VIC St Leonards 3223 (Victoria) Investment Property

Hi everyone - first time post, long time reader. This is a great forum btw.

So - I'm looking for my second IP. My budget is approx $550k. I'd prefer something new for tax reasons. I want to hold long term for capital growth.

I was initially looking in Thomastown or similar but after Covid and WFH scenarios I've changed my thinking.

What to hear thoughts on St Leonards Vic - I know its been discussed but that was pre-covid.
Its a nice coastal town, quiet but I think has a lot of potential. Not overly expensive yet.

Drysdale bypass is built. 30 mins from Geelong
A strip of shops with local pub. More retail/shopping coming soon.- 1-2 Bluff Road, St Leonards, VIC | 11 Aug 2020 | PlanningAlerts

Can buy land for approx $250k, 4x2x2 house $220k plus stamps/fee $10k

Spoke to local REA, strong demand for long term rentals at approx $400pw for 4x2x2

I'm heading down and spending a few days over Easter to get a feel for it but like to hear from others on this forum.

There's a few estate and others coming.

Bay Breeze Estate $240k for 450m2 block
https://www.realestate.com.au/property-residential+land-vic-st+leonards-202889258
[Land for Sale] Seaside Estate, St Leonards | OpenLot - No pricing yet but expect similar.
[Land for Sale] Swan Views Estate, St Leonards | OpenLot Seems expensive

 

If you are looking for long term capital growth, why would you aim to buy something that has stunted short to medium term growth?

 

So no good for St Leonards ? I'm thinking growth will be better in post-covid world.

 

I purchased land in St Leonards 13 months ago and finishing off my build within the month...

House and land $485k. 4/2/2 on a 544m2 block with side access for boat and trailer. Comparable sales in the same estate going for $640k and rising by the day. Will rent for $430 per week. @sash helped me out with this purchase..

Ship has already sailed there for these prices, moving on to greener pastures...
Logan

Don't worry about the Bypass, ferry from Portarlington direct to Melbourne only 70 mins..

Buying on the Bellarine is a sea change that's conveniently close to the city

 

I built in the Sea Change Estate, the Bay Breeze Estate you're referring to houses seem to sell for 5-10% less than the other estates in St Leonards...

The Bay Breeze Estate reminds me of estates in Wyndham, for example Truganina where the houses seem to be close together. It also backs onto an older house area in St Leonards. But all in all still in a good town and roughly 1km from the beach and the design guidelines seem to be a bit more laxed there..

The other estate you're referring to will be the Bisinella Estate which hasn't been started yet, land prices will be sky high for that estate..
I'm down there quite a lot so if you need and photo's taken of a block you're looking at, let me know

 

Thanks for the information and responding.

I agree with you re: prices but I still think it has more to go. I know at least four others who have bought in St Leonards (friends, colleagues)

Searchange seems to be where I want. Not sure if anything left.

Thanks for offer re photo. I might take you up on that.

With Bisinella estate, how much is sky high and why? Are they bigger blocks?

I've already PM'd Sash. He's already been very helpful!

 

Yep, Sea Change is where you wanted to be. I agree there may be some ways to go given the growth of OG, Torquay and surrounds - just how much I'm not sure of. Look around closer to Geelong, there are still opportunities.

 

I'm pretty sure Sea Change is sold out. I am getting emails from agents saying there are buyers ready if anyone wants to sell.
I think they'll be standard blocks in Bisinella, just the market has moved so much.. Will be right next to Sea Change so a better area than Bay Breeze.. I'm sure the growth there will come for a while, it's just getting that rent return as prices are going up..

 

Yep, all sold out. Some titled blocks are available. But yeah the gains were to be had when @craig s bought in. Seachange Estate

 

Still think there will be a good gain if you built and flipped.. Can see 20% rise in the next 2-3 years.. The demand is nuts at the moment

 

The land for a lot more expensive than your 250K now. Your are looking for abou 460-500K for 450SQM lot. I think St Lenoards gonna do well in next few years given the planned spending on Pier and property developers are coming to foreshore for development opportunities. I bought a lot there 4-5 years ago...and built a 4 bedder as Holiday house.

 

Perfect timing, you`ll be sitting on a decent amount of equity now ;-)

 

Hi Luca, yes decent enough. I do think there is gonna be another wave as revamping the pier and developers swamp will attracts more people to the area. Just look around anywhere in the Bellarine, SL is still a cheaper suburb in comparison, but the gap is closing in.

 

I bought and built 2 houses in the Seachange Estate in 2020:
1. Land 375 sqm...... 4x2x2 with no Alfresco.....bought land for 140k....house built turnkey 216k. Value now 750k plus

2. Land 480sqm.....5x2.5x2 with alfresco and large garden. Land bought for 155k...house built turnkey 238k. Value now 870k plus...probably over 900k now.

I am under rented as rents have gone through the rought....5 bedder 460pw...can get 500pw.....smaller one 410pw...will get it up to 450pw...but still under rented.

I reckon the ship has sailed for this area..even smaller blocks are now over 400k.

Also bought in Ocean Grove for 345k...now just land is 570k plus....I am building for 265k. I expect the end value of mine to be north of 1.15m....maybe even 1.2m

Prices in the Bellarine have rocketed..and I believe the ship as sailed for cheap properties but longer term (10 year plus) there will be more growth.

 

know someone who has 2 x 3000-4000sqm blocks next to eachother in St Leonards,

hes in a fine position!

 

i come into every thread and expect to see a post by @sash saying "Ive bought and built in that area"

 

Not all but just where new land is.... got in early in Armstrong Creek also... total on 5 properties in Geelong could be 4.15m on a spend of 1.95m.

Trying to repeat in Perth now...

 

kudos to your efforts, very inspirational

 

Good on ya Sasha, I had opportunity to do multiple blocks in 18, unfornately I decided not to all eggs in one basket, so secured couple larger lots in Frankston North and Frankston, and rest is a history. Guess dont need me to tell you how they went last couple years.

 

Ta.

Yeah anywhere in outer Melbourne and Geelong has gone nuts.

As I posted house and land in Officer built for 321k now $650k plus....unreal.