Direct property investments in areas like High St, Belmont are making more sense for buyers watching interest rates and share market values wane.
Five buyers contested the home to Bendigo Bank’s Belmont branch at 142-146 High St, which sold for $2.16 million at auction last week, for a 4.64 per cent yield.
Darcy Jarman, Geelong West agent Tim Darcy said interest came from Geelong and Melbourne investors, with a local securing the contracts.
The bank last year exercised a 3-year option on its lease since 2004. It pays $103,500 in rent.
“It’s a big building on a big parcel of land but it’s in a very dominant position,” Mr Darcy said. “It’s right near the corner of Regent St, directly opposite the Aldi car park and only 100m down the road from Coles. So it’s the bees knees in terms of prominence and location within the precinct.”
The sale will augur well for a forthcoming auction of a smaller property at Shop 4, 165 High St near the library.
The 53sq m shop is leased to long-term tenant Yummy Mummy Lolly Shop, which is on a new 7-year lease with a $14,280 annual rent.
It goes to auction on March 26 with $300,000 price hopes.
“This will be for smaller investors, self-managed super funds, because it’s affordable.
“Investors that have got a surplus level of funds in respect to where rates have retreated to and the recent wind back in the capital value in the share market, are still looking for direct property investments, provided they have the right location, the right lease and the right covenant,” Mr Darcy said.