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VIC 200k Ballarat?

Discussion in 'Where to Buy' started by Mabelle20, 23rd Aug, 2015.

  1. Mabelle20

    Mabelle20 Active Member

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    hi all, new to the site and green in terms of ip. I'm thinking of purchasing 1st ip ( on my own) and am considering 200k outlay. After a LOT of research and thoroughly doing my head in, I've decided Ballarat. Reasons- freestanding houses, close to CBD, hours train commute to melbourne, uni, varied industry and fingers crossed could be a good tree change consideration for Melbournites. I'm not interested in flats or townhouses due to body corp expense and limited scope down the track. I'd love any feedback, alternate ideas etc. would love good returns which I think ballarat offers (??) but realise CG could be slow. Any ideas or opinions on suburbs also welcomed!!!!!Many thanks!!!!
     
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  2. Fargo

    Fargo Well-Known Member

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    My biased opinion is that I don't see Ballarat as as a tree change from Melbourne. It has a crap climate( Its not much fun playing sport in sleet and mud), crap shopping, crap congested CBD. But I would possibly consider investing there aiming at a specific tenants in a specific location, but not for the reasons you mentioned. I would be more inclined to go for Bendigo but I haven't looked at the numbers.
     
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  3. cherubym

    cherubym Well-Known Member

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    I am also very keen to know why Bendigo has an edge over Ballarat? Growth-wise? Location-wise? I am also looking at a regional Vic, be it Ballarat, Geelong or Bendigo. Geelong is getting too expensive lately for decent suburbs.
     
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  4. Mabelle20

    Mabelle20 Active Member

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    Thanks Cherubym and Fargo, I've considered Geelong as well, but mainly corio and norlane due to price points. Have heard norlane much rougher than corio though, so maybe a deterrent for decent renters? I've never been to Bendigo, but sounds somewhat similar to Ballarat. Would love neutral or positive geared property, but these all seem to spell low CG...
     
  5. Beelzebub

    Beelzebub Well-Known Member

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    Wendouree would be the go for that price range. Has recorded good cap growth, close to station and highway; however, low SES and high risk tenants: But at that price point, looking for a free standing house, I can't see you avoiding this.

    If you go to $250,000 your options in Ballarat start to get much better.

    Ballarat is a great commuter/tree change area, population growth is tracking at a steady 1.4%, Bendigo on the other hand is further away from Melbourne and more expensive. I think Ballarat is the pick of the bunch for the amount of money you're looking to spend and the product you're after. That is of course, if you're keeping your search limited to VIC.
     
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  6. Mabelle20

    Mabelle20 Active Member

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    Thanks Beelzebub, 200 is my limit sadly. I've looked at qld (Logan) but growing up in Bris I'm plagued by memories of that area. Also, the amount of townhouses is mind boggling and most have high bc due to pools and landscaping. I can see Gold Coast is now out of my price range but that was another area of interest. Tassie is cheap but little possibilities of building economy, and thats about it.
     
  7. Beelzebub

    Beelzebub Well-Known Member

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    You could also look at Mildura. You could get something in your price range, decent population growth (although not as high as Ballarat) regional centre with multiple industries and properties with 7% yield.

    Something like this: http://www.realestate.com.au/property-house-vic-mildura-120508905

    Otherwise it's units and townhouses
     
  8. cherubym

    cherubym Well-Known Member

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    I agree with this. Wendouree is OK with 200k mark. As long as you don't go further west, the area is not too bad. IMO, the growth might not be as good as other suburbs such as Ballarat central, north, northeast. I personally won't go south. Maybe it's just me.
     
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  9. Beelzebub

    Beelzebub Well-Known Member

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    I went East
     
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  10. Amber83

    Amber83 Well-Known Member

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    I grew up in ballarat.i don't personally think it has anything going for it.a friend of mine just moved there and is renting a house and although she is unemployed found it really easy to get a rental.apparently there is a high vacancy rate in some areas so just be mindful of that.
     
  11. Mabelle20

    Mabelle20 Active Member

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    Thanks Amber, that is definitely a consideration. May need to think again...
     
  12. Gim hwee lim

    Gim hwee lim Member

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    All the three major country towns : Ballarat, Bendigo and Geelong all suffered from high vacancy rates now. So if you're talking about returns, do not expect anything fantastic. It's a tenants world generally..

    I can't comment much on Ballarat, but I can share some of my experience investing in Bendigo.

    The current property market is generally flat. It favours buyers so it is a good time to buy. But do not expect much capital appreciation though. The market is plagued with too many houses currently.... But in the long term, it is still a worthy place to invest. The $660 million dollars hospital, completing end 2016, should contribute to some growth in the city. From my understanding, this is the largest public investment the Australian govt has embarked on a regional city so far.. The climate of Bendigo is also milder than Ballarat.

    The fact that Bendigo is further away from Melbourne compared to Ballarat, yet being only 1.5 hours by car away, can actually be a plus : It is seen more as a city on its own, rather than a satellite of Melbourne. The fact that it is located almost in the middle of the state enables it to function as the "capital" of central Victoria. It has and will consistently attract people from the surrounding towns and farms to congregate there. As such, Bendigo will keep growing. For Ballarat and Geelong, being situated nearer to Melbourne, i do not think they can serve the above function as well...

    It is still possible to buy houses in the $200k range in Bendigo. In California Gully, Eaglehawk and Kangaroo Flat, there are sometimes stand alone houses on 500 sqm land for sale around $180 to $190k. But expect to spend some money on renovating. Also, do not expect much capital gains as these are usually in lousier or commission house areas. Returns will be around $220 to $250pw I think.

    Melbourne in my opinion is too hot now.. Too risky and too late to go in now.. Regional cities are safer.
     
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  13. Amber83

    Amber83 Well-Known Member

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    Terry ryders report on regional vic gives u vacant rates for all areas in ballarat.not sure where else u could find that info...ballarat central and redan are good places in ballarat and close to cbd.near wendouree lake is nice but expensive.dont touch wendouree west or Sebastopol:they are the ghetto of ballarat
     
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  14. Mabelle20

    Mabelle20 Active Member

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    Thanks Amber83 and Gim Hwee Lim, great feedback that I hadn't found on other forum sites. May need to re evaluate.
     
  15. C-mac

    C-mac Well-Known Member

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    Thanks folks from me too - found these insights very helpful!
     
  16. cherubym

    cherubym Well-Known Member

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    I'm keen to know what other investors think about Newington, just to the west of Ballarat Central... :rolleyes:
     
  17. larrylarry

    larrylarry Well-Known Member

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    http://www.htw.com.au/Month_in_Revi...October-2015/Month_In_Review_October_2015.pdf (page 36)

    "Houses
    The price sector which appears to be the most buoyant in the Ballarat dwelling market at present would be the $200,000 to $350,000 bracket. Almost all suburbs of Ballarat have properties in this price brackets but some are performing better than others. Areas such as Ballarat Central, Soldiers Hill, Black Hill, Ballarat East and Golden Point have shown
    some good growth in the past 12 to 24 months. The main drivers of the market in these areas is
    the scarcity of land, aesthetic appeal of the period properties, proximity to infrastructure, strong rental returns and the relative affordability. The flow on effects in the near term would be the
    stagnation of some new areas in the region such as the new estate areas of Lucas and Delacombe.
    However in the event the prices close to town around $15 million into the economy over the next two years.
    Examples of house price growth include:

    706 Howard Street, Soldiers Hill sold in May 2008 for $177,000, then again in the same condition for $235,000 in May 2015.

    306 Havelock Street, Soldiers Hill sold in July 2008 for $180,000, then again in the same
    condition for $237,000 in April 2015 continued to grow, the new estate areas would
    become more attractive as purchasers would compare the two and perhaps begin to see greater value in a house and land package scenario. The performance of the sector is sustainable over the coming year as the growth is modest (from 2% to 5%) and the local economy is strong. The state government has just announced its intention to inject..."
     
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