Why upgrading a home can offer more than a better lifestyle
The lifestyle opportunity presented by an updated house near one of Geelong's busiest local shopping hubs attracted a wealth of interest, but the potential returns provided the icing on the cake for the local homebuyer.
Four bidders vied for an updated, three-bedroom residence at 27 Ferndale Parade, Highton, which is close to the Highton Village shopping centre.
While first-home buyers provided the bulk of the interest in the renovated brick veneer house, it was a local investor who ended Saturday's auction with contracts in hand for the 538sq m property.
Barry Plant South Barwon agent Matthew Constantine said about 70 groups had inspected the home during the campaign, which finished with a $802,000 sale price.
Mr Constantine said the reserve price was $765,000.
'That was very well renovated with some major updates and then the proximity to the village and the convenience that provided was compelling for a lot of people,' he said.
'To walk around the corner to Highton Village and then down to the Barwon River as well, it was very much a lifestyle choice to me.'
Mr Constantine said it was encouraging to see an investor in the mix for the property.
'It's very much a long-term game,' Mr Constantine said of the purchase.
'But they're always going to be guaranteed a treasure trove of potential tenants in that position and the quality of the accommodation it contains so the returns will be pretty good.
'They're expecting good growth in that area and I certain agree.'
A designer kitchen featuring matt black cabinetry, timber shelving and Corian benchtops.
Custom bench seating also created a cosy breakfast nook for casual dining in the room which separates to living spaces – a formal lounge at the front and a family room at the rear.
A stylishly renovated bathroom is another highlight in the three-bedroom house.
Investors are starting to make more of an impact on the property market as buyers see the potential for better returns ahead.
Investors have been getting out of the market in droves after the state government increased its land tax take and introduced minimum standard measures that have seen owners costs rising.
'The people jumping out of the market because of land tax and the like has very much slowed down,' he said.
'There's a lot of property that we've sold in the last 18 months that is considered ex-rental stock and that's only been pushing the rents up.
'So that's where I think the returns are coming back now, because the supply in the rental pool is so tight.'
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