Ballarat - Period Homes

[PDP]

Been keen to get peoples current thoughts on investing in Ballarat. I've been doing some research and seems to be some good buys popping up now and then. If you have invested in Ballarat, what sort of returns are you getting and what made you buy in Ballarat. How is infrastructure growth potential etc. What areas did you buy in.

What are your thoughts on these investment options in the Ballarat area:

- Period Homes (i.e. Victorian/Californian Bungalows etc.), weatherboard/BV inner city area close to Sturt St. 3 bed, 1-2 bath, semi renovated. Ballart Central, Soldiers Hills, Ballarat East, Golden Point.
- BV Home 600sqm+ land subdivision potential. 3 bed 1-2 bath. Sebastopol, Redan, Ballart North OR inner city if there is an opportunity.
- 3 bed home near University and IBM. Mount Helen, Mount Clear.

Budget between $200,000-$300,000.

I'm leaning towards Period Homes in the inner city, although with no subdivision option, they have strong steady growth potential similar to the likes of period homes in inner city Melbourne.

 

[tobe]

I bought a couple of miners cottages in Ballarat some time ago. Fixer uppers. Like you I thought they had potential like period homes in capital cities.

In practice rental return has always been good, however there are lots of repairs and maintenance. Capital growth has been patchy, but on average pretty good (doubled in 8 or 9 years roughly).

 

[Aaron_C]

If you had your time again tobe would you do it?

 

[PDP]

Ah yes I have considered about the maintenance that would be required for the older Period Homes. Such as exterior weatherboard replacement, painting, roof re-cladding etc. Unless it is bearable and the tenant doesn't complain ?

That is the sort of the reason why I'm leaning towards looking at a semi-renovated/renovated Period Homes as most of the hard work has been done. Although entering that market would be a bit pricier (high $200,000?s to low $300,000?s). That being said there have been a couple of done up Period Homes inner city that went for below $250,000.

 

[tobe]

If you had your time again tobe would you do it?

In a heartbeat. I paid 77k for a 2 bedder 5 mins walk, 3 blocks to the centre of town. I put in $4k. It rented for $115 per week, the mortgage was $110 or something.

The next year it was valued at $100k and I bought another down the street and became a mortgage broker. (the next year I refinanced again and bought a flat in town, and 3 more over the next couple of years)

Its now about 10 years later, rents for $190pw and is probably valued about $200k.

It may not have been the bestest deal economically, but for me pschologically it was huge.

 

[Truly Exotic]

I think now is a pretty safe entry point in to the ballarat market, the falls across teh market have stopped completely, the gap between character properties and non character props has diminised greatly to a few k of eachother,

if you can get a character home at non character prices, then when the market recovers the % gain will be greater!

 

[PDP]

Yeah 'Truly Exotic', that was what exactly what I was thinking.

 

[ChasingSugar]

I bought in Alfredton and Mount a Clear in 2010. Been a pretty flat market but yields have been ok (4bedroom homes). In saying flat, I have seen some 20 per cent growth.

I feel pretty good about the market, and would buy there again. I think over the long term Ballarat looks solid.

I bought 1960s brick veneers, my favourite type of home. Good sizes, good layouts, and pretty straight forward cosmetic rennos to bring them up to modern standards. I looked at a lot of older homes, maintenance the biggest concern. Some streets have homes from every sigle era!!

My preferences are Ballarat Central, Alfredton, Mount Clear, Mount Helen, pretty much in that order.