VIC Investment property - Geelong (Corio) vs Kallangur

Hi there,

I have a 750k budget and looking to buy my first investment property.

Geelong has some strong planned infrastructure pipeline though I don't imagine the fast rail will be completed for another 10 years.

Moreton Bay region is continuing to grow and is probably just the start of its peak.

Keen to hear your thoughts on the two areas for capital growth objectives.

 

I was in a similar situation last year when i was deciding between these 2 areas, Geelong and North Brissy. Both have considerable government spending and infrastructure projects coming through pipeline in the short, medium term. It was the demographics and a more diversified employment hubs in education and hospitals work, with higher median household incomes that swayed me towards buying in Geelong last yr (H&L in AC) over North Brisbane.

Im not to familiar with Corio on a suburb level, but Geelong has gone up massive already in the last 2 yrs. While there is alot more developable land in Geelong compared to North Brissy, the price to build coupled with Windsfall Gains Tax policies to be implemnted early 2023, should see demand outstrip supply for the next few years?

Kallangur might represent better value in current market conditions, as the sentiment of the people to buy in Brisbane is still really strong (unlikely to get a bargain here xd)However, still likely to experience the benefit of the ripple effects of government infrastructure spending (transportation upgrades being a big one) and the 2032 Olympics in the years to come.

 

Grew up in Geelong and from a locals perspective, Corio and surrounding areas (eg: North Shore) were lower social and economical, when compared to the likes of Newtown. However all have now increased dramatically, especially over the last 5yrs or so. You could buy there for under 200k not too long back.

My view, you’ve missed the boat investing here in Geelong, as a lot of cashed up Melbourne folk are selling up and using their windfalls to buy here instead - more bang for buck / life style changes.

For your budget I’m sure there’s better value and returns elsewhere across Australia.

 

Not too familiar with Kallangur however can provide 2 cents in regards to Geelong area.
Started investing in Corio and Norlane pockets as the numbers stacked up in regards to cash flow and potential capital growth. At the time in 2019, low level of investor activity and managed to pick up my first IP for 275k sitting on 650m land. The activity happening in Geelong gave me confidence to invest there as Avalon airport prior to Covid started to have different airlines flying in (AirAsia, Viet Jet, Jetstar etc) and also the fast rail project. Not only that now the Spirit of Tasmania is being docked at Corio Quay. I’ve stopped looking after my 4th one there as mentioned by previous comment, there is too much Melbourne investors flocking here now however if you do manage to pick something up at a cheap price even sub 400k with 3-4 town house subdivision potential that would be awesome. I still feel like there is room for growth.
Best of luck mate.

 

Is that still an option?

 

I believe it is possible but rare - I managed to score my 4th one last year in August for 360k sitting on under 700m land but had to do a minor cosmetic renovation which cost me about 20k, in the end it was still worth it in my opinion. It now rents for $350 per week.
There’s a few listings right now however they are set to go for auction and will need renovations. If they actually go for the listed price range, a 10-20k renovation would still stack up imo. Highly anticipate an auction would make these well above selling price though.

38 Spruhan Avenue, Norlane, Vic 3214
https://www.realestate.com.au/property-house-vic-norlane-138927915

13 Spruhan Avenue, Norlane, Vic 3214
https://www.realestate.com.au/property-house-vic-norlane-138937787

83 Princes Highway, Norlane, Vic 3214
https://www.realestate.com.au/property-house-vic-norlane-139092955

 

Regarding renovation, how do you do it? Do you find tradies individually or are there any companies that specialises in minor renovation? Especially if the budget is 20-30k ?

 

I’m not aware of or know any companies that specialise in minor renovations. Renovations from all the properties I’ve secured I either have done myself or asked some close relatives and friends who are willing to help out at a cheap cost rather than charge an arm or leg for labour. If you’ve got a good team, numbers will stack up but totally understand renovation costs could be extremely high if you don’t know anyone from the area.