VIC Geelong

Probably some investor from the forum

 

Yeah, it's definitely moving. But unless you're gonna move there, yield would be very low. Great part of the world down there, spent many a summer as a kid. But as a rental market, not sure it's very strong.

 

Hi @Chris_R,

Haven't really looked into Armstrong Creek new estates so can't really comment. For me I only look at suburbs that has no more land to build. I tend to find new land releases will always limit the growth potential to some extent.

Having said that people like @sash have made good profit from buying well (and early) in Armstrong Creek. Based on my understanding the key is to buy land below market value and source own builder yourself to negotiate a good build price so total cost is below the average H&L package price. Not sure whether deals in Armstrong Creek still stack up nowadays though.

 

Armstrong Creek still stacks up but you have to get the product right.

Also there are other areas in Geelong where you can even more money.

The issue with places like Newcomb is that a renovation is required in most instances...high maintenance and a lower yield. When you analyze the numbers the gain between AC and Newcomb will be in AC's favor in my opinion.

As for Whittington....that has a stigma...Newcomb is much better.

The real CG areas are areas like Torquay...they have gone up a lot...and it is taking places like AC with them...

Incidently...the profits in AC have been something like 35-40% of purchase price of land and house. The land there is getting more and more expensive...I would even dare say it will be preferred to Eastern lower socio suburbs around Geelong unless they connect these to the Ringwood as it take forever in traffic ....

 

I've only got money to invest in one IP for now, so I'm going closer to a capital city. If I had money for a second, I'd definitely be doing Torquay. Houses around me are now going for $800k+, however you could get a smaller block with the right product around the $550k+ mark.

 

Even a small block would now cost North of 220k...by the time you put a house it would cost 200k...so nice profit in it. 550k is definitely a possibility.

 

Small blocks are closer to the $280k mark now.

The developer in one of the estates has gone insolvent. These means less land has been released there, titles are taking ages...so it's driving up the price in that estate as people are just giving in and buying established homes.

 

Yep...same thing is happening in AC creek...the titles are pushing out ......in some instances they are selling out into 2019...that is fraught with risk given the current lending environment........lot so cases people losing deposits because they can't settle...the developers are also kaboshing speculators by not allowing them to on sell unless it is via through them....interesting times...indeed...the real money is in building.......

 

Media reporting developer interest in Norlane with Corelogic reporting 10% growth in the last year... Interestingly, the 10% growth is the lowest for the Geelong region!

New image and perception of Norlane as government initiative finishes - realestate.com.au

 

Bust the regional city myths and look beyond the ‘big 5’ for a $378b return

 

Norlane... time to check it out next time I'm there.

 

Yep, Corio has recently gone ballistic with asking prices, Norlane is yet to catch up so there'll still be opportunities.

Watch out for those fibro shacks around 220k which could tumble anytime during an open home though

 

I'd love to own a Californian Bungalow in Norlane. Stroll to work in Corio, and still get to live in the kind of house I love.

Not to mention I can mention I live in an old house in Norlane East to friends and coworkers, have them think I live in a crapshack, and blow their minds with my beautifully renovated period home when they come over for tea

 

Finro shack doesn't faze me as I live in one. @G TOWN period homes the bombz!

 

Just don't forget there is high crime rate and other issues (like ICE) in Norlane and Corio. Some of Victoria's most disadvantaged suburbs.

Maybe gentrification is happening, people coming from Melbourne and saying "the hell with it, I want a short drive"... I dunno.

Have a friend in real estate... some agents around town don't do their quarterly inspections in those areas.

I can see gentrification pushing in from the sides (like North Geelong) and who knows, maybe if enough are sold the suburb will tip over in five to ten years. Personally I think a lot of investors are buying in because they've seen prices rising... which is due to other investors buying in.

Still, Wollongong has stupid prices due to Sydney, so maybe Geelong will go the same way. I know every time I read about a home invasion or a stabbing, I don't have to guess which suburbs it is in.

 

you are right it is rough area - though not necessarily investors but FHB who see this as an opportunity to make inroads into the property market. The train ride direct from geelong from CBD is faster than taking the train stopping from frankston. Home invasions by the way tend to happen in both premium and lower end suburb demographics suburbs. Even brighton and Tarneit it happens.

 

On REIV website the March quarter stats say Corio went up 2.3% while Norlane went up 4%. Are you talking about asking prices on the ground since then? I'm currently negotiating on a Norlane corner block with crappy house for $280k.

 

Brand new subdivisions going in at Corio...about 45 minutes drive to Melbourne with no traffic lights. Massive employment precinct between Corio and Lara. Still extraordinarily cheap area. Ignore the crap about high crime areas, as it is usually related to the same individuals every time and it happens in ALL areas. Hopefully when the area begins improving these idiots will be run out of town. There is a really nice housing estate for them just north of Lara.

 

But the crime statistics literally do show that it doesn't happen in all areas. It's very concentrated.

There are some fairly serious issues in those area. This study from 2015 http://www.geelongadvertiser.com.au...k=81fe7580ee406f86c565ecaf03cf4b9b-1496033689

I do think there it's good development is going on there but I also think a lot of people just see the low price tag. There are areas in those suburbs with serious drug issues going on. With all the new estates going up, rental supply is increasing in Geelong too.

Who knows, maybe investors will keep buying and over a decade all the problems will be pushed out to some other suburb...

 

Not sure what type of investor you are Emza, but if low prices and lots of new developments going up doesn't get your blood flowing, then you may as well read about the crime statistics in Toorak, or Brighton.. a simple Google search will tell you the South Eastern suburbs are riddled with crime. Unless you are a police officer, I'm not sure what your point is? Would you try and scare people away from these suburbs too?

Sensationalist news is for nuffies. Ignore the hype and get on with investing.