Forum Replies Created
Hi Karen,
I've just started looking into the Townsville market however I dont live there myself either. I have taken an interest in the Northern Beaches area. From what I have heard from relatives in the Townsville area property prices have been pretty flat if not slightly negative for a little while now. However I think things should pick up in the near future.
If you can get a copy of last months (March) API magazine there is a good few pages on Townsville and all sounds positive.
Also the link below has a bit of info on pages 22-23. Just stuff that didn't make it into the magazine but still a good read.
http://www.apimagazine.com.au/digital/725-990
Am looking forward to hear from people actually in the market there.
Cheers,
Nathan
Hi Wendy,
In regards to high-set and low-set houses I am happy to be corrected but I would say the main difference would be your target market. People in there older years would probably steer clear of houses where they have to constantly walk up and down stairs.
As for the 10% management fee that is definitely not the case everywhere in Queensland and I think the average would be about 7-8% here as well. It is only because it is a Mining town the that Mt Isa has a 10% fee as most people here are on great money and getting a good yield.
Nathan
TLC Investments,
I just typed 'Mt Isa' in realestate.com.au and it came up with 379 results. Alternatively you could search the post code '4825'.
Not sure where you were looking?Cheers,
Nathan
No worries.
Let me know how you go and if you you want me to do a drive by or anything I would be happy to help,
Cheers,
Nathan
Hi Matt,
Yes the amount of money being spent here I dont think it is at risk of closing shop anytime soon.
As for the 3 things you mentioned above:1. The Mine here is massive both above and underground (It is Australia's deepest mine) and seems to have great future potential – Google 'enterprise mine'
2. Like you said there are alot of big franchises here and alot of upgrades happening so it does seem quite stable however nothing is certain obviously.
3. There are a lot of local contractors and businesses in town so there is plenty of competition with pricing. I dont see the cost of repairs out here to be too bad but I am probably not the best person to ask… As before moving out here I was living at home with my parents so I wouldn't know otherwise.
The biggest expense with an IP out here would probably be the management fees. I currently pay 10% plus GST so ends up as 11% which is quite high but I am happy with them and can't get it much cheaper out here.
The main suburb in Mt Isa to avoid would be Pioneer. It is mostly housing commision houses and is a pretty rough area. Nicer suburbs are Soldiers Hill and Healy. The majority of houses in Mt Isa are quite old and alot have seem to be done up as quick reno's. Healy heights is a new suburb that has all executive style houses but you pay a premium for them as well.
As for my properties we bought our PPOR in April last year for $324 000. It is an average 3 bedroom fibro house (very common out here). We then bought our IP October last year which is a 2 bedroom unit in a block of 3 for $200 000 and it is currently rented out for 350/week. The first lease on it ended in Feburary and it was free for one day only because I told them I wanted to go through it and have a look myself before anyone else moved in.
Hope this is of some help.
Nathan
Hi Sherry1,
I live in Mt Isa in Queensland and you can get properties with about 8-9% yeild here. The market here seems pretty flat at the moment which is good for buyers getting a discount on the asking price. I think things will pick up soon though. Mind you my opinion would be biased as I have 2 properties here as well as working in the town.
However there are a number positive things happening in the area aswell.
The Woolworths in town is currently undergoing a multi-million dollar upgrade which is meant to make it one of the best in Queensland. According to the paper anyway.
The Airport has just undergone a major upgrade.
A BCF recently opened in town.
The 'Copper String Project' is happening which will join Mt Isa to Townsvilles main Power Grid which opens up a world of different opportunities.
Companies like this have obviously done there research and have high hopes for the area.
There are also a number of massive upgrades happening within the mine which can only mean good things for the area.
Obviously do your due dilligance first and understand that Mining towns also come with an increased risk.As for buying sight unseen I have no experience in that sorry.
Nathan
cuteyoungchic is right… the posts are by someone else on page 13…
Hi all,
Being an Electrician (not a contractor), and a Property Investor I have taken a bit of interest in this thread.
A constant thing that seems to be bought up on this site is that property prices are way overvalue… and people tend to argue that it is all about supply and demand which I agree with.Which makes me wonder aren't these peoples services relative to supply and demand also? They can charge what they like as their services are in high demand and people are willing to pay that price if you are not. I see where you are coming from cuteyoungchic as being young and only just starting out in property investing my first IP is quite old and I have needed a number of repairs and labour done and the first quote I ever got was a bit of a wake up call but I believe it is all part of the 'property game'.
And these people who have the will and determination to start and run their own business are only trying to get ahead like the rest of us…
Nathan
Thanks everyone for the info! Definately gave me a better idea. Don't think I am gonna look any further into it as I dont think it is right for my situation.
Thanks again!
Jamie M wrote:nguli wrote:I struggle to see how it would be different if you bought the same house just not on DHA or any other new new house? !It could come down to the future demand. If the property is being tenanted as a DHA property than it may not be as attractive a purchase for the next buyer – which could impact on the end value. At the same time though, I'm sure the demand for DHA properties will always be there. Cheers Jamie
Do you mean when the property is still on a DHA lease? I am talking about when the property is 'free' after the DHA lease expires, I can't see why it would have had any less CG than the house next door that was never DHA.?
Nathan
Thank you all for your feedback! Definitely helpful.
It just confuses me that there is such a mixed response about them. Some people swear by them and others against them. It would be interesting to know if the people who are dead against them and complain about no capital gains and no rent increases are ones that didn't do their research on the area? Would a normal property have performed the same in that area? Or was it purely on the fact that it was a DHA property.
As for capital gains alot of people say their isn't much potential but I struggle to see how it would be different if you bought the same house just not on DHA or any other new new house? Unless they are talking about quick gains from reno's etc. And obviously if you sell within the contract period you will be limited to investor buyers.
I guess at the end of the day I am just trying to decide if it is the best option for my situation.
Thanks all your advice is appreciated!
