Geelong IP vs Traralgon PPR

Discussion in 'Where to Buy' started by apatrick, 16th Feb, 2020.

Join Australia's most dynamic and respected property investment community
  1. apatrick

    apatrick New Member

    Joined:
    12th Feb, 2020
    Posts:
    1
    Location:
    Malvern east
    Hey everyone, just wondering what your thoughts are regarding the following.
    1) buying a PPR in Traralgon (regional VIC) and renting out after first 12 months. (Avoid stamp duty). Price range would be $350K
    2)buying IP in Geelong area and subsequently paying stamp duty. Range would be $450-500k.
    Would love to hear some opinions. Thanks
     
  2. Westie

    Westie Well-Known Member

    Joined:
    19th Jun, 2017
    Posts:
    1,028
    Location:
    Melbourne
    That's a significant price difference to begin with! Will you be able to borrow the $$ required for Geelong? Without knowing what you're trying to do, Geelong wins hands down any day of the week..
     
  3. jimmy

    jimmy Well-Known Member

    Joined:
    24th Jun, 2016
    Posts:
    112
    Location:
    gippsland vic
    How did you go with this mate? Traralgon at the moment is flying, very limited stock on the market in both rentals and houses and prices have been showing it.
     
  4. Bee-mumma

    Bee-mumma Well-Known Member

    Joined:
    16th Mar, 2018
    Posts:
    172
    Location:
    Victoria
    I'd suggest getting into the Traralgon market quickly! Any questions about houses? Not much on the market at all, let alone in this price bracket. But yes, Traralgon is 'flying' like Jimmy has suggested.
     
  5. Bee-mumma

    Bee-mumma Well-Known Member

    Joined:
    16th Mar, 2018
    Posts:
    172
    Location:
    Victoria
    I would suggest for the price, getting a 3bedroom 2 bath brick home under $350K in a good area of Traralgon. With a decent sized block, off the main thoroughfares.
    17 Rainbird court
    12 Patrobas court
    With new rental rulings coming in next Jan, I'd avoid pools. But... If you are looking for a home for yourself and don't mind busy roads then 8 Popular Ave might suit (it is gorgeous!). But probably not suitable as a rental.
     
  6. JTKK

    JTKK Member

    Joined:
    27th Dec, 2020
    Posts:
    14
    Location:
    Melbourne
    Hi Bee-Mumma, do you think is it still chance to jump in Traralgon now or to late as seen the sale price had went up significantly over last few months. Thanks
     
  7. Bee-mumma

    Bee-mumma Well-Known Member

    Joined:
    16th Mar, 2018
    Posts:
    172
    Location:
    Victoria
    You can still get into the market in Traralgon, but you may have to adjust your budget a little higher. Margins are getting squeezed.
    So now for similar homes you may need to look at the 380-420k price range.
    I wasn't kidding when I said get in quick.
     
  8. JTKK

    JTKK Member

    Joined:
    27th Dec, 2020
    Posts:
    14
    Location:
    Melbourne
    Thanks for the advice. Just saw this ad on Domain, the price is very affordable still but unsure why it is much cheaper than others property around.

    I am really keen to hear your thoughts.

    6 Barker Crescent, Traralgon VIC 3844 | Domain

    35 Taylor Crescent, Traralgon VIC 3844 | Domain
     
  9. Bee-mumma

    Bee-mumma Well-Known Member

    Joined:
    16th Mar, 2018
    Posts:
    172
    Location:
    Victoria
    I wouldn't touch either of those properties.
    Barker Cresent looks like it has had an extension and seriously could do with $30K spent on it to get it rented at a decent rate. This is probably an old Australian paper mill home, and they had issues with not enough reinforcement of the roof, roof bows, overtime the tiles on the roof become porous & take more water, making them heavy and risk of colapsing or damaging supporting timbers. All that wallpaper & dated fittings isn't going to attract the best renter's either. Maybe a structural check & a lot of elbow grease could make it a winner. Check the roof.

    Then you have the house in Taylor crescent that has been vacant for years, squatters came and gone and it needs a full Reno (most likely with a bulldozer). The land isn't worth $250K, so I'd stick clear of this too.

    Just my honest opinion. Find something that is in good condition, and structurally sound, and doesn't require thousands up front to renovate.
     
    JTKK and Westie like this.
  10. JTKK

    JTKK Member

    Joined:
    27th Dec, 2020
    Posts:
    14
    Location:
    Melbourne
    Thank you so much for the honest opinion. I will keep looking I hope to find the right one.
     
    Westie likes this.
  11. JTKK

    JTKK Member

    Joined:
    27th Dec, 2020
    Posts:
    14
    Location:
    Melbourne
    Hi Bee-Mumma, we have just got back from Traralgon yesterday and found this property interestingly. Agent said that the owner might except the offer at $435.
    What is your thoughts about this, I am really appreciate to hear from you.
    Thanks again
    11 Gwalia Street, Traralgon
    11 Gwalia Street, Traralgon VIC 3844 | Domain
    Sent via the Domain App
     
  12. Westie

    Westie Well-Known Member

    Joined:
    19th Jun, 2017
    Posts:
    1,028
    Location:
    Melbourne
    Hey @JTKK, best tag people like so - @Bee-mumma, so they notice the update.
     
    JTKK likes this.
  13. Younginvestor2

    Younginvestor2 Well-Known Member

    Joined:
    24th Oct, 2009
    Posts:
    99
    Location:
    Sydney
    Just be careful, this property is in or close to floodzone.
    https://www.latrobe.vic.gov.au/sites/default/files/2020-07/Traralgon Local Flood Guide_0.pdf
     
    JTKK likes this.
  14. Bee-mumma

    Bee-mumma Well-Known Member

    Joined:
    16th Mar, 2018
    Posts:
    172
    Location:
    Victoria
    I think the property at Gwalia street offers great value for the location. You would be pressed to find something of that size on that sized land. It is close to the river, but I've never seen it flood there. Bonuses, you can walk to the park, the local bowls club and you would most likely be able to send kids to school at Grey St primary (zoned and known to be a very good public school). To be honest, it would be worth asking price. However, you might need to do some gardening. It's a bit bland without a mature garden.
     
    JTKK likes this.
  15. JTKK

    JTKK Member

    Joined:
    27th Dec, 2020
    Posts:
    14
    Location:
    Melbourne
    Thank you and really appreciate your insights. We plan to buy and rent it out for a few years and hope for the capital growth as we love the location and the size of the block
     
  16. JTKK

    JTKK Member

    Joined:
    27th Dec, 2020
    Posts:
    14
    Location:
    Melbourne