Lot 115 Homestead Drive Lara, VIC

“Lara Standard House – $26k Income, 4.6% Yield, Growth in Thriving Geelong Corridor”

Property analysis by:

Investment Highlights

• Priced at $582,500 with expected rental income of ~$26,796 p.a. – delivering a 4.6% gross yield.
• Standard turnkey home: modern 3-bedroom, 2-bathroom, 1-car design with quality inclusions.
• Growth location: Lara house prices up 11% in the past 12 months, outperforming broader Geelong.
• Family appeal: close to schools, parks, shopping, and the Serendip Sanctuary.
• Connectivity: Lara Train Station links directly to Melbourne and Geelong, supporting commuter demand.

Key Financials

Purchase price: $582,500 (Land + Build)
Configuration: 3 Bedrooms, 2 Bathrooms, 1 Car
Land size: 232 m²
Rental appraisal: $520 per week (~$26,796 p.a.)
Gross yield: 4.6%
Vacancy rate: 0.9%
10-year avg. annual growth: 5.2%
Cashflow: -$211 per week before tax (based on conservative finance assumptions)

Location & Growth Drivers

Lara is positioned within Greater Geelong, offering a balance of suburban tranquility and strong commuter connections. With a median house price of $695,000 and 11% annual growth, Lara has outperformed many Geelong suburbs.

The suburb has strong liveability scores: convenience (76/100), tranquility (86/100), and community strength. Families are drawn to its parks, sports clubs, and schools, while commuters value the direct train to Melbourne. Population growth of 18.8% in the past 5 years highlights long-term demand and development opportunities.

Build Specification (Standard House)

• 3 Bedrooms, 2 Bathrooms, 1 Car
• 7-star energy rating with heating & cooling included
• Stone benchtops, dishwasher, high ceilings (2740mm), and 2340mm doors
• Floor coverings throughout
• Driveway, landscaping, letterbox, and clothesline
• Blinds, NBN provision, and locks to all windows
• Turnkey delivery – no hidden costs

Why This Deal Stacks Up

1. Affordability: At $582k, this is a low-entry investment compared to Melbourne and Geelong averages.
2. Rental demand: Vacancy at 0.9% indicates consistent tenant demand.
3. Growth performance: 11% annual house price growth in Lara outpaces broader Geelong.
4. Family-friendly suburb: Strong community appeal drives both rental and buyer demand.
5. Turnkey build: High-quality inclusions ensure modern tenant appeal and low maintenance costs.

Risks & Mitigations

• Negative cashflow: Estimated at -$211 per week before tax. Mitigated by potential rent increases and long-term capital growth.
• Market cycle: Lara has seen rapid growth; short-term softening is possible, but demand drivers remain strong.
• Small lot size: 232 m² is compact; offset by quality design, inclusions, and affordable entry point.
• Geelong market exposure: Local oversupply risk exists, but Lara’s train connectivity and affordability maintain competitiveness.