VIC Ballarat Tip: The Capital of Western Victoria

Wow. So many people against HL packages means its obvious I have to stay away from it.
Thanks @Westie @TMNT @Ko Ko Naing for your replies and pointing me in right direction.

 

You wouldn’t buy in Eureka? Not even north of Eureka St?

 

I generally avoid props next to public spaces like parks, schools, motels, etc. So I need to look very closely if I look around Eureka. I’ve always preferred areas north of Victoria st and those period homes. Parts of Ballarat East, west of Eureka, north of Eureka st are also fine as well.

 

Well that's the thing with Eureka I guess. In the middle of the suburb is a huge (admittedly kickass) park. I personally live in the other area you described, a few blocks west of Eureka, south of Victoria St. Highly recommend, and prices seem to have really run away around here. Consistent $400k plus sales.

 

I prefer areas next to public areas,
firstly, the land is not private so wont be sold off, or less likely
you have a better view
you appeal to the family with young kids

 

Check all the inclusions for quality, 2,700 ceiling heights are preferred, stone benchtop prefered, 4 bed with large bedrooms (3m x3m), 2 living areas prefered and not tiny rooms, Alfresco under main roof and seek independent rental assessments from several local property managers. Land price appears to good, check that there is no slope, essments etc on land. I would stay away from estates that are targeted by investment groups and look for areas with high percentage of owner occupied. Personally I think Alfredton has good prospects and is within the growth corridor.

 

Most people who are commenting on H&L packages have no clue. ....

I would suggest that the numbers can work in Ballarat also. What people are not thinking about is the cost of renovating older houses as they are in poor condition and the stamp duty you need to pay.

Lets do an example.....
New Alfredton - H&L build
Land - 160k
Cost of Build 245k.
Stamps Legals/Interest - 15k
TOTAL = 420k.
End value about 460-480k

Ballarat Central
Old House - 400k
Legals/Stamps/Interest - 30k
Reno Costs - 20k
TOTAL - 450k
End value about 500k

Due your own due dilgence. I got the same malarky in Geelong. I build in Armstrong Creek and the growth has been better than someone would have bought in Newcomb. The profit on one is 150k on a 258k H&L and 170k on a 337k H&L. Both rented for 380pw and 430pw respectively.

Person who would have bought in Newcomb would have paid about 320k a couple of years ago. Paid about 20k in stamps and legals....let alone the maintenance on the older homes. I know this well as I have several older houses. The house in Newcomb would be about 400-420k today..if it is a 3 brm.

 

That is not bad.

You should get about 450pw on completion...

 

@MikeyBallarat @Toon @TMNT Make sure to dig a bit more, if you hear metal-like sound when your shovel hits something in the ground at your places

Retiree prospector finds massive gold nugget in old paddock

 

i have a better chance of finding 200 used syringes and bong pipes than a gold nugget!

 

Hi Mikey, what's wrong with the Callow/Cutts/Otwaw block? Thanks!

 

It’s really rough, bad housing stock, bad neighbours. It’s only 10% houso now, but the houses are all ex houso which have no appeal in Ballarat. It’s not worth the $50k or so saving compared to buying in nicer parts of Ballarat East.

 

Good discussion.

What would be your thoughts on a 350 sq mt block in alfredton for 135k? Total procing restricted to 370k to 375k for a 22 square home.


Regards

 

[What would be your thoughts on a 350 sq mt block in alfredton for 135k? Total procing restricted to 370k to 375k for a 22 square home. [/QUOTE]

I think you will find the overall end cost of construction will be higher than you expect for approx. 205 m2 home, fully finished, landscaped etc. It also will depend on the quality of finish and inclusions.

 

Hello MikeyBallarat,
I am thinking to buy IP with potential subdivision in the future on my mind.
35 Queen Street South, House For Sale in Eureka VIC 3350 | Domain
This seems to have a generous size of land and locates the area you mentioned above but been on the market for quite awhile.
Why hasn't been sold already you reckon?

Thank you

 

Top location, it’s listed as Eureka and is technically in Eureka but the other side of the street is Ballarat East.

If you want subdivision potential, just take a look at what the neighbours did.

I don’t know why it hasn’t sold, but use it to your advantage. Maybe because the house up the front doesn’t have much street appeal? I did notice a few price reductions.

 

it does seem pretty good on paper,

my guess, becuase its a 2bdr and frontage looks too small for battleaxe,
or maybe it has sold but agent hasnt updated it

 

I think this one had better value but already under offer:
16 Belford Street, Eureka, Vic 3350

Without any DD, I guess it is the 2 bd and the street frontage keeping the price low, or some issue with the land/soil

 

Best part of Eureka is north of Eureka St. I approve.

 

Thanks Ko Ko for sharing your insight. This post has certainly inspired me to invest in rat. Recently I have qualified to 400k from com bank and I've 100k saved up with earining 45k (before tax). I can save 20k anually.

After I read this post I'm thinking either go for positive cash flow with this
844 Howitt Street, Wendouree
844 Howitt Street, Wendouree VIC 3355 - House For Sale | Domain

Or maybe subdivision with this
3 Surrey Street, Ballarat Central
3 Surrey Street, Ballarat Central VIC 3350 - House For Sale | Domain

Or maybe you could kindly give me another option that you could come up.

It'd be appreciated if I could get your advice.

Tah

Jin