Melton or Geelong????????

For our first IP I'm considering Melton or Waurn Ponds in Geelong. I'm originally from Geelong and know the Waurn Ponds area quite well. Don't really know Melton at all. However after reading the huge Melton thread on here and scouring RE.com for days and reading some of the info posted about the new highway and racing facilities going in, it is really looking like something worth considering.

Waurn Ponds also appears to have a new bypass being built right beside it which would also make commuting to Melbourne quicker (my hubby did it for years) and quicker to get down the coast.

Melton is a little cheaper but they are both fairly well priced.

I would love some opinions from people with IP's in either areas or people who have some knowledge of either or both.


Thanks,

Lisa

Hi Lisa, here's some stats to chew over

Suburb, 10 yr % growth p.a., 2006 Median
Melton, N/a, 185,000
Melton South, 8.8%, 175,000
Melton West, 9.8%, 217,420
Waurn Ponds, 13.0%, 329,000

that gives quite an answer, doesn't it

Geelong, but I don't know either very well .

GSJ

GSJ, could you elaborate, hehe? Is there a reason behind what you are saying?

Geelong appears to be more established and would superficially appear to have a better existing infrastructure to me. Also, it's near the water. I see Melton as more of a speculative buy. The HTW latest report suggests significant land release and new housing supply around Melton and I'm personally not convinced the demand or infrastructure would be there to match this. Hence, don't think it would be great for capital growth - at least in the short to medium term. As has been said before, in the long-term everything goes up anyway, so from this perspective it doesn't really matter. Just an opinion, haven't researched this in much depth.

GSJ

Shuttergirl said:

For our first IP I'm considering Melton or Waurn Ponds in Geelong. I'm originally from Geelong and know the Waurn Ponds area quite well. Don't really know Melton at all. However after reading the huge Melton thread on here and scouring RE.com for days and reading some of the info posted about the new highway and racing facilities going in, it is really looking like something worth considering.

Waurn Ponds also appears to have a new bypass being built right beside it which would also make commuting to Melbourne quicker (my hubby did it for years) and quicker to get down the coast.

Melton is a little cheaper but they are both fairly well priced.

I would love some opinions from people with IP's in either areas or people who have some knowledge of either or both.


Thanks,

Lisa

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Hi Lisa,

It sounds as though you know Geelong better than Melton. Waurn Ponds is quiet close to Deakin University, so it may be possible to attract either students or people working at the University as tenants. Waurn Ponds is a very attractive area too. The new road will probably have a positive impact on the area. If it was my choice I would go with Waurn Ponds over Melton.

Regards Jason.

jingo said:

Hi Lisa,

It sounds as though you know Geelong better than Melton. Waurn Ponds is quiet close to Deakin University, so it may be possible to attract either students or people working at the University as tenants. Waurn Ponds is a very attractive area too. The new road will probably have a positive impact on the area. If it was my choice I would go with Waurn Ponds over Melton.

Regards Jason.

Click to expand...

That's true, Geelong has a university as well as a largish hospital, as well as the ocean.

I've heard Melton's got a new harness racing course or something...anything else?

GSJ

Thanks GSJ, all good points. I guess the only other thing Melton had coming up was the new Deer Park bypass which would've made commuting into the CBD much quicker. That was probably one of my main thoughts for leaning towards Melton

Jingo, yes Waurn Ponds is a beautiful area. It's funny you know, when we lived in Geelong in Grovedale (right beside Waurn Ponds) we couldn't afford to buy anything there. Moved to Canberra, got a shock about the housing prices here, have adjusted mentally over the past 7 years to big prices, hubby and I have done okay workwise and now Waurn Ponds seems like a bargain, LOL....life is funny

Shuttergirl,

We have had an IP in Melton for 18 months. Never vacant and 6.5% rent yield. No growth in the first 12 months, but things are ticking along quite nicely now. Paid $160k ... agent believes it is conservatively worth $180k+ today, so not huge growth but fair.

Some good things happening in the area to attract home buyers and the Deer Park bypass will certainly bring the CBD closer. Also good infrastructure in place and Melton council want to build an Industrial City to attract further business and employment to the area. Melton has the 4th highest population growth in the country and Bernard Salt (API Mag article) states that when the Bypass is complete the area will explode. Also if I remember correctly ... Melton council predict that the population will double by 2011, but don't hold me to that quote, I'm going from memory.

We are very happy with our IP and pleased that we bought in Melton. Just a different viewpoint from the view given by the Geelong fans.

Martin

Martin thanks so much for chiming in. I really appreciate the different perspective. Cherry Pro had said I should give you a PM so I think I will with a few questions of you don't mind.

Shuttergirl,

not a problem. look forward to hearing from you..

Martin

Would it be preferable to buy something older and more established or something newer with potentially less maintenance costs if I was looking in Melton?

Shuttergirl said:

Would it be preferable to buy something older and more established or something newer with potentially less maintenance costs if I was looking in Melton?

Click to expand...

Do you want to trade off a bit of yield for some extra capital growth? Or would you rather trade off a bit of capital growth for some extra yield?

I would probably prefer capital growth as I think this would help me to get into my second IP quicker.

So does that then mean I should buy an older home????????

I don't know Melton, but all things being equal I would say 'Yes', the older house on a bigger block should grow faster than a newer house on a smaller block. Downside is slightly higher holding costs.

Thanks Twitch

Sorry Everyone.

Saw this thread last week but commitments have taken my time.

As background, as stated elsewhere I just bought 2 IP in Melton which settled Friday. 4Bed for $227k and 3 Bed for $230k, all 3 year old so effectively new. 4 bed renitng for $240week and 3 bed which is high end asking for $255 a week.

I researched Meltong with another SS member heavily before picking new over old.

I think new if better investment but also personally, I am time poor and equity rich.

That is I have heaps equity so old v new does not matter but little time to spend on repairs which are best done personally, for quality and cost control.

I don't know Geelong at all but if the fundamentals are the same, and all things being equal then being near the water would appear a better bet.

On Melton demand and demographics I was in Melton yesterday and the line at lunchtome to get into the McD drive through was into the street.

My daughter likes the playground and there is the thing.... Melton is very much young working class families, tradies and such. I see a lot of upside as these types discover Melton with the new bypass.

FYI

Peter 14.7

PS disclaimer: I may also be biased as I prefer the bush over the beach.

Okay, so I think I'm going Melton. This is my queston to people who know Melton.

Why not Melton South????????????

Is it too rough?

It's got the train station, the uni, a catholic college, a supermarket, good infrastructure.

Should I still not consider it?