Geraldton--pics included...Any advice appreciated!

S

Sesster

 
Out of curiosity, What are you goals? PPOR, IP, CG, yeild?
What criteria have you been using so far, ie, what got these properties on your short list?
 
I don't know the location but I can say from the listings that:


http://www.realestate.com.au/property-house-wa-bluff+point-110919707
1. It has a huge car park at the back of the house which is bad for noise and security.
2. It's two streets away from the Highway and I'd imagine that it may get noisy - especially on wet days.
3. The property itself isn't too bad; needs a little bit of refurbishment in the kitchen,(new bench top and handles), paint the feature walls white, new blinds throughout, and new floor coverings in the kitchen and other areas where it looks dated. Not that it needs doing; you could lease it as is I'm sure but it'd be worth talking with the agent to establish possible differences in rent.
*1000sqm could have potential to be subdivided.

http://www.realestate.com.au/property-house-wa-sunset+beach-110275201
1. Location looks better on this one with regards to proximity beach and high way.
2. Need to find out what zoning that large vacant lot is to know what's going to be built there
3. There is a lot of land that's been readied for development; possible supply vs. demand issues in future? Talk to council and get population growth projections. Also, talk to agents to find out what areas are better than others as this looks like a more affordable, new dwelling area.
4. This property is in better condition but on a smaller block - work out the costs per square meter (price/sqm)

http://www.realestate.com.au/property-house-wa-sunset+beach-109002811
1. Don't like this one; it's on a busier road with a bus route on it and is on the outer nothern ring of housing and closer to the new development area. I personally am not a fan of those late 70's early 80's archways and sandy bricks (the 1950's ones are nice though) and this building is on a smaller block.


http://www.realestate.com.au/property-house-wa-mount+tarcoola-109669666
1. On paper this location is superior to the previous ones. It's a little close to the highway again but that's negated by the proximity to town, the beach and has established neighborhoods surrounding.
2. The property is in good condition but I'm not a fan of slant architecture or exposed beams (especially in what looks to be a 1984ish house). Probably worth talking to agents to see what this would lease for vs. the others.

http://www.realestate.com.au/property-house-wa-mount+tarcoola-109580816
1. Easily the best out of this list.
 
Sam,

What and where to buy is dependent upon your chosen investment strategy.

You see property is merely the vehicle. The strategy is how you intend driving that vehicle.

Unfortunately the mistake I see newbies and sometimes not so newbies is that they are property focused instead of strategy focused which is like putting the cart before the horse.

Property investing is not about property rather about the strategy and the way you intend to use the vehicle to get to where you are wanting to go. No good buying a small shopping car if you intend driving interstate on a family holiday.

What strategy/s are best for you is determined by where you are wanting to go, the time frame you want to get there in and how hands on along the way you want to be ( manual/automatic etc) - all based around your personal risk profile.

I hope this provides some food for thought.

What is your chosen investment strategy?

Sesster said:
Hi guys,

I am looking to buy in Geraldton, I am looking at these properties at the moment.

If anyone has experience in the area/market, any advice will be greatly appreciated

Thanks

Sam

http://www.realestate.com.au/property-house-wa-bluff+point-110919707

http://www.realestate.com.au/property-house-wa-sunset+beach-110275201

http://www.realestate.com.au/property-house-wa-sunset+beach-109002811

http://www.realestate.com.au/property-house-wa-mount+tarcoola-109669666

http://www.realestate.com.au/property-house-wa-mount+tarcoola-109580816
Click to expand...
 
Rixter i have seen you say that a fair few times and do agree
but how do you understand what strategy fits..? you cant see into the future and say oh if i follow this strategy i will be where i want to be in 15 years time.

how do you workout what strategy is needed...?
i know what i want and where i want to be but dont know how to get there
 
Thanks for your reply guys,

Jake thanks for taking the time to look at the properties.

jake and Rixter to answer ur questions..

This will be my 4th property.. I have units in bondi beach syney and houses n marickville and parramater.

My portfolio is NG but not by too much.

I am looking to buy in areas that will have good CG in the next 3-5 years, with a low buy in point. I was lookin at gladstone but prices are a little high and by the time im ready to buy- 2-3 months it will probably be a little higher. To me its too risky to have a buy in price of 550 on 1 porperty in an area that does have overall higher risk.

So i did a lot of research on WA and in particualr some good towns in Geraldton. Terry ryder also had some interesting info on the towns near there which matched what my own research was pointing to.

So basically my goal is to have some good CG with a low buy in price say mid 300k in areas that will benefit from mining activity but also have many other things going for it.


Let me know what you guys think.. and do you believe geraldton will have good growth over nexy 5 years?

Thasnks

sam
 
How stable are the Oakajee plans at the moment? They were pretty iffy last year weren't they? Will you still expect to see Capital Gains as if the Oakajee project slows or stops?

EDit: Isn't there also some land releases struggling in Gerro at the moment? How will that affect CG?
 
I have property in Geraldton. Bought before Ryders hot tips. You need to be familiar with the local areas. The racial discrimination act prevents me from telling you to avoid Mount Tarcoola. Rangeway is the worst suburb in Gero and it is just behind Mt Tarc. Locals say do not buy East of highway. Geraldton is very slow at present and not a lot of good tenants around. Oakagee has big question over it. If you are going to buy in Gero ignore what Ryder says it will be a 5 - 10 year investment. I like the place but it has been stuffed by pollies time and time again.
 
As you are looking at regional WA, you may also want to extend your research and look at Bunbury for higher yields. Also Government is decentralising where some major regional centres will be winners, have heard Bunbury will benefit from this.

Cheers, MTR
 
My strategy is to grow my family's wealth as much as I can as fast as I can while taking on as little risk as possible.

Back on topic - I wouldn't be banking on Oakajee - could be a lot of years yet. But I know as much as anyone else which is to say not much...
 
BMan said:
Rixter i have seen you say that a fair few times and do agree
but how do you understand what strategy fits..? you cant see into the future and say oh if i follow this strategy i will be where i want to be in 15 years time.
Click to expand...
Oh yes you can..you didnt hear Sir Edmund Hillary saying he wouldnt set out to summit from the base camp without knowing which track to take first did you. When you set out you can only see so far into the distance and its not until you reach that point until when the new view of which route to travel will appear. :)
BMan said:
how do you workout what strategy is needed...? i know what i want and where i want to be but dont know how to get there
Click to expand...

Thats because you need to educate yourself on the various strategies we all have available to ourselves and then choose the one/s that best suit you.

Different strategies require different time frames to be implemented, different levels of hands on work, different levels risks associated to them, and different amount of capital injection required to apply them.

To gain a better understanding of the common types of strategies available I read a very good book a few years ago I recommend you read.

The book is written by a well known Perth Investor Craig Turnbull. The book is called Its Easy to Become a Property Millionaire.

There a lots of strategies available such as Buy & Hold for CG, Buy & Hold for Cashflow, Renovate, Wraps, Landbank, Lease Options, Develop, Flip etc etc. Just get out there and educate yourself so you can then devise a plan on reaching your goals.

I hope this helps.
 
Sesster said:
I am looking to buy in areas that will have good CG in the next 3-5 years, with a low buy in point. .....

So basically my goal is to have some good CG with a low buy in price say mid 300k in areas that will benefit from mining activity but also have many other things going for it.


Let me know what you guys think.. and do you believe geraldton will have good growth over nexy 5 years?
Click to expand...

I dont believe Geraldton will attain the CG you are looking for.

Personally I would purchase Townhouses & Villas for the following reasons.

1/ lower maintenance & upkeep for the tenant
2/ lower purchase or entry level into a Higher capital growth suburb area like you say you are wanting.
3/ rapidly growing marketplace (starting both now & into the future) wanting these type properties. This is due the largest group of people to ever be born (being the Babyboomers and Empty nesters) starting to come into their retirement years. They will be wanting to downsize for the following main reasons - lifestyle & economic.
4/ greater tax advantages & effectiveness thus maximises cashflow.
5/ able to hold more individual properties spread across your portfolio - thereby minimising area over exposure risks by not holding all your eggs in only a few baskets, so to speak

I would look to buy in an area with a historic Cap growth of 7%pa and/or are under gentrification in or an area adjacent to one of the Satellite CBD's in Perth Metro area.

Look to where the Government, Commercial, Retail and Private sectors are injecting money.

I have found this works well if you are looking for short to medium term capital growth (as you say you want) so as to leverage against and build your portfolio faster.

Somewhere in easy commute to Perth airport if you want to cater for the Mining Industry FIFO marketplace.

I hope this helps.
 
Hi Rick,

Thank you so much for your thoughtful reply - much appreciated.

Its very interesting the points you mentioned. When i contacted a REA in Perth re geraldton he basically said:

"Can I ask why Geraldton? It located 4.5hours north of Perth and in my opinion for the same money you can get a better financial return both in terms of rental return and capital growth from a property in Perth."

This is in line with the comment you have made as well. So I am seriously taking all this on board and have moved my sights to the suggestions you have made. This REA suggested a place in Joondanna. I have attached what he sent me, He said the owners will take 355k for it. Please have a look and let me know what you think?

My main goal here is to detetmine weather this REA knows what hes talking about and can hel me purchase a good place. He saidhe can act as my BA for 3500.

Anyway have a look and let me know what you think. I will do thorough DD as well obviously.

Any tips on places you think will have good CG short to medium and benefit frmo the FIFO?

thanks mate

sam
 

Attachments

  • joondanna.pdf
    313.6 KB · Views: 86
Also,

Does anyone know good, reliable and honest BA in Perth?


Rixter, any opinion on Midland precinct (Perth), Murdoch precinct (Perth)??
Rockingham (Perth)??

thanks

sam
 
Last edited:
Hi Sesster,

Sorry Im currently OS and dont log in much..

I have property in Midland. I believe its a good area if you're looking for a long term B&H for CG. It fits my CGA strategy.

Also like Cockburn Central, Cannington, Murdoch, Leeming within close proximity to Train Stations.

I dont know any BA's.

Sesster said:
Also,

Does anyone know good, reliable and honest BA in Perth?


Rixter, any opinion on Midland precinct (Perth), Murdoch precinct (Perth)??
Rockingham (Perth)??

thanks

sam
Click to expand...
 
Hi Sam
Sorry I didn't see this thread earlier- I am a local Gero person and actually am familiar with a couple of the porperties you had on your initial list. I can't speak for Perth but I can tell you how busy this town has become in the last two years- what a lot of people dont understand regarding Oakajee is that we have a port already that is absolutely flat out(hubby works there). This is currently being significantly expanded. Rents are on the rise big time- - we rented a duplex we built a month before it was complete-good locations like Wandina, Mount Tarcoola etc are always in demand(someone said locals dont live east of hwy?? this is not true, I live east of hwy- on a hill that allows me to gaze at the whales while i do the dishes). The SKA project just got the go ahead(google this if not familiar but a v exciting project), the farmers have had several cracking years- mining is just adding to all of this. Make sure you ask a local who has experience in property before you make a decision- happy to help if you need, mrsswan
 
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