Hi guys, Lover of this forum. I am currently looking to purchase a property in North Geelong, I have seen the prices of property have rose along with the rest of Geelong in their recent boom however am questioning how good of an area North Geelong is. Any feedback from some locals?
Hi Adrian, Interested to know your initial decision to look at North Geelong & your investment budget? Are you looking for a PPOR or Investment? Predominately a suburb that contains Industrial/ Commercial operations. There are pockets of residential: south of Coxon Parade, a number of streets to the East of Thompson Road and the golf estate. Suburb wise, it's close enough to the CBD, good access to the Freeway, has the North Geelong station and boarders other higher-priced suburbs like Rippleside and Geelong West. My investment understanding of the area is that the average weekly rents are $340 (3.5% yield) and the average 3 bedroom house is priced at $495,000.00 IMO I can't see the Industrial/ Commercial sites being rezoned/redeveloped anytime soon so the stigma of the area will mainly reflect that. Personally, I've just moved to Geelong (circa 4 months ago) and am loving it so far - however COVID has thrown a spanner in the works about getting out and seeing all the CBD restaurants/bars/etc, so I'm very keen for it all to be over so I can get out and about.
Thanks for the response mate. I feel as though Geelong is still quite affordable and will continue to grow as we have recently seen. My budget is $450,000 - $550,000. Purely for investment. Yeah those figures seem all about right, the few properties I’ve looked at are a bit more dearer then that but about right. Great to know about those nice pockets. What’re you thoughts on the capital growth going forward?
Why not look into areas like Armstrong Creek and you can source a brand new 4 bed property on 400 to 500 sq mt with potential rentals of 420 to 440 per week for about 500k to 550k. Makes more sense from investment perspective. Regards
I love it. Nice tenants for investments. A lot of owner occupiers moving in. Area attracting young families as well and fair mix of retirees and couples. All in all, awesome. Regards
sorry but this makes almost no sense from an investment perspective average yield poor location prices arnt really cheap - considering you are in geelong north geelong will fair much better lomg term armstromg creek will.get smashed short to medium term as it is a direct product of melbournes massive immigration intake - which has now stopped
I would argue on poor location aspect. There is nothing cheaper considering proximity to beaches, city and other employment precincts and universities. what will fair much is totally ones' own perspective and vision. Mine is not better, yours is not worst. We will see what gets smashed. In past 5 years, it has not dropped even a single bit, land is getting scarce, supply is coming and product is selling. I have been tracking the market very closely and it is not all investors. Downgraders/ Upgraders are moving from middle ring suburbs to settle in these areas, CBS is an hour drive and so is train, stations are near. Not everyone wants to go to Geelong. Seems you have some homework to do. Regards
Thanks for your response. What’re your thoughts around North Geelong performing better? thanks again. Thanks
say in AC you purchase a house for $500k you are essentially purchasing land - circa 350sqm for 220k house - 280k an an area similiar to north geelong you buy an older house for 500k land - circa 550sqm 400k house -.100k (house is old so not worth as much anymore) so in the established area you have invested more of your money into land (almost double) so if the land value grows at 5% in both Armstrong Creek and North Geelong your making pretty much double in NG there will be an argument based on better rent in AC but that is more than offset by the amount of value your house will depreciate - remembering that in 40 years that 280k house will also be worth only 100k You also need to.consider that the Armstrong Creek development is for around 20,000 or around 1,000 houses a year whilst development in North Geelong will probably see 10 new blocks / houses a year supply and demand even if more people want to live in armstrong creek than north geelong the demand ratio will still be much lower than north geelong because the supply is so high = less chance of land appreciation
Read more like 448 sq mt for 270k Build 25 squares for 270k 540k with rental of450per week. You claim depreciation, tax benefits accordingly, less maintenance for next 10-12 years and more tenant appeal, less stamp duty. Also note that you are next to highways, beaches, city commute, hospitals and universities. Everyone to their own but both assets might be performing equally while if i can reduce further the land and build copomemt and save another 50k, rent will only go down by 30 per week or so (may be less). Holding land for another 10 years, paying interest on it, then pay subdivision costs and new build costs, i think i have an edge over that strategy. Regards
I bought in Geelong (Belmont) 2 years ago and at that time I already thought I was a year too late as growth was already well under way. Great investment location I reckon (although I would say that to justify my investment!). I agree stay away from AC - I went there and immediately thought 'investment stock'. I bought a 3 bedder for $443k, added a bathroom and it rents for 430pm. just getting it revalued now and hoping c.600k. Bendigo is another option where you might get better yields as that hasn't started to grow too much yet (I bought there last year). Has a lot going for it in terms of growth drivers, although admittedly not as strong as Geelong.
Lol I bought my small land 238 sq mt and built a 14 square home for 275k. Now rents for 400 per week and valued 450k. I am sure one can work out numbers. Everyone sees stock, investment, new houses, lot of land. However, missing the essence; demand, demographics and entry point. As I say, everyone to their own. Apparently, one needs to trust and learn from right investors who have achieved by not following notions. And there are ample available on this forum. Choose wisely per your risk appetite. Regards
Yes you are totally right Ashish always hard to get to look behind our own biases I certainly have a prejudice against new buildings/estates that may not always be grounded in investment logic. Really glad to hear your investment worked out well
