VIC Geelong

Two good articles todat

Herne hill
https://www.realestate.com.au/news/...er-in-herne-hill/?rsf=syn:news:nca:ga:article

Belmont
Big spenders buy up Belmont enclave with strong growth signs - realestate.com.au

 

Great Forum, Invaluable insights by some very generous members.

Someone touched on townhouses vs houses earlier and i wanted to probe members for some further insight.
If i use the monopoly example (aside from the hotels) the value is in housing then town house/units then boutique/ground level apartments then larger apartment complexes. I have seen this ring true in Melbourne where its all about land value.

My question is, what do members think about investing in a unit/apartment (close to the waterfront, train station, CBD (perhaps North Geelong type area) as opposed to buying older style housing on a large block such as those in Norlane or Corio?

It seems that $180 p/w is the minimum rent bracket for any dwelling relatively close to the CBD. Generally this would be a 1 bedroom dive. The same "dive" is about $160K-$190K to buy. Seems like it would pay for itself??
I am more interested in a 2 bedroom unit. Live for a year and rent out to single, couples of shared house.
Heres an example of what i mean -

4/40 Britannia Street Geelong West Vic 3218 - Unit for Sale #125382894 - realestate.com.au

Selling for $250K and currently rented for $270 p/w.

Now when Geelong has clearly started its dash, is it a good option to employ the monopoly anology and start looking at townhouses/apartments in the mid $250K range that are close to the action? Do we consider the action in Geelong to be close to trendy spots like Pakington street, close to the CBD, waterfont (even if its industrial as it will hopefully develop in time)??

I appreciate members input in advance.

Just as a quick background im 29y.o and grew up in Fremantle WA. The similarities between Freo and Geelong are uncanny (coincidence that little creatures expanded to Geelong from Freo?). Although Geelong is bigger the fact that it is considered regional I think makes it comparable. There was previously lots of industrial eyesores along the beaches south of Fremantle and nowadays its prime development. I cant help but think the same for the shell refinery etc in years to come. I imagine Geelong will not be somewhere people live and commute to Melbourne for much longer. It will be a live and work city in itself. And if that's the case is there something to be said about nice little apartments in the hotspots for singles and couples which may not have as much CG or development potential but could be a nice positively geared very afforable investment to sit on for 30+ years??

 

I'd suggest you step back and consider your strategy and where any given purchase fits in with it, be it house on land, unit, apartment, etc. For me personally, having a nice chunk of land gives me more options to develop in some way to boost equity and cash-flow later on down the track when I need to take the portfolio to the next level.

There's no right or wrong, only what works for you and what doesn't.

PS. Remember to consider the supply of inner city apartments in your equations. Lots of development going on and planned in Geelong CBD for offices and to lesser extend resi accommodation.

 

Do you think an opportunity to buy in smaller apartment complexes, particularly on ground floor, in suburbs like North Geelong, would stand the test of future CBD apartment development? You make a good point. With all that planned development in the CBD and inner suburbs, I wonder will all the ground floor town houses and units, become more of a commodity? The strategy is the part I am trying to get my head around. Any members out there looking at buying apartments or units inner Geelong? and wish to share your strategy?

 

Hey mate

I would always stick clear of apartments unless they are large, spacious, 2-3 level brick type development in a great location that cannot be built out of.

The unit like you posted would make a great investment IMO. Easy to rent, easy to refurb. Great spot, park, parkington etc.

Bit of land within the OC which puts your value up if a developer ever wanted to buy you out.

 

if it pays for itself, i don't see how you can go wrong. obviously you want as much land as possible as that's what will potentially give the most capital gains and potential tp add value, however, cheap and pays for itself seems like a no brainer. what are the negatives that can potentially happen though? and the likelyhood of that. do you think shell refinery and all those industrial places in norlane will turn into housing estates over time? what happened with fremantle?

 

Let's hope this gets up. The high wages of APS jobs is a very important contributor to the local economy and help powers the service industry. This is obvious looking at at the robust Canberra market.

Canberra to Geelong: Comcare bid in decentralisation carve up

 

Can anyone recommend good buyers agent based in Geelong? Much appreciated.

 

@JacM may be able to help you out

 

Hi all, just wondering if anyone has any intel or views that you are willing to share on 18 Lonsdale street South Geelong (18 Lonsdale Street South Geelong Vic 3220 - House for Sale #126222190 - realestate.com.au), that was listed for Auction this weekend, but appears not to have occurred? Have emailed agent, but though would hit up the PC community too.

Cheers
Roger

 

Roger,

Why does this property interest you? What are you looking for? What are YOUR thoughts on it?

At a glance, these are my thoughts:

RE listing Web page source code shows the price expectation around 600-700k.
Close to train line (noise). But easy commute to Melb.
Close to Skilled Stadium (good noise if you ask me) Go Cats! Parking will be terrible at these times too!
Proximity to the Geelong CBD and Belmont shopping / dining, all fine to me.
Not a massive block but rear laneway access is appealing.

I personally hate timber wall cladding especially in a bedroom when the floor is the same material, but each to their own and its only a cosmetic change to replace it with plaster!

I rate South Geelong as a 'poor cousin' suburb compared to East Geelong and Geelong West. Late time I looked, the median price differential between East, West and South was > 100k. South being considerably cheaper. The dining is far better to the west, but there's plenty of dining in Belmont, and the Geelong CBD itself. The proximity and character homes in the south are very similar to those in the East and West. Also with the Barwon River a stones throw from South, this adds some extra appeal to the area.

But, for an investment, yield may not be high enough....

 

Thank you for your considered response Steven. I am just starting the IP journey after having built up enough equity in our PPOR and and some savings along the way. I have followed this and the Norlane/Corio threads for a little while now, realising both are quite different markets.

I am looking for an IP with a balance of CG and yield (rather than skewed heavily one way or the other), so maybe not so different from the majority. still trying to workout if the first IP should be lower risk and probably lower expected growth/yield for an area like South Geelong, or the opposite that somewhere like Corio and Norlane offers, albeit at a much lower price point.

What I liked about the property was all the factors you mentioned, proximity to the station, stadium and CBD. We took our first drive around the area on the weekend, but it was late and didn't really get to see that much or do any really useful DD, like actually hear how much noise the train line makes at the house and nearby streets. MAny more trips required.

Agent reckons rent could be $420-$440 so yield would be low - mid 3's for price of $650-$700k, but that price seems to absorb quite a bit of upside growthfor the area compared to East and West. Thanks again for your time to post.

 

No worries at all. We all have to start somewhere Roger. And the PC forum is a good place to start!!!!!

I think you've hit the nail on the head when your assessment of the yield in this property against your desire of balanced growth and yield, fell short. The yields in SG aren't fantastic.

I really rate South Geelong, I believe I posted my 2c worth about it earlier in this thread. Unfortunately, the suburb and its properties just don't suit my strategy! Would love to live in a character home within walking distance of work - ditch the car, ditch the stupidly expensive leased car space *insert groan* and enjoy being close to everything.

If you want to land bank, Norlane and Corio offer something 1/2 of that price bracket and nearly twice the yield. depends on what you want to get out of the property?

Good luck!

 

Have you considered Newcomb? Also very close to the CBD with everything that you're looking for a little more than Corio/Norlane.

 

I saw this place, since i pass it every day doing my papers...and it sold for a poultice compared to when it sold in '04 when it was in a run-down and unrenovated state.

Renovated East Geelong house smashes reserve at auction - realestate.com.au

It still franks the huge prices of 'near East' and this one is actually quite close to the point where East Geelong becomes Thomson, and prices drop significantly as it's only a few hundred metres closer to the 'action'. Even in the streets that run of Carr St, a place in Campbell St sold for $508K as well, despite being near to the train line. It's a suburb that should mean that as you fan away from these epicentres of high prices, the realities of how close Newcomb, Thomson and Breakwater are to these should be a solid driver for the lower priced areas of the 3219 postcode.

Property Report for 27 Loftus Street, East Geelong VIC 3219

More info on that house....it's risen about 4-fold since the early '00's. That link is quite interesting too, just google an address with it and it can tell you sold prices from times gone by.

One thing with townhouses in the Geelong area too, it's remarkable how people will willingly pay upwards of $600K or so for townhouses in suburbs like Belmont, Highton, Newtown and inner Geelong. Generally the land content is no more than 200-300m2, but they lap up places at that price point. AS someone who has no real idea of the difference between a 'high end' build quality and a regular build, surely the difference in construction costs between a high ender and a regular one would be less than $100K? So the margins in building ones in the popular suburbs seem to indicate that there's good money to be made with the latter.

 

Hi Pentanol, it is definitely an area that is in my mix. TBH, there is so much great information and insight on this forum I have often found myself diving into too much detail on one area and the dreaded analysis paralysis, and then get distracted when someone else makes a valid point about another nearby area, so I then drill down into that one. I suspect I am over thinking things quite a bit, but as its my first venture into the IP scene, I don't want to make a rookie error - still unsure whether my own research is enough, or whether its worth the money using a BA. I thought I had made a significant breakthrough in deciding to target the Geelong region, little did I know there was so many diiferent markets within that region alone!!!

 

Geelong is strange that there are even markets within markets. For example, Belmont south of Colac Rd is different to Belmont north of Colac Rd. And Belmont between Colac Rd and the river is different again! But I reckon there is something to suit nearly everyone down here.

 

Could you comment on this pocket of Belmont please, it hasn't seen the same growth as central Belmont. I understand it's not really close to Belmont high school or the Highton shopping center and everything to the west of High street seems to be in less demand. Just wondering if there is something I'm missing like it's proximity to Breakwater and the industrial area across the river?

 

I once lived in Bailey st.
Was a great run to the city and coast from there.
Not so sure how it is now with all the development further out.
I'd still rate it, some would be turned off by the industrial, but it is a good spot (check flood map) and eventually the industry will move further out and only light service industry will remain.

 

What is Princess Rd in Corio like? In particular the part between Purnell rd and Goldsworthy rd. It looks like a fairly major road so curious to hear on how busy it is around there and whether people would consider buying an investment there as it is part of the RGZ.

Going to make the trek down to Geelong this Saturday to check out a few inspections and get a feel for the area. If anyone will be around the area shoot me a msg and we can catch up for a coffee or lunch while I'm down!