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VIC Geelong

Discussion in 'Where to Buy' started by Amber83, 16th Aug, 2015.

  1. Amber83

    Amber83 Well-Known Member

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    I'm buying my first IP and starting to consider geelong as an alternative to melbourne considering how hot the market is here. The government and spending a lot of money there at the moment,there will be a new private hospital built there over the next couple of years,plus the new regional rail link is now up and running. I wonder if the ripple effect from melbourne will take effect there?
    It's bayside and only an hour from melb.really cheap houses still with good yield.

    Anyone have any thoughts on this or have bought there?
     
  2. Hodor

    Hodor Well-Known Member

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    I think it will perform OK. I have a place in the area I just built.

    It has never been a star performer in the past and I expect it to experience solid but not exceptional growth mid to long term. Enough to suit my long term strategy and goals when combined with its cash flow.

    There are some areas I wouldn't even consider.

    Think you missed the boat on the hospital CG. It already looked massive last I was in the area and prices have definitely moved.
     
  3. Amber83

    Amber83 Well-Known Member

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    great thanks! what areas would you suggest to stay away from? i agree, waurn ponds is very exy now
     
  4. Hodor

    Hodor Well-Known Member

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    I don't like Whittington, especially the pocket around Solar drive. The list could be quite extensive.

    What are you looking at spending? And why are you buying? Easier to find areas that meet certain criteria and then eliminate the ones with red flags.
     
  5. jpcashflow

    jpcashflow Well-Known Member Business Member

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    Hey,
    I think that Geelong has had its day in terms of growth for now!!! To many investors are aware of the area and the prices have been going up for quiet some time.

    There are three things that are turning me off in Geelong.
    1) Very high crime rate at the moment.
    2) Employment rate for blue collar work is increasing.
    3) High number of investors buying in.
     
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  6. wobbycarly

    wobbycarly Well-Known Member

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    Agree with this. Even within suburbs there are "go" and "no-go" zones.
     
  7. Songo

    Songo Active Member

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    Manifold Heights, Herne Hill, Hamlyn Heights, are all decent areas where some value can be had. Belmont has potential but will prob be slow. Geelong West, Newtown and Highton are nice areas but prices are generally higher and G.West has already seen some CG recently. East Geelong is more affordable than Geelong central or west geelong, but still has a train station and is close to the bay.

    edit: something I read on this forum which is good advice I reckon, is to follow the big retailers. Giant new shopping area going in at waurn ponds so this area might be worth a look too.
     
  8. Notlad Samoht

    Notlad Samoht Active Member

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    From my personal experience, I don't think Whittington as a whole is a bad suburb to invest. I have one IP there. I bought it for 261k 3 years ago and receive a rental return of 300pw-decent yield.
    CBA did an evaluation recently (actually went to the property) and valued it at 300k. I dont think thats too bad. I am looking at the longer term picture-say 7-10 years from when I purchased the property. It is very central to Geelong city, about 4km's away. It borders East Geelong that has an average house price of 410k. It's next to Newcomb which has the two Newcomb shopping centres which are handy. It's is no more than 15 mins drive to Ocean Grove & Clifton Springs for summer. I agree that Solar drive is a crappy spot, has a rep and also just looks dodgy, however there is some very nice areas within the small suburb. I would happily buy there again, its been a good experience for me.
     
    Last edited: 19th Aug, 2015
  9. Greyghost

    Greyghost Well-Known Member

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    Job creation is my issue.
    Ford closure.
    New port not going ahead at Lara anymore.
    A lot of land out there with various new estates.

    Sure some people commute to melb for work but I don't see what the growth drivers are in Geelong and surrounds.
    I agree parts on inner Geelong presenter opportunities a few years ago.

    Happy to be proven/educated otherwise!
     
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  10. Notlad Samoht

    Notlad Samoht Active Member

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    From what I see, the current state Government is really trying to boost the city. You have to remember that it is Victoria 2nd biggest city and they need to keep that population pleased, particularly after all the media attention re: closure of industries. There is new businesses (big) moving to Geelong, there's a improve on the trains to Melb (every 10 mins) new ring roads to the coast and more planned. I bought in another 'no go zone' Corio 1.5 years ago for 215k, valued by CBA just recently at 255k- I was seeking equity. My experience has been great. I get excellent rent from that place too.
    But.. Who knows? That's what's good about realestate.
     
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  11. cherubym

    cherubym Well-Known Member

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    I am currently looking to buy an IP in Geelong. Looking at the posts here, I assume there are other investors who know very well about different good and bad spots in Geelong, especially the fact that @Notlad Samoht bought in Corio 1.5 years ago and the growth is already achieved. Also, the same with Whittington.

    Could anyone please shed me some lights on which areas I should look at and avoid in Corio and Whittington? I'm also interested in Belmont and Thomson as well.
     
  12. Rixter

    Rixter Well-Known Member

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    Any idea who wrote that?

    Where/What to buy in Geelong really comes down to one's chosen investment property strategy.
     
    Last edited: 3rd Sep, 2015
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  13. Leo2413

    Leo2413 Well-Known Member Premium Member

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  14. cherubym

    cherubym Well-Known Member

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    "Terry Ryder, who heads the Hotspotting organisation, has earmarked Geelong West, St Albans Park, Newtown and Lara as areas to watch"

    IMHO, Geelong West and Newtown are already expensive. Not sure if there is still more room to growth.

    Lara is a little bit further out in distance-wise. I'm not sure how the area looks like.

    St Albans Park is interesting and the properties look affordable. Also, I'm not sure about the demographics. Will need to do DD more on this.
     
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  15. Beelzebub

    Beelzebub Well-Known Member

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    I think East Geelong is worth a look. Right next to CBD and parts are walking distance to the botanic gardens and the bay. It hasn't moved in the same way Geelong West has and I believe it will catch up. Attractive suburb with lots of old californian bungalows. I think if the CBD fires so will this suburb. That's where I would put my money. If you're looking below $300k I'd consider Newcomb, next suburb down from East Geelong, affordable and close to CBD

    I wouldn't worry too much about employment, despite the closure of Ford and Alcoa the town will be fine. You have the NDIS, the new hospital, the growth of Deakin, carbon manufacturing, talk of moving work cover. And several law firms have moved in to the town due to the presence of those two large government insurers and the town is currently in a good position to build tanks for the Australian army.

    Politically it's also very marginal with South Barwon at a state level and Corangamite at a federal level which means that when things are announced they usually happen. There will be a consistent flow of jobs and infrastructure

    Oh, and we have a giant floating Xmas tree.
     
  16. Rixter

    Rixter Well-Known Member

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    .......and also a Mayor with fluorescent hair.
     
  17. wobbycarly

    wobbycarly Well-Known Member

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    Agree with your assessment on Geelong West and Newtown. Lara, to me, has 100's of hectares of flat land around it, which doesn't appear to be much good for much farming (neither cropping, nor grazing) and so there is an abundant supply of land.

    The good wife and I were sniffing around East Geelong and Newcombe about 18-24 months ago, and regret not biting the bullet (cash flow was a bit tight at the time). Again, my personal opinion is that both are fairly priced at the moment, but a decent area for potential CG if you can get a bargain.
     
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  18. cherubym

    cherubym Well-Known Member

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    Is there any areas/streets you wouldn't buy in East Geelong?
     
  19. Beelzebub

    Beelzebub Well-Known Member

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    Not really, other than the obvious main roads and across the road from the cemetery. The closer to Thomson you get the cheaper the houses should be... It's not as nice an area. I'd probably look more at the type of property and try and snap up a Californian bungalow in that area...
     
  20. Tranquilo

    Tranquilo Well-Known Member Premium Member

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    I have an IP in Hamlyn Heights. How do you guys think the area will perform in the next 5 or so years. It seems like a lot of in fill happening and its going through gentrification. What do you think?