QLD Toowoomba?

Discussion in 'Where to Buy' started by Mickg123, 4th Feb, 2016.

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  1. Barny

    Barny Well-Known Member

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    Mick, 4 bedroom new properties are taking a hit also in rents. I've seen 4 bedroom properties asking 400+ come down to mid 3's. Don't look at properties that are currently asking rents, speak to the agents, there not getting those prices, there sitting vacant for ages.
    There's more than twice the amount of rental properties in twelve months. And building continues.
    It's beginning to remind me of China's ghost towns. Toowoomba's council believe if they build it, they will come. Who will come? Who's coming?
     
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  2. 4point5million

    4point5million Well-Known Member

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    About to get appraisels for 2 properties in Toowoomb to sell.... All rented and no problems, from what I've heard, rents and asking prices have softened but not gone backwards. Would rather not sell but need to finance next step.....
     
  3. 4point5million

    4point5million Well-Known Member

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    Not quite Barny!, seriously?
     
  4. Barny

    Barny Well-Known Member

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    Nah little sarcasm, but yes heaps of new stock. You won't have a problem selling if you accept the price, which will be lower than last years prices, and the year before.
     
  5. 4point5million

    4point5million Well-Known Member

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    Sorry not sure what you mean here are you saying values have declined over the last 2 years?

    Just had 1 appraisel come in, agent reckons offers over 280 which is almost double what I paid 2 years ago, he also commented that he is getting signed contracts within 45 days
     
  6. Barny

    Barny Well-Known Member

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    You doubled your money in 2 years? That's incredible.
     
  7. Barny

    Barny Well-Known Member

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    Days on market for towoomba have gone from 50-80+ days over the past 12months. The last 18months have been a slowing market, softening in the rental market, and with sales. If you can sell for twice the price it means you bought extremely well. So well, that you made money whilst everyone else is losing money.
     
  8. P Roperty

    P Roperty Member

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    I bought in Centenary Heights (SE Toowoomba) in 2012 - 3 bedroom house for $240K. Now renting for $350p/w. Had some good growth and just happy to hold for the long term now. Still lots happening in Toowoomba, I think it will just chug along nicely from here on in.
     
  9. Barny

    Barny Well-Known Member

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    Welcome P Roperty, I See this is your first post. You bought in 2012 in centenary heights which is a good area for 240, and achieving 350 a week for a 3 bed house today? I call BS
     
  10. Cash Flows

    Cash Flows Member

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    Hi Mick,

    I mainly look at the sub $300k range but from my observations the reduced rent applies for ALL properties. Nothing is holding its rental value from what I have seen, it doesn't matter if its older style or renovated (in my opinion the renovated stuff is not demanding a large premium in the current market).

    I am not sure how to get a hold of new developments and approval numbers but it seems as though the developments are starting to dry up which should help with the supply side of the equation.

    Cheers

    Cash Flows
     
  11. P Roperty

    P Roperty Member

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    No BS here. I bought in 2012 when not many people were talking about Toowoomba - I got in at the right time now reaping the benefits, have an excellent PM who's had it rented from day 1.
     
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  12. Mickg123

    Mickg123 Member

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    Hi P Roperty, would you mind letting us know what sort of property your is? Timer, Brick, New Kitchen, old kitchen, big block etc....

    Sounds like you are on a winner!
     
  13. P Roperty

    P Roperty Member

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    Yeh for sure. Its a 1980's 3 bedroom brick house. I did a basic reno a couple of years ago - nothing flash but its affordable for the majority of renters in Toowoomba so never had an issue finding tenants. Current tenant just re-signed, I didn't raise the rent but didn't have to lower it either. I know the rental market isn't as strong now but if you do your research and purchase the right property for the demographic in the area you shouldn't have any trouble finding tenants.
     
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  14. Mickg123

    Mickg123 Member

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    That's a great result! well done!!!
     
  15. 4point5million

    4point5million Well-Known Member

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    Just had 2 more appraisels come back, bit soft but still some good gains over the last 2 years. 2 different agents still saying 40 days till signed contract. Market boyant but not as busy as last year.
     
  16. RedMarty

    RedMarty Well-Known Member

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    I have visited Toowoomba for over eight years due to my old man living in Highfield's (beautiful place) and me driving from Ipswich every second or third weekends . The big thing that keeps coming up is the proposed tunnel ( which goes through the mountain) and the lack of a city train from Toowoomba to Brisbane. There is a rail link there BUT its not electric and not used for passengers. You can imagine if someone who lives in Toowoomba on a 1000m2 block who could commute to Brisbane in under a hour on a train. I think that would be a massive driver for CG and also CF even in the less affluent suburbs...
     
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  17. Foxy Moron

    Foxy Moron Well-Known Member

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    Shh Marty. Don’t tell the whole world.

    Actually you’re dead right. The fundamentals for Toowoomba and Highfields are absolutely superb. The second range crossing will be complete in about two years but even better is the new Wellcamp airport which will assist a range of innovative primary producers get their fresh foods to Asian markets. Good stuff happening everywhere……..BUT……local agents will testify that the market is having a decent breather after a huge 2013 – 2015, due to a number of factors, mainly mining related.

    My observation here on the ground is that there is slight oversupply at present that will stifle rental growth, and which favours OO buyers rather than investors, so I won’t be rushing to invest further at the present time. I would be wary of buying units and smaller new H&L blocks (under 700m) in particular. Just my opinion. But if you bought well before 2014 just sit tight and enjoy the next 5-10 years. Toowoomba is the western edge of John McGrath’s golden triangle.
    I mentioned on the ‘complain or conquer’ thread that value for money lifestyle around Toowoomba is second to none. Every second car is European, a big café society and fantastic medical and education services, so if any depressed city dwellers want to do a few years of country service in their chosen career they could do worse than live in a place like this. Direct flights to MELB and SYD make it closer than you think.
     
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  18. RedMarty

    RedMarty Well-Known Member

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    @Foxy ***** my apologies ☺
    I love the place but at the moment we are still early in our investing and need to look at cheaper property.
    That being said, happy for anyone to chat/pm about the place. Highfield's is on another plateau Above Toowoomba.
     
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  19. Barny

    Barny Well-Known Member

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    Toowoomba market is a buyers market now.

    Sales results have dropped by 50%+ overall. Seen 70% through one agency.

    Rental prices have dropped about 10%+, been following a lot of the west areas, glenvale, harristown, wilsonton heights, Newtown, and others south.
    Houses that were asking sales price of 325-350 have dropped to 285-320 in 3 months alone. 10% drop.
    Agents think it's settling now, not sure as there isn't demand as yet. It will come good again when more of the projects eventually start and creat more jobs/demands.

    Toowoomba property market ripe for buyers

    A new dairy facility with direct links to the lucrative Asian baby formula market, is scheduled to begin soon. With the newly built Wellcamp Airport, the multibillion-dollar Second Range Crossing and the proposed Inland Rail, Toowoomba is set to become one of the largest logistical centres in Australia.


    Excellent buying now, but not a sellers market at all.
     
  20. BigBadBanana

    BigBadBanana Active Member

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    Having grown up in Toowoomba/Highfields many many moons ago, I have to agree - unbeatable regional lifestyle. Your comments about the town's affluence was something I noticed in my time there too - European cars or expensive four-wheel drives...everywhere. Also commerce in the city is very strong - I don't know of any other regional city in Australia which sustains so much retail (last I heard Grand Central was being upgraded and connected to Village Fair??)

    The new Airport and the second range crossing will to wonders for the city...wouldn't be surprised to see Toowoomba doing very well in the medium-to-long term....just imagine the potential if the Queensland government ever provide regular inter-city commuter rail services (like vline in regional Victoria).....