VIC Geelong 2020

A colleague bought a nice house in the new parts of Highton (Highview), the area to the left of Barrabool Rd when you get off the freeway. He loves it there. Commuting to Melbourne can be a pain but once you're on the Vline, it's not too bad I gather. According to him, his house has appreciated significantly in value, that may just be because he bought into the earlier stages of the estate. He reckons it's safe and a mostly OO suburb. The rental yield is poor.

 

Any thoughts about land and house package on Armstrong creek?

 

Probably too late now unless you find a cracking deal.

 

Won't you advise those L & H package? Tnx

 

Do you want to live in the property? Or rent it out? If you want to live in it, different matter. Go with what you need/want. If you're going to rent it out, then be aware you're going to be pretty -vely geared. I reckon a 4x2x2 on about 400sqm will be about $550k, fetch about $430-$450/week (give/take), just giving you some indicative figures so you know what you're in for.

If you get the two (house and land) packaged up, your profit gets eroded because the price contains the builder's profit. The idea behind buying a block and building on it is you buy land when it's cheap (which it isn't now) and build (which may not be cheap now either) on it. Like I said, keep an eye out for good deals, though they're going to be hard to find these days.

 

Tnx for your advise. Ill keep that in mind. Im thinking of renting it first but if ever Ill get tired in the rat race. I could move there and get my life back.

 

Does anyone share your thoughts on North geelong?

 

For PPOR?

 

Buyer pays $71K over reserve for Geelong West house in shocking state of disrepair - realestate.com.au

given the frame looks compromised, what do you guys reckon you could build a double story on 250sqm corner block?
cant see this as a great purchase unless long term hold

 

I actually ran a feasibility analysis on this site.
Good area, short walk to Pakington Street and Bakers oval, all round a strong area for property values.

I was working off an internal area of 237.1 (geround floor 110sqm/first floor 90sqm) with a construction cost psm of $1700 - total construction cost of circa $403,070.00

However, I had the land plugged in at $300,000.00 - amazed it got to $371,000.00!

 

That's $775k all up! Over capitalisation at first glance

Good location, though

 

.... At first glance.
Development replacement with a sleek/modern double story house (4 bed, 2.5 bath, 2 car) - I had figures of sale price of $1.1-$1.2m
However given the market decline I'm glad I didn't make an offer on the property

 

Oh wow...I wouldn't pay that kinda price, especially in the current environment!

Good on him for making the jump however I suspect it'll have to be a loooooooooooooooong hold.

Cheers,
David

 

https://m.realestate.com.au/property-house-vic-geelong+west-133228294

Good point, break even best case scenario

 

Yes I agree break even in the current climate with property prices drops.

However, if prices continued like they were post-election/early new year in Geelong then there would have been circa $150k profit after 11-month construction period, representing an 18% return on the development.

 

Spirit of Tasmania to move Victorian operations to Geelong
Another good development for Geelong area.

 

I used to live around the corner and agree on the location (still have friends nearby)
I'd happily pay that price
I'd bet a younger (ish) builder/tradie bought it as a ppor
With building works slowing down it'd make for a great fill in and weekend work
All tax free at eventual sale

 

Fastest growth region needs faster infrastructure delivery | G21 Geelong Region Alliance

Not sure when published but just came across this post

 

What would be a better option for IP in geelong

• Reverse cycle cooling/heating
• Gas heating + air conditioning

 

The last one we did we made everything electric and put solar panels on the roof.
The solar offset some usage and makes a good selling point, and there is only one supply/service charge

The idea of paying gas service charges for 6 months or more of the year when you don't use it for heating (if thats the only use) well and truely exceed any cost savings !

Sure if the property had gas cooking and hot water I'd consider gas heating, but having been all electric gas is old school and for an IP oftn needs inspection testing