QLD Townsville

I am actively looking to invest in property but confused with the Media reports about the falling prices in Major cities. I had recently spoken to a property advisor who was suggesting Townsville which is started to pickup in prices and has bottomed out. What is the opinion of people who have invested or looking to invest in Townsville.

 

Hi Nagesh,
My feeling is that in the medium term, prices will go up there, however, the vacancy rate needs to decline more before prices will start to move.
I bought in Annandale around a year ago, it has good schools and is close to the Army barracks, hospital and University. Others may prefer Douglas due to its close proximity to the same.

Two things to note - rates and insurance are high due to the cyclone dangers.

 

Hi @Nagesh

Australia is a big place. There is no one market. Sydney and Melbourne are only two of the many markets.

As Perky29 said - there would be cyclone related costs.

Consider where each city is in the property cycle, and the rental returns there to give you an indication.

 

I just brought a 3 bedroom house for an investment at the suburb of Douglas in Townsville. Prices are pretty cheap at the moment as the market is in the recovery faze. With the Liberal Government getting back in and projects in the town ramping up I expect to see some capital growth in the next few years.

 

That can also be a risk factor too.

 

I have spoken to 3 real estate agents, they are sounding positive and are saying Townsville has started to move after a very long time. Houses are selling for the last two months and buyer & rental demand is strong. Another article that I saw today.

 

Townsville property recovery has just started, probably good time to buy more?

Townsville property market at ‘start of recovery’ - realestate.com.au

 

I’d be looking at what’s a head for Townsville. What are the micro fundamentals that are going to drive growth in this market, if you are chasing yields then vacancy rates would certainly be a huge consideration. Some of the indicators I would looking out which will underpin your investment. Economic activity, are more jobs being created? If so are they short term jobs or long term. Where are the desirable areas of town that people what to live and will continue to pay a premium to live there. Lack of supply doesn’t necessity equal price growth, you need to establish who’s buying is it first home buyers, investors or owner occupiers. Usually when there is a large influx of first home buyers they tend to enter into the market in affordable areas usually driving median prices down. As most new properties are often worth less then established properties in certain suburbs. Anyway all the best mate.

 

G'day everyone. Looking at this place:

3 Adelong Drive, Cranbrook QLD 4814 | Domain

Cant really find any direct comparable properties that have sold lately. Any locals that can help:
- agent says it doesnt flood there?
- idea on a price?
- is it a good area?

Thanks all, we are moving to Tville end of the year so starting to look now.

 

Whilst working building a medical center you there last year, I saw so many signs of crime and people doing it tough. There's essentially two cities that have merged into one. Plenty of old commercial shop blocks left empty and new ones built, there's no shortage of land. The actual CBD was decent for what it was, the river apartment where I was staying near Annandale (where the clinic I built was) was ok but flooded a few times since construction.

Wages are stagnant in many areas, it seemed like there were two demographics. Those in the army and those not in the army.

I saw billboards for new house and land for $199k

I personally would like to go and live there for a bit as it has a nice feel along the river but I'd probably not park money there. Most expensive house I saw for sale with 5 bed on the river with a pontoon for $800k

 

It's much more sought after on the opposite side of the river in Douglas.

During the flood in 2019 the river was so over flowed I'd be surprised if It wasn't affected being so close to the river, but just make sure you get it checked over for damage and signs of mould.
If you google Townsville flood map you will get a good idea what areas to look out for.

I would rent there for 6 months to get an idea on what area's are good and bad, there's pretty big problems with local crime (mostly cars being stolen from homes and break ins)

Townsville is definitely improving a lot over the years but as an investment maybe a bit risky.
Value for money is awesome though, that's why I bought my first property there (townhouse in North Ward)

The property looks decent, probably 300/400k?

I would recommend Douglas, North Ward, Annandale depending on your budget.

 

have to be over $400,000 being so close to the river, good luck.

 

Thanks Buzzy, appreciate you taking the time to reply.
I reckon you are right with the price, after looking around at comparable properties on the market, as well as sold, i think its 380-420k.

Crime is definitely something that is steering us away from certain suburbs. Would love North Ward but that is out of our budget unfortunately.

 

no worries, that would be a really nice spot there, I’ve always lived near the river in Townsville, I was in Douglas, I now live in the village oonoonba, those properties close to the river in Cranbrook are very nice , it’s got a bit of a bad name Cranbrook bit of you find the right place you wouldn’t get anywhere better to live in Townsville IMO, if I got time I’ll go for a drive by tomorrow, the market is pretty hot up here so good places ain’t lasting long, once again good luck

 

IIRC parts of Oonoonba (near the river), flooded a couple of years back even though they weren't floodprone.

That was our initial concern when we went up a few years earlier as the area was previously mud flats & a new subdivision.

 

i was lucky , my place didn’t flood even though I’m on the river side, I’m one house back From the river frontage.

 

Friends are off River Blvd /Springside Tce - they went under and they're at the crest of the hill.

 

yeah they got hammered down there in Idalia, I’m in the new part of Oonoonba at the top of Idalia, intercept circuit, houses 500 meters away from me got flooded, our street was lucky, must be higher ground.

 

The BnP came back with termites on the property but none found in the house. Is this common in Townsville? Deal breaker?

 

hmmm there around for sure , so the house has no damage ?
What’s the pest inspector recommend treatment wise ?