Philip Island

I have no idea about Philip Island property, but, are these areas anywhere near where the motor racing events take place? You could rent them out for exhorbitant amounts of money during these events – there are a lot of revheads out there with a lot of money to burn supporting their sport.

Its like any toursit area in Victoria. Not really sure they are investments but more lifestlye properties.

why buy at the tail end of a boom? prices have doubled and tripled already…

who are the “people who know”? by the time it gets in API, the train has left anyway.

as a place for a holiday house, it’s good… and rogue, it’s not currently going through a boom… it’s been through a boom, like everywhere else on the coast. Also, if the economic downturn is just around the corner like Mr Costello is softening us up for, and we hit a recesssion with its accmopanying bad times, the first thing to go for people is their luxuries ie holiday homes. Look back at history, that’s exactly what happened on the surf coast and the peninsula during the last recession. That would be a good time to buy… not right now. Booms don’t peter out in a matter of months, I believe it’ll track sideways for a while, if not down.

I still can’t get my head around how people expect places to keep on booming after CG of 200-300%+ in the past few years. You can get places in Rye for 200-250k as well. Mornington Peninsula ain’t all Sorrento and Portsea.

Cheers
r

cmon richmond – what you got against holiday houses. i know you sold one in blairgowrie recently..

the boom has ended but there is still growth to me had in my humble opinion.

the market is different now due to the baby boomers. so if there is a down turn i reckon its the middle suburbs that are gonna be effected. the boomers are the ones cashed up/equities up and they are the ones with holiday houses. this segment wont be too vulnerable especially in the 150-300k rge. luxury holiday houses are a different matter..

i also reckon that a downturn along with terrorism, the price of oil (cost of flying) etc people will be looking more and more in there own backyards for holidays.

other reasons – sea changers and downsizers in general. people working from home (cumputers etc) mean more will opt for lifestyle accomodation.

lots of people think this – not just me..

read the article first and let me know what you think.

g’day rogue

spot on, I love holiday houses, but I wouldn’t call them investments, they’re more of a lifestyle/emotional thing.. that was our thinking when we bought it, having somewhere to take the kids etc. Mind you, had I not bought one and sold it I wouldn’t be in the position I’m in now. I wouldn’t buy one now as an investment because the yield just isn’t there. When I bought the cost was 170k, and the rent (as a permanent) was appraised at around 200pw… holiday rentals over the Xmas period mainly brought in 1000-1200 per week. It rented out for around 5-6 weeks with the odd week here and there at other times through the year for a greatly reduced prce. Those numbers aren’t bad at the original purchase price, but we sold for $340k, while the 200pw figure hasn’t changed… the numbers today don’t stack up, way too negatively geared (for me anyway). Selling it was the best thing we did, because every time we went there I ended up spending most of the time gardening, cleaning up etc. Also, the holiday tenants, even though they were families who came from “good” suburbs, were absolute pigs… there was always damage left behind, be it flywire screens or stains on furniture. Not anything major enough to go through insurance, but just bloody annoying.

good luck (honestly, not sarcasm) for people buying at Philip Island et al now, I just don’t think the growth will be there for a little while… I’m not saying you’re wrong, it’s all just opinions.

I’d love to see some stats about people working from home too, because although I’ve read plenty about how more and more are doing so, yet in my circle of friends and associates, I’m yet to come across one, even though they are employed in a very wide range of careers…

cheers and merry christmas to all
r

no, no contradiction… I pointed out that it wasn’t bought as an investment…
as I wrote, “they’re more of a lifestyle/emotional thing.. that was our thinking when we bought it, having somewhere to take the kids etc.”

Yes, I said: “had I not bought one and sold it I wouldn’t be in the position I’m in now.” That’s a statement of fact, and I’m happy to admit to plenty of luck in riding the CG wave like a lot of people did. We just bought where we could afford, and the rental appraisal was more out of curiosity than anything… the holiday rental stuff was mainly due to the Peninsula being so painfully packed during the Xmas period, so we thought, hey, why not rent it out instead of it sitting empty? We didn’t buy thinking about CG and yield etc…

Clearly your thinking has been different in purchasnig your holiday house, since you’re taking CG etc into account. I would argue that most holiday house purchasers don’t.

Thanks for the offer of the bet, but I’m not a gambler… I honestly like to see everyone do well with their investments, it’s just that what’s good for one isn’t so good for another… for the sake of when we revisit this thread in 12 months, name some specific areas on the Bass Coast… I think there will be bugger all growth over the next 12 months in most areas to be honest. And as always, there’s other investments besides property.

cheers
r

I know the Island quite well from my time of surfing down at Smith Beach all those years ago. I’m shocked at the prices the Island is now commanding while at the same time kicking myself for not realising that one of my favorite spots was going to rocket. Corinella is another place along the Bass that has exploded recently.

But while I think the Bass Coast will grow at a quicker rate than the rest of Vic, those rates of return will be far inferior to other non-property investments I could make over the next 2 to 3 years at least. Now, at least in my opinion, is really not the time to be buying down there.

richmond – please mate. you think im making up things by saying people in the know…it was a turn of phrase. i didnt expect to be attacked like im a bullshitter. and the ‘lots of people’ gag is silly…most people dis holiday houses so whos following who??

read API magazine and you will see that there is a school of thought that holday houses are good investments. there is another article that also mentions that sth gippsland and bass coast are good investments with projected further growth – more gorwth that the rest of victoria.

read the article – what im saying is not revololtionary…nor is it new

its not too late to buy back in blairgowrie…

btw cg isnt always driven by scarcity…ive got examples if you wanna test me!!

i also agree that there may be better returning investment outside of property. agree totally although resourse stoicks took a hammering in the last few days and alot of the share marke sentiment is driven by china…if something were to faulter there i wouldnt wanna be geared up to my eyeballs int he shaemarket either.

richmond – lets agree to disagree – but i can tell you still havent read the aticles – they quote figures in that! my turn of phrase was based on fact…

anyway lets move on..