estate is most forgiving.
     
  16. Ryoka

    Ryoka Well-Known Member

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    I get the concern. And this is an unprecedented situation (covid).

    But I guess we'll see. Maybe I'm just too optomistic :)
     
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  17. Wilko

    Wilko Well-Known Member

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    What if the 10 year growth has been next to nothing like some of north QLD? And yields are very high due to this 10 years of under performance in growth?
    What you are saying might be applicable in most threads but not this one.
     
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  18. Calder&Scale

    Calder&Scale Well-Known Member

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    There's plenty of people pushing the housing crash narrative on reddit completely oblivious to the fact that there's plenty of areas like WA and regional QLD that have only growth at inflation pace over the last 10 years.
    These areas are not going to flatline and they definitely aren't going backwards, regardless of what metro Syd and Melb do.
     
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  19. strongy1986

    strongy1986 Well-Known Member

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    Yep
    Even in Brisbane (redlands) where we own rents have gone up to about $700 for the median house in the suburb with a median value of about 900k.

    The demand for rentals is so high that prices cannot drop that much and be sustained. I expect with building costs increasing , low unemployment and general bearishness on new investment that rents will continue to rise and keep pace with interest rate rise
    Seeing the same rental issues in NQ/FNQ and currently most housing stock is still valued below replacement value.......
    (own in Townsvills & Mission Beac)
     
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  20. Ryoka

    Ryoka Well-Known Member

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    Almost every major market has increased 20-30% in CG.

    Inflation was reported at 5%. As a result, RBA increased .25 last month and rumoured to be .4 or .5 this week.

    If the market crashes while RBA is increasing rates, they would cause another GFC.... it just cant happen.
     
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