VIC Geelong 2018

{Note - thread continued from here: VIC - Geelong}

It's a typo. He meant burst

 

Back in Geelong this week wandering around.
Have to say I still see things moving forward for some time to come. Visiting various old friends, most feel they've missed the boat this time around, but I still see great potential.
The unit development in Belmont, some are nice, many are taking away the older area appeal.
There are others who are thinking outside the box, like the shop redevelopment in Pako st Geelong West, (had lunch at Duke of the Sea) someone has put some thought into redefining that retail space
Geelong is changing from the old manufacturing into a consumer economy, some people feel things will never recover but there are many people earning good money, I only see things moving onwards and up in the inner and older area's

 

Went past jamieson st Thompson.
Asking $350k / auction
Over the rd sold 12 months ago for $330ish, smaller block similar house (slightly nicer).
It isn't overly nice, not a development site, needs a reno but is currently rentable, 1min walk to the Gordon Tafe, and only a few min walk to various take away shops around the corner.
The area is improving
I'd be interested under $330k

 

This is the trouble people make decisions from their armchairs rather than getting boots on ground....I have 2 places built in Geelong...and another 3 in the pipeline....

 

I'll take that compliement - thanks! Planned and designed by me for a client who was great to work with. Very good space tenants filling now

 

New jobs keep coming up in the Geelong market. It means high earning employees keep relocating and pushing up the house prices. Plenty of growth still to come

 

Hi all, I checked out a range of potential IP's on the weekend and like the looks these two in partciular, good size and shaped blocks, rentable as is for holding for a while (save maybe the OTT wood panelling in the HH one - grateful for any thoughts from this fantastic forum

40 Wilsons Road Newcomb Vic 3219 - House for Sale #127219454 - realestate.com.au

32 Lily Street Hamlyn Heights Vic 3215 - House for Sale #127320258 - realestate.com.au

 

I like the location, and I always like brick, also the size is great... it just depends on the price it goes for. Personally I'd spend no more than $340-$350k on it, but there's likely still to be value up around the $370k but I wouldn't be in in to for a quick buck, the best return will be in long term. (just my oppinion though) I saw this one that looked like a good entry level investment;

3 Georgia Grove Corio Vic 3214 - House for Sale #127338890 - realestate.com.au that one I'd buy if I had just another $10k on my deposit... but sadly, no win in the lotto on the weekend so I have to hold for the moment.

 

Thanks Michelle, I assume your comment was in relation to the Newcomb IP, shortly after posting I also added the one at HH.

 

Also looking at the Corio one, and others generally of that vintage in the Geelong area, is asbestos a major issue when looking to knock down and develop these properties down the track - if so, how to people factor that in to the costings?

 

Yes, Hamlyn Heights - missed that one. Closer to the city - if it's good bones, and you have the money for the reno, could be a good investment. For Corio - my brother's a scientist (I still find that a little amusing) but he deals with site inspections, recommendations and removal of asbestos. It's also not too hard to get your removal qualifications (I think it's around $300 to get your card) buy the equipment, safety gear, then I can't remember the process beyond that - but if you're smart enough and have the time, you can do the removal yourself. Personally though, I'd sit and hold, it's likely I'd leave the development to someone else who wants to do it.

 

BTW, can anyone recommend good building inspectors in the Geelong area?

 

And finaly for today, what are peoples thoughts on the affect of the recently introduced minimum garden area requirements of the VPP to the economics of subdividing? These are as follows:

Minimum garden area requirement
Whether or not a planning permit is required for the construction or extension of a dwelling
or residential building on a lot, a lot must provide the minimum garden area at ground level
as set out in the following table:
Lot size
Minimum percentage of a lot set aside as garden area
400 - 500 square metres
25%
501 - 650 square metres
30%
Above 650 square metres
35%
The garden area requirement applies to all land in the Neighbourhood Residential Zone and General Residential Zone that is 400 square metres or more. It is a mandatory requirement.
The requirement allows for areas that are normally associated with the use of a garden area, such
as open entertaining areas, lawns, garden beds, swimming pools, and tennis courts to be included in the calculation of the garden area.

 

You're talking about VC110. It was gazetted March of last year.

 

The Newcomb one is a pretty special listing. There is no way you'll be able to get this under $400k. This house has a LOT of potential with the floor plans - dual entry, with opportunities to reconfigure this to a duplex + potentially build another small house at the back (STCA) I would think in such a location. The small bungalow can be incorporated into the duplex for a 3 and 2 BR configuration depending on builder's recommendation. This house is also ready to go as it is and there is no need to renovate. I can see this going to $450k. If you can get this for under $400k that would be a miracle. You could potentially rent to for say $450/week conservative (duplex) and if you spend for example $100k on renovations that's still around 4.7%.

You can say spending $500k in Newcomb is probably too much or the renovation is overcapitalising. You can also wait until there some CG before undertaking the reno as there really isn't any rush once you get this. But having a duplex potential property on 665m2 only 2ish km from the CBD is pretty much a no brainer atm. You'll probably be spending this much in Cranbourne on the other side...

@David Shih is probably drooling over this one...

Not sure about the HH one because it depends on your goals and your budget. It's gotten pretty popular and it's unlikely to be a good yielding IP imo.

 

Thanks Pentanol, I agree that the EPR is way under quoted IMO, there was a solid turnout for it on the weekend inspection

 

Ok, so perhaps not that recent, but I was wondering if it has made significant difference in what minimum size block people are now considerig is necessary for a viable subdivision?

 

And considering 36 Wilsons Road went for $426k in Nov '17 and it is similar design house and size block, I'd say you are on the money Pentanol

 

Without reading the whole 35+ thread I can throw some bread crumbs that we (Empower Wealth) have been buying in Newcomb, East Geelong, Bell Post Hill and Belmont sub $500k for 3+ bedroom houses.

I was previously very concerned about the instability of Geelong's economy due to the car industry shutting down however the local government in partnership with the private sector has done a fantastic job at transitioning labour into construction whilst developing high-tech/ health + medicine & education industries.

Perhaps there will still be some pain around 2020 but right now the low base suburbs (even including Norlane) that are well positioned/ priced for growth have performed well over the last year and our research shows that it's not too late to get in, despite not being as attractive as the last 6 months.

 

Interesting choice of words Jake...I remember raising Geelong/Outer Melbourne as areas which will grow...you said otherwise.

So question is given your history..who would anyone take notice this time?

Though this time you are on the money about Geelong ...just 2 years too late....