VIC Ballarat picking up ??

Most people that live in Ballarat don't commute to Melbourne. Ballarat has one of the lowest unemployment rates in Australia at the moment (3.89% as of September qtr). Also, people prefer to live in regionals due to very easy and fast access to all needs such as hospitals, education, employment, shopping and entertainment rather than being stuck in traffic gridlock or crammed like sardines on public transport every day.

For those that do commute, they can have a much better property for their money than they could have in Melbourne. Some of the outer suburbs of Melbourne actually take just as long or even longer to commute to the Melbourne CBD than from Ballarat too.

 

- Affordability
- Amenities are often better in the larger regionals than outer suburbs
- Less commute for family e.g. schools, shops
- Most would move with the view to getting local employment at some stage

 

Hi Michelle - I see Wendouree West and Corio as very similar. We own one amongst the flower streets and have done so for a few years now. We have not had any issues. It is a large block which we may develop down the track, our tenant always pays on time and the house is kept in good order. The tenant has just signed another 2 year lease with increases built in. There is also a bit of development happening there as well - a few knockdown build two situations. There are similar stigmatised pockets within Delacombe, Sebastopol, Redan, Ballarat North and others. A good PM and tenant selection is important. It is a pocket that is not going to boom like Sydney but historically it has moved along nicely - lower but consistent growth and good yields. It is close to Stockland, the freeway and Wendouree train station. But the most important factor is whether or not the property brings you closer to your end goal or not.

 

Thanks Owlet - always good to have other opinions. We manage properties in Corio - just not Ballarat. So it's a little bit of an unknown for me. I'd manage it myself in Corio - Ballarat, not so sure as it's a bit further away.

 

Referring to your above comment, do you reckon any suburb in Ballarat will see a growth like Sydney though? Hard to believe based on historic trends.

 

Some of Wendouree is in the green zone (on a map posted here earlier), I assume it's better to buy in that area?
There's a property in RGZ with 570m2 land - would it be a good buy for 300k? It would be our 1st investment prop, hoping capital growth. Last week I thought Ballarat would be a good area, this week i doubt myself, roller-coaster

 

Exactly similar feelings. It is partly because all of us have different definitions of 'growth'. They are way different for people in top 3 major cities as compared to people in smaller towns. For some, 3% y-o-y is a decent growth and for others even 10% is also lame.

Particularly with regionals one needs to be extra careful of expectations even though local agents might say the suburbs have 'grown' quite a bit. Their 'quite a bit' is not the same as that of many Sydney or Melbourne residents. I noticed even in Adelaide 3% growth keeps people happy whilst for many it's just beating the inflation.

Also, unlike yield, growth is hard to quantify or predict so no way all opinions or research can be on the same page. Though I still have interests in regionals including Ballarat, I guess it is hard to make quick money there unlike places with bigger economy. At least historic trends say so, otherwise their median prices wouldn't be just $250k-$300k now. Having said this, they provide a good opportunity to enter the market at low price points - with low risk/ volatility, high yield and probably reasonable capital growth if you could time it right. Add to it good lifestyle at lower cost if one has plans to shift their PPOR.

 

Probably not. There’s a few differences to take note of however. Ballarat is more of a balanced play between yield and growth. It also has more steady growth whereas Sydney tends to boom and then do nothing for several years.

You would prob get better growth in Sydney over the long term; however, you have to play at a very high price point and you will have very high holding costs and the market is riskier as the growth is not as steady.

 

I don’t think property investing is a quick-money-making game. It’s supposed to be a long-term one for someone to really see the benefits of it.

 

I agree with Ko Ko Niang - there are so many shows on TV now with flipping houses, to make $10's of thousands of dollars profit with just a few months work (if that)... but what people don't realise is these are seasoned professionals with all the right networks to get the job done. Capital growth itself I don't think will happen overnight in areas like this so one needs to be in it for the long haul if they're going to get the most out of their investment.

 

Flipping houses? I’d rather work my day job. That said, adding value is a completely different concept.

 

True - we added value to our first home to rent out, not a full reno (walls, tiling, carpet)... that was enough. Serious flipping, no thank you!

 

After quite a few years waiting for the magic to happen with the growth in the Rat, I believe it is really happening now.

$310,000 for a 580sqm property with a lot of work needed?
904A Ripon Street South, Redan, Vic 3350 - Property Details

$372,500 for 700sqm on the main busy road and not in a desirable area of Ballarat East?
134 Eureka Street, Ballarat East, Vic 3350 - Property Details

Just a ripple effect, not a Tsunami, though.

 

"Ballarat real estate agents are experiencing the biggest market of Melbourne buyers that they have had for a long time."

Queuing up for regional properties

 

Definitely not - Ballarat is not even comparable to Sydney.

 

Absolutely not a chance.
Maybe in 100 yrs when people decide to flock to Ballarat

 

Certainly not like Sydney, but there's a market there for investors who want to play it safe - minimise the risk by spending less than 1/2 on what they would a house in Melbourne let alone Sydney, slower growth, but higher yield. All depends on what you're looking for and how long they're planning to hold.

 

Be careful you don't have to eat your words later.

 

Good summary and probably correct too. But. I've learnt, always listen to what a born and bred local says and then dismiss it because they never think the place they grew up could do better. Just like we get surprised at how intelligent and popular our mums are when we grow up.
Not that I know anything about Ballarat, mind you.

 

I hope I will have to eat my words. I certainly will enjoy the equity and $$$ that I ingest with them.