Just came back from a day in Geraldton (working on the Southern Transport Corridor) and overheard a chap in the seat in front of me talking about the Geraldton property market.
He said that eastern states investors have been in town with one buying 14 properties.[suave]
Who ever it was good luck.
Apparently he may have been taken for a ride on some of them (it would appear). The guy on the plane said that one of the vendors he knew had bought a property about 12 months ago for $95K. Spent a weekend painting it and was apparently bought by this “investor” for about $170K (or thereabouts).[biggrin] The marktet has been flat for 3 years and is starting to head up (33% last year), largely through investors buying up these “cheap” houses. But looking at the stock standard 3×1 they have increased by about only 7% in the same period.
Now I’m all for buying an investment property if the numbers work out, but precisely who is making the money here? [blink] Me thinks maybe not the guy who just bought 14 properties!
It really pays to do some real good research and even visit the darn thing before you buy. Just amazes me how people are making money through other people’s Ignorance (OPI).[withstupid]
Later…………
All things are possible to the person who believes they are possible.
Whateve the mind of man can conceive and believe, the mind can achieve.
Napoleon HillIn my view buying properties in one horse and other towns is dangerous. Most smart investors who brought in these towns are now out. In many cases 10 years worth of growth happened in 12 -18 months. Many people who purchase now could find themselves in deep trouble.
If you are going to purchase buy in main cities. If you want positive cashflow with some growth I strongly suggest New Zealand as the place to buy
Nigel Kibel
http://www.propertyknowhow.com.au
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Nigel,
Have you been to Geraldton? I doubt you would call it a one horse town – is is a fairly large regional city, possibly one of the larger ones in WA outside of Perth.
Cheers,
Simon Macks
Finance Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
I’ve been there lots and have a pretty good idea of the place.
Speaking to locals, contractors in town, hotel staff and agents they just can’t believe what non locals are willing to pay even for some real dogs of places in dodgy suburbs.
You know when the locals start talking about real estate the boom and making money it’s time to look elsewhere.
Later………
All things are possible to the person who believes they are possible.
Whateve the mind of man can conceive and believe, the mind can achieve.
Napoleon HillSpeaking to locals, contractors in town, hotel staff and agents they just can’t believe what non locals are willing to pay even for some real dogs of places in dodgy suburbs.This is a common senario Hot Rod. Does not seem to matter where you are every time there are significant shifts in capital value it’s the people down at the local pub that are the last to see it coming and the last to take action.
Cheers
Are you very familiar with Geraldton? What is the average rent for a house or duplex in Geraldton and what are the lowest asking prices currently?
Daniel O’Connor
Regarding Geraldton, I bought there myself and I will tell you some of the reasons why…
* One of the largest cities in WA
* Harbourside city with excellent boating facilities
* Extremely cheap prices in comparison to similar areas
* Strong population numbers with large tourist turnover
* Housing commission areas being distributed so there are no huge housing commission areas in one spot
* Largest TAFE outside any capital city in Australia
* One of the best agricultural education centres in Australia
* University expanding to a full blown university
* Council spending up on facilities like parks etc (at least in the area I looked at
* Main stopping point between the top half and bottom half of WAThere are many other reasons why I bought there which include particular numbers on the property I looked at. Just because one person or the locals cannot see the potential of their own area, it does not mean it is not a potential gold mine for property investors.
Most investors look to regional centres when the property market is in a huge slump as the worst impact is usually felt in the capital cities. Investing in regional centres should be part of any investors property portfolio to help diversify a portfolio within an asset class. If city prices go down and regional prices still go up (or vice versa), things start to look rather stable.
I am very content with my purchase in Geraldton.
The Mortgage Adviser
http://www.themortgageadviser.com.au
[email protected]
Essential LinksI’ve got NO problems with buying there myself.
There are some real opportunities.
But going by the old adage “make your money when you buy” I think people need to be careful to make sure that they aren’t taken for a ride when they buy (it just appears that way with the converstaion I over heard)
Later…………..
All things are possible to the person who believes they are possible.
Whateve the mind of man can conceive and believe, the mind can achieve.
Napoleon HillI think someone buying 14 properties would be a little bit smarter than a few people chatting near by who you have no knowledge of. Many of the same conversations were heard in many regional areas prior to prices becoming unaffordable for locals. People always put down what they cannot do themselves.
The Mortgage Adviser
http://www.themortgageadviser.com.au
[email protected]
Essential LinksOriginally posted by The Mortgage Adviser:People always put down what they cannot do themselves.
I do hope that wasn’t addressed to me.
I thought I was not putting down and I so do myself.
Always interesting to see how the market can be moved along by investors and a lick of paint.
But if the numbers work out, well there’s no reason not to invest.
All things are possible to the person who believes they are possible.
Whateve the mind of man can conceive and believe, the mind can achieve.
Napoleon HillNo, I was referring to the people you over-heard. Maybe they were just jealous.
The Mortgage Adviser
http://www.themortgageadviser.com.au
[email protected]
Essential LinksGood post HotRod, and very good replies Robert, i especially liked your reasoning 4 buying in that area, i olny regret not being able to say being there myself, not for long.
resiwealth
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