Can someone in the know tell me their thoughts on Geraldon in WA coastal large town 3 hours or so from perth. What are the suburbs to stay away from and what are the good ones – cheers
HI Ricky, I have recently heard a rumour that Woodside petroleoum are goin to put a refinery 20 min out of Geraldton, not sure whether its a rekindle of oakajee or not and not sure if the source is reliable. However im fairly confident that Geraldton is going to be the next boom city as its still pretty cheap for a coastal city. There is presently millions of dollars being spent on Gero such as the marina ,new south cooridoor, new hospital.Some of the cheaper housing areas are Spalding, Rangeway ,Karloo .However theres many nice streets and good investment opputunities in these areas, Geraldton has been so dormat for the last 20 years and only now people are realizing the potential that it holds. 12 Months ago was the ideal time to start buying into Geraldton ,theres been a lot of east coast investers buying a LOT of ips there the last year.
regards Risky
I thought I was wrong once, but I was mistaken !
Geraldton may have some room to move, but it will never be as expensive as Busselton, Mandurah, etc.
Rents are about the lowest in WA and average income is quite low, so yields will never be great.
I agree with Risky’s summation on the situation up there. The market is clearly moving up after being undervalued for a while.
A place I know (2br duplex half in Bluff Pt near beach and shops) was advertised for $82k and had been on the market for approx 3 mths. It was bought in Sept 2003 for $78.5k.
The property is part of a group of 5 – with 3 villas & a duplex pair.
One of the villas (which was furnished but same apart from much smaller backyard) was put onto the market in Jan 2004 for $94k. It sold quickly for $90k sometime that month to an eastern states investor. Even though this place was furnished, and the duplex half wasn’t, it should have been worth less as the land component was smaller and there were neigbours on both sides.
A similar duplex unit in the same street was put on the market for $90k, and is probably gone by now.
Based on this would be fair to say that there has probably been cap growth of approx 10% in 6 mths.
My PM was saying that eastern states investors were active buying sight unseen. Some were expecting $160pw from their $60-70k houses in Rangeway. But $120-130pw was more realistic (if you could get a tenant as there were many vacant houses there).
I looked there myself and though some streets in Rangeway with their brick/tile houses looked like an average 1970s outer suburb (with fewer green lawns) many locals didn’t want to rent there and PMs confirm vacancy is higher there.
Try searching as there’s been a fair bit of discussion on Geraldton in the last 12 mths.
Regards, Peter
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