QLD Rockhampton, Townsville and FNQ

Granny flat opportunity: Are granny flats a thing in Townsville/Rockhampton? Has anyone built in either region

 

A lot of those seeking 'granny flats' to rent end up just renting the downstairs of a filled in old Queenslander or highset home, frequently they are not at legal height.

I considered it, but I'd want to see more growth in rents before committing.

 

i think granny flat costs 200k?

 

Hi Peeps, currently in market to buy a house in the 450-500k range in regional qld. I understand that the market in Townsville and Rockhampton is hot right now and the properties are getting 10-20% above advertised price.
I just wanted to understand the reason why a regional area be so hot. Is it your normal boom and bust thing going on there just like what happened in gladstone years ago.
I understand that qld government is spending alot on infrastructure projects so there's a huge influx of construction workers. But what will happen when those projects are completed and all that construction workforce is not required anymore?
In terms of short term gains, I agree that these two markets will do good, but what about long term gains. I'm asking this as my strategy is to buy and forget. I don't want to sell my properties every 3-4 years. Ideally want to hold them for long.

Please share your suggestions. Asking these questions specifically for TSV, Rocky and Glastone.
1. Short term vs long term growth potential
2. Long term employment opportunities- employment required for construction (1000s now) vs maintenance (100s later?)
3. Who are the major employers/job creators in these areas?
4. Is the economy diversified?

Thanks

 

May I ask where you live now? Reason I ask is I often here these questions from investors who don't realise just how big these regions are. You're talking markets with 100-200k+ populations. As big as Bendigo, Ballarat, etc albeit more isolated (which sometimes increases the need for housing in the area) and double the markets of Bathurst, Orange, Coffs etc. Then all the industries needed to sustain these populations. Schools, Hospitals, Universities, Tafes, etc etc.
In terms of price point it is just like any other large region. There's plenty of six figure roles and demand for property in the price points you have mentioned. Not uncommon to see roles in the mines $200k+.
Long term I see more volatility in these regions. But I'd expect to see mean reversion over time. Probably land in that 6% cap growth rate much like everywhere else.

 

I live in Sydney. I understand that these are big regions, just not sure about the economic diversification and the employment stability. I saw an old article about Gladstone, how it boomed during 2012 and then the prices fell when all the temporary employment went away and people relocated to other areas for employment. Just worried that same doesn't happen in TSV and Rocky.

 

Tsv is not like Gladstone or even Mackay. Tsv has a LOT of defense and health/hospital employment growth. It's hospital is much bigger than Cairns, Mackay's etc. The hospital also serves a much larger population than just Townsville. It's got a uni and some trendy industry growth eg hydrogen etc. I don't think there's a lot of construction workers that are temporarily living up there.

Lack of economic diversification would be about 10th on my list of concerns for TSV. To the extent that it is a worry, it relates to defense because I don't know much about how that sector works.

 

Agree - Townsville is far above the others. Mackay, Rocky, etc will be less volatile than the past. Gladstone is the one where market timing is most criticial imo.

 

Why do you think Rocky and Mackay will be less volatile? I'm interstate, so any local insight would be greatly appreciated.

 

I think I have mentioned it a few times but I am happy to give an 'on the ground' perspective from Townsville.

Schools - lots of options. Some of the elite schools (though still much more affordable relative to down South) would be considered Townsville Grammar and then Cathedral. Then you have your Catholic/Christan schools (but not limited too) Annadale Christian College, Calvary, Ignatious Park College, Ryan's Catholic School, Southern Cross, St Margaret Mary's Catholic School and St Anthony Catholic College. I have probably missed a few and then I have not even considered Primary School's and then of course public schools. There are HEAPS of school's to pick from.

Hospital - The hospital has similar vibes to the big hospitals down in Melbourne, Brisbane and Sydney. It is modern and clean. I am fairly certain there are planned upgrades (eg. helicopter landing area) in the future.The hospital obviously has close connections with JCU and as such you get a lot of allied health professionals, specialists and doctors coming through the Uni and into the hospital which is great for worker retention. I say this with respect, but the public hospital is leaps and bounds ahead of Darwin as a comparative market in terms of climate. The clinics running out of the hospital for newborns is also fantastic and I can say we had a very positive experience. Our first child (we have three) was down at the Royal Women's Hospital in Melbourne.

Sport - The sporting opportunities is huge here. In terms of spectating, you have the NBL1 (a level below the NBL), WNBL and NRL. While they do not currently have a men's NBL team, a short trip down to Cairns to get your fix is not unrealistic. In terms of youth sport, the opportunities are endless. You can compete at the highest level depending on what your children's goals are, or you can compete on a more social level.

Employment - As others have indicated, the employment sector is quite diversified in Townsville now. Lots of government spending and other great projects (eg. hydrogen) on the go. Townsville has some of the most sunlight in Australia so that is great to consider from a renewable energy point of view. Obviously it is no secret Townsville is a big military hub with more military personal planned to arrive to Townsville soon.

Lifestyle - In terms of life style you can head down to the Strand by the beach, or head to Little Crystal Creek, head down to Bushland Beach to do a bit of fishing with the dogs (although be crocodile wise) or you could head up to Cairns to give the family a bit of tourist vibes. Otherwise, you could also head south towards Mackay and check out Airlie Beach. Then of course you could also consider heading to the Table Lands if you need to Zen the F out . There are way more examples of things you could do and I have not even touched on Magnetic Island haha.

The power of living debt free - Consider for a moment the average house price in Sydney, now imagine buying a beautiful home in Bushland Beach at the top of the hill (I live in this suburb so I am a bit more biased) with a house paid off and $500,000K sitting in the bank to take the foot of the gas a little and live life instead of working to live. As Wilso said FNQ still has a lot of catching up to do even if some of the gains ease off in the short term.

Climate - it is hot but not as hot as Darwin. Winter is lovely. I recommend getting renewable energy so you can let the air con blast for much of the year. Currently, at the time of writing, we are sleeping without the A/C as its really cooled down.

Connectivity - pretty reasonable to get tickets return for up to $250 to locations such as Melbourne. I am not sure about Sydney and Brisbane as I often visit Melbourne. Comparatively, as a former Darwin resident, it is considerably cheaper which adds up over time.

Services - A lot of services on offer. Specialists can be hit and miss but again, an upgrade to large towns as Darwin. Townsville even have an ALDI of all things.

Crime - there is quite a bit of youth crime. I dont have statistics off hand but my feedback is it is no worse than Darwin. I have been pretty lucky in Bushland Beach (touch wood) and not really felt the crime up this way.

JCU University / TEC-NQ / QUT - There are some great further study opportunities up this way and as such you find there are quite a lot of international students up here. Great to have good study pathways for families to avoid kids moving down south to obtain opportunities.

Probably quite a few points I have missed out on. But I am attempting to paint a picture of what life in Townsville is like. You see plenty of expensive cars driving around from Tesla's, Porsche's, the occasional Lambo, heaps of Prado's and 4WD's worth the equivalent of a house deposit haha. Lot's of money floating around.

With this in mind, I think the fundamentals are quite strong for Townsville, particularly in relation to supply and demand and generous immigration policies currently. I do feel as houses become more and more unaffordable in some of our major cities, it is becoming more and more attractive to look at livable cities such as Townsville to improve the quality of life.

The reality is we looked to move to Brisbane after COVID-19 however due to the significant rise in cost, we found ourselves looking at our options, and we ended up in Townsville when considering employment, school's, quality of life, sporting opportunities, affordability and services.

 

Thanks heaps, really appreciate your reply. Can you please also share your insight regarding flooding. I understand media generally exaggerates as if all of Townsville floods, but what are the areas which I should steer clear of?

 

Look at flood maps, then add in Idalia. After that you probably need local knowledge, as others have pointed out they weren't updated after the floods about 5 years ago

 

"what he said.."

In all seriousness can we get this post pinned or on automatic reply when people ask "should I invest in Townsville?"

 

@Simon Hampel can we pin the above post to this thread?

 

Last two houses in Tsv that I thought were attractive long term CG options had a sold or under offer sticker put up before they were ever listed on realestate com.au or domain.

 

Secret to these portals in a hot market is that they are not advertising properties, they are advertising agents..

 

Yah, agents do like charging sellers for 'for sales' signs even when they are only advertising boards for the agent.

 

Gladstone was different and worse . We looked at it prior and saw the potential problem . Posted on it in the last week .

All the Queensland costal towns go through a boom and “ bust “ cycle . It’s the normal property cycle there and , oh , in most places in Australia , including Sydney .

Outside perth / Rocky / Townsville , IMHO most places are close to their peak , except Darwin , which hasn’t decided if it wants to join the party or not …

 

or melb which didnt even dressed up yet LOL

 

Yeah but I don't expect it to turn around anytime soon.