Geelong’s median house price has hit $510,000 with an increase in home buyers and investors pushing the city’s demand out to surrounding suburbs, such as Belmont, Bell Post Hill, and Clifton Springs.

Sydney and Melbourne-based home buyers and investors are increasingly realising Geelong’s potential, and it is expected that late spring and summer will continue to be good seasons for selling in Geelong.

As reported by news.com.au, more home buyers are deciding to make the ‘Geechange’ –  Geelong currently holds 9 out of 10 of the nation’s most in-demand, non-capital city suburbs searched by home buyers.

Rental property owners in Geelong are benefiting off the back of last year’s boom, as the rental vacancy rate has dropped to 1.9 per cent in July 2018, compared to 2.1 per cent in July 2017.

Commercially, shopping centres in Geelong and surrounding areas are selling with pace. Centres which have sold this year to date include the Torquay Village for $35 million, Bellarine Village for $36.5 million, Belmont Village for $58 million, and Leopold’s Gateway Plaza for an enormous $117 million.

Three months ago, Geelong was announced as the fastest growing property market nation-wide. It is expected that Geelong’s current population of 274,000 will increase 32 per cent by 2036. The demand for new shopping centres in the region is fuelled by continual population growth.

Tips for buyers seeking to purchase an investment property in Geelong:

1. Understand your cash flow.

Before investing in a property, it’s critical to have a thorough understanding of your cash flow. Ask your bank for a pre-approval of your investment loan, so you know how much you’re able to borrow before you start hunting for properties.

2. Look past current tenants.

Buy the building, not that tenant. What does this mean? Buy the property on its own merits. Look at the location and don’t be fooled by who may be the sitting tenant. If the tenant was to vacate the property, can you release it easily, and can repeat the same level of rent paid by the previous tenant.

3. Location, location, location.

Choose an investment property in an area where there is a strong demand for rental accommodation. Buying a property close to transport, universities, shops, and schools will make it more attractive to renters.

4. Employ a property manager.

Simple mistakes can cost you a lot of money. Your property manager will help you with ongoing advice and will help you manage your tenants. This will allow you to get the best possible value from your property. Commercially, a good property manager who is up to speed with legislation, such as the Retail Leases Act, will save you money in the long run. Management fees in a commercial environment are an ongoing cost that can be passed onto the tenant.

5. Think long-term.

Consider what is likely to happen in the future and manage risks. The property market goes through cycles, so be sure to factor in rate rises when crunching the numbers.

Geelong is a particularly attractive location for first-home buyers and young families. The region is continuing to do well as the result of Government infrastructure investment and job growth.

To learn more about Geelong’s current property market and growth, see our previous blog.