VIC House and Land Package, Haymont - Armstrong Creek

Hey All,

Need some advice in regards to wether purchasing a H & L package in this brand new estate, Haymont in the Armstrong Creek / Charlemont region is a good idea? Alot of good things in the way of captial growth aspects of this region in the way of infrastructure upgrades, forcasted economic & population growth, ect, ect. Thoughts or any advice would be greatly appreciated.

 

bump

 

Several new estates have sprung up in the AC area in the past couple years. I recall driving past this one the other day, and I was like - wow, another one, wonder how people are going to make money out of this. I'm sure @ashish1137 knows a thing or two about this estate.

It looks to be a in decent spot location-wise. Doesn't seem to have a leisure center/clubhouse of its own so you won't be in for OC fee. The blocks in stage 1 seem to have sold out pretty quickly. The blocks are smallish, if I may say that. I cannot find a reason why a renter would favour this estate over another one in the more established estates in the area. I know the vacancy rate is low and val's sky high in AC, right now at least.

How much are you intending to spend on this product? With H&L, it's best you source the land and build separately. If you went for a package with a builder, 9/10 times you lose a significant profit. Also, how much rent do you anticipate?

 

@Westie Your too slow Westie! I've managed to secure a 313sm2 block thats north facing for 266,000. Which I'm pretty happy with. No joke, i was watching the availabiity of lots taht went up for upon realease on Saturday morning. 20 or so lots Sold in 45 seconds to 1min. Great indiciator to me I'm in a good area, with some value. Lots in the suburb of Armstrong Creek is getting very pricey indeed. Kept my eye on it and things have just been on the up and up. A 400ms2 block in the pricier estates of Warralilly, Villawood, ect are selling for 320,000 - 340,000.

 

The land will be titled to me in Q3 2022. After settlement, i guess the build will take around 6-7 months. Looking for a turn key solution, looking to spend a combined 570-580k. Hopefully the finished procduct would it will be worth 650K, renting @ 500 p/w. That will be the dream!

 

I think you have left things too late. Personally I would not enter at this price . On a 312sqm block ideally you would build a 3x2x2. With current prices you are up for about 240 to 250 K for a 19 to 20 sqm home So to are looking around 514k minimum. Add to that about 16kbstamps legals bolus 20k holding costs. You are looking at 550k. Given this a not a established estate it will be worth 580k on completion and rent should be around 450pw

I see a lot of newbie investors enter now... I personally think money was made last year or even early this year. I bought 2 in AC and 3 others in Geelong. As for building in 6-7 months that is a pipe dream even in a normal market which it is not. Expect around 12 months minimum. After your land titles it takes about 2-3 months to get to site. And then about 8-9 months to get your keys.

 

Yeh i understand where your coming from. This is a long term play for me, as i will be holding the property for many years to come. If i overpayed slightly now, hope to make it up through capital growth later in medium to long-term in the years to come. You've got some investement propties here to? What did you pay for those and when? @sash. So i know you want that same thing for you moving fowards, buying in a area that looks very promosing, that will be provide great ROI into the future.

 

Both in mount duneed Villawood. One built with land smaller blocks 258k and 337k. One is 3x1x1 and 3x2x2 with study double storey. I suspect they are worth 575k and 660k today completed in 2016 and 2017 from memory.

 

No one can advise about H&L thingies like @sash can. I'll chime in to make sure you have a little buffer in place to make sure you can cover any shortfalls in vals when the build is completed given how far out the title and construction are.

 

Thanks for the tag, I have moved on to follow similar strategies in SA/ QLD and even WA. No land anywhere atm.
VIC, will have a look but only 2/3 locations worth considering where you can still make money. Yields have dropped to 4% to 4.5%.


Cheers

 

Congratulations! Pace always wins over perfection !!

 

Isn’t it better to enter now than not at all?

 

Maybe but better areas to enter now

 

What are your thoughts on Geelong? How do you see it perfroming in the future? Alot of people reccomending Brisbane / Sunshine Coast. These area's really hot right now, and I've got a property on the GC already, so i defintely wanted to diversify away from SEQ a bit.

 

IMO, Geelong will keep being Geelong - a consistent performer. The water, the beaches, the lifestyle - never going to get old and never going away. The attractions will always be there.

QLD's red hot, jumping in now would be akin to jumping in with FOMO towards its ATH. But that's just me, who knows how much upside is still to come. I'd suggest reading every one of @Sackie's posts about Brisbane and the rest of QLD and make your mind up.