VIC ballarat prospects?

Discussion in 'Where to Buy' started by jomi, 8th Oct, 2015.

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  1. Ko Ko Naing

    Ko Ko Naing Well-Known Member

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    Infamous triangle of Ballarat! No-go zone to me!
     
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  2. C-mac

    C-mac Well-Known Member

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    I'm not on the ground but I agree, that triangle is to be avoided!
     
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  3. Jake Milne

    Jake Milne Well-Known Member

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    6.7% Growth in 2014 and -0.5% in 2015 across Ballarat.
    Still like this town for buyers with a small budget $200,000 - $400,000.
    Really confusing results last year when most areas across VIC grew.
    Expecting a better result in 2016.
    Solid fundamentals.
    My strategy here is 3-4 Bedroom houses close to the CBD, like Soldiers Hill, on 600+ sqm with potential for development.

    Wouldn't encourage buying below the $300,000 mark however you'll still be able to pick something up in the $200,000's for satisfactory returns.
     
  4. TMNT

    TMNT Well-Known Member

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    Youve reallly gotta understand the area not from a statisictlal or median price point of view

    Sub 500k. The market didnt grow 6.7% . 2015 was pretty much the same as 14
    I dont know what happened in the 500 to 2m markets so maybe they are affecting results

    Sub 300k market is fine as long as it s not a unit etc or miles from the city

    For sub 300k you could have got your self an amazing 1000sqm block with a deeilect house for most of 14 and 15 and made a decent equity gain. Depending on what you are going to do with it

    The fundamentals for ballarat are there. But they havent come to fruition

    It wont boom like it did 15 20 years ago. But strady and above average growth is the best case scenario
     
  5. Jake Milne

    Jake Milne Well-Known Member

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    Yeah, I agree that stats for greater areas have to be taken lightly, however they're still good indicators for a whole area.

    You're right with the understanding the area too. It's better to drill down into price ranges and those price tiers within suburbs as they all perform differently. Any investor who conducting due diligence should look at each area, property, and deal with as much detail as possible.

    That being said, I've spent considerable amount of time watching Ballarat from on the ground and through the stats. Purchased 4 properties in Ballarat for clients last year all between $250k - $450k which, in my opinion is the sweet spot at the moment.

    Still, not the overall result I was expecting for 2015, where basically almost every other regional area outperformed Ballarat. Strange.
     
  6. TMNT

    TMNT Well-Known Member

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    What surprises me is that the fundamentals for ballarat are overwhlemingly good. And i mean good. The only negative is the high youth unemployement.

    You couldt check off every characteristic of a booming or signficsntly growing town or area and ballarat has it.

    And yet its virtuallly done nothing.

    Either its about to happen or there is something that even the local agents dont know. ........

    I think 2016 will see a recovery if not already started

    One thing is that the super bargains have all dried up
     
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  7. jodes

    jodes Well-Known Member

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    This... we just need to hype it enough on PC and it will boom !!
     
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  8. Jake Milne

    Jake Milne Well-Known Member

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    Like Frankston!
     
  9. jomi

    jomi Member

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    There is an article on domain regarding vic first home buyers moving into regional towns..hype away :)

    Can't seem to post the link..sorry
     
  10. larrylarry

    larrylarry Well-Known Member

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    I kinda like Frankston. BTW, I pulled out of that deal. :)
     
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  11. C-mac

    C-mac Well-Known Member

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    Still keeping an eye on Ballarat. Numbers still add up to me though. Multi-diverse economy is looking like it'll provide for future housing growth there.
     
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  12. Ko Ko Naing

    Ko Ko Naing Well-Known Member

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    Here it is: Why first time buyers are bidding Melbourne goodbye

    Particualrly, liked this:
    The median price of land in Ballarat was $160,000 for the six months to December last year, but had risen by 11.9 per cent in 12 months and 29 per cent in five years.
     
    Last edited: 1st Apr, 2016
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  13. Toon

    Toon Well-Known Member

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  14. Beelzebub

    Beelzebub Well-Known Member

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    Great read. Reinforces my decision to purchase in Ballarat East last year.
     
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  15. TMNT

    TMNT Well-Known Member

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  16. jomi

    jomi Member

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    6 months on from my first post, any further thoughts on this region??
     
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  17. Jake Milne

    Jake Milne Well-Known Member

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    Did you see the other thread I posted?
    REIV released a report showing Ballarat had several areas with double digit growth over the last year.
     
  18. C-mac

    C-mac Well-Known Member

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    I keep a cursory eye on ballarat. The growth is very concentrated in specific suburbs and laregly in the detatched houses stock type.

    Units and villas in several areas appeared to have stayed flat or had nominal growth in the last 12 months.

    I say this based on API mag's May edition databank section where I reviewed the 12 month unit growth for four suburbs in Ballarat that were chronicled.

    Houses though, seem to have moved a fair bit! Ripple effect of Melbourne, I wonder?
     
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  19. Ko Ko Naing

    Ko Ko Naing Well-Known Member

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    From what I just saw in rental section of re.com.au, the rent are a bit lower than 6-months ago. It's good that all my properties are already on extended leases with higher rents than now.
     
  20. Ko Ko Naing

    Ko Ko Naing Well-Known Member

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    I'd love to know which thread. :)