VIC Geelong

Yeah- A LOT of work. Too time consuming for my taste...

 

Alright y'all Geelong trip part 2-> Made a bunch of offers- all got rejected for full price or over ask price CASH offers lol. Where in the hell is all this cash coming from?

 

Yep - most of the sold prices I have seen have been considerably higher than the asking price. One house that needed LOTS of renovations in the worst part of Corio sold for $274,000! Not bad for an ESR of $200,000-220,000.

Bloody hot market.

 

You would have to gut it and start over
Al the works "started" on the place looks bodgy as !

 

Sydney investors who have now took the profit and cashed out? I'm guessing
Cash job is now in the mix, that's now a new level in competition!

Yea, can't see how the number is going to work for any investor unless the purchaser is a builder who can live in there and do all the work himself.
And looks like the block has already been subdivided too...this is only sitting on 387SQM, so even though it's corner block but not much value remaining to be honest.

 

Thanks @Jimmy_05 @David Shih @Stoffo
That's what I thought, nothing worse than when someone has done half a job and it all needs to be replaced or at least thoroughly checked.

@David Shih i have done that before (although not a builder) and it resulted in a great yield and instant equity but its hard work!
I find it hard to find a deal where the numbers really stack up for that sort of project once an area is hot. You always seem to be bidding against someone who under estimates the time/cash involved in getting it up to scratch.
I will be very interested to see what it goes for though!

 

Just to add my two cents, I've personally been looking at Corio. As a property manager / licensed estate agent, our office manages a number of properties in that area - if you can pick up a property for a bargain price ($240k or below) you're going to most likely be able to rent it $250pw and up (just make sure that it's not about to fall down on top of someone... get your building inspection done!). So depending on your circumstances - its a good way to get into the market. You do have to keep in mind that it is a low soci-economic area, so you need to pay particular care in tenant selection if you don't want too many hassles - but at the low entry price, at least the mortgage repayments aren't too high to cope with when vacant / searching for the right one.

 

Nice! If you don't mind can you share a bit more on your experience in deploying this strategy before? Like how much the original purchase price is, what did you renovate yourself, the duration of work and how much you managed to boost the yield/gain equity by?

I'm also curious how much this place will end up selling for. It certainly sounds like a viable strategy in a rising market provided someone has got the right skills to be able to handle this work. Unfortunately I'm not one of them

 

Hey guys,

Currently looking at this bad boy

48 Alkira Avenue Norlane Vic 3214 - House for Sale #126759950 - realestate.com.au

I've got flights booked to Geelong in a couple of weeks, what's everyone's prelim thoughts, particularly on location?

Not fussed about condition, i'll be able to flip it fairly easily, assuming it's structurally sound which it looks like it is at first glance.

 

The neighboring house at 50 Alkira was sold for a relatively low price, but it was in pretty mediocre condition. The rear of this property backs onto a reserve, and over the road are the Alkira Ave shops. Most of them are occupied, and they'd look a darn sight better if the body corp for the shops lashed out on some graffiti removal. The shutters at day's end have these rather lame bubble type diagrams that have been there for years.

However at the end of Alkira Ave is some New Norlane development, plus the lower end of Waitara Grove is a nice well-kept area. I can't help but think the landlords of the shops could do a lot more to make them more presentable, and that would boost the area quite a bit i think. But i guess when you have Corio Village not too far away, as well as BellPost shopping centre, the days of the 50's and 60's small strip shops that had at one stage say a bank, a chemist, shoe shop etc are over in that sense. I would like it to maybe focus on food shops, what should be cheap rent would be something that would hopefully encourage enterprising people to start an eatery of some sort.

 

@David Shih my I laws just purchased down the road from you haha. Any recommendations for property managers, renovators/builders? I am also waiting to hear back from the offers I made.

 

Just saw this article in the Addy, and i've cut and paste the median house price growth in Geelong suburbs from this....gee it's certainly interesting reading!
WHAT YOUR HOUSE IS WORTH:

Suburb .................... Median house price Annual growth Dist to Gee CBD
Manifold Heights* .............. $755,000 .......... 38.1%.....................2.5-3.5km
North Geelong* ................. $422,500........... 29.6%.....................3.5-5km
Lorne* ................................ $952,500.......... 28.3%.........................77km
East Geelong ..................... $601,250.......... 26.3%......................1.5-3km
Hamlyn Heights ................. $500,000.......... 25.0%.......................4.5-6km
Indented Head*................. $488,000........... 23.5%..........................28km
Jan Juc* ............................. $787,500 .......... 22.9%..........................20km
Newcomb*......................... $370,500.......... 21.9%........................3-4.5km
Bell Post Hill...................... $432,750 .......... 21.9%........................5.5-6.5km
Geelong West.................... $640,000.......... 21.9%.........................1-2km
Belmont............................. $492,000 ........... 21.5%.......................2.5-4.5km
Norlane .............................. $270,250.......... 20.1%..........................6-7.5km
Corio.................................. $286,500.......... 16.9%....................,....7.5-10km
Herne Hill* ......................... $456,000 ........... 16.9%.........................3-4.5km
Queenscliff*....................... $820,000 ........... 16.3%...........................30km
Portarlington*..................... $555,000 .......... 15.6%............................27km
Whittington........................ $315,000............ 14.5%........................3.5-4.5km
Lara................................... $455,500 ............ 13.9%............................14km
Bannockburn..................... $427,500............ 12.2%............................20km
St Albans Park*................. $364,000............ 12.0%..........................4.5-6km
Ocean Grove..................... $615,000............ 11.8%............................20km
Marshall............................. $420,000............ 10.8%..........................5-6km
Highton.............................. $608,500............ 10.6%..........................4-6km
Lovely Banks*.................... $513,000............ 10.6%.........................7-10km
Leopold.............................. $450,000............ 10.3%............................10km
Waurn Ponds..................... $533,000 ............ 10.1%..........................5-7km
Clifton Springs.................... $391,500............. 9.2%............................20km
Grovedale.......................... $415,800.............. 7.4%...........................5-7km
Point Lonsdale................... $645,000.............. 7.3%............................30km
Curlewis*........................... $418,000.............. 7.0%.............................17km
Geelong............................. $720,000 .............. 6.7%................................0
Bell Park............................ $382,000 .............. 6.1%............................5-6km
Torquay.............................. $735,000.............. 5.8%.............................18km
Aireys Inlet* ........................ $673,500 ............. 3.6%.............................46km
Newtown............................ $709,500.............. 1.4%............................1-3km
Wandana Heights* ............. $645,000 .............. 1.1%............................6-7km
South Geelong*................. $597,000............... 0.5%............................1-2km
Barwon Heads................... $850,500............... 0.1%............................20km
Armstrong Creek*.............. $437,500................ 0.0%............................6-7km
Drysdale............................ $422,500.............. -0.6%.............................19km
Anglesea*.......................... $637,500.............. -6.9%.............................37km
St Leonards....................... $410,000............. -14.6%............................26km
Source: REIV *less than 50 sales in 12 months

GEELONG NEWS VICTORIA

I also added a rough guess as to distance from the Geelong CBD, which varies on the size of the suburb. Corio, Grovedale, Waurn Ponds, Lovely Banks, and Highton spread over quite a wide area...and you can be in Hamlyn Heights at 3 Ballarat Rd, or a long way further in say Parkland Dr. Just a guesstimate for people who might wonder how far some of these places are. Being a relatively compact city, none of these places are all that far away.

 

As a person who started out his IP journey in Corio, this data makes me very happy indeed.

 

Happy to share the team I'm currently using - I'll PM you

 

Attended a few auctions yesterday (Saturday) and there were some pretty interesting results

6 Riverglen Court Belmont Vic 3216 - House for Sale #126553770 - realestate.com.au
Deceased estate very close to the river. Solid original home. Mainly middle aged couples bidding on this one with one mid 20s man on his own (assuming first home owner).

50 Kilgour Street Geelong Vic 3220 - House for Sale #126586138 - realestate.com.au
ESR 450k and sold for 578. Pretty interesting mix of bidders on this one. One downsizer, same mid 20s man from the above auction and a developer.

23 Loch Street East Geelong Vic 3219 - House for Sale #126553766 - realestate.com.au
I didn't expect this property to be passed in on the vendor bid. Solid well renovated home. In East Geelong. GRZ2 with HO. Vendors asking too much probably?

 

The last house, 23 Loch St, i think for the land size, the price they may have had for reserve might have been a big ask. Nearby Brown St has seen some big prices, 15 Brown sold for $855K last year, but that's on a 600m2+ allotment. 337m2 isn't that big....but then again a place further away in a similarly named street 27 Loftus sold at auction for $679K on about a 380m2 size block. That place though was fully renovated and probably was at it's peak as a desirable place for a cashed up person for a PPR.

I'm very interested to see what 117 Carr St might sell for. Many houses in the small streets that run off Carr St, like Helen St, Richardson St and Campbell St have sold for high 500K's and into the 600K's. This house is on Carr St proper, which overlooks the train line and industrial Fyans St.

117 Carr Street East Geelong Vic 3219 - House for Sale #126747394 - realestate.com.au

The comments say 'affordable entry into East Geelong', but it will be fascinating to see how affordable those places on relatively busy Carr St are. You'll be copping regular train sirens at that place as trains will very often pass in either direction and sound off near the big roundabout not far from this place.

It will be a good test for the busy road synopsis that's for sure.

 

Though not a property I would bid on, I actually share the same thoughts in regards to 117 Carr St as you, Dave! I may even attend that auction however I'll have several other auctions on the 18th of November that I will be bidding on.

 

Very interesting Dave.... Corio & Norlane really do stand out...reckon there is 30% more growth just to catch up to the next lowest suburbs... Prob leave 'Lorne' out of Geelong though..

 

Also, this just in today...
Buyers flipping out over value predictions for northern suburbs - realestate.com.au

 

Only issues with Norlane and Corio is that it makes development hard to stack up untill median prices catch up.. However when it does.. can make for a handsome profit