Grovedale near Geelong

Discussion in 'Where to Buy' started by Adrian Trimboli, 9th Apr, 2020.

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  1. Adrian Trimboli

    Adrian Trimboli Member

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    Hi guys,
    I am looking to buy a property in Grovedale, which is in the Geelong region. I am looking for a cash flow positive property, so this area generally speaking fits that criteria, however I wanted to know if anyone had any insight into the area itself?
    Potential growth? Gentrified area? Outlook of the area?
    Let me know your thoughts guys :)
     
  2. Songo

    Songo Well-Known Member

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    I used to work at Deakin Uni just nearby at Waurn Ponds. I visited recently (been 4 yrs since I was there) and for sure you can see plenty of development occurring in that area.

    The university has expanded and has some super nice new facilities. The hospital is up and running. Massive new shopping mall zone. There are two train stations to choose from and the access down to the coast is fast with upgraded roads. The suburb itself is quite nice actually. Houses look decent, nice landscaping etc. A lot of it is on a north facing hillside, so there are views (albeit not spectacular). It definitely has a family vibe about it and feels more middle-class than around as Whittingon which is a bit more bogany.
     
  3. Adrian Trimboli

    Adrian Trimboli Member

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    Thanks heaps!
     
  4. Jasper

    Jasper Well-Known Member

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    Grovedale is a good idea. It would be next to go up after Belmont etc. Some of the blocks are big and could be development potential if you choose the right one
     
  5. Adrian Trimboli

    Adrian Trimboli Member

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    Thanks Jasper.
    How about just a buy and hold strategy? Just looking at the residential homes which are already in good condition.
     
  6. Jasper

    Jasper Well-Known Member

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    Yeah I think Grovedale is a good bet. Some solid brick houses.

    Just keep an eye on how close you are to a train line. Also, walking distance to some of the strip shops around (or even better, the big shopping centre) will also be a bonus
     
  7. tomstrials

    tomstrials New Member

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    Why you are not considering North geelong. There are plenty of properties close to the station and price is also competitive than Grovdale?
     
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  8. Adrian Trimboli

    Adrian Trimboli Member

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    A tad more expensive than Grovedale but a nice area.
     
  9. Flynn Investor

    Flynn Investor Member

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    Hi everyone! My husband and I are researching our next IP (first one in Canberra) and I’ve come across Grovedale. My initial research is showing low rents for house costs ($460,000+, rent being $380 a week) Grovedale looks to tick so many boxes (close to uni, shops, M1 to melb/surf coast) but the numbers don’t seem to add up for solid rental yields. Can anyone shed more light on Grovedale numbers? Thanks!
     
  10. David Shih

    David Shih Mortgage Broker Business Member

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    Buy & hold strategy will be fine, although I would still suggest you look for a X factor that'll make your property somewhat different to others. For example if most properies are 3 bedders then if you have a 4 bedder it'll stand out both from both rental and selling perspective later on.

    Although in the current environment I would still recommend more of a value-add type of strategy, even if you don't deploy it straight away - something that you can deploy down the track to manufacture that equity rather than having to wait for CG.

    Cheers,
    David
     
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  11. David Shih

    David Shih Mortgage Broker Business Member

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    That's because the price has been consistently trending up for the last few years for Grovedale. I can still remember it's only few years back when average 4 bedder was was in the low $400K. Keeping in mind VIC yields are usually quite low as well.

    What's a "solid rental yield" in your definition?

    Cheers,
    David
     
  12. Flynn Investor

    Flynn Investor Member

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  13. Flynn Investor

    Flynn Investor Member

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    Thanks David! I would have expected $450+ a week for the location, uni, M1, shops etc around. Are you able to tell me why VIC is generally low? I was just surprised at the current low rental prices on offer for all house configurations. With the suburbs around, I can see why Grovedale has increased - just surprised rental yields haven’t matched the increases. Are there any other areas you suggest to look at? I don’t think I’d like to look at corio, no new cookie cutter developments and avoid townhouses due to body corporate. Thanks again for replying
     
  14. tomstrials

    tomstrials New Member

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    Hi Flynn,

    I am a newbie looking in Geelong for the last 1 year . Looks like some good pockets in Corio will give you more than 5% rental yield . But I am unsure about the growth potential and how Corio will react to a poor economical situation.

    Also did you checl Bell park or Bell post hill?

    even there there are few places which offers nearly 5% rental yield. I mean property below 450 and offering nearly 45o per week rental.

    Thanks
     
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  15. David Shih

    David Shih Mortgage Broker Business Member

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    I have no idea why VIC yield is low - that's just been my general observation in comparison with other states like QLD/SA.

    Up until last year the trend for rental is still up across Geelong as I raised $10 for my Newcomb property. However I think with all the new house completion around the surrounding new estates like Armstrong Creek, Mt Duneed it's providing more supplies so starting to move more into an equilibrium. Also I suspect the current situation doesn't help with Deakin Uni students either, so rental demand around the area may experience a bit of drop as long as we're still locking borders and in lockdown.

    Grovedale is already more of a decent yield from Geelong perspective - otherwise you may have to look at the likes of Corio/Norlane or Bell Park/Bell Post Hill like what tomtrials mentioned. Just keep an eye out on the land component - some of them may be sitting on a subdivided land (small!) therefore cheaper in advertised price.

    In general the more desirable an area is the higher it's price will be, hence from investment perspective rental yield will suffer. It's all about finding a balance.

    Cheers,
    David
     
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