Investment Properties in NT

Hi Nigel,

We have had an IP up there for 7 years, the first five it had little capital growth, in the last 18 months it is up about $100,000. Agents, BIS, others, say there is still growth to be had.

Many in this forum bag out Darwin as it sat still for so long but you can’t judge the future on the past.! My sister had no growth on the gold coast for 6 years and now look at it !.

Have never had tennant trouble but admit people do move on alot more than down south.

Cheers, George

Hi,

I am buying a niche unit in Mitchell St, right in the main drag. Positively geared, 8% net, lessee assumes all operating costs including vacancy, insurance, rates, and body c. NAB guarantee for the first 5 yearts. There were 12 left last I heard. They have commenced construction and completion is scheduled for June next year.

I have the info sheets if anyones interested. I lived in the NT for 7 years and absolutely loved it. mmmm Barra fishing !

Well I think there is a LOT of growth to be realised in Darwin. For a start the Australasia Railway is completed which links Darwin to the rest of Oz, that is predicted to bring 30000 visitors a year to the NT. Theres the 600 Million Waterfront Upgrade right in Darwin which is commencing shortly. The Indo Gas pipeline work has started which means Darwin will be the hub for Asia. Tourism is one of the biggest industries in the NT and the Government has realised how important backpackers are and is injecting time and money to bring and retain there skills to Darwin. Darwin is very Multicultural as anyone who has been there will tell you that. There also building a University, a large Exhibition centre, Tourist Precinct, and theres a proposed Chinatown area.

I think Darwin is set for some descent growth !

Cheers

J

“Success comes from having the proper aim as well as the right ammunition”

Shaun and others! You guys are very helpful and thanks for the info. Currently I am looking at Katharine – do you have any idea about that town?
Or anyother town where i can buy house (not a unit though). All comments are welcome…thanks.

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i have just bought a IP in darwin, and boy what a learning curve! first of all be aware that the agents charge around 10 – 12% to manage your property. The vacancy rate is around 4 weeks a year so its important to buy something that will suit a family not the tourists. Other than that i found i could still haggle over the price and as a general rule asked for 10% less than the asking price and settled on 5% below asking price.
The agent also told me that the rent hadnt been increased in 2 years and was to go up from 265 p/w to 285. This did not happen due to the wet season starting and i think he got a bit creative with his numbers!
it’s still a good investment with a 6.5 yeild on the place, though keeping tennants happy so they will stay is my most major concern.
any other questions just email me and i will gladly oblige.

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As with most places there are good areas and bad areas around Darwin to invest in. The prices have been jacked up a little lately due to the hype about the line, port and gas projects. The real estate agents have jumped on this bandwagon and this has helped inflated the prices a little further.

The vacant land between Casuarina hospital and Leanyer is to be a residential area ( I believe to be under the control of DHA and not necessarily for our boys but for the stars and stripes ). This is to possibly help minimise the military influence that is currently exerted over Palmerston and helped push those prices up a few years back. I know of a few people who have DHA leases that are nearing completion, but the selling prices are still not enough over what they originally paid.

In Darwin city itself there are quite a few development projects/units that have popped up and an oversupply is waiting in the wings. In regards to rental guarantees secured by banks, what influence is there by the NT govt to these institutions to obtain leases as a way of getting investors to put their money forward? When the leases expire the same as DHA leases what are going to be the returns then? I myself have a few IP’s around Darwin but are also starting to look elsewhere. As with most situations some people will win but some will also lose.

C2

” Is it true that the more you owe the more you grow until the bank steps in?”

What are the chance of capital growth in Katherine? Is defence will lease your property for years? Is is easy to find tenants like defence people there in Katherine?

Pls comment.

Hi OZPATINQ8,

I agree with your thoughts on Katherine, it is a great place to live if your into outdoor activities and it’s also a water course. I missed the flood as I was O/s at the time and cyclone Rachel (97). I would also be interested in a look at the Mitchell st proposal as well. In regards to the Value inn, I believe that these service apartments have been a little hard to sell later on.

C2

Hi all..

I was in Darwin for 7 years. I still have a unit in Stuart Park that has rented for the same amount for the past 5 years. I don’t know about any growth that has or will happen but I’d be pretty confident that it wouldn’t benefit Katherine much.

I lived in Katherine for 3 months before settling in Darwin and loved it. Can’t wait to get back to the Gorge… next property inspection perhaps due about next Tassie winter[8D]

ps. The day I was to leave Darwin by bus to make the slow trip south was the day the road disappeared at Katherine. Had to spend 4 days sitting in a hotel trying to get a flight out…

Hi,

I too would be interested in an information sheet! Would you please send to [email protected]

Thanks so much
J[]

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Hi,

I am buying a niche unit in Mitchell St, right in the main drag. Positively geared, 8% net, lessee assumes all operating costs including vacancy, insurance, rates, and body c. NAB guarantee for the first 5 yearts. There were 12 left last I heard. They have commenced construction and completion is scheduled for June next year.

I have the info sheets if anyones interested. I lived in the NT for 7 years and absolutely loved it. mmmm Barra fishing !

Well I think there is a LOT of growth to be realised in Darwin. For a start the Australasia Railway is completed which links Darwin to the rest of Oz, that is predicted to bring 30000 visitors a year to the NT. Theres the 600 Million Waterfront Upgrade right in Darwin which is commencing shortly. The Indo Gas pipeline work has started which means Darwin will be the hub for Asia. Tourism is one of the biggest industries in the NT and the Government has realised how important backpackers are and is injecting time and money to bring and retain there skills to Darwin. Darwin is very Multicultural as anyone who has been there will tell you that. There also building a University, a large Exhibition centre, Tourist Precinct, and theres a proposed Chinatown area.

I think Darwin is set for some descent growth !

Cheers

J

“Success comes from having the proper aim as well as the right ammunition”

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Hi to all,

I’ve lived in Darwin since 1989 and talk to a lot of people about their views on property and there are some different opinions about Darwin’s prospects. Some observations:

1. Quality houses particularly waterfront houses like that at Cullen Bay, Bayview Haven have gone crazy from what I’ve heard. Some remaining waterfront blocks at Cullen Bay were advertised last weekend in the NT News from $690 000 to $750 000. My neighbour (who is a prominent builder) told me he paid less than a third of this for a waterfront block in 2000. Another friend who is an accountant owns a house in Bayview which was revalued recently, $200 000 more than what they built it for 12 months ago.

2. I noticed in my local suburban paper in the section where they summarise house sales a couple of actual house sales in Fannie Bay for in excess of $1.0M. It was only this year that the NT News carried a piece speculating the first ever sale above $1.0M posssibly a house in Cullen Bay. So its happened. It seemed to go unnoticed by the major paper!!!!!

3. I went to an auction today for a pre cyclone 5 bedroom house on a huge ‘double house’ R1 zoned 1720 square metre block located in Rapid Creek. It had a new roof, repainted inside, renovated kitchen, very nice garden. Started at $260 000 (down from $300 000) with very slow bidding. Four bidders in the race and the crowd thought it was going to be passed in. Someone asked if it was on the market and was told ‘I’ll tell you in a moment’, bidding continued. Goes to $331 000, then suddenly 1-2-3 it’s sold. No mention it’s on the market, no obvious consultation with the vendor. I thought given the land size the buyer did well.

4. Housing commission renovators in Darwin (and Palmerston) have certainly increased. Houses selling in Darwin for $110 000 earlier this year, now upwards of $170 000 to $190 000, even higher. Next big auction is 6 December.

5. Still plenty of apartments (i.e. multi high rise apartments) on the market and for rent. Unfortunately these hurt the prices of quality townhouse, duplex, detached units etc.

6. The $600M Waterfront development is being fast tracked by the government as they are acutely sensitive about their political position. They are putting in $100M and looking to the private sector for $500M. They are compressing the normal 2 yr phase of doing this into 4 months.

7.Lots of high yielding older apartments in Nightcliff are selling really quickly.

8. Others are correct. Expect a higher tennant turnover. That’s just the way it is.

9. Harsh climate can increase maintenance costs as buildings etc. deteriorate. Gardens can go feral in a matter of weeks.

10. New Army attack helicoptors are to based here.

Plenty more I can add if anyone’s interested. I’m seeing a lot of money being pumped into a town of 100 000 odd. Any other locals out there?

kitdoctor