Ballarat CBD and Lake Wendoree as investment areas

[fluffyrabbit]

Hi all,

I've recently started out hunting for my 2nd IP. My 1st IP is a 1 bed apartment in Essendon VIC, so my initial search has been in and around this area as I know the area very well. However, I'm not willing to spend any more than $450k and would like to invest in either a single level unit or house, which I obviously have no chance with this budget in these areas.

So I've been looking further afield and 2 areas that have grabbed my interest are Ballarat CBD and Lake Wendouree. I have seen some lovely 2 and 3 bed houses that have already been renovated with period features and within walking distance to the CBD or very close to the lake (Ballarat station side). Lake Wendouree is a little more pricey, but still under my $450k limit. I should also point out that I'm in this for the long haul. My intention is to keep buying properties, pay them off and keep them for maybe up until retirement which is 20-25 years away.

I have already searched through the threads for investing in Ballarat, but the threads I have found are a little out of date and I was hoping for opinions or advice based on the current market. I am in the early stages of researching and will be visiting the area in a few weeks.

Is there anyone out there who has invested recently in these areas or thinking about it? Would I be making a big mistake if I went ahead?

Any advice would be greatly appreciated.

 

[Truly Exotic]

yeah, I have experience in Ballarat,

$450k is well above the median, so be aware of that,

as a long term goal, ballarat is a good one,
wendouree has the not so great comission housing in the triangle,

right by the lake, properties go for the $1m mark

if your strategy is to buy, hold and pay off, then your risk profile is quite low

id personally go for something in the CBD or closer on a larger block of land,

you can get some decent blocks in soldiers hill for about the $250k mark without any problems, which has a good reputation,

also the area has taken a battering in the last 18 months but has or is about to hit rock bottom now, so in terms of timing, you really cant go wrong

 

[fluffyrabbit]

Thanks for the info Truly Exotic.

I'll probably concentrate on the CBD area. I had a look at Soldiers Hill and that looks like a good area too. I'll initailly be looking for properties that need minimal work done, mainly because I work full time in Melbourne.

I'm going to head up there and have a good look around in a few weeks as the closest I've got to Ballarat so far is Sovereign Hill.

Thanks for the tips

 

[ChasingSugar]

Hi there - I have property in Mount Clear (due to Schools, Universities and IBM) and Alfredton (Family area, plenty of expansion and development).

I like the CBD, so if you can get in there that is the best spot. I like the above two as secondary targets.

Good luck!

 

[RTRBY40]

Alfredton 4 bed room built with simonds

I built a 4 bed in Alfredton - Chase estate with Simonds.
Been rented out for 18 months. 2 tenants. 11 days vacant.

Rent income - Mortgage is 400 dollars per month..
I started weekly rental with 400. with my second tenant the rental has dropped to 380 per week now. But Im still getting 400 after paying my mortgage

Im very happy with the area.

I am doing a valuation soon to get a refinance to buy another property.
House next to me has been sold according RPdata for about 100k above.'

Will keep you posted.

All the best.

 

[alex9050]

Hi Fluffy,

I have invested in Ballarat quite heavily and intend to do so now and in the future.

Currently, Ballarat is definitely a buyers market, I just bought 2 more properties in Sebastapol and was able to negotiate some extremely favourable conditions into my contract.

The rental market is slipping, and has been over the last 6 month-12 months. The vacancy rate has increased.

Purchase prices have been stagnant for a little while, but I think that will be the same all across Melbourne for the next few years.

I'm very worried about some of the phrases you've used in your original post, that Ballarat has some 'lovely'' houses in the CBD and around the lake... The fact that a house is lovely should be irrelevant to your investment decisions. At the moment, you can get positively geared properties 5 minutes out of the CBD if you look hard enough. I would prefer to have 20 properties that aren't seen as a liability and be able to afford more, than 3 properties that are a liability, because that's all I can afford.

... I run a youtube channel that might be of interest to you.

http://www.youtube.com/user/alex9050

 

[mini2]

With the constant butchering at IBM, is it likely to have an impact on Mt Clear/Helen rentals?

 

[ChasingSugar]

I don't think so. The government is investing heavily (search google for the technology park) and others are moving there. They recently expanded zones and are actively trying to bring in new business

 

[CHAOS]

Well positioned properties are being snapped up within a day or two of listing and some before the first open. Agents aren't too keen to wait for other offers - they want to be paid. For example I had to push to get an inspection on a property just listed where an offer had been made. After contacting a RE we knew we got that inspection and was told we had to have a signed contract to the RE office first thing the following morning or the other offer would be accepted. Another listed 3 days ago I inquired about inspecting, was given the open times then an hour later received an email saying open home cancelled home sold.
So buyers market in terms of vendors being keen to sell. For well positioned property you need to be first in.

 

[fluffyrabbit]

Thanks for the replies guys. There's alot of useful info there. I'm heading up there next week to check out the area and have recently been looking into Alfredton too.

Looks like I'll have to be on the ball with these inspections if places are selling so fast. Might be a little difficult though as I'm working full time in Melbourne, but I'll see how it goes.

Ideally I would like to buy near the CBD, but many of the houses are only on 300-400m2 blocks, so I'm not sure if I should be buying a bit further out and aiming for a larger block of land.

Does anyone have any opinion on Brown Hill?

 

[Truly Exotic]

Well positioned properties are being snapped up within a day or two of listing and some before the first open. Agents aren't too keen to wait for other offers - they want to be paid. For example I had to push to get an inspection on a property just listed where an offer had been made. After contacting a RE we knew we got that inspection and was told we had to have a signed contract to the RE office first thing the following morning or the other offer would be accepted. Another listed 3 days ago I inquired about inspecting, was given the open times then an hour later received an email saying open home cancelled home sold.
So buyers market in terms of vendors being keen to sell. For well positioned property you need to be first in.

really? I have yet to see this at all, the market has taken a battering in the last 2 years, I personally think the lower end has dropped as much as 20% (agents will disagree), I think now and for the next 3-6 months the market is on line to recover, as with pretty much the rest of state, but the lower end will recover more % wise

 

[CHAOS]

Truly Exotic- I can only go from my experience. A central property 2 blocks from Sturt St was listed last Wed. I made enquiry about inspecting. Agent got back to me with the open times for the weekend. Then 2 hrs later he contacted me to say the house has sold. Somone wanted it and vendor wanted it sold.

It is not representative of the whole of Ballarat. An acquaintance recently purchased in Sebas and Wendouree below asking. There is so much choice in terms of location, price and type of property - depends what you are looking for.