QLD Is Ballarat the next big thing??

Discussion in 'Where to Buy' started by Getting_started, 12th Sep, 2018.

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  1. Getting_started

    Getting_started New Member

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    Hi all, first time poster.
    I want to buy my first investment property, finances all sorted.
    Viewed couple properties in Ballarat east.
    Booked a 576m2 block in a new estate in Alfredton which I might flip after it titles in June 2019.
    Is it better to buy 2 units or buy a 3-4 bedroom house? I was thinking Alfredton, Lucas or Canadian.
    Vacancy rate is 0.4% in Ballarat.
    Any recommendations.
     
  2. Robjj

    Robjj Member

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    I’m in a similar position right now
     
  3. TMNT

    TMNT Well-Known Member

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    there is already 2 big Ballarat threads,
    dont need a third
     
  4. Owlet

    Owlet Well-Known Member

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    Yes we do! ;) We need a let's hype Ballarat thread - seemed to work for Sydney and Adelaide ;)
     
  5. Toon

    Toon Well-Known Member

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    I have found that CG has been noticeably lower for units, so would probably go for a house instead.

    Apparently there is high demand for 3-4 bdrm homes in Alfredton & Lucas:

    "He said there was continual demand for new, 3-4 bedroom family homes in areas such as Alfredton and Lucas."

    Tenants face tough competition for rental properties

    Although I personally prefer Canadian (living there I may be slightly biased however :p)
     
  6. Depreciator

    Depreciator Well-Known Member

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    Not sure why Ballarat will be 'the next big thing' - unless there is another gold rush. But it's a big town not too far from Melbourne, so less risky than smaller towns dependent on a single industry. Big towns have their own inertia. I'm not sure about the virtues of brand spanking new homes way out on the outskirts vs older homes closer to the town centre. More depreciation in the newer stuff, but future CG is the real aim. I wonder if there are stats on CG within towns with new vs established houses?
     
    johnmteliza likes this.
  7. Sackie

    Sackie Well-Known Member

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    I seriously doubt it will be the next big thing. When I look at areas and try to determine current value and future potential I like to look at:

    - Supply and demand (I doubt long term there will be people flocking there to make real estate extremely desirable)
    - Closeness to major city (over 110km to Melbourne, waaay to far for my liking)
    - Growth drivers (I don't see enough to make it worth my long term investment)

    Could it perform decently? Sure.

    But the next best thing? Imo no chance.
     
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  8. Big Will

    Big Will Well-Known Member

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    Brisbane is nearly 1,800km from Melbourne - that's close enough for my liking ;).

    I do agree with you other comments - no real drivers for growth it will always play 3rd or 4th fiddle in VIC compared to Melbourne and Geelong in terms of growth.

    Unless a new gold rush happens it will be okay but not a great long term investment.
     
  9. TMNT

    TMNT Well-Known Member

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    People are just getting caught up with the hype of a town with a rising property market..... As usual

    Eventually there will be people talking about Ballarat becoming bigger than Melbourne
     
  10. Sackie

    Sackie Well-Known Member

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    Hey..leave my Brisbaby alone! :p
     
  11. Getting_started

    Getting_started New Member

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  12. Getting_started

    Getting_started New Member

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    Found a unit in Canadian 3-2-2 , and a house in Lucas 3-2-2. Lucas is only $20k dearer. Just confused to buy house or unit.
    Unit is positively geared with tenants happy to stay for another 2 years. Lucas also tenanted but kind of neutral .
     
  13. MikeyBallarat

    MikeyBallarat Well-Known Member

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    Canadian is a better location, Lucas is all new estate/future ghetto. Would a house in Canadian or Ballarat East be suitable?
     
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  14. jodes

    jodes Well-Known Member

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    I'm not sure what your budget is but i'd steer clear of units in Ballarat. I'd also aim for as close to centre as possible- Ballarat Central or Ballarat East, if possible federation style. They'll keep building more an more houses further and further out and something that is new and shiny today will be ugly in 15-20 years. But the classics will always be close to the town and will always be beautiful.
     
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  15. MikeyBallarat

    MikeyBallarat Well-Known Member

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    I agree with everything you said. Heritage homes are still reasonably priced in Ballarat. They won’t make any more. New houses will become ugly, so I usually advise to buy something with timeless beauty or something that is already ugly that you can beautify (like mission brown with olive green bathroom).

    West of the city, growth is unencumbered. There are acres of flat farmland that are being turned into estates. East of the city isn’t like that - there is some new housing in Canadian but there just isn’t the same volume of new estates that there is in the west. Not to mention, you don’t have to cross the city to get to Melbourne.
     
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  16. Ko Ko Naing

    Ko Ko Naing Well-Known Member

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    Avoid units if possible and avoid Lucas if possible. Sorry for being blunt. :) I’m just being honest. Both options will have very limited capital growth for Ballarat market.

    Detached house in central areas is the way to go in Ballarat. Part of old Alfredton is good. If you are limiting yourself to your suburb list in your first post, IMHO, Canadian is the best of all. But there are other parts of Ballarat that are good for investment like some parts of Wendouree, Redan, Ballarat North and East, to name a few.
     
  17. Property chatter

    Property chatter Member

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    When one factors in the difference in rates over a long period of time, are units really that worse than houses? Heating is also a factor, if one wants to live in it. A lot cheaper to heat a unit than a drafty old house in Sebas.
     
  18. Ko Ko Naing

    Ko Ko Naing Well-Known Member

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    Yes, for sure. I still think there's more gains to be made in houses with large land, compared to units with small-to-no land content at all.
     
  19. TMNT

    TMNT Well-Known Member

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    Rates are higher for homes. But for units, they're not as cheap as you'd expect. Add in body Corp....
     
  20. Property chatter

    Property chatter Member

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    Thanks TMNT. In Bendigo I have noticed a lot of decent looking units. They look tidy, and half decent the way many of them are laid out. I've been looking at units in Ballarat. It seems more of the designs in Ballarat are quite substandard. 9 times out of 10 people can see right in your window. Car lights would be coming straight into your unit at night when people are parking, and walls are often shared.

    Another issue is crime. I was in Ballarat a few months ago. My brother and sister live there. Some of the crime in Sebas and Mount Pleasant are pretty shocking to read about it ( wouldn't think so when walking the quiet streets ). Crime overall is down this past year, but from 2014-17 serious crime up 37% ( assaults, weapons ) , overall rise of 25%. Here is a recent article, Oct 8. 1 in four people in Ballarat tested positive for drug driving.
    I read about the very sad case of a cyclist cleaned up in Wendouree by a woman on ice. Ruined his life. It's certainly a lot worse than when I used to visit my relatives in Ballarat 20 years ago.
    In regional units one major factor is the neighbours. I live in Asia and even in poorer areas people will still respect their neighbours with noise etc. With Units in regional Victoria I can see a lot of issues.
     

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