Does anyone have any thoughts about investing in residential property in Geraldton? My research has revealed:
1) Median prices lower than Perth and SW.
2) Rental yeilds generally higher than Perth and SW.
3) Relatively small percentage of home ownership (owner occupied) at around 20% (can’t quite remember exact figure) indicating large portion of population used to renting.
3) City has undergone major revitalisation over last couple of years. Very impressed during my last visit.
4) Improved infrastructure and facilities including newish university campus, upgraded hospital etc.
5) Homeswest area’s previously considered “no go” zones being broken up under Homeswest new policy of distributing accommodations throughout entire region.
6) Figures indicate steady propulation growth
7) Plenty of employment and growing opportunities on the back of the resources boom.
5 yr avg annual growth rate 9.10%, coming mostly from previous years growth of 40.3%.It certainly looks like a growth region to me. Nice climate and cheaper homes bound to attract many who have been priced out of the market in Perth & SW, particularly retirees. Question is as far as CG goes, has the horse already bolted???
We checked out Geraldton earlier this year, and like you we think it has a lot of potential. Money committed to infrastructure, foreshore redevelopment and the diversity of industries are all reassuring factors. We have been keeping an eye on the market and did come across one CF+ deal that was very competative – no luck there for us!! Overall, definately like the area and worthy of closer consideration.
I would suggest that you are about two yrs too late.
Check out the post on Somersoft by Karina who has been buying for some time in Gtn. by remote control from Sydney ( I don’t think she has ever been to Gtn.)
I’ll see if I can find a link.There were heaps of eastern states buyers in the Gtn. market a couple of years ago, and they have enjoyed very healthy cap growth.
A workmate bought a quad site last year, and even though he has had delays in getting the construction under way, the block has doubled in value in the meantime.I pass through Gtn about 3 times a year on my way up North, and there is no denying that the State Govt is spending up big on infrastructure,which will enhance the town.
As well as new mining ventures going ahead inland that will use Gtn as the port for export.There is no reason that there will not be further growth in the market, but I would still suggest that its had its best growth in the last two years.
I’ll go find that post now…
kp
Here is the link to the post.
Bit long winded but as I recall it details the Gtn purchases:http://www.somersoft.com/forums/showthread.php?t=21333
kp
Thanks kp for referring me to Karina’s post. Great story. I think Geraldton’s worthy of closer inspection. Partner and I are going o take a run up there this weekend.
kp, that was an excellent thread, thanks.
Flatout, we bought a property up there 18 months ago and we were told then we’d missed the boat, but we’ve just sold it for a 32% profit. My point is, yes, you may have missed the boat, on the other hand, how does one know for sure?
Good luck deciding….
Good Luck
PKGeraldton is a Port City..
there’s always boats coming and going ;o)
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorHi Flatout
Speaking of missing boats:
I guess if you have missed the ocean liner just hop on the Cabin Cruiser before you get left with the rowing boat. We did that in Rockingham at the Anchorage estate recently & will still do well even if we didn’t get in at the start!
Good Luck
SparkyThanks everyone for your comments so far. The more I look at it, the more I like Geraldton. I’m sure we’ve missed the best of the growth there but I convinced that overall WA still has plenty of growth left in it and that Geraldton will continue to share in it. Time will tell…
It’s probably not relevant to you guys wanting to buy now…but…thought I’d have a rant.
I was born and raised in Geraldton, but left at the age of 6…and haven’t been back since…so my info on Gero is a tad dated but if you’ll allow I can detail for you my parents experiences ;
1970 – Arrived from the farm and immediately bought a 3×1 fibro in Rangeway (yes, yes, humble beginnings for those that know Geraldton suburbs). Cost $ 11K. Deposit was $ 1,500 with a $ 9,500 loan. I don’t know if it’s factually accurate, but Dad said the mortgage was $ 29 per month.
1973 – Went halves in a beach cottage somewhere for $ 8K, but the ‘other’ half continually trashed it and they sold it for $ 14K in 1975.
1975 – Bought a pretty swisho 4×2 brick and tile in Allendale for $ 35K. Shifted into this and rented out the Rangeway house for $ 35 per week. Rent from that one paid for both mortgages.
1976 – Tried to buy 10 acres with ocean views up at Wongthella (or something like that) for about $ 19K, but the Bank Manager refused the loan. The Bank Manager then went ahead and bought it with his wife and made a killing. Dad was a bit dark over that one for years to come.
1978 – sold everything in Geraldton to buy our PPoR in Perth for $ 63K. Definitely not a good move.
Lessons learnt re: Dad’s mistakes put into the memory bank and doing the opposite has served the wife and I well.
Originally posted by flatout:Thanks everyone for your comments so far. The more I look at it, the more I like Geraldton. I’m sure we’ve missed the best of the growth there but I convinced that overall WA still has plenty of growth left in it and that Geraldton will continue to share in it. Time will tell…
Agree ,
WA is a big place with lots happening in many regions.
REDWING
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorHi flatout,
If you are taking a run to Geraldton this weekend…would love to hear what you think about it when you get back!
GGG
Hi All,
I bought a block of 4 units on 2000sqm in Oct 04 in Sunset Beach 5 mins north of Geraldton (for those who know the area you turn left towards the beach at the big round about on Chapman Rd). In October last year a new development commenced in Sunset Beach with housing blocks starting from $102,000 and stage one to seven quickly selling and new releases were opened months ahead of time. for those of you who prefer building new houses this may be an option. the link is http://www.sunsetbeachwa.com
I still recommend buying in Geraldton, my agent was Leanne Boath at Roy Weston who took me around several properties during my weekend trip ( RE also PM them for me). I didn’t think I got a bargain at the time and in hindsight think that it was because I bought at a higher price to realise the higher returns that having 4 properties brought in rent rather than one, however with the growth Gero has enjoyed in the last two years I am very pleased with the CG Ive achieved so far. I’m looking forward to seeing what other amenities, restaurants, parks etc that the developers are currently doing in Sunsets which will raise my IP’s even furtherIn 2000 i rented a duplex half in the beach suburb of Mahoments. The rent was $120 a week and the duplex was worth 60k. They were selling as a a pair for 120k and no one wanted them, and there were alot of these pairs available.
Today they would be woth 320k as a pair and prob rent for only $140 a week.
Times change, and boy do i kick myself every day still.
I am interested in Geraldton property, however my knowledge of the different localities in this area is limited. Could anyone give me a heads up as to the ‘bad areas’ and the ‘good areas’ – eg, where people like to live – areas attracting good quality tenants and buyers, vs areas to avoid?
yes be careful about the areas you get into – I was looking at picking up some blocks for flipping in a new estate up there and a friend of friend went to check it out. mentioned somehting about passing burnt out car bodies on the track on the way out there and the character of the adjoining suburb that wasn’t too flash… it didn’t sound good.
http://www.megapropertygroup.comINVESTMENT SALES * RENTAL SOLUTIONS * STRATA MANAGEMENT
when I first started looking into Geraldton I bought myself a fold out street map of the area. Then while scouring the net for properties and looked on the map for the areas and started to get an idea of the pricing of where they were. imagine my joy when I finally made it up there to discover I recognised street names and suburbs as I drove around. I was interested in the beach suburbs and in the vicinity of shops etc and it took me around six months of study before I found my property.
Good Luck, having a RE keeping an eye out was a great help too as they often get the good deals before they get advertised and can contact you quickly. see my prev blog about a good RE that I used up there. (Leanne boath, Roy Weston Gero)
5 yr avg annual growth rate 9.10%, coming mostly from previous years growth of 40.3%.
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