What do you think guys about investing in Philip Island special in Ventnor and Smitch Beach.Please share your knowledge about this island for invesment properties.ThanksSpankyMember@spankyJoin Date: 2004Post Count: 102
I have no idea about Philip Island property, but, are these areas anywhere near where the motor racing events take place? You could rent them out for exhorbitant amounts of money during these events – there are a lot of revheads out there with a lot of money to burn supporting their sport.
Yes about 8 km from the sircuit.150 metres from the beach.yackMember@yackJoin Date: 2003Post Count: 1,206
Its like any toursit area in Victoria. Not really sure they are investments but more lifestlye properties.
if you read the latest property investor magazine you will realise that philip island is currently going tthrough a boom and will rpbably do so for some time. so its a great investment in my opinion.
less than 2 hours from melb, baby boomers, new developments everywhere. projected huge population growth for the bass coast…….you cld do much worse…
btw a friend bought a block there 2 years ago at 70k and just sold it for 200k so things are moving. still heaps cheaper than the surf coast or the mornington peninsular..
why buy at the tail end of a boom? prices have doubled and tripled already…
because the people who know are projecting huge further growth. also by comparison its much cheaper than the other coasts…so in short the bass coast was undervalued…
entry level is still reasonable – 200-250k
(comparitvely reasonable b4 you jump)
the growth is inline with the hallam, berwick, cranbourne, packenham corridoor…huge growth and all these people will be looking at bass coast and gippsland for retirement, leasure, holidays….
wonthaggi is openign an new McDonalds and KFC with talk of a Bunnings to come…
check out the API magazine they make some good points
who are the “people who know”? by the time it gets in API, the train has left anyway.
as a place for a holiday house, it’s good… and rogue, it’s not currently going through a boom… it’s been through a boom, like everywhere else on the coast. Also, if the economic downturn is just around the corner like Mr Costello is softening us up for, and we hit a recesssion with its accmopanying bad times, the first thing to go for people is their luxuries ie holiday homes. Look back at history, that’s exactly what happened on the surf coast and the peninsula during the last recession. That would be a good time to buy… not right now. Booms don’t peter out in a matter of months, I believe it’ll track sideways for a while, if not down.
I still can’t get my head around how people expect places to keep on booming after CG of 200-300%+ in the past few years. You can get places in Rye for 200-250k as well. Mornington Peninsula ain’t all Sorrento and Portsea.
Thanks guys for the info.I bought a house there for an investment and the planned was to kept it for the next 10 years.Maybe by the time I can make any profit.
cmon richmond – what you got against holiday houses. i know you sold one in blairgowrie recently..
the boom has ended but there is still growth to me had in my humble opinion.
the market is different now due to the baby boomers. so if there is a down turn i reckon its the middle suburbs that are gonna be effected. the boomers are the ones cashed up/equities up and they are the ones with holiday houses. this segment wont be too vulnerable especially in the 150-300k rge. luxury holiday houses are a different matter..
i also reckon that a downturn along with terrorism, the price of oil (cost of flying) etc people will be looking more and more in there own backyards for holidays.
other reasons – sea changers and downsizers in general. people working from home (cumputers etc) mean more will opt for lifestyle accomodation.
lots of people think this – not just me..
read the article first and let me know what you think.Supa FreakMember@supa-freakJoin Date: 2004Post Count: 101
spot on, I love holiday houses, but I wouldn’t call them investments, they’re more of a lifestyle/emotional thing.. that was our thinking when we bought it, having somewhere to take the kids etc. Mind you, had I not bought one and sold it I wouldn’t be in the position I’m in now. I wouldn’t buy one now as an investment because the yield just isn’t there. When I bought the cost was 170k, and the rent (as a permanent) was appraised at around 200pw… holiday rentals over the Xmas period mainly brought in 1000-1200 per week. It rented out for around 5-6 weeks with the odd week here and there at other times through the year for a greatly reduced prce. Those numbers aren’t bad at the original purchase price, but we sold for $340k, while the 200pw figure hasn’t changed… the numbers today don’t stack up, way too negatively geared (for me anyway). Selling it was the best thing we did, because every time we went there I ended up spending most of the time gardening, cleaning up etc. Also, the holiday tenants, even though they were families who came from “good” suburbs, were absolute pigs… there was always damage left behind, be it flywire screens or stains on furniture. Not anything major enough to go through insurance, but just bloody annoying.
good luck (honestly, not sarcasm) for people buying at Philip Island et al now, I just don’t think the growth will be there for a little while… I’m not saying you’re wrong, it’s all just opinions.
I’d love to see some stats about people working from home too, because although I’ve read plenty about how more and more are doing so, yet in my circle of friends and associates, I’m yet to come across one, even though they are employed in a very wide range of careers…
cheers and merry christmas to all
g’day richmond. you must admit there is a contradiction there. one line you say you wouldnt call holiday houses an investment and in the next line you talk about what a geat investment it was and how it has set you up!!
you are quite right that the returns arent there at the moment but i believe that capital growth will still be better than the burbs for some time to come.
follow the baby boomers and you have a chance of growth or at the leats you have a hedge against any large falls..
i have a holiday house hence my defence of it as an investment. it is only one of my investmetns but its the one i have targeted for capital growth so im not too worried about the lack of income generated from it. i bought 2 years ago and it has doubled in price…..so its the best investment i have ever made (sofar)
bottle of grange – bass coast will have stronger growth than the victorian average over the next 12 mos…
up for it???
no, no contradiction… I pointed out that it wasn’t bought as an investment…
as I wrote, “they’re more of a lifestyle/emotional thing.. that was our thinking when we bought it, having somewhere to take the kids etc.”
Yes, I said: “had I not bought one and sold it I wouldn’t be in the position I’m in now.” That’s a statement of fact, and I’m happy to admit to plenty of luck in riding the CG wave like a lot of people did. We just bought where we could afford, and the rental appraisal was more out of curiosity than anything… the holiday rental stuff was mainly due to the Peninsula being so painfully packed during the Xmas period, so we thought, hey, why not rent it out instead of it sitting empty? We didn’t buy thinking about CG and yield etc…
Clearly your thinking has been different in purchasnig your holiday house, since you’re taking CG etc into account. I would argue that most holiday house purchasers don’t.
Thanks for the offer of the bet, but I’m not a gambler… I honestly like to see everyone do well with their investments, it’s just that what’s good for one isn’t so good for another… for the sake of when we revisit this thread in 12 months, name some specific areas on the Bass Coast… I think there will be bugger all growth over the next 12 months in most areas to be honest. And as always, there’s other investments besides property.
richmond – i didnt think youd take the bet. lots of people have bought holiday houses because of the projected baby boomer phenom. its a valid investment stratgey..
cheersbalooParticipant@balooJoin Date: 2003Post Count: 122
I know the Island quite well from my time of surfing down at Smith Beach all those years ago. I’m shocked at the prices the Island is now commanding while at the same time kicking myself for not realising that one of my favorite spots was going to rocket. Corinella is another place along the Bass that has exploded recently.
But while I think the Bass Coast will grow at a quicker rate than the rest of Vic, those rates of return will be far inferior to other non-property investments I could make over the next 2 to 3 years at least. Now, at least in my opinion, is really not the time to be buying down there.
Not taking your bet doesn’t mean you’re right (although for your sake I honestly hope you are, along with everyone else who’s bought there), and I wouldn’t justify my investing by what “lots of people” do… “lots of people” also bought apartments at Docklands. That will probably sound harsher than it is intended, so please don’t take offence.
You still haven’t mentioned “the people who know” that are predicting “huge growth”.
By the way, on the “projected huge population growth” as you call it… Taken from the Bass Coast Shire website:
“The resident population of Bass Coast was 24,075 in the 2001 Census.
It is projected that the Bass Coastâ€™s population will increase to approximately 26,200 by the year 2011 and 29,000 by 2021.”
That’s 8.8 per cent in 7 years. I know of places where the growth rates in terms of population are 20%+ in the next 7 years.
I wouldn’t call the Bass Coast figures huge to be honest.
If holiday houses are a valid investment strategy for you, all power to you and I hope you kick goals. They’re just not for me… that’s pretty much my stance in a nutshell.
As I said: “I still can’t get my head around how people expect places to keep on booming after CG of 200-300%+ in the past few years.” I stand by that.
as an aside, and it’s far away from philip island… you mentioned areas such as Pakenham, Hallam etc earlier in this thread… CG is driven by scarcity… so when there’s s*&tloads of land out there still being released for young couples to build mcmansions on, I wouldn’t be expecting huge CG… I know because my sister lives in one. They’re happy there so good on them.
Personally I’ve been targetting areas on the central coast of Queensland, where the demographics are very good, in fact much better than Victoria, with a great mix of industry etc to go hand in hand with the lifestyle… ie more than just the baby boomer phenomenon at work…
just exchanging views, not arguing,
richmond – please mate. you think im making up things by saying people in the know…it was a turn of phrase. i didnt expect to be attacked like im a bullshitter. and the ‘lots of people’ gag is silly…most people dis holiday houses so whos following who??
read API magazine and you will see that there is a school of thought that holday houses are good investments. there is another article that also mentions that sth gippsland and bass coast are good investments with projected further growth – more gorwth that the rest of victoria.
read the article – what im saying is not revololtionary…nor is it new
its not too late to buy back in blairgowrie…
btw cg isnt always driven by scarcity…ive got examples if you wanna test me!!
i also agree that there may be better returning investment outside of property. agree totally although resourse stoicks took a hammering in the last few days and alot of the share marke sentiment is driven by china…if something were to faulter there i wouldnt wanna be geared up to my eyeballs int he shaemarket either.
hmmm, silly? I wasn’t the one who in several posts made the comment “lots of people” to go hand in hand with my argument… anyway, that’s by the by…
I don’t think you’re a bullshitter, and I’ve never said you made things up… you stated your opinion, I then stated mine. You made mention of “the people who know” I asked who they were. I expected some sort of economic forecasters or experts or something like that. It’s called genuine curiosity. You’ve now said it’s a turn of phrase, and that’s fine.
I think, and it’s my opinion, that scarcity is the main driver of CG. Of course there’s other factors. If you don’t agree that’s fair enough.
I realise there’s a school of thought re: holiday houses, but it’s not a school of thought I personally subscribe to in the current environment. What’s the problem with that? I had one, I sold it, I’m glad I did. I wouldn’t want to buy back in Blairgowrie, been there done that now. By the way, I love holiday houses, they’re great to escape to, but I don’t think they’re the greatest investment at the moment. If you can afford one as a lifestyle thing, great.
I stand by my comments that the Bass Coast will not continue to boom in the short term. Higher growth than the rest of Victoria over the next little while is not a boom. That’s how I entered this thread, that’s how I’m leaving it.
Let’s be constructive, not combative.