VIC First IP - Corio/Norlane or Melton

Tonight I'll be driving down to Melbourne. I have $350k to spend in Victoria RE. With this budget, what would you rank as best fit (CF/CG) for Geelong (east north), Corio, Norlane, St Albans Park, Belmont etc? Should I just forget about newcomb and Whittington? I have limited time on the ground. Any opinion appreciated.

In that market should I be looking at properties with more than 600sqm (subdivision potential? Or whatever the size should be)

Is 3+1+1 the minimum requirement for an IP?

I'm looking at houses only.

 

@JacM in your experience how do period homes in East Geelong stack up in terms of CG? I know maintenance side of things can be ex but they don't make these anymore...

 

Larry, you want a 3x2x2 minimum, I would suggest H&L in Merrifield.

 

This was suggested to me as well. Thanks. Isn't merrifield a bit far out? Did you also buy in?

 

Hi Larry,

The suburb aggregate growth has been very strong, however like anywhere, there are pockets and there are pockets. There are some exceptional homes in East Geelong with splendid gardens that participate in the Open Gardens events. You know, you go into someone's magnificent yard, admire the splendor, and have coffee and cake while you're there. However there are also some dingy pockets. One such pocket I firmly dislike is Ormond Road facing the cemetery. This is a very busy road, noise can be heard from inside the homes, they face the cemetery, and generally the living rooms are very small. There are also some flats that house folks you wouldn't fancy wandering past your home on a daily basis.

Like anywhere, you must know your market to select appropriate property.

 

I like your description of such houses. Only if tenants take the same level of care.

 

Just don't assume all homes in a suburb perform CG at the same rate. Statistics are the suburb aggregate/average.

 

Thanks for the reminder.

 

You could easily buy in the middle of Geelong and Melbourne around Werribee for that much....

If around Norlane/Corio, you should be close to getting a decent house and maybe a house that has been cut off on smaller block or villa as well..

I suppose it will depend on what sort of place you actually want.

 

Thanks @dabbler I have a bit of an idea and if numbers stack up. Land content is very important to me.

 

I looked at one in Corio at one stage, it was a corner, just on 600m2, so could possibly develop, it was not much over 200k from memory, what put me off a bit is down there is 5% return is about all I could get from any of the well priced places & probably need a bit of luck with the tenants....that was the feedback from many people there.

Also cheap houses with poor returns cost as much to maintain as one with a better return.

I would buy there, but QLD is more attractive still ATM.

 

Albanvale Vic (deer park / St. Albans).
Should get something for 350 with change..

 

I would go with Melton. I am looking at buying a few lots OTP and building a few new IPs in Melton later in the year.

Melton hasn't done a lot for a long time, but in Melbourne historically $200k has been a ceiling for volume sales of vacant land in growth areas. This is due to the number of buyers that can afford a $370-450k H&L package. Melton will be one of the last areas this is possible. In the next 5 years there will be a heap of land coming on in Plumpton Koroit and Rockbank. These areas command $180k-240k for a block of land that Melton is asking $125-145k for. In my mind this traffic and price differential will encourage growth in Melton.

Melton can provide cash flow positive yields easily and will be poised for decent CG in the next 5 years.


All In my opinion. DYODD

 

Geelong East - CG good if correct property. CF terrible.
Corio - CG good and CF good.
Norlane - never ever ever.
St Albans Park - CG excellent with the right sort of properties
Belmont - never ever. A fault-line runs thru Belmont which is evident in viewing properties. Big cracks.

 

I'm now in Glen Waverley... Resting. Thanks for the input.

 

Are you from Syndey doing an observation trip to Melbourne over the easter break?

I'd say definitely look at Newcomb. I've been looking around Newcomb and Thomson, before I eventually bought in Logan. This is an example of a good buy in Newcomb: Sold Price for 10 Lucas Street Newcomb Vic 3219

Renting for $305/week and sold for $245K. Newcomb has been good at CG lately and not as bad as Whittington. With the potential waterfront extension from the city, Newcomb will be minutes away from that.

 

I am also looking in these areas, albanvale possible within $350k. But deer park and st albans is like 400+

 

thanks @cherubim we're visiting relos this long weekend and I have a business meeting tonight in the city, and throw in 2 days of driving around burbs. I'll go see frankston and surrounds today and west on Saturday. Just to be on the ground to get some idea...then Qld next.

 

I have one in Albanvale.
Bought at peak of last boom, when I was just out of uni.. (FOMO and was getting priced out of other bottom end market suburbs due to FHBG, but that is another story)...

Prices stood still until beginning of 2015.

I've seen them move from 280k to 320-350k quite quickly over last 12 or so months..

 

Properties near Main Rd West are kind of getting St Albans ripple effect...