Ballarat for my first IP?

Hi guys. Im 19 and looking at getting my first IP. Just wondering what you guys think of Ballarat. I have found a couple of older posts some saying its good and some saying its flat. I have seen units within my price range (130,000) that are central and only a few Kilometers from the CBD. Just wondered what you guys think. At the moment its a toss up between Bendigo and Ballarat. If you could reccomend any other areas close by to these 2 that would be worth a look, please advise.

Thanks! :)
 
I like ballarat. I started property investing there 5 or 6 years ago. Cashflow is good, and while the capital growth doesnt knock your socks off every year, there is scope to improve as Melbourne gets less affordable, and regional australia grows.
The main reason I started there, was cause it was all I could afford, and worst case scenario, I could be unemplyed, move in, and still afford the mortgage repayments. I like the price, it means if you have a vacancy, or a problem, it isnt going to break your bank becuase the mortgage is so much less than a more expensive property. Being so close to twon, and being near period homes I think is another plus, as the renovators start to move in (as they have already started too) the areas near the Ballarat CBD might one day look like fitzroy or carlton.

Although you could buy a unit in outer melbourne for the same price, I like Ballarat better, higher yield usually and I think a bigger pool of tenants in once sense, as its in the centre of town.
I think Bendigo is too far from Melbourne, but really what goes for Ballarat goes for Bendigo.
Look closely at the property market, I think you could find an old miners cottage for close to that price rather than a unit.

Good Luck!
 
I like ballarat. I started property investing there 5 or 6 years ago. Cashflow is good, and while the capital growth doesnt knock your socks off every year, there is scope to improve as Melbourne gets less affordable, and regional australia grows.
The main reason I started there, was cause it was all I could afford, and worst case scenario, I could be unemplyed, move in, and still afford the mortgage repayments. I like the price, it means if you have a vacancy, or a problem, it isnt going to break your bank becuase the mortgage is so much less than a more expensive property. Being so close to twon, and being near period homes I think is another plus, as the renovators start to move in (as they have already started too) the areas near the Ballarat CBD might one day look like fitzroy or carlton.

Although you could buy a unit in outer melbourne for the same price, I like Ballarat better, higher yield usually and I think a bigger pool of tenants in once sense, as its in the centre of town.
I think Bendigo is too far from Melbourne, but really what goes for Ballarat goes for Bendigo.
Look closely at the property market, I think you could find an old miners cottage for close to that price rather than a unit.

Good Luck!

Wow man. Excellent info :D

Thanks alot!
 
I like ballarat. I started property investing there 5 or 6 years ago. Cashflow is good, and while the capital growth doesnt knock your socks off every year, there is scope to improve as Melbourne gets less affordable, and regional australia grows.
The main reason I started there, was cause it was all I could afford, and worst case scenario, I could be unemplyed, move in, and still afford the mortgage repayments. I like the price, it means if you have a vacancy, or a problem, it isnt going to break your bank becuase the mortgage is so much less than a more expensive property. Being so close to twon, and being near period homes I think is another plus, as the renovators start to move in (as they have already started too) the areas near the Ballarat CBD might one day look like fitzroy or carlton.

Although you could buy a unit in outer melbourne for the same price, I like Ballarat better, higher yield usually and I think a bigger pool of tenants in once sense, as its in the centre of town.
I think Bendigo is too far from Melbourne, but really what goes for Ballarat goes for Bendigo.
Look closely at the property market, I think you could find an old miners cottage for close to that price rather than a unit.

Good Luck!

Good one Tobe.

In my opinion, excellent advice for a new investor.

Also, try and buy in the best LOCATION you can afford in the town.

Go for side streets or courts (I favour courts), but near main roads and access to arterials, public transport, parks, schools, shops and other amenities.

Don't forget the value of the "on-paper" deductions - something built after 1987 will have good depreciation deductions.
 
Hi guys. Im 19 and looking at getting my first IP. Just wondering what you guys think of Ballarat. I have found a couple of older posts some saying its good and some saying its flat. I have seen units within my price range (130,000) that are central and only a few Kilometers from the CBD. Just wondered what you guys think. At the moment its a toss up between Bendigo and Ballarat. If you could reccomend any other areas close by to these 2 that would be worth a look, please advise.

Thanks! :)

Harpy, I also agree Ballarat is a good choice. I lived there for 2-3 years in the late 90's, and remember seeing period homes a couple of blocks away from Sturt St, that were unrenovated, run down, rented out to students, , which were returning over 10% return. :eek: Of course the boom took care of that.

Keep as close to Sturt St as you can afford and I would not consider purchasing in Wendouree. (Of course its been a few years, so maybe it has changed).
 
Hi guys. Im 19 and looking at getting my first IP. Just wondering what you guys think of Ballarat. I have found a couple of older posts some saying its good and some saying its flat. I have seen units within my price range (130,000) that are central and only a few Kilometers from the CBD. Just wondered what you guys think. At the moment its a toss up between Bendigo and Ballarat. If you could reccomend any other areas close by to these 2 that would be worth a look, please advise.

Thanks! :)

You've had good advice so far Harpy by all above.

In this market you should be able to do better (as far as land content and location goes) than a unit a few (>2-3) km from CBD. For 130,000 you should be able to secure a house (probably older) in such location. For amenity and facilities, try to be closer to CBD than say Wendouree or Sebastapol. If you look in these areas then you should also be getting a potential future duplex site along with your purchase.

For a unit at 130,000 you should aim for 1 km to town centre and preferably train. The market is not hot, do your reaearch and don't rush. Try and find the stale properties that may now be perceived as lemons. Do not skimp on your due diligence though
 
Great advice and very interesting. My in-laws live in Ballarat and just for nostalgia we have considered buying something there, and I really love this advice. I might take another look there.
 
what is the population gorwth in ballarat?

And what is going to drive prices higher?

are there supply demand issues?

rental vacancy rates.

I am thinking of buying in ballarat purely because i can afford it.... and i beleive there are good people that live there, as opposed to being forced to by in suburbs around metro melbourne that accomodate for lower class people.

People who live in ballarat, i dare say its a lifestyle choice... where as people in melbourne can be forced to live in melton, doveton, broadmeadows, etc....
 
I was born and bred in Ballarat. Looking at prices lately I'm amazed by how cheap the houses are, compared to places like Geelong. If it becomes more of a commuter city, then I think it'll be good.

I'd also look for houses with land content rather than units.

I've also heard talk that there may be a train station put in at Wendouree. Worth checking out, because its close to the lake (popular), shopping and schools. Otherwise, see what you can get close to the main train station.
 
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