Investors back out in force in the Townsville Market

Strong showings at open houses on he weekend re-inforced the fact investors are back in the game. The Kirwan open houses were well partonised, and the follow up calls since show that buyers are ready move on stock that has have good fundimentals.

With prices back up to 10% since January, those with an eye for value see the 4 bedroom homes in kirwan, many less than 4 years old which readily rent at $380 to $400 per week, and offer great taxation benefits through depreciation and capital allowances, at the most affordable they have been in the last 3 years.

Simply the maths make these very good value when compared to the new homes, partilcularly when most 4 bedroom homes are fully airconditoned, have ensuite, double garage, low maintenance, and present as near new, but sell under replacement cost.

With a new home costing around $1213 per square meter on the ground to contsruct, and your average 4 bedroom home in Kirwan (say the Avenue’s or Willowbank developments) being 186m2, it hard to build the these under $400000 house and land. Given the location and what Kirwan has to offer families, including being close to some of Townsville’s premium schools, Riverway and shopping centres and 5 minutes over the Ring Road to Riverways, James Cook University Townsville Hospital and Lavarack Barracks, Kirwan is my top pick for value investing at the moment.

Graham