Hi Guys, I visited Ballarat on the weekend and spoke to a lot of Real Estate Agents. It seems like an area that might take off in the future as improvements are being made to the Train line, although it does take abt 1.20 hrs to get into Melbourne. A House can be purchased reasonably cheaply there with a budget less than 500K. I wondered what people thought of Investing in these areas: 1) Ballarat 2) Kyneton - lots of people moving there for a 'Tree Change' however I need to find out what rental market is like. Train is 1 hr 10min to Melb. 3) Sunbury : Property quite cheap. Good Train line think it takes around 50m to Melb. 4) New Gisborne - Need to investigate someone told me the blocks in Gisborne are quite big but New Gisborne is a different area I believe. 5) Outer Geelong (I don't think 500K will buy much in Geelong) I am tossing up about the benefits of buying in the Country vs a Small House in a Suburb in Melbourne in an area which may be viewed as a 'dodgy area' as my budget is quite low for a house. Jackie
Have 2 mates that are looking at Kyneton as the prices have grown in Macedon/Woodend so further out makes sense and also Kyneton I hear is awesome. Been following gisborne, Macedon, and Woodend, all have grown, gisborne went nuts over the last 3 years and so has Macedon. Woodend seems to be growing fast now. These areas haven't just taken off in prices cause people have decided to make a tree change, some might have, but most have and are moving cause they can't afford inner Melb prices. One thing to keep in mind, jobs in country are not as plentiful as Melbourne. I haven't directly compared vs other areas to inner Melb, but I personally like closer to cbd as an investment. schools, jobs, transport. Great value in the west of Melbourne under 600k. You will also see a boost in prices now that stamp duty is free. Are you looking at these areas cause you want to live there eventually? What's your price range?
Home owners are often prepared to sacrifice travel time to be in their own home. The advantages of home ownership are their prime motivation. Renters seem to prefer to live close to work. Why would anyone rent in Ballarat if they work in Melbourne? Even if they save $100+ in rent, they will lose that or more in train fares and travel time. Maybe a Melbourne unit or townhouse would suit you better. Sure we have all heard about the over supply in Docklands and Southbank, but a smaller block in a village type suburb with good transport like St Kilda or Carlton? (I don't know Melbourne very well) should always rent easily. ALWAYS look for a difference in the actual unit you buy compared to the rest of the block - better view, bigger courtyard or balcony, larger floor plan etc., so if there is more than one unit in the block available at any time, yours will be the first choice. Never buy the worst, usually cheapest for a reason, unit in the block, it will always be a last resort in the eyes of tenants. And don't be sucked in by the "land appreciates, buildings depreciate" mantra. Some of our best percentage capital gains came from well located units, which also had minimal expenses and maintenance. Marg
500K buys a hell of a lot in Geelong....probably not so in inner East Geelong, much of Geelong West, Rippleside/Drumcondra and Newtown. But there's plenty of good suburbs that $500K would get a house with land, even HIghton and Manifold Heights. Or two places in Norlane! And with regional cities, being near to Melbourne is not the be all and end all. Proximity to it's own CBD counts for a lot too.
Thanks guys for your feedback. Barney - my price range is around 500K and I would be unlikely to live there but I do love Kyneton and so am interested in the area. Geelong is a possible option and I am interested in the area for sure. Thanks also Marg for the good advice and MJS1034!
You have a good budget behind you which gives you options. If your set on Kyneton check with managing agents if it's easy to rent, what's in demand, how long do places sit vacant, are there enough properties for people in the area. How often do rents increase/have they increased over the last few years or declined. Speak to selling agents and find out what's selling, demand. You don't want to buy something that has no or little demand. More agents you speak too, the better picture you will have. Also check out population growth, if 200 people per year are going to the area and surrounds that's not alot of demand for homes which won't really push up prices, unless no ones building houses in the area. Then compare to other suburbs closer to melb cbd. I still think with that budget the west is best.
