VIC Geelong 2018

It’s a bit too late now, I guess. Newcombe has been moving a lot since 2 years back. No one’s got a crystal ball to say when the boom will halt though.

 

14 Kalver street got sold today at 1.30 for 366,000

Unfortunately I had to opt out, these prices are way above for my liking of the area. I am not saying it's a good or bad buy, it's no go for me at these prices.

 

That is a crazy price for Corio.....Geelong is going nuts...

4 bedders in Armstrong Creek's Villawood estate a now 500k plus .....in most cases..

 

There was a 3-lot sale of 91-95 Melbourne Rd Norlane that sold for over $900K, and it seems nowadays a standard block of 600m2 or more rarely is seen with a 2 in front of it in Corio and Norlane. Pleased as punch as a homebuyer here.....but yeah they have moved considerably and are not the bargain of the time i first came on here (2015) when under $200K was quite a common theme, especially in the old weatherboard Norlane places.

When you start encroaching into the 330K mark, i still reckon there's one suburb that's quite close to Geelong's CBD, close to Newcomb's two shopping centres and other amenities of East Geelong, and that's Breakwater. Almost every house in the Breakwater area, particularly the area bounded by Boundary Rd, St Albans Rd, the footy ground and the race-track/showgrounds are essentially the same type of house, the mid-late 60's brick commission style places, similar to the ones in the American themed streets of Corio below Goldsworthy Ave. They can still be got for lowish threes....and bear in mind it's the same postcode as crazy expensive East Geelong and rapidly catching up Newcomb.

15 Hitchcock Street, Breakwater VIC 3219 - House For Sale - 2014101277 | Domain

4 Hodges Court, Breakwater VIC 3219 - House For Sale - 2014124093 | Domain

Sadly the latter is under offer.

I've said it many times.....anyone buying a Breakwater house, gets the added bonus of a Dave3214 daily morning drive-by...i deliver newspapers in this area daily. Eyes on the properties

 

Hi Everybody,

How realistic do you all think that the EPR of $275-300K is for the house in Breakwater?

15 Hitchcock Street, Breakwater VIC 3219 - House For Sale - 2014101277 | Domain

It seems a bit underquoted - any thoughts would be appreciated!

 

That side of St Albans rd was largely commision homes from memory.
It isnt really a short walk to Newcomb Village shopping, far closer to Buckleys.
I was looking at a place on the other side of St Albans rd closer to the Gordon tafe site.
Likely it will see $350k

 

This link shows 18 Breakwater sales in recent times, including the neighboring 1 Hodges Ct....

69, 3 Bedroom Houses Sold in Breakwater, VIC, 3219 | Domain

Agree with Stoffo that it's not really a comfortable walking distance to Bellarine Village or Newcomb central, but as a lifelong Geelong resident to me walking to the shops is not really a factor. Certainly it's not for me, i'll drive all the time, and it's only a 3 minute or so trip to those shops, or maybe about 5 minutes to near the Hospital. I'm the type to drive to the Donnybrook Rd shops and i live in Dunloe Ave..then again a couple of large pizzas are a bit hot to carry that 500 metres or so!!

Virtually all the houses in this area are those 60's build commission style houses, so they all have potential issues that a 50 y/o building may have. And the positioning of the house on those corner blocks are similar, kind of across the main body of the block so any development would probably involve knocking the original house down.

I can say from my extensive experience in delivering papers in this area, there are very few (if any) of these places that have been sub-divided, they are almost all exclusively single houses on the block. Hence i'm not sure what price a new build unit on a shared block here would command.

 

I'm not sure why people would consider redeveloping. When I was looking at Geelong end of last year, I ran my numbers in areas like Corio, Norlane and Belmont and for me, the numbers didn't stack up to make all this effort worth while.

 

So what do u see in numbers?
Can you site some exames?

 

The numbers do not work in Corio and Norlane...too many idiots there thinkin' they will make a motza on putting 3 townhouses there....the cost of each T/H will be 250k each plus site lets say they picked it up last year for 250k...plus interest/devie/sell costs costs add another 50k.

So that project is going to cost 1.05m....so the breakeven per unit is going to be 350k....to make it worth while..you need to sell each for 400k ....ya kiddin' right?

The jury is out on Belmont...

 

Not sure I agree that these developers are idiots.... Corio is 45 minutes to Melbourne CBD and it's one of the cheapest markets in Victoria and it is rapidly rising...If you get in early, you can make money... Brand new townhouses will be worth $400k easily in a couple of years (when complete).

 

You are guessing the future...deals need to make sense as per today market. Best you can do is factor in a -20% correction, not a 2x boom.

 

So 150 profit on 1.05...no dank you!

That is like 14% gross profit....30-40% is more what I want....

 

And it is not 45 minutes mate, even at night time.

 

@ashish1137 as above. Even in Belmont, to me these numbers don't stack up and the profit made would be minimal as @sash points out below

I disagree. Deals do not need to make sense today as long as YOU think they will make sense in the future factoring in population growth, projected capital growth, infrastructure etc etc.

 

I live in Port Melbourne and I get to Corio in 45 minutes... peak hour is different (everywhere).

Just disagree with your numbers.

 

OK what do you think are the numbers?

And have you actually developed something before?

 

Yes, it is possible to spend 45mins from Port Melbourne to Corio but not the other way around. If you need to drive from Corio to Mel for work, it is likely to be during or near peak hours with the traffic both ways and it will take you more than 1 hour at least. And Port Melbourne is not Mel CBD!!!

 

What's your point exactly? It can take an hour to get to Burwood from the CBD....My point is, that the distance is comparable to a lot of regular commutes around Melbourne and you can currently buy property in Corio that still starts with a 2'.

 

Err....3 now...