Hi
Thought I would try a post that we can all learn what areas are going ahead in this current market.
For me the WA Goldfields are working out very profitable especially Kambalda.
Kangaroo Island and Myponga SA are doing well for me as well.
Where is everyone else investing at the moment and why??
Cheers
MikeyTownsville : Huge growth due to mines, tourism, defence and agriculture. High demand for housing and lack of builders means they can't make the supply.
Ingham North Queensland
High growth, low vacancy, low prices.
One hour from Townsville where recent rises are making people move North. It is small town, mostly agricultural and retirees, plenty of rain, new hospital being built , close to beaches, untapped tourism potential. Rumours of new mines opening nearby. very low vacancy rateI'd also say the whole burdekin shire south of townsville, for the same reasons, mining going in, new transport infrastructure, tight land etc.. i know ayr has a huge push on resi development approvals and not a scrap of industrial land left, and in townsville people can't afford industrial land as most owners are beyond unrealistic, so they're looking south for more..bowen and mackay are also pushing forwards..
True, but Ingham hasn't taken off yet.
A bit late for Mackay and BowenThe thing with the cane areas is that the majority of the casual work is seasonal around the crush. People have the impression that they can't buy because of this and are happy to rent.
Some good sets of flats pop up in ayr, ingham and home hill. Some good value adding in renos bud tradies are hard to get and can charge accordingly.
My last purchase in Ingham;
SET OF 3 2BR flats for $285k, rented at $120 p/w ea
Fitted air cons and fixed a few minor things, upped rent to 150.
Thats 450 p/w off $296k loan with stamps on $100 deposit., costs me $40 per week plus rates and insurance etc
Just had valuation at $350k, six mths after purchase. (would get $390 if I sold)
I like Ingham:)Hi Jeff,
I've done some minor research into Ingham.
Can you provide me with some further details on things such as:
1) Good areas in Ingham,
2) Any PM's you use,
3) Anything to do with:
a) vacancy issues
b) rental issues
c) area issues
d) Contractor issues for reno's, updates to property for added value, etc…
e) development issues
r) rental target i.e. miners
g) growth rates in the areaAny information that you have researched would be much appreciated. Finding Ingham as quite an interesting investment target and blocks of units are at an affordable price for the investor and can be bumped up a minor negative gearing position, with potential to cashflow in the next year and capital growth set to increase due to expansion.
Cheers,
miikeHello Mike,
I worked at Ray White Ingham for a while so I could have a break from the hectic Townsville market and do a few renos, repairs on my properties there.
I have put my money where my mouth is, with 6 ips there purchased in the last 8 mths.
My bank manager will have a fit if I ring him again too soon!There are many opportunities at all levels of investment. Set of flats at the moment 750k returning 915p/w opposite new hospital . has undeveloped 1/4 acre at rear, could build 8 units
Some houses are just underrented and need a basic clean and tidy.
Some are sitting on prime development blocks.
Careful though, some are 100k over priced.ph or email if you like. 0412 783 553
1) Good areas in Ingham, Ingham is prone to flooding so anywhere outside the worst flood potential is a good area. Best being flood free, based on the 100yr flood levels.
2) Any PM's you use,Ray white ingham for buying selling and renting. They are honest and get the prices I want.
3) Anything to do with:
a) vacancy issues virtually none, usually a waiting list for houses and quite low for flats
b) rental issues some of the agents like to work for the tenants and keep rents low, some have not been increased in 7 years!!
c) area issues, mostly flood levels, as with anywhere the demographics can vary from street to street
d) Contractor issues for reno's, updates to property for added value, etc… local tradies are a bit thin, many are working in townsville or mines. It is more of a delay and frustration than added cost.
e) development issues Council are very open to subdivision and increasing density. They do not allow hatchett blocks though.
r) rental target i.e. miners Locals are often employed casually and assume they can't get loans. the post code was hard to borrow in about 5 yrs ago because of a few defaults on farms when the sugar prices were down and some have not reapplied. Many escaping townsville as it is too busy for them and people who grew up are moving back because they now have families themselves. Miners can currently fly out of Townsville and can go by bus or some carpool. A one hour commute is not that extreme, especially if it is fortnightly. Ingham airport is soon to be upgradede to fly miners out.
g) growth rates in the area between 23 and 41% depending on your data sourceThe way I see Ingham is this:
There is money in the town, not many cars over two or three years old, the number of solicitors, banks, re agents, accountants is quite high for the size of the place.
It is an established town with a population of around 13,000. The state government have decided to rebuild the hospital at a major expense. New shopping centre recently completed with woolworths,subway and specialty shops. New highway upgrade currently underway, with 12mths to complete.
Plenty of fresh water and close to excellent beaches.
It is in a crossover market with some properties being sold at excellent prices by some agents and others being sold at bargain prices by others.(it's as if some agents don't believe in a boom)
I have seen houses appraised by agents at 290 being sold, within minutes of listing at 230 because the owners did not believe the price would be that high.
Others sell for 220k – 250k and ones similar go on the market for 140-185k
Good development prospects.
Single units are rarely available for purchase and are snapped up quickly.
With an aging population and people selling off the family farms, cashed up retirees are looking for lowset new homes and have funds to purchase but very few ever become available.
I just bought a house for 130, will spend around 3k and rent for 180 p/w or sell for 200kWow, that was great Jeff.
Thanks for such a detailed reply.
I am just at the start of my investment life…don't even have my own place at this time. However, there is always a place to start.
I look forward to contacting you with any further queries.
Cheers,
miikeNot too many hot markets at the moment. I live in Brisbane and things are definitely slowing down. Last year's across the board rise of 20% plus won't be repeated although some commentators think it may rise by 5%.
I don't know of any capitals that are "hot". The only places that may increase substantially this year will be in regional areas. I've got no idea of how to find them. I'd much prefer to buy in capital cities as close as possible to the CBD and wait for the inevitable increase in prices.
Someone told me to "Find out where the next big mining project is about to receive approval, buy up in the nearest town and wait."
sounds easy enough…
On that note I have been reading up on a new mine called Belvedeer. A new underground mine in the bowen basin. Seems to be huge. Any thoughts?
handler wrote:Someone told me to "Find out where the next big mining project is about to receive approval, buy up in the nearest town and wait."
sounds easy enough…
I would add one more step there which would be to be in a position to buy and have some options and make sure you know exactly when the mine is approved then buy.
The obvious one waiting approval now is Roxby ZDowns Expansion
Just taking a look at Townsville stats from RP Data and wanted a bit of help interpreting.
From the data it looks as though-
-A population delcine of 53%??? holy moly! I'm sure there's a reason for this, maybe a Cyclone or sunami wiped out half the population LOL (I'm sorry, I know thats bad taste but….)
-Majoirty of people dont have kids. Average age is 30-39 in Townsville. Average age in my area is 0-9 meaning most people have a couple of kids or more.
Not sure if this figure alone means anything from an investment point of view. Maybe means that 4 bed home might not be the best IP.-Average household income is $41k-62k pa, that seems rather low but considering that a large % are aged over 50 maybe their super/pension is either low or nt included in household income. Still not sure what this could mean in terms of IP.
-38% of households are single parents compared to only 14% couples with children with parents. The largest % of households by nearly 15% are single parent households, next largest is childless couples 22%. Maybe this is the reason why 42% of households are rented. I dont want to sterotype the single parent not being able to afford to buy it seems to be the case.
Does 42% of households being rented represent too large of a chunk? I wouldnt think that's a good indicator for an IP.
Maybe this figure includes holiday houses/apartments. One would think that it does not include resorts or motel/hotels.-Median Capital Growth for Townsville LGA
2004 +27.7%
2005 +20.1%
2006 +7.4%
2007 +20.3%
2008 +8.9%
Seems like its had a very good run over the last 5 years. Is it likely to keep going? Not sure if this data includes any new apartment blocks that may have been built selling million dollar penthouses that skew the figures wildly.Not really sure how to interpret these figures into anything meaningful for IP purchases.
Anyone able to shed some light.
Cheers
Now this seems a little better.
Ingham
-Only a 19% population decline ( maybe the cyclone/sunami wasn't that bad here)– 65% of homes are owner occupied
-Average age is 10-19, so plenty of families in the area.
-Highest % income bracket is $26k-$41k about 21-22% but still about 18% on $41-$62k bracket.– Only 30% of households are rented
There's not much on Recent unit prices but I dare say that there not real usefull anyways as there's probably not enough sales to get a good idea of whats happening.
Am I interpreting this data correctly or is it pretty much useless without knowing that facts behind the figures?
Cheers
RP data stats are vague at best within its demographics area.
Townsville has recently merged with its outer suburbs "twin city"thuringowa so the data will be affected.
Ingham used to include palm island in its census but no longer does. This combined with the Ingham hospital not currently having a maternity ward( new hospital is under construction )and all births recorded in Townsville show the population in decline.
The median prices in these areas, Townsville and Ingham have certainly been high over recent years. Certain pockets have done much better still. The skills shortage is hitting building industry hard with demand fuelled by the minerals expansion. The base rules of Supply and demand gives me great optimism for the area for at least the next two years given the momentum we have in the market.I am currently residing in the ville and if you look at the figures you have quoted-you would have to assume that thier couldnt be too much room for any huge movement in prices.Yields may improve in the medium term as it appears there may be the start of an affordability problem occuring.
It also depends if you are lookig at new properties.( be aware there can be huge wait time to build property,some as long as a year.)-Median Capital Growth for Townsville LGA
2004 +27.7%
2005 +20.1%
2006 +7.4%
2007 +20.3%
2008 +8.9%
my suburb has gone 138% in that time
you would be better trying to gain older properties in areas that have large blocks of land i.e Aitkenvale,Vincent ,mundingburra(parts),this area is being bought out by those wanting to subdivide(blocks range from1000-1200m2).
Stockland is expanding by a $200mil facelift.
Very tight rental market 1500 defence pers in 2011.Alkot of single people unable to buy.Student demand high,especially at the start of the school year.It all depends on your interest.This is only general info.
What does everyone think about the nearby township of Forrest Beach in comparison to Ingham?
Cheers
dicko1980I think it is a great place to be looking at present. Compared to other coastal areas it is by far cheaper and has not seen significant gains in recent years. New development of the pub/caravan park in the planning and the suitability of the area to retirees are definite positives. It is only half an hour away from port hinchinbrook, less than one and a half hours from mission beach. Very nice beach, easy access to the reef , Hinchinbrook Island and great fishing.
does anyone know what the Residex latest growth predictions are for Ningi and also Brisbane inner city in general ?
I've heard talk of the mining activity in the Surat Basin about to blow the place open (yes, pun intended) & apparently the centre of all that action is Taroom, because its on the planned "missing link" railway to Gladstone. So, newbi2, keep your eye on Belvedere.
The boom appears to be rolling up the Queensland coast. It went through Hervey Bay in 2003 & Gladstone has apparently peaked out recently. I have off-the-plan purchases in Townsville (late this year) & Cairns (late next year) to complement my existing properties in Brisbane, Mt Isa, Perth, Kalgoorlie & Canberra, so I figure I'm pretty much on target.
Rodney
http://aussierodney.com/still many areas with good propspects and medians under 200k
Broken Hill NSW 125k
Mines/tourism/wind farmCharters Towers Qld190k
new gold mine/educationElizabeth SA 180k
rail link to cbd/new industryGeorge Town Tas 170k
New pulp mill and power stationGippsland Vic 128-220k
new resource projects/transport linksGlen Innes NSW 155k
transport links/gemstone minesInverell NSW 185k
Sapphire mines/tourismMelton Vic 180k
pop and business links/ transport linkMildura Vic 145-205k
Diverse economy/new solar power stationMoree NSW 175-225
agriculture/gas/tourism/railParkes NSW 195-208k
transport hub/development/miningZeehan Tas 90k
mining resource discovery
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