Geelong / Wollongong or Brisbane

Hi everyone,

I'm new to the forum and would like to seek some advices from everyone here.

Thinking to buy an IP at around $700- 800k, preferably house with potential to develop for better CG.

Was looking at Brisbane, but then saw some thread here discussing Geelong and Wollongong. How would u guys compare these 3 markets? Which one you reckon would have more growth?

Understand Brisbane is a much bigger city than Geelong or Wollongong, but looks like the house price is quite similar in these places, so it's interesting to see how you guys value them?

Thanks

 

Im guessing your from sydney?

I think hoping for capital growth on an 800k property in geelong is risky business.
Maybe a nice waterfront place in wollongong is feasible, dont know the market very well

Safe bet is blue chip brisbane suburb

 

Yes @strongy1986 you are right, I'm from Sydney

Was looking at Brisbane before, saw a few that I like but its under possible flood zone........ and then got distracted by other thread talking about Geelong and Wollongong

If for Brisbane, is chermside considered to be blue chip becoz of the big Westfield? Or should get something closer to train line? Thx

 

Hi... I live in 2121. Generally speaking, things are so much cheaper elsewhere.

 

I would go 2 Ip's one in Geelong Hamlyn heights or Belmont and one in Brisbane somewhere and play 2 markets

 

Price would have to be right, but I like Wollongong's chances more going forward long term.

 

Wollongong has my tip as well. City has great fundamentals, beautiful beaches, good services and is close enough to Sydney.

 

Chermside is hot at the moment due to the mall being redone, the new library, business centre and the new apartments making it quite a vibrant hub. Plans to extend the busway also eventually (they got most of the way there with the busway and then stopped at what would be the most expensive part - but it will happen). Chermside is intended to be the Northern 'Satellite CBD'. Its moving towards becoming more blue chip but at the moment its really just a slightly above average Bne suburb.
Blue chip in Brisbane is generally less than 7km from CBD (depending on your definition of 'blue chip)'. Yes some could argue Chermside is cemented now as blue chip given the hub of services and activities but the demographic hasn't quite caught up yet. Hence why its a good option to invest.
In regards to flood. Less than 15% maximum of BNE was affected by the floods. It is very easy to check if a property floods or not.

I think when comparing to those other centres that are outside of Sydney Melbourne, they have already had their growth which is tied to their corresponding major city. They are not going to get any closer to the CBD and are really just part of the same market as Sydney Melbourne. As those big cities boom, people get pushed out down the road and prices go up in those outliers (just not to the same extent as closer in) Its already happened.
Now that Sydney/Melb are cooling theres no reason for those Regions to have an independent spurt.
Brisbane (the 3rd biggest city) on the other hand is generally considered to be undervalued compared to where it historically sits in the long run. The debate is about when it will boom or whether it will just be a steady climb. Right now the market for houses within 15kms is moving. All of us here on the ground are seeing that.

 

Are Sydney & Melbourne cooling though?

I've not seen a lot of on the ground evidence of it in Sydney (inner west/north shore/eastern suburbs markets), and hear anecdotally that Melbourne markets remain strong.

OP, if you're in this for the long game - the main question you have to mull over is which of these markets will give you the greatest return over your investment period, when you eventually pull your cash out.

Many complex factors determine this, none of us know for sure. And this is before you even consider markets within markets. Plus, all our individual goals in what we want to get out of this game are different. But thinking in general terms about where the population will want to live, work and play (ie. demand) over the timeframe of your investment is the starting point.

 

wollongong is too expensive in my view. but yet again, people said same about sydney 2 years ago.

 

I've purchased in Geelong as I love the area. It has one of the best universities and high schools in Victoria, plenty of local jobs and many organisations (i.e. cotton on) are moving HQ's down there.

The huge influx of students also keeps amenities hip, i.e. new restaurants and cafes which will help persuade them in years to come to make the switch.

It's also close to torquay/beach for retirees/people who want to live on a surf beach which will undoubtedly (IMO) pack up in the years to come with more baby boomers.

I've also heard good things about brisbane re potential and believe the yields are pretty decent.

For 800k I would say x2 IP producing 4-5% in Brisbane & Geelong would be the best option, due to safety, GC potential, serviceability, diversification and 2x income streams incase one is vacant for a few months.

 

I Know Wollongong back to front if you want to chat, Cheers Neal

 

I'm biased, but go Geelong.
You certainly won't regret it.
Nice long term growth, easy enough to rent out and an ever increasing number of Melbournians moving down for lifestyle & affordability.
But I'd buy 2-3 houses with that 800k.

I'm sure Bris & Wollongong are good options

 

Why not Newcastle? Wollongong and Newcastle are similar- similar phase in cycle
Having said that, I am looking for 3rd ip in Brisbane
Don't know about Geelong market

 

Geelong for the next 18 months...it is starting to lift off.

Brisbane is also stirring.....I reckon you will do well in both...but Geelong offer more potential immediately.

 

I would second this! Personally if I was the OP I would get one in Geelong and one in Brissie to play both markets and see which one beats the other first

 

I don't think you can compare regional like Geelong and the gong to a state capital; irrespective of prices. Totally different markets and drivers.
If you are looking at a quick buck, I dont know.. If you are looking at sustainable long term performance ( which re isbest suited for)..then the size, critical mass, diversification and lower risk of Sydney, Mel, Brisbane and maybe even Perth are preferable.

 

I quite like Geelong... I've only spent a day there but you can take a fast train to Melbourne, but it also has its own evolving economy and is other towns are close to it. It's coastal too. I'd have no problems buying there.

 

I got into new estates in Geelong 2 years ago both in Armstrong Creek.

One was built for 337k.....land purchased in 2015 and fully built by Jan 2015. It is now worth 435k

Another bought last year and currently near lock up bought for 257k....end value is around 350k

Just bought another block on the coast near Geelong......that is going to be a pearler.....330k complete.....end value 460k.....

 

I enjoyed my trip to Geelong yesterday. So close to Torquay.