The biggest value through property being passed down to the next generation in Geelong is expected in Barwon Heads in the coming year.
The Geelong region is entering the largest period for generational wealth transfer through property as Baby Boomers enter their twilight years.
But whether the next generation holds on to a property or decides to sell it can often be determined by the address.
New modelling from FoundIt reveals the areas where the most wealth through property is expected to be transferred between generations in the next year.
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The research finds the coastal hot spots of Barwon Heads, Anglesea, Torquay, Point Lonsdale, Ocean Grove and Portarlington and the suburbs of Newtown, Geelong West, Geelong and Highton are among the areas where adult children stand to gain the most – up to almost $850,000 per sibling – through inheriting property.
The research assumes an inherited property is split between two adult children and measures suburbs by median dwelling price, the highest number of fully-owned mortgage-free dwellings and residents aged over 80.
FoundIt head of research Kent Lardner said the advantage for those with access to family wealth was becoming one of the defining forces in the market.
“We’re now in a position where property is being purchased through three pathways wealth, wages, or something in between,” Mr Lardner said.
Found It head of research Kent Lardner.
“As affordability drifts further out of reach for wage-only buyers, we’re seeing a clear divide emerge between those who have access to family support and those who don’t.”
Mr Lardner said inherited wealth was increasingly shaping who could afford to stay in established suburbs.
“The bank of mum and dad is now deeply embedded in the system, and inheritance is becoming a much bigger part of how people get into the market.”
Bellarine Property agent Peta Walter said generational properties in tightly-held locations like Barwon Heads were rarely traded, as selling them would ensure the beneficiaries were locking themselves out of buying back in a similar position.
“There is a large proportion of properties in Barwon Heads that because they’re some really unique properties in really tightly-held locations are what I would call generational properties,” Ms Walter said.
50 Baker St, Ocean Grove, is listed for sale $2.7m to $2.95m price hopes.
“They will purchase them and hang on to them because if you do pass a property on, the chances of being able to replicate that are so minute.
But families inheriting long-held coastal homes were blaming the state government for increasing land taxes, effectively forcing them to sell a property their families had worked hard for, RT Edgar Bellarine director Felix Hakins said.
“They are unfortunately having to move them on because they can’t hold them due to the land tax implications. It’s just with cost of living these days, a lot of those people can’t afford to hang on to them.”
But Geelong buyers advocate Tony Slack said selling an inherited property can be life-changing for the adult children.
“More often than not the property will be sold because the siblings will want the financial benefit,” he said.
The three-bedroom house at 27 Catherine St, Geelong West, sold for $697,000. The home was held in the one family for 77 years.
Whitford Newtown agent Heidi Trempel said it’s more likely to find inherited properties up for sale in Geelong’s outer suburbs that developed since the 1950s, such as Hamlyn Heights, Herne Hill and Bell Post Hill.
“If they’re an older home, to keep that as a rental you’ve got to make so many changes so that it actually is rentable, up to the standards,” Ms Trempel said.
“We’re finding the younger buyers, or first-time buyers, particularly, they’re very scared of doing any work,” Ms Trempel said.
Ms Trempel said deceased estates were often smart buys.
“Smart buyers would actually go for them if they have the opportunity, because if you can get a house and land and rather than a unit, but pay similar money, even though it’s a bit more run down, you’d be going for the house and land every day. It’s a long-term investment, it grows better.”
Geelong’s biggest inheritance suburbs
| Suburb | Inheritance per adult child |
| Barwon Heads | $1.7m |
| Anglesea | $750,000 |
| Torquay | $654,000 |
| Point Lonsdale | $586,000 |
| Newtown | $520,000 |
| Ocean Grove | $490,000 |
| Portarlington | $463,000 |
| Geelong West | $449,000 |
| Geelong | $448,000 |
| Highton | $443,000 |
Source: FoundIt. How much housing wealth is likely to transition from older Australians to the next generation through over the coming year by measuring median prices, the count of full-owned dwellings and residents aged over 80 at the 2021 Census. Model based on 5 per cent of over-80 population to pass on property assets.
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