The property market continues to heat up in the Surf Coast Shire as locals and Melbourne buyers made the trip this weekend to snap up their dream homes. Popular suburb Belmont in up-and-coming South Geelong had another home sell for over the reserve price. realestate.com.au reported that there was plenty of interest in the 1031sqm 1950s brick house that sold for $687,000.
A 10-minute drive west of the city, residential suburb Hamlyn Heights’ popularity also shone through with a 3-bedroom property this weekend selling for nearly $100,000 over reserve at $550,000. And smack bang in Geelong city centre, a 5-bedroom sold for over $1 million.
Melbourne might be seeing properties fly off the market at an average of 32 days in January – but Geelong isn’t far behind. You’ve got to be quick to pick up a property in Geelong West, Hernie Hill, Newcomb, Highton, Belmont, Waurn Ponds and Grovedale, with these suburbs’ properties only taking around 30 to 35 days to sell.
REIV’s auction results reported that there were 847 auctions this week across Victoria with a clearance rate of 79%.
Trains strain as living in Geelong becomes more popular
With more and more people making the sea change to Geelong and the Surf Coast, it’s having an impact on the commute to Melbourne. Already the demand on the regional line from Geelong is at breaking point. As The Age reports, the 2-year-old railway line has become a “victim of its own success”.
New stations on the way into Melbourne at Tarneit and Wyndham have seen an extra 2.4 million journeys, and a slowing of the service due to more stations.
Dr Bill Russell from Rail Futures said, “A failure to separate suburban and regional trains would ultimately make Melbourne less accessible for Geelong residents”.
He added, “Journey time is really important, it gives the Geelong community a lot of options in terms of employment and education in Melbourne, access to the footy and so on, so a 45-minute service is what we should be aiming for”.
Capital gains tax and negative gearing will probably not change
This week the government, “flat-out rejected a proposal to gradually halve the capital gains tax discount“. Finance Minister Mathias Cormann said, “The government has absolutely no intention of reducing the capital gains tax discount or making changes to negative gearing”.
This came in response to The Australian Financial Review report that stated the Turnbull government is planning a crackdown on capital gains tax concessions for property investors to seize the mantle on housing affordability.
With only a few months until the May budget it’s a case of more speculation versus wait and see.
New high for broker home loans
For those looking to get into the Geelong market, brokers are a popular choice for residential loans. Broker News wrote that mortgage brokers originated more than half of new residential loans. It was the first time broker-originated lending exceeded $50 billion in a quarter!
If you’re looking to buy in Geelong or the surrounding Surf Coast get in touch to find the best mortgage for your finances.