Hello Benno
It depends on your stratergy as to were you should buy but I will give you a brief discription of some of the locations.
Bad Areas
Rangeway/Utakarra and Spalding
There is the chance of getting +cf here but this area is full of homeswest housing, has a high a crime rate, full of unsavoury people and houses and cars get trashed on a regular basis. My wife worked in Rangeway and it was a regular occurence for someone to have their head smacked in with a pipe by friends or family evry couple of days.Ok areas
Wonthella, Piont Moore/Beachlands and Beresford
These areas are ok, the houses are mostly fibro or wood with some brick ones. Possibility of getting +cf here. I am told that Point Moore is on land leases but you will need to check this out yourself.Good areas
Tarcoola, Mt Tarcoola, Sunset, Mahomets and Bluff Point
These areas are nice but little chance of getting +cf. If you want a nice house this is were I would buy, but Geraldton is not famous for capital gains either. +cf might be possible in some of the older areas of Bluff point or Sunset.Hope I helped
Scott
“Together we combine our strenghts and eliminate our weaknessess”
A good summary Scott. Though some locals simplified this to west of highway = OK, east of highway = not OK.
Beresford has a lot of flats (and I suspect) a low % ownership ratio. I’ve heard of problem flats there as well as Augustus St. But the location is superb relative to town, beach and the marina.
On cashflow, unless you got a good deal, I think you’d be battling to get 9% in Rangeway at the moment, so you will only just break even, or maybe not. The better areas seem nearer to 6% so are definitely -ve geared.
Re long-term cap growth, if you looked at it since 1970, Geraldton is a real laggard relative to Bunbury and Perth. I suspect it would have kept up with CPI but little more. The main reason for this is the almost zero growth in the 1991-2003 period and only slow growth 1970-1990.
I will stick my neck out though and guess that the stats will reveal some modest growth over 2003 and into 2004. After all where else in Australia can you buy a place near the coast in a regional city for cheaper?
Peter
Hey Peterp
That east/west thing is generally right with the exception of Mt Tarccola and Seascapes(a new suburb), which are on the east side of the highway. As for Geraldton in regard to growth i know it had seemed to be pretty stagnent to the point of going backwards before I left with a lot of shops empty. As you mentioned previously they are doing a lot of city improvements and the place is starting to look a lot nicer, but to me it will always be the same town. The main problem to me is the locals and that is the best way I can put it without comming off the wrong way because that is not what I am like. I think the town will definetly expand if there is a boost in industry up there. The original Oakajee project (iron ore plant) fell through but they are trying to get another one under way, when or if it ever eventuates who knows. I am of the opinion that there is a risk in investing there, but without risk there is no reward so I will be keeping my eye out for the right property.
Scott
“Together we combine our strenghts and eliminate our weaknesses”
Showmethemoney“i hear what you say” about prompting accountants, over the years i’ve said to several accountants ” look so and so who i work with claims this and this or is doing such and such, can i also claim or do that”? to be told “yes”, it’s not their fault though as i suppose they are inundated with changes to tax etc all the time, so as you said an accountant who is also an ‘avid’ property investor would be a great find !!
David Femia has mentioned ‘Bert’ ? may be interesting to chase up.. a good accountants worth his weight in gold.
david.. i presume you have dealings with him ??
REDWING
barrytspencer “AT” yahoo.com.au“The man that thinks at 5o as he did when he was 20 has wasted 30 years of his life”
Hello Redwing,
Yes, Bert is my business and personal acoountant. I have been with him now for about 2 years. He also deals with many of our clients, who have reported good dealings with him.
I hope this helps.
David Femia
http://www.femiapropertygroup.com.au
Hi All
David Femia, thanks for that, it’s always good to get a referal from someone who has used that particular person, not just someone who knows ‘of’ that particular person, so again thank you, i’ve been thinking about changing accountants to someone who has an interest in my particular strategy ( property investing)
Scott– the only time we got to see the Stella Marris girls where at church or socials!! damn, does it always seem that things get better when you leave school ??
Hamster– St Pats used to have the “old boys” club also used to do 10yr reunnions etc i also suggest contacting them, i’ve also logged onto schoolfriends.com as have ‘many many’ other st Pats students from over the years, do yourself a favour and check it out
REDWING
“The man that thinks at 5o as he did when he was 20 has wasted 30 years of his life”
Well hello to all the WA investors.[8D] The coffee idea sounds excellent
] I now live in Freo and own a unit in Gero. (Fitzgerald St – next to the tafe) this is “west” of the highway. If any of you guys want to catch up before January, my email isOh yeah, any idea who got the Moora duplex???
Hey Wizzzard [
]saw ‘something’ about Moora in one of my my ‘search and purchase hunts’.. sorry no help, thought about it but all i knew about Moora was that a ST Pats schoolmate used to go there!
Geraldton’s even a distant memory now- still remember those cold winds, smelly seaweed, and catfish in the shallows down at the beach. We used to walk down froom St Pats across the railway yards (gone now) and swim out to get crayfish [
][]Wish i took more notice of the suburbs.. damn
went to three springs once.. yep forgotten that place too.. damn
my memory’s not as good as it use… hey, nice shirt, who are you[:0)][:0)]
REDWING
Sorry..late night its 03:11AM“The man that thinks at 5o as he did when he was 20 has wasted 30 years of his life”
hey I went to school in Moora 1978 – 1982!
Big controversy is they’ve reneged on the promise to build a new hospital there, and putting the money to pay for cost overruns at Geraldton Hospital.
And tell me more about the Moora duplex – don’t see many Moora properties advertised on the web.
Peter
Moora……..beware the flood waters
Moora……..beware the flood watersHello All
I have to agree with procrastenator. Last year or the one before that, I forget, Moora had two major floods wich devistated the town within about 4 months of each other. Now with the hospital not being upgraded I would not recomend buying up there. I found it funny that the local police had to round up the people from town and have a little chat to them because after the hospital work was called off everyone was collecting the bricks from the failing hospital walls and having them delivered to Geoff Gallops house.
Scott
“Together we combine our strengths and eliminate our weaknesses”
Yes, but not only delivered to his house; the protesters gifted him a brick at every public speaking engagement that he attended. It got stopped by using the anti-terrorism laws.[
] I believe there are more than enough loose bricks left for his remaining time in office.[]but just going back to the floods: Yes there were two within 12 months but for the previous several years nada.
And dont forget the “gentle Gero zephyr” Redwing![
]
Isn’t that why one or two world champ wind surfers live there[?][?][?]I have just been to Geraldton and purchased 2 ips one in rangeway and one in Spalding, like most areas you just need to pick your streets. Im not sure if your aware of it but the government is cleaning these two areas up by selling off the state housing houses after they give them a reno. The plan is to have 1 in 9 state housing houses in anyone st instead of a street full. There fore only 1 rental house per 9 home owner houses, as you know they have spent millions with more to come on prettying up Gero so i think cg will be very impressive in the next year or two.
Quote:hi scott i live in margaret river w.a .living here i also am having troubles finding good advice from accontants and will have to try perth.my personal accontant is very conservative. i have surprised him with some of my investments.i am certanly interested in the investment group that meet in nedlands. unfortunatly none of my friends and family are not interested in property investing.i cant work out why people shut off to investing its the only way to get ahead.anyone know much about northam w.a i hear rentals are in demand and cheap enough to buy for +cashflow.cheersI am also a WA investor (2 storey aptmt in Vic Pk, it is nice to have some local advice on a national forum…. .
There are many properties advertised each week in The West for this area most it seems being sold relatively quickly.I wonder if anyone here has a similar property or further advice for the area? Particularly as there are some high end $$$ blocks being built just down the road in the Rivervale/Ascot Waters region. They seem overpriced in comparison to what is currently available in Vic Park or will this drive the prices up here?
According to the ‘ripple effect’
Over time prices should flow on to the outlying areas, are you talking about the “Ballenuim” ( spelling?) apartments at the old Sandringham Hotel site.? Definetly “not” + geared, think they advertise ‘affordable living’ starting at $450k
Ascot Waters is being built up at a rapid rate recently, vacant land there jumping up $40k + in the last two years, apartments recently built have also seen a price hike ( a friend of mine is kicking himself that he didn’t go ahead with an OTP apartment, as now their constructed he could’ve made a killing, only putting down minimum deposit.
Hindsight is a great thing isn’t it !
REDWING
“The man that thinks at 5o as he did when he was 20 has wasted 30 years of his life”
Am i right in thinking these prices are new to Perth? Having only recently moved from Melb they are nothing new to me however this part of the city outside South Perth really hasn’t been devaloped to its obvious full potential.
It would appear the 4 large apartment blocks being built there are somewhat of an overkill or is this an example of the eastern states investors looking to the west?
I reckon by the time Cedar Woods, Multiplex and Mirvac have finished in Perth we will truly know the meaning of overkill.
They have a lot of stock coming onto the market now and for the next few years (3000 dwellings in Burswood alone). The thing is, these guys are experts who do a lot of research. They must be fairly confident of selling them.
Out of curiosity I enquired about apartments in the new Raffles development when it was initially marketed. There were 3 apartments left starting at $920000! We were going to get one but there was nowhere to put my box trailer[]Clive
I Believe “john Roberts” of Multiplex is developing his site near the vines, approx 450 house sites.
Another developer not too far away is also planning [
] And Ellenbrook is still forging ahead.. supposedly ‘Myers’ still on the horizon to be located there, along with new North West highway, train line etc.. all on the planRay White i also believe have some ‘large’ plans for a site that they have North of Joondalup.
It’s always interesting to see what the ‘big’ money is doing.[8D]
MERRY CHRISTMAS AND A POSITIVE NEW YEAR
REDWING
“The man that thinks at 5o as he did when he was 20 has wasted 30 years of his life”
Hello JudyWell I havent heard anything about the land leases but when I was up there I wasnt looking to invest at the time. I know people who used to rent in that area and although there house was basic I think it would meet the critea for popsitive cash flow. I will have to look into it further. If anyone does buy a IP up there Ray White are good property managers. I used to rent up there before I bought in Mandurah and these guys were always on my case about inspections and paying water bills etc. Everything you want from a manager when you are the owner but not the tennant. My wife is going up there for christmas and I will be going up there later on to pick up my boat so I will investigate more then.
Scott
“Together we combine our strenghts and eliminate our weakness”
Hi Scott,
Just wondering if you did get up to Gero over Christmas and what your thoughts were after the visit? I’m planning on a trip up there this weekend, so just wondered if you had any luck?
Regards
Purple Kiss
] I now live in Freo and own a unit in Gero. (Fitzgerald St – next to the tafe) this is “west” of the highway. If any of you guys want to catch up before January, my email is
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