IP in Belmont VIC

Although I'm not an expert in the area of Belmont, I did speak to one of my clients less than a month ago who was planning on moving over there. I had an interesting discussion with her about the area because I'm personally a big fan of some parts of the Geelong region.

She said something interesting which made me feel that I'm not alone in my assessment of Geelong: 'If you superimpose the map of Melbourne over the map of Geelong, Belmont is essentially within the 'CBD'!'

Geelong offers good value for money. Some people say that affordability has been eroding with the rise in prices over there, saying that the prices in some areas are now approaching that of prices in some of Melbourne's outer suburbs. I'd like to challenge the old way of thinking however and ask people to start considering Geelong as a CBD in itself, a smaller 'mini-Melbourne' if you like.

If you look at is this way, it'd be easy to see that things located within easy reach of the city center of Geelong and the coast are actually very good value for money. So instead of just thinking that Belmont is a hour's drive from Melbourne, start considering that Belmont is also within a few kms of Geelong city center. Some people laugh when I mention investing (and eventually retiring) in Geelong. They'd say, 'Why live so far from all your friends?'

Personally, I think Geelong will be super-hip within the next decade. All my friends will be there. People who have bought as near to the city center and the water as possible are well-poised for superb capital gains. Just look at what's happened to similar properties near Melbourne in recent times. Less than 10 years ago I remember visiting Geelong for the first time. It was a quiet little hamlet, not a soul in sight at Cunningham pier. The only other things I remember seeing were a bunch of bollards by the beach and a couple of yachts on the water. Today, the waterfront is crawling with people.

I am a vet by profession and was speaking to a drug/ pet food representative recently who went to Geelong to visit the vet clinics there. There's plenty of clinics in Geelong city (excluding outlying areas), and she tells me that all the clinics are very nicely done up. Intuitively, 'nicely done up' clinics only exist in places where there is demand for services. That tells me the people in Geelong also have money.

People don't necessarily live in Geelong just because it's a cheaper, poorer cousin to Melbourne. They live there for a change in lifestyle. People are getting intelligent, realising they need not buy a $350K house in a [rough] industrial area far from Melbourne CBD. They could spend the same amount and get a house in Geelong within 5-10 minutes drive from the city center and the water's edge.

Belmont prices range widely but it appears you can buy a comfortable house on a full sized block for about $350K that would comfortably rent for around $310-330pw and upwards. That's a yield approaching 5% and vacancy rates sit at 2.2% based on SQM's figures today. It's not one of the cool positively-geared properties that lots of people are chasing these days, but just consider the figures and location and do what's comfortable and right for you.