VIC Geelong

So @Jasper .... what are your predictions for areas that will raise quicker?

 

Looking to purchase first IP and have been looking at Geelong. All though leaning towards an existing dwelling we did go for a look at a few of those developments south of Geelong with the possibility of building.

Got to say it amazed me that AC has been so successful given it's a development under overhead transmission lines. The land sales rep claims they might be taken down in the near future but all though unlikely there is the talk of turning the Anglesea power station into a renewable project that would utilize those transmission lines. Given there will be a reasonable chance of blackouts this summer in Victoria during heatwaves then those transmission lines might not be at the end of their life yet if the Vic government decides to follow the S.A government and invest in some form of energy generation. Obviously they haven't put off the many who have chosen to build there though.

I did like the look of Curlewis, pity about the location.

 

If your house is not near the overhead transmission lines what's the worry?

 

Personally they're an eyesore from a reasonable distance

 

Maybe for you. Again it depends on how close you are to it. I wouldn't buy close tour of course. In a perfect world all cables should be unseen and buried underneath.

 

Note: I haven't studied the data lately, so I'd be revisiting vacancy rates and past growth in all these suburbs if I was investing today.

IMO:
Already had too much growth: Highton, Belmont, Geelong West, Hamlyn Heights, Newtown?, Marshall

Still got growth to come: Herne Hill, Bell Park, North Geelong, Torquay, Bell Post Hill, Newcomb, Corio, North Shore??, you could say Norlane and Whittington (but the bad tenant thing is just too much stress for me).

Happy to hear what people think

 

Disclaimer: I have no vested interests in the below...

Where in Geelong to invest will ultimately be determined by your strategy, budget, etc....

But....

I like South Geelong. Reasons for this:
- Situated with the Geelong CBD on the Northern boundary, the Barwon River on the southern boundary.
- Period charm.
- It has a brewery!
- Median price of $452k vs East Geelong median of $542k and Geelong West median of $596k according to CoreLogic. Comparably good value.
- Boutique cafe's around the Kilgour St region.
- Serviced by rail to and from Melbourne.
- did I say it has a brewery?
- Home to the Geelong Cats AFL team (Skilled Stadium and Kardinia Park)
- it seems to offer similar lifestyle qualities of East and West Geelong for significantly less $$. It clearly does NOT have the same café culture and array of dining as Geelong West. But you have the CBD dining and Belmont High Street dining close by.
- Vacancy rates currently at 2.4% and tightening according to SQM.

Keep in mind that there are a stack of government agencies relocating to Geelong. Worksafe, NDIA / NDIS, (and others?) bringing into the Geelong CBD well over 1000 professional employees earning decent but not earth shattering coin. This is all happening now. Worksafe alone due to wrap up development most likely towards the end of 2018 bringing in approx. 700 employees. The old Carlton hotel is currently being demolished to make way for the NDIA (or NDIS - can never get that right!).

Parking in the CBD is atrocious so close proximity to work is gold so that the car can be left at home. Those suburbs surrounding the CBD where walking, running and cycling to work are a viable option I suspect would be strongly considered by these types of workers. Add to this affordable period charm, surrounded by lifestyle amenities, what's not to love?

As an investor, perhaps the yield is the turn-off? SQM suggests below 3% for combined houses, I'm not sure how accurate this is?

That's my 2c worth!

Steve

 

I always wanted to get a place in Little River.

Much closer to Melb, tightly held, little to no developing, a nice drive down to the coast still

South Geelong is still ok, I expect Belmont to tick over for years, North Geelong/Hamlyn Heights are still preferable for improvements

 

Wow....this thread has heated up in the last few days! I've been getting quite a few PM's too, and starting to have my work cut out answering them all sometimes! My busiest time of the week is Wed-Saturday as i have a series of 14-hour days so not too much time to do a lot then until say Sunday when i get a day or two off.

Just with your growth scenario Jasper, certainly Geelong's inner suburbs have had significant growth, and some of that is that the housing stock is similar to what one needs to spend huge dollars in many inner Melbourne suburbs, such as Edwardians, Victorians and Californian bungalows, but some of these can be got for amounts that were under $500K a couple of years ago. Renovated such places now are hitting pretty big numbers, such as Orr St Manifold Heights being $835K, and Girton Grove Manifold Heights where a place sold into the $900's several weeks ago.

But one thing that driving around with Saf last Sunday showed, is that Geelong's size sort of condenses the price differentials to a greater extent than many other larger cities. Particularly with Newcomb/Thomson being a hop, step and a jump from East Geelong. Interesting point with the cemetery, with me living in Watsons Rd with my parents for 15 years as a kid, it never really seemed an issue for me. There are also cemeteries in Highton in view of the Barrabool Hills estates and running along Scenic Rd, Mt Pleasant Rd and Barrabool Rd, plus the West cemetery along Minerva Rd and backing onto Herne Hill. Geelong-ites are familiar with these, all have been around for a looong time. Perhaps some renters might think twice, but in all honesty a cemetery is a rather quiet neighbor to have at least!

Again talking with Saf, and comparing Melton to Geelong's Northern areas particularly, at least Geelong is nearer to more infrastructure. Beaches and the waterfront are only moments away from almost anywhere in Geelong, as are the cafes etc of Pakington St and the waterfront. Plus the high desirability of suburbs like Newtown, Highton and the inner areas kind of provides a price level that would probably naturally fan down as you go further out. Driven by cashed up capital city buyers, Geelong's inner areas are starting to resemble a capital city price-wise, not quite as high of course as Sydney or Melbourne, but buying a waterfront property along Eastern/Western beach would certainly involve amounts nearing seven figures. And your Norlanes, Corios etc are simply just 12 minutes from these. It's a compact town.

I think though that the hierarchy of prices will kind of always be the same, i reckon probably it will always be Corio, Norlane and Whittington which will be the cheapest in the city, but if the rest move up in price, the latter will be carried along, simply because the amenity is still there, and they are the cheapest ways to get into this market, which in Victoria is probably the next best option behind Melbourne. And with that report talking about 30-minute cities and jobs...article in the Australian a few days ago..

Nocookies

..Geelong basically is a city where everything is 30 minutes away. Not a bad way to live to be frank.

 

hi dave - is north geelong safe or too close to drug den corio? saw a decent property go up today in stubbs street, quaint little corner block close to melbourne rd & train station... looked to be a decent buy at ~$960/m2

 

So does this ripple move all the way out to Morwell/Horsham or does it explicitly stop at Norlane?

 

Given significant growth has occurred in the new estates of Armstrong Creek, Mt Duneed and then towards Torquay who knows? Norlane's on the Melbourne side of Geelong anyway and is simply moving up as much of inner Geelong has risen over the last few years. The Northern suburbs really have only kind of moved significantly in the last couple of years, but mainly because at that stage it was about 40-50% cheaper than many other suburbs in Geelong.

The proof is in the pudding anyway, you can drive along Thompson Rd in a southerly direction, and move from an area where houses are available still for around $250K, and within about 6 K's be in an area where houses might sell for close to $800K. That's where the ripple is, and Geelong's prices if anything are inversely proportional to proximity to Melbourne. There's not much effort required by a resident of those cheaper suburbs to enjoy most of the amenities of the dearer areas, aside of course from schools and neighbors which are fixed. But a resident in East Geelong paying their $600K-$800K for a house has the same rights to send their kids to Geelong High as a resident of Newcomb or Thomson paying $320K for their place.

 

Stubbs Ave, and indeed all of those short streets that run from Church St are all kind of valued as if they are in Geelong West to an extent, maybe being a little cheaper. Much of the housing there are Californian Bungalows, and other places built in pre-WW2 era, with a few brick early 60's duplexes. I will just caution that the even numbers of Stubbs Ave backs right on to the Geelong/Melbourne train line, and in areas that track actually runs higher than the back fence, so there's going to be rather constant train noise almost at all hours of the day and night...and while the horns won't tend to be blown until they get nearer to the North Geelong station, which is in a commercial area, it's certainly noticeable as in times gone by i spent a fair bit of time at a mate's place in that same street 20 years ago.

There is also social housing along the units of Coxon Pde, in those clusters of houses on the even numbered side, although i don't think there's too many issues now, but there'll be the odd visit by police cars at times, and maybe one or two visitors maybe acquiring or supplying 'medical' supplies! All of Stubbs, Guthrie and Saywell St's end along Coxon Pde to their Northern end. They are also kind of unique in that it's quicker to drive into Geelong than come home, as one has to access them via Stubbs and Coxon, or Weddell Rd and Coxon on the way back.

 

@Dave3214 in the changing climate and increasing property prices, how do you feel members of Geelong / Norlane / Hamlyn Heights / etc view Townhouses developments to live or invest in? I note that there is some activity in these areas subdividing properties down and constructing either detached housing or townhouses.

 

absolutely sensational background, dave - such a valuable contributor to this forum, thank you!

 

Anyone have any idea the costs involved in subdividing in Geelong, specifically Corio and how large the allotment is required to be to subdivide?

 

What is the potential in Corio? I have been looking at Norlane, but if I were to purchase a 2nd one, Corio would be of a big interest to me.

 

No challengers to Geelong‘s status as the No.1 market in regional Victoria

 

I don't know the cost involved in subdividing in Geelong - so if anyone knows I'll be very curious to find out!

For minimum LOT - check Brendan's post out here:
VIC - First IP - Corio/Norlane or Melton

Most people bought in Corio are looking for a block of land at relatively cheap price in Geelong that has subdivision potential later down the track - that's where the real potential is. Also it is quite close to Avalon airport and not too far from Werribee too should the future technology precinct does get the go ahead. But I guess if you're already looking at Norlane then both suburbs really isn't too much different from each other.

 

Has anyone looked into suburbs Breakwater and St Albans Park and can provide any insights?
We are also considering Corio, Norlane and Newcomb.
Newcomb - most properties are now selling through auction and I am not sure how confident I feel about a auction as this would be our 1st IP.
Corio and Norlane - just read previous comments about possible tenant issues.
We are planning to drive down there this weekend and do some due diligence. Some previous posts have provided a lot of good information, thankyou all contributors.