VIC Geelong 2018

Ripple effect. Newcomb has sailed. Now is the turn for Thompson and Whittington (they started going gangbuster since late last year if I am not wrong). But I think it will be hard for the vendor to achieve the high side of the quoted range. Low to mid 4 is my bet. Big block but not subdividable unless the existing house is knocked down. Even if they do so, the block width is too small for subdivision, not easy. For high 4 close to $500k mark, I will have more and better choices than Whittington. Anyways, good profit. All they did is new paint, floor, windows furnishing, down light. A cosmetic reno around $10k or slightly higher I would assume.

 

55 Regent Street Whittington Vic 3219 - House for Sale #128664286 - realestate.com.au

I recall this one from before it was renovated. Watch out for the shower cubicle, absence of door to BR2, strange-shaped block with pipe fun under the ground straight through the guts of it. Tiles to all floors - yikes, coldness. Not much going on in the way of heating to counteract it...

 

All good points. That's why I think it is not going to get high 4. Personally, I won't touch it for IP or PPOR even low 4

 

I remember seeing this one in person last year and there were heaps of groups on that day. Lots of tradies too. The place was old, smelly and in a dire for new reno.

The new owner has done a fair bit actually. Re-paint, new tiles, new lighting, kitchen also had some upgrades (new oven and a lick of new paint on cupboards). Apart from the bathroom, quite a bit of work has been done internally so it looks nice and shiny. If it was done by the builder owner himself then could be up for quite a bit of clean profit.

The advertised price is a big ask and I'm a bit surprised they didn't go for auction. But yea looking at that rental income the return won't be attractive enough to investors really, so I reckon it's more done up to attract OO than investors.

Cheers,
David

 

Good spot but that Reno ain’t great...could do what the owner did myself for around $5k. Bathroom untouched and the kitchen has only had a coat of paint applied to it - I wouldn’t be surprised if you could see the brush marks in real life.

 

$5k means you do it yourself? That is just the cost of material? How about the tiles?

 

You can get those tiles (or a very similar tile) $21/sq m from Western Distributors. I know because that is what I used on my PPOR bathroom/laundry/toilet renovation.

What’s the floor area? I don’t know, but it looks about 125sqm of tiled area = $2625. Plus tile adhesive maybe $450 (Davco Ultraflex is $30.51 from Bunnings and you will probably need 10 bags, but I had budgeted a bit extra in case it’s needed). Grout would be $33.52 for Davco Sanitised Colorgrout, you may need 3 bags for $100.56. That brings the tile cost to $3175.56.

You also need to consider painting cost. Dulux Wash and Wear is $208 from Bunnings for a 15L tub - maybe 4 necessary for $832. Maybe say $1000 to paint when you include sugar soap, rollers, masking tape, joint compound and sandpaper. I’m not sure if anything else was actually done.

 

Thanks mate. It is what I guess. $5k should be enough for material. But if you get tradies to do it for you, the total will be 2-2.5 times higher I would assume.
I still cannot understand why the vendor chose that type of tiles for the whole house. It can be one of the major issues turn potential buyers away and reduce the selling price.

 

For sure it will. But provided you are in the same state as the property, it can be done by yourself. It’s not like, say, carpet laying, where you have to get the professional in.

And I think that’s why tiles were used in the whole house - it costs a lot less than carpet. I think it’s on a slab, otherwise I would have just polished up the floorboards underneath.

 

If it is on a slab, I would choose floating laminate. You can do it yourself or get a proffessional do it cheap for you. The cost maybe $2k-$3k more but it will give the house a much better presentation and hence attract better pool of buyers and price.

 

Who knows what they spent on it, what costs someone $5k and a lot of sweat can cost someone else $20k but they don't leave their house.

Either way there's still a nice profit if they get the asking price. Potentially up around 30%.

I only noticed it as it sold just after the one I bought for a similar price (about 6 houses up the road) it's a bigger block but can't be subdivided without demolishing the house.
I hope they get up near the top of the range but it's hard to tell. I find it difficult to get a good price guide in Whittington as there's not many sales in the 'good' part of the suburb and even though some properties are extremely close to Newcomb just having the Whittington name it drops thousands in the sale/asking price

 

Some of the profit would of course get chewed up by the fact there were entry costs (stamp duty etc) and exit costs (selling agent fees, CGT etc). The CGT discount should apply though (presuming it was an IP, otherwise not applicable if PPOR) since they've held it for more than 12months.

 

Yes, let see how much will it get.

 

Hi Michelle,
Do you think it is going to affect north Geelong property market?

 

Received this breakdown of top performing regional suburbs by capital growth in a newsletter as part of a subscription to Cherie Barber. Geelong features 3 suburbs in the top 12 - taking out no.1 & no.2

Cherie goes on to say...
"New research via Australian Financial Review(AFR) & CoreLogic here has shown a strong lifestyle change towards regional towns.
And not surprisingly, the suburbs in these regional areas are topping Australia's high growth suburb list! Just some of these key property hot spots are found in Geelong, Victoria; Wollongong & Newcastle in New South Wales; and the Sunshine Coast in Queensland.
With their beach-side lifestyle, strong infrastructure investment plus an easy commute to a close major city, are you surprised to see these suburbs topping the list..? "

Fancy a sea change? Geelong, Byron Bay, Wollongong lead regional property boom

Top Performing Regional Suburbs by Capital Growth by NWHT posted 4th Jul, 2018 at 9:57 AM

 

Thanks a lot

 

Thanks for sharing @NWHT! I'm surprised about Lara's growth, it must be getting the ripple from Corio? Also I suspect the news about Geelong airport upgrade to international also has an impact on the demand.

Would be interested to know who are currently purchasing in Lara. I wonder whether they are OO or Investors?

Cheers,
David

 

You will be suprised that Lara actually had taken off before Corio/Norlane. A lot of OO purchases there since it has better neighbourhood and quality of life than Corio. It has train station, supermarkets, freeway access, reasonable commuting time to Melbourne. Employment in Avalon airport and the neadby prison. Land in new estates have gone out of the windows with an amazing pace. Lands are sold out even before the official stage release. You may need to wait for 2-3 releases until you can get one. Developers are hesitate to sell or even do not sell to investors. That's what I observe on the ground.

However, the significant increase in the median price may also be caused by the sale of newish properties which often command higher price.

 

Lara is becoming what Werribee became in the late 70s for these very reasons.

 

What did Werribee become in the late 70's? I always thought it had a bad stigma back then, cos of the poo farm....