Where to buy? Geelong or Newcastle

Hi,

Thinking of buying first IP below 600k with good land component (600sqm). Initially thought of buying somewhere in Melbourne but below 600k could only find in werribee etc with low rental yeild. How is Geelong and Newcastle ? Which Geelong suburbs are good ? Was advised Grovedale and Belmont IP wise are good.

 

There are pretty extensive threads on both so that would probably be a good place to start.

Newcastle 2019 [NSW]

Geelong 2019 [VIC]

 

Have you thought of other Melbourne suburbs in the south east i.e., Endeavor Hills has a lot of stock within your price bracket. All of them have 600+ sqm land. It's a very good suburb but the only drawback is no train station. I have one IP there for the last 6 years and always tenanted. No issues whatsoever.

 

Hi @Mattabraham,

What's the rationale behind choosing Geelong & Newcastle? Property cycle wise both may not be the best option, given they both had a good run not that long ago?

Cheers,
David

 

We went through a prominent buyers agency and got a place in Corio for 330k. Spent 6k on paint and few issues and getting 320/week rent. Not fantastic but hopefully see some CG over the years.

 

Hi David, Thanks for your message. I understand that both Geelong and Newcastle has had a good run. I don't want to invest more than 550k and could stretch to 600k max. In Melbourne could find Deer park, Werribee, Wyndham Vale, St Albans, South Morang etc. I wouldn't want to go Negative cash flow, looking for a decent rental yeild, long-term investment ( 8-10years) . Hence decided Geelong and culled down to Grovedale, Belmont, Lara, Norlane, Corio. Your input and suggestions will be much appreciated

 

Hi Fat cactus, Thanks for your input. I am not from Melbourne, we are from Sydney n Albury and don't know much about the area . It's great that you found something for 330k. I am thinking of buying something below 550k with decent land component. Would appreciate if you could share the name of the agency.

 

Personally I like Belmont the most - close proximity to Geelong CBD with very good demographics, low stock & vacancy. Belmont Primary also ranked in the top 10% of VIC so there'll always be OO appeal. Price-wise Belmont will be the most expensive out of them all so the rental return will also be the worst too.

Grovedale & Lara will be my next pick. Both are decent suburbs so just comes down to the house condition and how big the land it's sitting on. Have got clients who bought in Grovedale and have done quite well. Lara is very close to Avalon airport which have recently gone international, so there'll be potential too in the long run.

And then there's Norlane/Corio - which will provide good value due to low entry price and can also give you the best rental yield. Leep in mind they are investor heavy suburbs though, so value may fluctuate if investors are all wanting to exit. If you do want to look at these two suburbs there are some pockets to avoid - check the media section in my profile which I've posted a while back. They will still apply.

Just my 2 cents - as always, make sure you do your own DD.

Cheers,
David

 

PM sent

 

Thanks