Belmont booming
Investers swoop as suburb pulls in high rental income, big capital growth
STRONG capital growth and a good rental yield are two of the main reasons why investors are looking to Belmont to expand their property portfolio, experts say.
Not only has demand from people looking to be owner occupiers increased but so has demand from investors.
1Group buyers agent Julian Muldoon snapped up 1 Kinross St, Belmont, for $505,000 at auction, well above price expectations of $400,000 to $420,000.
Mr Muldoon outbid three other parties to secure the property for a Sydney client.
“They will use it as an investment and are planning on holding it for the time being,” he said.
“They were attracted to the zoning of the property.”
Mr Muldoon, who is based in Melbourne, said an increasing number of his clients in Melbourne and Sydney were looking to Geelong to invest.
The median house price in Bel- mont has increased 16.2 per cent in the past year to $476,250 and the gross rental yield is 3.8 per cent, according to CoreLogic.
Buxton Highton agent Tony Moorfoot said the property provided a fantastic opportunity and a great result.
“You can extend, renovate or develop, subject to council approval, the opportunities are endless,” Mr Moorfoot said.
“It is a rare opportunity as it is a 728sq m flat block.”
The property already has a three-bedroom house on it that is rented out for $295 per week until April, 2018.
It last sold in 2010 for $310,000, according to CoreLogic.
This was just one of 10 properties in Belmont to go to auction at the weekend and one of 70 properties across the Geelong region.
This was the highest number of properties to ever go to auction in one weekend in Geelong.
There are still about 12 properties scheduled to go under the hammer before Christmas including five during the week and five on Saturday, December 23.