Is now the right time to buy in Toowoomba?
QLD’s flower capital has been the highlight of recent media reports and also has some massive infrastructure spend happening, but does this mean that it is over cooked and time to look elsewhere or get out?
We were working the Toowoomba market again in 2012 when it barely had a pulse. At the time some of our clients got in and got some good properties. From end of 2012 it began to move and have some action. By mid 2013 it was in full swing with good buying still to be had.
By early 2014 the mainstream media was tooting about Toowoomba and by this time the developers and marketers had their new estates and selling house and land to interstate investors. Just like every other town in QLD it seems…
So what about now?
Does Toowoomba still have merit?
My answer is totally yes! But not the cookie cutter stock in new estates by marketers; you have to pick your areas!
We have just secured a block for a client, on which we will be building a duplex. The whole job is around $600,000 (so approx $300,000 each unit) and this puts them in a position of under market value compared to other like properties.
The key to this process was finding the right block of land. It took us months of searching with our builder to get the right cost effective block. I like this block because it is close to town and surrounded by older properties that give a great mix of character, just like Toowoomba should. It is not in a new estate with all new homes and all rented.
When the media is talking about a suburb and in the news, it’s generally not the best time to buy. Toowoomba will have a long lead time for some of the projects like the range bypass and the new airport, before the realisation of their benefits are fully experienced.
So don’t just take the media hype and buy anything, you still need to be targeted on your approach. For us Toowoomba still has potential and we simply have adjusted our buying habit over the past 24 months to accommodate the change in the market and the different price dynamics within it.
I will keep you posted about this project from when the build starts to when we get it rented, so you can better understand this regional powerhouse.