Im looking at a duplex there to get the ball rolling on my 2nd IP but Im unsure about the capital growth side of things?
Any thoughts will be helpful.
Any thoughts will be helpful.
Anyone have property in Norlane VIC?
- Thread starter want2bewealthy
- Start date
Norlane/Corio is the cheapest part of Geelong.. and for a reason.
Take this as you will but when I was researching it I quickly came to realise its not somewhere I'd like to invest. Low income and high crime are problems.
Got stuck there at night (lost) when I was in Melb a while back. Didn't feel safe even with the doors locked..
Im sure there's a chance you'd get good tenants.. just depends how much stress you can take
Take this as you will but when I was researching it I quickly came to realise its not somewhere I'd like to invest. Low income and high crime are problems.
Got stuck there at night (lost) when I was in Melb a while back. Didn't feel safe even with the doors locked..
Im sure there's a chance you'd get good tenants.. just depends how much stress you can take
Tiger, arent/werent you looking to but in Corio laste last month?
Im from Gelong originally and know that Corio is just a bad Norlane.
Im from Gelong originally and know that Corio is just a bad Norlane.
I just had a word to a good friend of mine who still lives in Geelong [just down the road from Norlane in Rippleside] and he says that Norlane has changed and is now quite good, thats good to hear and its actually what I expected to hear also, as prices are moving forward, it also moves the slum forward to.
He told me the new bad area but I cant remember where it was now..
Also, the funny thing is that Whittington has had 43% CG within the last 5 years...
He told me the new bad area but I cant remember where it was now..
Also, the funny thing is that Whittington has had 43% CG within the last 5 years...
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Well it now looks highly likely that Ill be purchasing a 3 bedder there very soon, Im putting in an offer today! ;]
Ive spent the morning speaking directly with some agents down there and they all tell me that the vacancy rates are very low so that gives some piece of mind,
I dont like to buy property for the sole reason "because its cheap" we all know thats not the way to go about purchasing, all the numbers add up to me and growth has been about standard
'1994-2004' 124% growth. everything looks good, I jut wanted to get as much "street talk" as I could before buying is all.
Im thinking I should put in the clause "subject to building/pest report" what do you think? anything I should add?
Ive spent the morning speaking directly with some agents down there and they all tell me that the vacancy rates are very low so that gives some piece of mind,
I dont like to buy property for the sole reason "because its cheap" we all know thats not the way to go about purchasing, all the numbers add up to me and growth has been about standard
'1994-2004' 124% growth. everything looks good, I jut wanted to get as much "street talk" as I could before buying is all.
Im thinking I should put in the clause "subject to building/pest report" what do you think? anything I should add?
I remember the suburb my friend says is the new "bad" suburb, its Whittington for anyone who is interested.
You might also want to go subject to finance. That way you have an out if the valuation comes in low.
Alex
I wish I had heard from you an hour ago Alex.. ;]
I just put in my offer, the reason I didnt add the clause subject to finance is because I dont want the agent to think I may not have the funds to go ahead, I read that here on another thread, just to give me more credibility, although I can certainly see your point and a good one at that.
Hi W2BW,
Cap growth..........hmm. Not sure on that. Some parts of Norlane I would and some parts I wouldn't.
Just do your figures and be happy.........if you're conviced that you've found a diamond in the rough then go for it.
As always it's the immediate numbers that count. Any unrecognised potential at the start helps, just move forward from there.
ciao
Nor
Cap growth..........hmm. Not sure on that. Some parts of Norlane I would and some parts I wouldn't.
Just do your figures and be happy.........if you're conviced that you've found a diamond in the rough then go for it.
As always it's the immediate numbers that count. Any unrecognised potential at the start helps, just move forward from there.
ciao
Nor
Hi Norwester, 124% is standard 7%PA capitalising growth to me, sure there are better CG properties out there but this one is almost cf+ with tennants until September, It costs me close to nothing to hold if my figures are correct, which they are ;]
Good luck with your IP W2BW - It's not an area I would have considered, however that's from my own perceptions from living in Geelong.
Please let us know how your deal goes.
Please let us know how your deal goes.
Capital Growth Graph for Norlane, this info is from RP Data and seems to show the highest capital growth for all the areas Ive listed, this is standard, nothing out of the ordinary, steady growth with room to move, around 7% capitalising, these graphs are house prices only, you should see the unit price jump in 2004, 48% in that year alone..
thoughts?
[suburb growth percentage is the first percentage, the figure directly after is greater Geelong and surrounds change within that period.
Capital Growth in Median Prices
Norlane Greater Geelong LGA
Period % Change % Change
2007 8.6% 0.2%
2006 1.4% 5.7%
2005 1.5% 3.0%
2004 13.1% 10.0%
2003 18.6% 21.0%
Capital Growth Graph for east geelong
Capital Growth in Median Prices
East Geelong Greater Geelong LGA
Period % Change % Change
2007 14.0% 0.2%
2006 1.0% 5.7%
2005 4.8% 3.0%
2004 -3.6% 10.0%
2003 15.3% 21.0%
Capital Growth Graph for Geelong
Capital Growth in Median Prices
Geelong Greater Geelong LGA
Period % Change % Change
2007 14.1% 0.2%
2006 -5.9% 5.7%
2005 12.3% 3.0%
2004 3.9% 10.0%
2003 8.5% 21.0%
Capital Growth Graph
Capital Growth in Median Prices for Belmont
Belmont Greater Geelong LGA
Period % Change % Change
2007 5.7% 0.2%
2006 1.7% 5.7%
2005 3.2% 3.0%
2004 8.6% 10.0%
2003 19.4% 21.0%
Capital Growth Graph
Capital Growth in Median Prices
Torquay Surf Coast LGA
Period % Change % Change
2007 6.8% 6.3%
2006 1.0% 2.2%
2005 3.8% 4.3%
2004 7.2% 7.1%
2003 13.8% 11.1%
Another graph from recent sales
12 months to October 2007
HOUSES UNITS
Norlane Region Norlane Region
Median Prices $146,500 $273,000 SNR $236,000
Long Term Trend 11.2% 10.9% SNR 12.5%
Auction clearance rates 63% 48% SNR 30%
Days on Market 82 100 SNR 122
Discounting 6% 6% SNR 6%
Ive been taught not to go by instinct or "buy with my heart" with an investment property, what matters to me are all the right numbers, these are all the right numbers for me.
Hell, even looking at Melbourne's Yarra suburbs like Richmond for eg, growth has been the same as Norlane, around 42% for the past 5 years, Yes I know that Richmond is a much more expensive and "desirable" suburb but if the numbers are all the same, it really doesnt matter to me, I cant afford to buy there just yet anyway ;]
When we take a look at somewhere like Carlton for instance though, we start to see extraordinary ups and downs, 66% growth over 5 years and larger up and downswings in the cycle, losing 16% one year but up 40% in another.
thoughts?
[suburb growth percentage is the first percentage, the figure directly after is greater Geelong and surrounds change within that period.
Capital Growth in Median Prices
Norlane Greater Geelong LGA
Period % Change % Change
2007 8.6% 0.2%
2006 1.4% 5.7%
2005 1.5% 3.0%
2004 13.1% 10.0%
2003 18.6% 21.0%
Capital Growth Graph for east geelong
Capital Growth in Median Prices
East Geelong Greater Geelong LGA
Period % Change % Change
2007 14.0% 0.2%
2006 1.0% 5.7%
2005 4.8% 3.0%
2004 -3.6% 10.0%
2003 15.3% 21.0%
Capital Growth Graph for Geelong
Capital Growth in Median Prices
Geelong Greater Geelong LGA
Period % Change % Change
2007 14.1% 0.2%
2006 -5.9% 5.7%
2005 12.3% 3.0%
2004 3.9% 10.0%
2003 8.5% 21.0%
Capital Growth Graph
Capital Growth in Median Prices for Belmont
Belmont Greater Geelong LGA
Period % Change % Change
2007 5.7% 0.2%
2006 1.7% 5.7%
2005 3.2% 3.0%
2004 8.6% 10.0%
2003 19.4% 21.0%
Capital Growth Graph
Capital Growth in Median Prices
Torquay Surf Coast LGA
Period % Change % Change
2007 6.8% 6.3%
2006 1.0% 2.2%
2005 3.8% 4.3%
2004 7.2% 7.1%
2003 13.8% 11.1%
Another graph from recent sales
12 months to October 2007
HOUSES UNITS
Norlane Region Norlane Region
Median Prices $146,500 $273,000 SNR $236,000
Long Term Trend 11.2% 10.9% SNR 12.5%
Auction clearance rates 63% 48% SNR 30%
Days on Market 82 100 SNR 122
Discounting 6% 6% SNR 6%
Ive been taught not to go by instinct or "buy with my heart" with an investment property, what matters to me are all the right numbers, these are all the right numbers for me.
Hell, even looking at Melbourne's Yarra suburbs like Richmond for eg, growth has been the same as Norlane, around 42% for the past 5 years, Yes I know that Richmond is a much more expensive and "desirable" suburb but if the numbers are all the same, it really doesnt matter to me, I cant afford to buy there just yet anyway ;]
When we take a look at somewhere like Carlton for instance though, we start to see extraordinary ups and downs, 66% growth over 5 years and larger up and downswings in the cycle, losing 16% one year but up 40% in another.
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Yes, I definitely did include that as a clause.
Corio
We are looking at a 3br house for $160,000, rent has been quoted at $210 per week. Have I worked this out to be the right yield? 7.04%
Sounds like a lot to me, am I right??
We are looking at a 3br house for $160,000, rent has been quoted at $210 per week. Have I worked this out to be the right yield? 7.04%
Sounds like a lot to me, am I right??
We are looking at a 3br house for $160,000, rent has been quoted at $210 per week. Have I worked this out to be the right yield? 7.04%
Sounds like a lot to me, am I right??
Remember to factor in vacancies, and holding expenses as well! This will pull the yield down significantly!
