QLD Townsville - Good time to buy?

Townsville looks like good buy, north qld has started to take off. Adani, port widening project and battery plant. Lot of jobs being created, any suggestions?

I am from Melbourne, just trying to buy interstate to save land tax...

 

Adani is not expected to employ from Townsville, more Mackay region.

Port expansion to create less than 200 jobs in construction, and operation.
Townsville Port Expansion Project

The battery plant looks more promising.

Suggest more research it required to invest there.

 

To invest in the north you should really go visit first.

Its almost a different country to what you're used to down south.

Also worth investigating insurance, storm surge and rates.

 

Thanks guys, just put an offer on a house in Townsville Kirwan DHA - 4*2. Not seen the property, below replacement costs. Still need to get finance etc...early days. Since it’s DHA easier to manage and not worry, rates and insurance are little high. Property is already $100k less than 2008 sell price, this caught my eye. No growth for long time, time for a boom hopefully soon. When it catches up even if it comes back to 2008 I will be $100k ahead...Gamble but analysts are saying Melbourne and Sydney are 15-20% higher than where they should be.

Warren Buffet - buy when people are selling and sell when people are buying

 

'It's heartbreaking': Townsville's property market nightmare wipes $100k off homes

 

Did you end up getting the DHA at Townsville ?

 

That saying refers to buying stuff that has fundamental value.

 

I believe this is exactly the reason why @Mady is thinking that now is a good time to buy.

 

yep
we bought ours in 2015 for 100k less than previous purchaser (purchase was 07 or 08)

i would say current value is 50k more , so it is recovering slowly

 

Hi, I have purchased 2 houses both 4*2 in kirwan with dha lease (2 & 2.5 years). Bought them below market price. My wife does not like my desicion but have taken a calculated risk. it's easier to sell DHA after the lease finishes and there is good demand for dha as the build quality is better. Market is all time low right, another good reason to buy right now.

I analysed property reports and market aspects before buying. Reports say market will take 2-3 years to turn in Townsville. Let's see what happens, I have 8 properties so wanted to diversify my investments.

 

As part of your due diligence, I trust you checked out the addresses on the Townsville Flood Map

 

I'm biased being a local but I am very bullish on Townsville in general.

I think conditions in the market favour buying for the first time in over a decade. I've left & returned multiple times over the last 12 years and it is only this year for the first time seeing prices what they are now was I interested in buying. If I had more capital I would go on a buying spree.

Good luck Mady!

 

Yes, good luck Mady with your DHA ... Any particular suburbs in Townsville ?

 

CBD, North Ward, West End, Belgian Gardens, Currajong, Pimlico, Hyde Park, Gulliver. There's very little spare usable land so you won't get built out and plenty of decent shops & schools around(for a city of this size).

Basically most places around the city itself avoiding South Townsville, Railway Estate for flood risk as per @kierank's point about the flood map.

I've been very pleasantly surprised since coming back this time, it seems the council is making genuine efforts to put on nice community events and encourage people to get out and about in the city. Regular local markets, food truck events, free family events with loads of entertainment.

You have to take it for what it is, a regional city with a decently diversified economy. I like to look at things with a range of possibilities and really believe you make your money when the deal is made. Buy too high & it won't matter what your returns are and the opposite side of that is if you buy at such a low price it's hard to lose money which is where I see a lot of opportunities in Townsville atm.

 

Thanks @cberg86

 

We bought there a couple of years ago, in Annandale (lots of schools, close to the army and hospital).
The rental market now is very tight and prices have finally started to move.
I am looking forward to the next 5 years, as I feel prices should go well.

 

The rental market is tight because so many people are still not able to move back into their flooded homes - repairs are going slowly. This should ease up over the coming months. I have just bought myself, though (settlement next week) so I hope you are right about prices.

 

Rates seems high for this one description says $5.4k

38 Ives Street, Kirwan, Qld 4817

 

I wouldn’t be too bullish. I just bought a Townsville flat for $100k less than the previous purchaser paid in 2013 (still in great condition). They paid $150k less than the original purchaser in 2010. Could go up from here, but could still have room to fall. 8% unemployment and more empty shopfronts than not. Adani, despite the hype, is not going to create jobs for Townsville.

 

That's a duplex, halve that for the individual units rate.