No place like home for first time investor

Townsville residents Jobichan Vargheese and Soumya Jobichan chose to stay local when buying their first investment property, after seeing how much their family home increased in value after just four years.

The couple bought a block of land in a new estate in the Townsville suburb of Rasmussen, sitting a few kilometres from their Douglas home.

“I was considering buying in Brisbane or Melbourne at first, but after talking to friends, builders and property brokers, I could see the opportunity was right here in Townsville,” Mr Vargheese said.

“The value of my own home has increased significantly in just a few years, and with the university, hospital, and growing population nearby, the Somers & Hervey estate is in a prime position for strong rental demand and capital growth.”

Mr Vargheese said the value of the Douglas home surged $660,000 to about $1m since it was built four years ago.

“That gave me confidence that investing here was the right decision for us,” the healthcare worker said.

Urbex Realty general manager, Craig Covacich said Mr Vargheese’s story reflected a broader trend of locals choosing to invest in the Townsville property market.

“We’re seeing a growing number of first-time investors like Jobichan who recognise the long-term potential of Townsville, not only as a place to live, but as a place to invest,” he said.

Jobichan Vargheese and Soumya Jobichan pictured at their Douglas home. Picture: Shae Beplate.

ATO data released this year revealed the Townsville region was home to more than 15,000 individuals who declared a rental income on their tax return.

The highest number (2977) was in the 4814 postcode, which included The Vargheese’s suburb of Douglas as well Aitkenvale, Heatley and Mount Louisa.

That worked out to be about 10 per cent of residents living in that postcode.

While in the 4810 postcode, which included the prestige suburbs of West End, Rowes Bay and North Ward, almost 15 per cent of residents (2162) declared a rental income.

Mr Vargheese said he and his wife would soon begin building their investment property, with land expected to title in September.

“This is just the beginning for us,” he said.

“We’re taking it step by step, but if this investment goes well, we’ll definitely look at expanding our investment portfolio in the future.

“For us, it made sense to invest right here at home.

“You have a growing city, a relaxed lifestyle, and so many beautiful destinations nearby like Cairns, Airlie Beach, and the Great Barrier Reef.”

Urbex’s new development Somers and Hervey in Rasmussen. Picture: Supplied

Mr Vargheese said factors including population growth, infrastructure investment, strong rental demand and proximity to key employment hubs like the hospital and university were also deciding factors in picking Townsville as a place to invest.

“Townsville has the lifestyle benefits of a quiet, spacious city but also offers all the essentials like jobs, education, healthcare, and future development,” he said.

“There are many people moving here, especially for work, and demand for rentals is very strong.

“I know so many families, particularly from my own community, who are relocating to Townsville for the opportunities here.”

Mr Covacich said Townsville offered excellent value compared to our capital city markets, with some of the strongest rental yields in Queensland.

REIQ figures showed the Townsville vacancy rate had hovered around 1 per cent since December 2022.

Property data found Townsville’s rental yields were sitting around 5 per cent, while nationally that figure was about 3.5 per cent.

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