Geelong Sub-Portfolio

It is gut feel ...demographics...a lot of the areas were not popular before.

This is why I reckon data is flawed.

 

Where are you buying in WA then? Baldivis seems like there is a heap of supply, although the Rockingham market is doing really well in the established space. Elsewhere just seems a bit above the numbers you are talking about

 

Interesting, so you are looking more at a general area/city, and not based on general demand/supply principals, because these are PSP/growth areas with large amounts of current and future supply. But rather based on areas you think will grow in the future and are suited for certain demographics. What demographics are you looking for?

When you say the data is flawed, what do you mean?

 

Data will show data for existing areas new areas like Armstrong creek there is insufficient data. Or it will not always show infrastructure being planned.

 

What demographics are you looking for in new estates?

I saw you write in another area of the forum, about the baby boomers being a very important demographic change that isnt being fully considered by most investors at the moment, what did you mean by this?

 

Yes they are driving changes because they are downing. Moving to the coast and lifestyle areas. Buying McMansions in outer areas might not be the best albeit huge demand for smaller easy to maintain homes.

 

I'm not yet game enough to post I bought waterfront off the plan a year and the CG is over 500k before completion.

Is it really gut feel or just a replay of a movie you've seen before as It happened all around the Sydney south and west outskirts many years ago.

 

It is not waterfront. It was a block of land bought for 345k last year....now pushing 550k....build costs would be North of 350k for same product. House at the back of me in the earlier stage sold for 1.25m...better than mine but that was a few months ago. Major seachange location with a lot of money from Melbourne coming in to that part of Geelong.

 

Nice Sash, Pretty crazy vals compared to the debt attached to these properties. Did u you use the same builder for all these builds? Any major issues pop up during final house inspections or pretty smooth sailing?

I was lucky enough to secure some land in stage 1 in Haymont i mentioned to you a while back.
My Plans - 4x2x2 - 313sqm - land price 266,000 - build price 299,000
To be completed around Q3 2023
@sash Your predictions for eval / rents / uplift?

Looking foward to repeating the process in the Perth market - Pulling equity, going again, to secure something in Rockingham / Hamilton Hill, subject to whether i can again access to credit from the banks.

Who said H @ L do nothing but sideways

 

There are always minor issues....get as much finished prior to handover. If not make sure you put it in writing and get it fixed handover during the warranty period. I have some issue but nothing major due to COVID one issue is outstanding.

As for AC.....I expect any 4x2x2 worth at least $650k...rents are crazy. In the Villawood Estate they are getting 500-550pw.

Obviously...you waited till last year...if you had got in 2020 you would have got the land for 245k and build for 245k. The build seems expensive.

 

@sash

Shonky Builders WA getting a lot of time nowadays with price increases, dodgy builds etc

Ventura Homes get MASSIVE fine for dodgy house builds

 

Where there is trouble there lies opportunity. I like to madman in the hot WA sun.

 

Yeh your not wrong. Was the lesser of the 2 qutoes out of the builders i wanted to go with. The Lot has 800mm of fall which needs retaining which pushed prices up slightly unfortunately.

Looking back i could of also waited out longer before engaging a builder, where the cost of sourcing labour / materials to build in the construction industry would be more cost effective. Still lots to learn, on the upside the level inclusions that were negotiated on the build contract and an upgraded facaded design are positive.

 

Any upcoming land released you have your eye on in the area @sash ?

 

Not any more, I'm sure.

 

No too expensive...these days...the prices are insane. Even AC 400sqm blocks are north of 400k.

 

what % do you load do you think?

 

At least 5-10%

 

Definitely @sash

Undoubtedly, your insights have been amazing.


Regards