VIC Ballarat picking up ??

Investment options are always limited by a variety of factors.
I am just aiming for an investment that has a cash flow as close to neutral or positive as possible while remaining under the $200K mark. Ballarat, as pretty and very appealing an option as it may be for potential for capital growth it is not meeting my criteria. Potential is just a forecast, and I feel a lot better with a property that is able to have income that is almost self supporting... well, after I account for the initial investment outlay. It's about personal risk management & comfort levels.

There are plenty of regional that still have opportunities under $200K where they are almost self supporting. I'm a bit spoilt for choice in some areas!

 

Correspondance from PM recently re Ballarat IP
"This is an excellent time to review the return you are receiving for your property and ensure you are achieving the best possible rent for the property in comparison to the current market.
At this time the property is receiving $XXX.XX per week in rent, and my recommendation after reviewing the current market and comparing to available properties in the area would be to not have an adjustment/increase in the rental price at this time."

This contrasts what some have been saying on here about rents increasing. It also contrasts what I can find easily with a re.com search. If investing in Ballarat - find a good PM.

 

Like I’ve said, I think playing in the sub $200k market is not as cashflow neutral as you may think. You might find that a new build after depreciation is closer despite the lower yield once you factor in the significant hit maintenance, rates etc would have on such a low price point.

That being said, have a look at Colac. If I were playing in that market that’s where I’d look.
- freeway about to finish
-10000 people
- not dependent on one industry
- soon to be commuting distance to Geelong

 

Thanks Beelzebub. Colac is not a township that I've considered! I'll have a look.

 

It's good to keep in contact with those agents while researching the market and looking to buy, so that they can think of you when something comes up like off-market opportunity. We need to keep in mind that selling agents work for sellers, not for buyers though. Talking to a few property managers for rental market is another good way to get to know the area as well, especially when those PMs genuinely care for your best interest. I believe mutual respect is the key here.

 

I did increase my weekly rent to $10 more when my tenant left my Ballarat East property 6 months ago. Got another tenant within the first week. Yes, a good PM always knows the current market well.

 

Almost bought this at the end of 2016, but slipped through my fingers for $275,000
102 Eyre Street, Ballarat Central, Vic 3350 - Property Details

Just saw this a couple of week ago. Sold for $390,000 in Feb:
102 Eyre Street, Ballarat Central, Vic 3350 - Property Details

The condition of the house looks no different to the one back then. It’s a whopping $115,000 profit for the buyer. Approx. 42% growth in a little over 14-month holding period. This could be a good example of buying well plus selling well.

Just saying and feeling a shame how I could miss that out. But as my mentor always says, there are plenty of fishes in the sea.

 

Do you remember the land size?

 

Just a bit over 400sqm. That was one of the reasons why I didn’t try hard enough to get that.

The beauty with those Victorian Homes is that people tend to like them regardless of the land size, just because land is scarce in central areas.

 

Another reason why this property can sell at a good price is because of its zoning. It is zoned commercial which makes it more flexible for the new owner to decide what to do with it. It also allows a non resident to buy it as commercial properties are not subjected to extra stamp duty nor FIRB control.

 

That’s true, @Xiao Hui I was told back then by the selling agent that the property used to be setup as a clinic.

 

Hmmmm so what can we learn from all this?
That it's better to pay a little extra even if it's cheap for the more desirable properties in an area?

 

If you see how the 2 selling agents advertised the house for Sale, you can tell a difference.

The previous selling Agent, Harcourts did not spell out that the property is COMMERCIAL ONE so this might not attract those looking for commercial aspect of a property. Obviously the second Agent, Bendigo Real Estate clearly spelt this out and this might have boosted it's attractiveness?

 

Ballarat is definitely a seller market at the moment. Good on you if you bought 2/3 years ago.
Look at this one, really?

842 Howitt Street Wendouree Vic 3355 - House for Sale #128502610 - realestate.com.au

 

Oh Luca! That kind of home makes my heart swoon. It's beautiful. But that is me. I know it's not everyone's cup of tea but I love the old 'banker' homes.

 

What's a 'banker home'? Haven't heard that phrase before.

 

I wonder how much it'd be sold for. It's on a very busy main road, but the vendor is holding the "Corner Block" card. Proximity to the lake is another selling point though. It's located in the most desirable area in Wendouree, as shaded green in my map. Gentrification has been definitely happening around that area over the past years, especially around the east side of Wendouree Village. But I'm still surprised how quickly it's grown and I should have bought one in that area.

 

Hi Beelzebub.
The banks house design service was available for those that needed a loan from the bank in order to build or for returned soldiers through the associated War service homes scheme. The banks designs were clearly recognizable. It's part of our architectural history and is a little bit special.
The State bank built homes on individual sites for years, and then it decided that it was going to do subdivisions. So examples of banker homes can be seen many streets. The 1930's bungalow style with a degree of flair. Often they had some craftsman style front doors ect. They are beautifully built, and have a beautiful feel to them. There is a certain romance element to them.

 

Property prices are growing in these 10 Aussie cities

BALLARAT

This strong regional city could be included the previous paragraph as a regional centre near the state capital, but it deserves its own exclusive mention. More and more Melbourne buyers are targeting Ballarat because it’s well-connected to the big city and offers attractive affordability and a different kind of lifestyle. This is now a very busy market and I expect prices to show solid rises this year.

 

This house around Lake Wendouree has set a new record for Ballarat

Buxton Ballarat director Peter Burley said in 17 years, he had not seen the market as strong as it is at present, at all levels.

“There’s a lot of out-of-town investment, not only from Melbourne but also interstate buyers. I recently sold to a fellow from Auckland. Ballarat is on the map internationally ... we have buyers from China as well.”

Mr Burley said the biggest increases had been “pushed dramatically because of the Melbourne influence”.

“Over the last 12 months, we have sold 456 homes and 40 per cent of those sales have been to Melbourne buyers."

Neil Jens from Red Circle real Estate Ballarat, agrees. “The market is about as good as I’ve seen it.”

“A lot of people are sick of the traffic and are buying to live here, but it’s strong for investors too because the investment return here is higher."