VIC Ballarat Tip: The Capital of Western Victoria

Hi All,

What do you think buying a land in Botanica, Lake Gardens for an IP? It is close to Wendouree station and amenities. Any comments? @Ko Ko Naing, may I know the reason you put 2 stars for investment in Lake Gardens? Is that because the relatively higher price than the surrounding?

Cheers,
Hunter

 

@Hunter15 We discussed about Lake Gardens quite a bit in previous posts in this thread, especially around here Ballarat Tip: The Capital of Western Victoria [VIC]

 

Doing some refinancing lately and accordingly, had to get some formal valuations done on several properties I hold around the country.

All of them had declined in value since the last valuation (which was 2 years ago), which isn't suprising. All of them... except for my little house in Ballarat East. Not only did it not decline, but over the last two years it's valuation increased from $325K to $360K.

Not too shabby during a national downturn. Unsure what to expect over the next two years but I am happy with this result.

Sure, I still believe that in the end, the only valuations/ amounts that 'matter are; the price you pay for; and the price you sell for. Only at those points do you realise profit or loss. But still; it's good to see the Ballarat area bucking the trend.

 

Hi Hunter (and all),

I've been a long time lurker in the Ballarat thread - have really appreciated the insight and thoughts posted here (especially yours Ko Ko).

Personally, I don't agree with the less-than-positive outlook here on Lake Gardens. Full disclosure, I have an IP in the Botanica estate that has so far greatly appreciated in value.

I think Lake Gardens offers a really niche area in Ballarat for people who love the lifestyle and affordability that Ballarat has to offer, without the extensive up-keep requirements of heritage style home. It's close to the Wendouree Train Station for the commute (for those who work in Melbourne), close to the lake, and close to Stockland Wendouree. I see the target market for Lake Gardens as older retirees (good for capital appreciation as there is a healthy market for buyers), and middle-income younger families (good for IP purposes).

I think there is definitely merit in exploring Lake Gardens for an IP - for the right price.

 

Nightingale inner-city development proposed for Ballarat amid fears of urban sprawl 'social disaster' - ABC News (Australian Broadcasting Corporation)

 

I caught this piece.

For a few years Ballarat city council have allowed this sprawl. It is illogical and methinks some dodgy developer money in brown paper bags is what is enabling this silly sprawl to continue. The lack of services to some of these estates is a big concern.

 

Median Ballarat house prices reach $400,000

"The median house price in Ballarat has now reached $400,000 for the very first time.

In figures released by the Real Estate Institute of Victoria today (July 21), house prices in the city went up by 1.3 per cent in the last quarter from a median of $395,000 in March.

The median price is now exactly $400,000, a leap of 10.8 per cent in the past year - outstripping the pace of growth in other regional areas including Bendigo and Geelong.

"The market is still very buoyant," he said. "Since the federal election, people have become more confident now they know where they stand in relation to negative gearing and capital gains tax.

"I think we will see Ballarat continue to grow. There's no sign suggesting Ballarat is going to slow."

Back in 2016, the median Ballarat house price stood at $325,000...

Mr Lee put the interest in Ballarat down to the city's growing reputation, its closeness to Melbourne and its transport links, as well as the extensive development at GovHub."​

 

I am in Ballarat at the moment. Tonight on the news they reported the city has a 30% higher than state average rate of suicide. I am not sure why that could possibly be. I am going to investigate it.

 

The Ballarat suburb that tops Australia for price growth

"A LONG undervalued Ballarat suburb has had a renaissance, being named Australia's top suburb for housing price growth in the past 12 months by Domain.

Mount Pleasant - officially Ballarat's oldest suburb - founded in 1836 by the Yuille Brothers when they established a sheep run and today boasting a population of just over 2000, has been named Australia's most improved suburb for year-on-year house sale prices.

The Domain survey, which takes in sales figures until the end of June shows Mount Pleasant has a median house price of $336,000, a 26.2 per cent increase on the same time last year...

"Our projections for next three years in our view is stars have aligned for real estate in regional areas like Ballarat," he said.

"Ballarat's median house price has just clicked over $400,000, even with the downturn it's still half the value of Melbourne, so it's remarkably affordable."..."​

 

I was talking to a property group and they are giving me few options in Alfredton. Turn key house price they are quoting is around 420Kish.

What do you think about the area n price?
Do you think is it worth it?

 

no, new cookie cutter props in alfredton, 3 strikes!!

 

Thanks for reply. May I know why 3 strikes?

 

For me, not just in Alfredton. Anywhere in Ballarat, no new cookie cutter props rule is a general rule of thumb. Simply avoid them and you'll be alright.

 

I know you are inclined more towards East and near to CBD. But as an expert in the Rat, why do you say not Alfredton? Is it bad or do you see no growth there?

Appreciate your efforts on this thread @Ko Ko Naing!

 

You are right in saying that I prefer central areas more. But not quite right in saying "towards East" . I still wouldn't buy in Eureka, even though many agents try to list properties in Eureka as "Ballarat East". Many newbies normally get caught with that. I own one in Redan, which is in the south and another in Ballarat North, which is in the north.

The old Alfredton's got its deserved growth alongside other suburbs in Ballarat. If deals come up in older areas of Alfredton, I wouldn't rule them out, especially with big blocks, potentials to add value through renos, subdivision potential, etc. as long as normal property investing rules can be applied. It's just that I simply don't see anything that will lift up the newer part of Alfredton, closer to Lucas, with all those cookie cutter houses with 300sqm land.

 

Ok. Thanks for the response! I will look into some other areas.

The one I'm looking at is a 525SqM land at 155K and building a 22Sq house on it.
Total price coming up arounf 410Kish, with a rental guarantee of 380pw from Property Group.
This land in in Alfredton Grove estate.

 

Any reason why you are fixated on estates and HL packages.

I certainly hope it's not for tax deductions

 

Not for deductionsalone. But I'm not a person who can invest time in renovations of old house. Looking at H&L for piece of mind..
Also this estate being on West and close to Emp Zone.. I think this will have some gains and guarantee rental in the future.

 

You dont have to buy a renovators delight house in ballarat,

for the same amount of money, you can get a larger block, old house thats neat, for the same price

and the CG will be better than your HL package, guaranteed

 

I'd run as fast as I can. They're not in the business to make you money or provide you with peace of mind, this is a way/gimmick to offload more of their stock to unsuspecting buyers. Go with the advice @TMNT gave you and you won't be sorry. Land appreciates, buildings/structures depreciate. If you do go down the H&L route, source the land and build yourself, then rent it out via a good REA in the area. Make sure the area's desirable with renters and doesn't have high investor activity. You've been warned.