My latest Geelong purchase - Go Newcomb!!

Excellent answers thanks for your insight mate

 

Hi @David Shih , thanks for sharing details on original post. I need some help from you on some queries if you could please, thanks

1. Do you still think Geelong is a good place to buy in range of 420k - 450k considering it has grown a lot in recent 2 years?
2. You mentioned that you find some Asbestos. I am looking for a property there presented by my Buyers Agent. There was some Asbestos in Build report and my BA mentioned that all properties in Geelong of that period 1960-1980 has some Asbestos and it has been agreed by residents there. Can you please share your views on this.
3. You mentioned that you were able to sight a beam in the lounge. My build report mentions that there was a wall between kitchen and lounge which could have created structural issues. Inspector asked seller's agent to get a report from engineer who constructed it. Now, my question is that if we pull out of this deal, I would be again paying for build inspection and same thing can repeat. Do you think such issues like previous wall should have been sighted by Buyers Agent or only a build inspector could have find it out.
4. Can you please recommend your Build Inspector in Geelong.

Sorry for the above questions but really appreciate help with these questions from exerienced investors on PC. Thanks!!!

 

Yes - long term perspective I think it'll still do relatively well, thanks to Avalon airport turning international, big employers' office like NDIS, WorkCover moving into Geelong and enjoy influx of population as Melbourne continues to expand & grow. Plus you can still find better gross rental return at Geelong than Melbourne so that's one big advantage.

But of course do your own due diligence and make sure you're comfortable with it.

I believe Asbestos is quite common for houses built around that period of time. Do you have plans to knock down the property and rebuild? If not then as long as long as the house is maintained it shouldn't worry you....but I'm not expert in building/Asbestos so would suggest you speak to the B&P guy and take his/her guidance.

Building Inspector/Builder are the licensed trades that can provide you specific advice on this. BAs are not necessary trained to provide advice on building/construction, albeit some may be able to help depending on their prior experience/background.

I'll PM you.

Cheers,
David

 

I can recommend Graeme from Jim's in Geelong. If you can't be present for the inspection, at least have a conversation with him, and he'll cut through the BS and CYA in the report and tell you the truth.

 

+1 for Graeme at Jim’s!

 

Thanks a lot @David Shih for taking time to respond my questions

 

Thanks @wobbycarly and @JetstreamVic

 

Hey mate,

Enjoyed your videos on YouTube.

Was buying this property a good idea for you?

And what do u think of this property right here in Newcomb https://www.realestate.com.au/property-house-vic-newcomb-133397482

 

Thanks mate.

Yes, the Geelong IP is the best performer from CG perspective out of my whole portfolio so far. I bought right when the market was on the way up plus "adding a bedroom" to manufacture the equity with very little cost. I intend to keep this property for the long run.

What are you hoping this property to achieve for you?

Cheers,
David

 

Why did you decide on Geelong/ Newcomb area?

Also how common is it for people to commute from Geelong to Melbourne? And how long would it take via rail after the upgrade?

 

Hi Alex,

Partly due to affordability and a balance of yield. I was looking to achieve 5% gross rental return at time of buying in VIC and I cannot find anything close in Melbourne so had to look at regional instead.

Geelong was naturally the next stop for me due to it's distance to Melbourne. As as my first post would've suggested - I was originally looking at Corio/Norlane to get that kind of yield without having to do much work. But having discussed with one of the Geelong local dave3214 on PChat I also learnt about the potential of Newcomb as an ugly duckling suburb. So you can say it's a combination of balancing yield and local knowledge that got me to this suburb.

It's difficult to say now as we're seeing a fundamental shift in ways people work due to COVID. Who knows what'll happen after COVID as more and more employees will be working from home. The Geelong locals would be able to give us more of an idea on this.

In terms of the time it'll take via rail after upgrade, looks like it'll be down to 32 mins:
Geelong to Melbourne travel cut in half - part of 20-year fast rail plan | Prime Minister of Australia.

Cheers,
David