VIC ballarat prospects?

Well, i'd say "warm", rather than hot. I couldn't find any stock similar to those I bought 2 years ago anymore. Maybe I wasn't monitoring the market close enough. Even Wendouree(not the West) looks better in terms of growth.

 

Are people looking at Wendouree for investment? The yields for me werent high enough to warrant the risk of lower tenant quality.

 

I think it's not too bad. Personally, I wouldn't touch West Wendouree. The areas around Howitt st and Norman st, off the lake not too far up to the highway or not too west, should be fine. I'm seeing a lot of gentrification going on around that area as well.

 

We are looking for a new tenant at the moment and have been told that there are usually around 280-300 properties available for rent in Ballarat- there are currently around 500. Too many city investors coming in perhaps??

(Side note: We had an open house on Tuesday and no one rocked up!)

 

I think the buying window for Ballarat is starting to close. I'm now looking to other areas such as Adelaide for the sub $500k clientele now.

 

That's quite common for mid week inspections even in Melbourne.

 

Here's one anecdotal story - got a Re.com notification on Friday of new listings but didn't check it till Saturday night and 2 were already under contract! A few others that we were looking at earlier are still available -so guess it depends.

 

Same here. Had an open home on Wednesday. 2 groups came. One didn't like it. The other took application. Let's see. If no application coming in within a week, time for a reno!

 

How did you go getting a tenant @cherubym ? We managed to get one at full price the day who move in the after our other tenant moves out (and it was our ONLY application)- so pretty happy with that !

 

About 5-6 groups came over the 2 weeks during weekdays. One applied. While we were checking references and stuff, she picked another one. Opening this weekend again and see how it goes.

 

Its been a while since the first post but after months of overthinking, we have decided to bite the bullet and put the house on the market. Will be checking out a few agents in the coming weeks. Any good recommendations? Thanks all for your input and feedback.

 

@jomi ... Chris Gladman from Ballarat Property Group

 

@jomi I have done a bit of training with the people at Haydens Real Estate over the years. They may be worth a call.

 

@jomi - Vaughan King at The Estate Agent Ballarat.

 

This question is pointed at no one in particular but more to anyone who is either on the ground in Ballarat or keeping to its pulse...

... How is the market in regards to capital growth? Does it still have more steam to run, this cycle? Looking at the HTW property clock, there's been a couple of movements for houses and units over the last few months.

What of the looming supply in the far west suburbs of Ballarat? Anyone observing rental demand changes anywhere?

Are the Wendouree-West areas still a no-go? Anyone had any success out of these areas?

 

We recently renewed a lease. PM was reluctant to even increase $5 per week. A lot of stock sitting there at the moment.
Capital gains - well, we did gain a green waste bin! Not sufficient for an equity pull let alone to retire.
The only steam I have seen is when I exhale in the icy air. I am not seeing a hot market here - including the supposed 18% growth Soldiers Hill is reported to have had. (There was movement between 2012 and 2014).

Wendouree West - yes we have a success story. Recent listings pricing has been positive and if sales are realised then there has been some growth. There has also been a bit of development happening with splitters and knockdown build 2's as well. While not everyone's cup of tea, I was a bit miffed around 12mths ago missing out on a 3 bedder for $110k. 20k reno and you have a cash cow $210-$220pw as well as being able to pull equity. We have had the same tenant the whole time in our westy, no rent arrears, no damage, no issues. In fact she is a grateful tenant who appreciates that we gave her a go.

 

Unfortunately I have to agree. I'm not seeing any steam & I'm two years off holding my PPOR for 10yrs & it's a long way off doubling. I'm just hoping there's going to be a crazy spurt within the next two years.

I don't hold any IPs in Ballarat anymore, but my partner does & the rent has been stagnant for quite some time. Also has more recently started to get dreg tenants, with the latest almost going to VCAT for an eviction hearing for being behind in rent. He had one of those awesome 'grateful to be given a go tenants' too, until she suddenly broke lease & left, leaving the (non-smoking) place stinking of nicotine so bad the next tenants moved in and straight back out again the same week because of it.

 

I get a sense that the shiny and new is preferred by tenants and they will pay more for it. I see similar attitude shifts in FHB too. So many estates have opened up and this will continue. No passive CG I'm afraid.
Same with our PPOR. We even keep an eye on the old PPOR and that is far from doubling too. Our IPs there are not causing us any issues. One tenant waits for the 14 day notice and then pays up but that's the worst of it. We will continue to hold them and strategically sell down when the time comes.

 

Spot on... I see older stock in Ballarat as more of a potential CG play with more risks in gaining quality tenants & lower yields (to generalise). I bought a PPOR here last year & moved from Melbourne as I can commute to the city, own a PPOR ~1/2 the cost of being in Melbourne & still everything a Melbourne suburb offers & more.

As for an investment play, it depends on your strategy & tolerance for older buildings. If depreciation, young working family tenants and low maintenance is your thing, then shiny new is probably the way to go. I'm more of a location type buyer, which in this area is proximity to the CBD for under the cost of a shiny new box. I'd rather own >600 sqm with an older house within 1km of CBD rather than <300-400 sqm with a new box over 5 km from it. A lot of tenants however, want the newest & biggest box for their rent generally.... besides that, new suburbs will often have a new school, shopping centre & daycare centre... all big drawcards for young families.

Cheers

Indi

 

If you have an asset that is holding its own then it makes sense to hold it, unless you need sell to release capital or maybe for serviceability reasons to allow other more profitable ventures.