Hello from Ballarat. Any ideas for my property?

Hello everybody,

I've only recently discovered this forum and I've been spending a lot of time reading through the many posts from all you knowledgeable people. I would love to get some of your opinions on my ppor and whether you think it would be suitable for a rental property.

I have the property listed for sale, but in the current situation it's looking very unlikely to sell now. Tbh there wasn't a huge amount of interest in it before corona. But this has given me some time to reassess the situation and I've been thinking maybe I'm better off keeping it for a few more years as an IP. I was planning on selling and paying down some debt on my other properties.

It's a very small miner's cottage (1 &½ bedroom) in on a 1/4 acre block, with a new 7 x 12 shed and zoned Industrial.

The neighborhood doesn't appeal to everyone, but it suited me after my divorce and at the time was cheaper than renting. (7 years ago)

Big yard, nice and quiet, nearby bushland, no neighbors, but only 5 min from the cbd and walking distance to Geelong Rd, Bus service, Kfc,Tabaret, Apco and other possible future developments.
My understanding of the zoning is it can't be developed for residential, it's only residential whilst the existing cottage is still on the block.
The agent says it would rent for $260 pw, good cashflow considering I've almost paid off the mortgage.
I'll probably need to spend some money on the house in the next few years. It could do with a new iron roof, the floor has dropped where a wall was removed. Being a small house, hopefully the maintenance wouldn't be too costly. But it is an old house, I would need the right tenant.
Do you think this property would appeal to someone wanting to rent and work from home, maybe a small business?
What if it was more industrial, would it rent for more if I decided to double the size of the shed? Or maybe I should just sell it when the time is right. I'd like to hear your opinions or ideas for my property. Thanks D

 

Hey there mate. Where’s it located? Is it one of those random old weatherboard houses in the industrial areas around Elsworth St East?

I actually think those houses have a lot of appeal - say for example the project car type of guy who has multiple parts cars he needs to store, boats/caravans/4WDs etc that you can’t store easily closer in to town. Not to mention professional or hobby musicians who need to make a bit of a racket.

Now is probably the worst possible time to sell - given that there is a high chance of the type of person I described above being self employed. Unless you have a desperate need to move right now, I don’t see why you’re not better off holding on.

Do you have a link to your property, so we can pick it apart?

 

Hi Daz. If the location of the property might put many off as a property to live in, and the house is very small anyway, is it going to be worth paying for the maintenance and repairs to continue to rent it out as a residential property?

I wonder if there would be much demand for you to turn it into an industrial property for example an automotive yard, music studio, swimming school etc as Mikey alluded these kind of activities may be best suited to the space? Most properties have an ideal purpose so maybe try not to over think it.

 

Hey daz welcome,
I think Ballarat has the potential for a fair bit of growth considering where it is located, between Geelong, Bendigo, near Melton which has had decent growth and development. I’ve started to notice a lot of people move from those areas to Outer areas like Ballarat and Bendigo. Obviously due to the covid-19 property prices are expected to fall due to the economy turmoil, but in saying that a lot of soon to be retirees may sell in the bigger areas and start looking for the more rural areas because of the more peaceful locations and cheaper living.

 

Thank you for the replies and Right on MikeyBallarat! It is one of those random old weatherboards and I was a project car guy when I bought the place but I have no need for the garage space now. Although my Son still uses it and I may even rent the property to him. ( No doubt at a discount price) I'm more focused on working and creating some passive income so I can spend more time overseas in a few years time. I'm in no rush to sell, just planning and thinking long term. The reason why I'm wondering whether it might be a better option to keep the property for cashflow and future growth? If it wasn't going to cost too much to maintain.

True, Ballarat is growing rapidly. Definitely more people are moving from Melbourne and helping push our property prices up. Business and residential. The train is packed every morning with commuters. I work in public transport, so I'm seeing it. Plenty of development around the train station and the never ending upgrades to get a faster train to Melbourne. It's not all good though, plenty of ferals walking the streets now, people who can afford to live in the cities anymore, but that's another story.

 

https://m.realestate.com.au/property-house-vic-canadian-133067802 Here's my property, your comments are welcome. Thanks D

 

Hahaha I know what you mean about the ferals mate I moved from Geelong to Bendigo to escape them
The looks of the property I think there may be potential to rent it out as a mechanic/workshop of sorts or even possibly a florist?
Either way once the covid-19 situation is beginning to get sorted I wouldn’t think you would have a lot trouble renting the property to business’s Or residential.

 

You probably know my brother - he runs the panel beaters / wrecking yard a few doors up

 

He's always keeping busy there. We're definitely up the good end of Elsworth St