VIC Geelong 2018

Discussion in 'Where to Buy' started by Pentanol, 1st Jan, 2018.

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  1. David Shih

    David Shih Mortgage Broker Business Member

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    Caught up with my Geelong PM last week and apparently auction results are still very strong on the ground so I'm definitely not complaining :)

    @Dave3214 can probably give us another on the ground update on what you're seeing?

    Cheers,
    David
     
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  2. Brendon

    Brendon Well-Known Member

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    Would I be correct in saying the Geelong market has cooled a fair amount the last 6 months, I primarily watch Newcomb, Whittington areas.

    Prior to that it went nuts for about 12 months but appears the steam has left the market. I haven't been on the ground but just looking at realestate.com listings that the conclusion I've come to.

    Anyone disagree?
     
  3. David Shih

    David Shih Mortgage Broker Business Member

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    In the meantime we're seeing article like this:
    Newcomb growth skyrockets as house sells $80K above expectations - realestate.com.au

    I suspect probably just the typical media hype. Best to get someone on the ground to give us an update on reality. Calling @Dave3214 :)

    Cheers,
    David
     
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  4. Lions4Eva

    Lions4Eva Well-Known Member

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    Wow! Corio has jumped up to $360,000 for all houses as of the 10th September. Wasn't too long ago I remember it being $260,000. :D:D
     
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  5. Brendon

    Brendon Well-Known Member

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    @David Shih @Lions4Eva
    I have found that the stats are usually slow to show what's been happening, and then articles are using those stats to demonstrate their point so by the time the articles are being written the numbers are nowhere near as good for investors and a lot of the profits have already been made.
     
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  6. Dave3214

    Dave3214 Well-Known Member

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    It's funny in some ways the property market around here. Just a few off the top of my head, a clinker brick house at 10 Paterson st East Geelong sold for $581K at auction, which is kind of about the level such places have been in and around that area for a fair while. Admittedly it's not far from the 'Dead centre of Geelong' ie the cemetery but it's fascinating when contrasting to this place here in Corio!

    10 Paterson Street, East Geelong, Vic 3219 - Property Details

    Hmmm....paradoxical here as it says price withheld, however i was told by an attendee at that auction it sold for $581K.

    5 McCubbin Ct Corio, which is in the nice Rose Park estate, however it's still a wonderful price for the 3214 postcode

    5 McCubbin Court, Corio, Vic 3214 - Property Details

    That's a new house obviously, but at that price level it starts to converge on the Belmonts, certainly most of Newcomb and even places in the East Geelong area. Then again a few places in Norlane West have sold for quite value-packed prices in my opinion, with these for example.

    597 Thompson Road, Norlane, Vic 3214 - Property Details

    31 Barcelona Street, Norlane, Vic 3214 - Property Details

    Although nowadays for a 600m2 block almost everything in the 3214 postcode tends to be in the vicinity of $335K upwards.

    I will say that i reckon the proportion of house prices of the 3214 area, and probably including Whittington too are as big a percentage of the other areas of Geelong that they've been for ages. 20 years ago Norlane properties were around the 40-50K mark, whereas many of the other suburbs would have been well over $100K... probably upwards of $150K or thereabouts. Now it seems a lot of Norlane and Corio's places are valued at about 65% or so of Geelong's medians in the likes of Belmont, Grovedale and other probably more esteemed areas.

    But while these areas stay roughly level, i think all growth is capped to some extent. But prices have certainly solidified to these levels. It's still a handy area to be with a lot going for it for the 350K-ish that the 3214 postcode offers. I reckon it's pretty safe from a 40% correction that has been mooted by some media pundits.
     
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  7. aufm

    aufm Member

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    I've been keeping an eye on the Whittington market (have an IP there so might be a bit biased), but from what I have seen 2 bedroom houses are now listing at prices that 3 bdr were at about a year ago (though land sizes are comparable); and 3 bdrs are currently no where to be seen (only one 3 bdr for sale in the entirety of Whittington according to both Domain and RE)
     
  8. NWHT

    NWHT Well-Known Member

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    Certainly an interesting read in th AFR Property section:

    Ford Australia revs up industrial market with Victorian sites Ford Australia revs up industrial market with Victorian sites

    Ford Australia is moving to divest its massive landholdings in Melbourne and Geelong, extending over 85 hectares in total.

    It goes on to indicate;
    CBRE's Mr Hunt said the sites could be reused and reactivated to suit multiple purposes and provide significant infill development opportunities.

    "These properties offer highway exposure and benefit from access to major arterials, public transport links and proximity to key infrastructure such as Melbourne International Airport, Avalon Airport, and the Port of Geelong," Mr Hunt said.

    "The existing buildings could be repositioned to accommodate multiple tenancies, generate income and support numerous development initiatives, complemented by the neighbouring residential, retail, industrial, commercial and entertainment facilities."

    What is everyone’s thoughts on what may be developed on the site? Residential/commercial/industrial or a combintion.
     
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  9. ARTIS

    ARTIS Member

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    What is happening in Corio market in particular?

    Is the dust settled or the upwards trends are still ongoing?
     
  10. Pentanol

    Pentanol Well-Known Member

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    Recently reval my Corio property for a refinance and it's up $70k since Aug 17 so still seem to be holding up and doing the best in my portfolio. Still reckon it's good buy under 350k as more and more are forced here with credit tightening and loan approval process become arduous. Also people earning the median Vic wage could really only afford Corio/Norlane in the near future.

    Hope the Coalition gets up with the transport plan below as it's cheaper than Labor's plan and will be operational a lot earlier and revitalises of a lot of the regional cities!
    Coalition promises 'European-style' regional train network in $19b election pledge
     
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  11. Illusivedreams

    Illusivedreams Well-Known Member

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    Every election the high speed rail comes out.
     
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  12. Gazza215

    Gazza215 Member

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    I have to say I think Melbourne/VIC market is going to remain low/steady for a while.

    It's over priced in my opinion.

    Go for Brisbane/QLD.
     
  13. Brendon

    Brendon Well-Known Member

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    Well it's now sold 55 Regent Street, Whittington, Vic 3219 - Property Details

    I can't remember what the list price was but a sale price of $440k isn't a bad result I wouldn't have thought.

    @David Shih @G TOWN @hieund85
     
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  14. hieund85

    hieund85 Well-Known Member

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    I remember the quoted price range is high 4 to just over $500k which at that time I said highly unlikely achievable. My bet was low to mid 4 which is what they finally got after quite a while. Anyways, still very good profit due to the low purchase price at the right time (just when Whittington started booming).
     
  15. David Shih

    David Shih Mortgage Broker Business Member

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    Yea from memory it was initially advertised in the high 4s. Definitely not a bad outcome though for a value add strategy in a booming market.

    upload_2018-10-10_10-1-38.png

    The previous owner timed well in entering the market, and would've been a very nice profit if they managed to do the reno themselves to keep the cost down (as @G TOWN pointed out previously the craftsmanship is pretty average). If tradie is engaged plus all selling costs and CGT, all of sudden profit may not be as good though.

    Let's see, who knows 12 months down the track the price have gone up even more and the previous owner would be kicking themselves for selling too early :p

    Cheers,
    David
     
    Last edited: 10th Oct, 2018
  16. JacM

    JacM VIC Buyer's Agent - Melbourne, Geelong, Ballarat Business Member

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    Hmm.... when you take out the cost of renovation, stamp duty, selling agent costs, CGT and mortgage interest, the profit is a bit skinny as a percentage. Not my cup of tea.
     
  17. Knights of Ni

    Knights of Ni Well-Known Member

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    Well.... 'mortgage interest' is tax deductible, and ‘Capital Gains Tax’ simply doesn’t exist – what, in fact, you do receive is a ‘Capital Gains Concession’. Make a profit from your labours, (as in a job) and you pay tax at the full rate; make it from property and provided you hold the property for a minimum of twelve months, meet all other requirements including being structured correctly and your taxable income from the sale of that asset is halved. 50% of your income won’t be assessed and the balance will be assessed at your marginal rate of tax. This gives property a significant advantage over other types of income. If you manage to do a couple of these per year the income is a nice cup of tea.
     
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  18. Brendon

    Brendon Well-Known Member

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    $327k purchase price
    $15k stamps
    $10k Reno
    $15k interest
    $15k selling costs

    $382k total

    Sell for $440k

    Profit of $58k

    Not HUGE money but a very nice profit for probably only a few weeks of renovating. A lot of people work 40hrs per week for a whole year and make less than that.

    You don't go broke making a profit
     
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  19. MikeyBallarat

    MikeyBallarat Well-Known Member

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  20. timo

    timo Member

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    I been to an auction in Newcomb on Saturday ( 6 Andrew St, NEWCOMB) Defenitely there is no steam in the current market. Initially passed in for 352K and sold after auction for 360K. ( Only two bidders). I guess the vendors were expecting 400K. Also went for another auction in Whittington. No bidding at all! Interesting been to 5 inspection in the area, I was the only one for all 5 places. Multiple agents told me its going through a correction in the area.