Ballarat

[Property Hoarde]

5.2 % and without a lot Depn benefits is not a great return for Ballarat.

At that return it is not a sit and forget investment.

If you are going to buy you need to develop (as you are) to make it worth it.

So I would be valuing on that bases. Ie what is your likely return to be after you develop it.

 

[Property Meister]

Just wanting to just collaborate stories with fellow Ballaraters,

6 months ago, the crappy 3bdrs in central, and surroundings were asking $220-$230kish, 4bdrs or 3bdrs with big land or nice houses were asking anywhere from $260-$300k with most selling within that range,

the last 2 months, ive noticed, the asking prices of these nicer houses, dramatically drop, and anything above $260k+ is not that common,
in fact there are a lot of houses sub $250k

Vacancy rates for this area has risen slightly, (like the rest of VIC)

generally this area is less affected then metro in terms of falling/rising prices,

Is Ballarat starting to suffer???

 

[theyallexist]

Long time lurker... first time poster.

Have a friend who is a RE in Ballarat, they are seeing stocks increasing with buyers tending to offer ~10% less than min range on most listings. Obviously alot of vendors are just sitting on properties or pulling and waiting for things to pick back up.

 

[Shuttergirl]

Just wanting to just collaborate stories with fellow Ballaraters,

6 months ago, the crappy 3bdrs in central, and surroundings were asking $220-$230kish, 4bdrs or 3bdrs with big land or nice houses were asking anywhere from $260-$300k with most selling within that range,

the last 2 months, ive noticed, the asking prices of these nicer houses, dramatically drop, and anything above $260k+ is not that common,
in fact there are a lot of houses sub $250k

Vacancy rates for this area has risen slightly, (like the rest of VIC)

generally this area is less affected then metro in terms of falling/rising prices,

Is Ballarat starting to suffer???

I would be interested to hear what others think about the current Ballarat market also.

 

[Jetstream]

The Ballarat rental market continues to remain tight:

http://www.thecourier.com.au/news/l...arat-rental-market-remains-tight/2479529.aspx

Encouraging to see the council on the front foot with respect to arranging cultural events that draw people into Ballarat to show case the city:

http://www.thecourier.com.au/news/local/news/general/bumper-summer-for-ballarat-tourism/2483643.aspx

Interestingly, Ballarat also features in the latest copy of API as part of their top 100 hot spots. They also made reference to the progressive nature of the council which corresponds to the above article.

 

[Tony3008]

Mine is now up for letting - took me longer to sort out the necessary than planned. Cost me $285K + $12K on refurb work (+ about ten days). Beautiful house, brilliantly located for shops etc, but runs the risk of being expensive for the area.

http://www.domain.com.au/Property/For-Rent/House/VIC/Sebastopol/?adid=7461692

Have asked the agent whether the no-pets restriction is really necessary.

 

[Jetstream]

Looks like quite a nice low maintenance property, although the asking price in my view is a little steep. I think $290 - $300 would be closer to the mark given its location and standard of reno.

At the same time, if you get $320 I would certainly congratulate you!

 

[Carl84]

Hoping you can help, I've decided to purchase in Ballarat. Can all you experienced folk tell me which areas I should steer clear from. Thank you!!

 

[jackbak]

What do you guys think of these?:
http://www.realestate.com.au/property-unit-vic-redan-110017133

Asking $230k, rent $240-250 p/w. Not a bad yield and good depreciation...

 

[alex9050]

What do you guys think of these?:
http://www.realestate.com.au/property-unit-vic-redan-110017133

Asking $230k, rent $240-250 p/w. Not a bad yield and good depreciation...

Poor location, expensive for a unit, you can get a 3 bed house for that much which would rent for 240 - 250 which is more centrally located, on a larger block.

 

[jackbak]

5.2 % and without a lot Depn benefits is not a great return for Ballarat.

At that return it is not a sit and forget investment.

If you are going to buy you need to develop (as you are) to make it worth it.

So I would be valuing on that bases. Ie what is your likely return to be after you develop it.

Just out of interest Property Hoarde, what would you consider a fair rental yield fro Ballarat?
Cheers

 

[jackbak]

Poor location, expensive for a unit, you can get a 3 bed house for that much which would rent for 240 - 250 which is more centrally located, on a larger block.

Thanks alex9050

 

[ChasingSugar]

I think the market is going well. Property prices have been steadily rising. I have two 4 bedroom homes, one in Mount Clear (towards the university) the other in Alfredton (strong family area and growth area).

SOmeone asked where to look. The areas in rough order are Ballarat Central, Ballarat North, Alfredton, Mount Clear, Mount Helen. I chose Mount Clear and Alfredton in 2010. 225K and 230K each respectively, and rented both immediately at $280 per week. Should get $300 per week now.

The guy asking for $320 in Sebastopol I think is a bit steep, but hey if you can get it.

Ballarat East seems to have decent yields at present, but I'm not a fan of the area.

When looking through homes to find an investment, i saw lots of different kinds! For example some are over 100, some are brand new. Realy good mix. Ended up with two 1960's Brick Veneers which are my preferred go.

 

[Alex P Keaton]

Lomas

Margaret Lomas has Ballarat as one of her hotspots

 

[fencehedge]

I think the market is going well. Property prices have been steadily rising. I have two 4 bedroom homes, one in Mount Clear (towards the university) the other in Alfredton (strong family area and growth area).

SOmeone asked where to look. The areas in rough order are Ballarat Central, Ballarat North, Alfredton, Mount Clear, Mount Helen. I chose Mount Clear and Alfredton in 2010. 225K and 230K each respectively, and rented both immediately at $280 per week. Should get $300 per week now.

The guy asking for $320 in Sebastopol I think is a bit steep, but hey if you can get it.

Ballarat East seems to have decent yields at present, but I'm not a fan of the area.

When looking through homes to find an investment, i saw lots of different kinds! For example some are over 100, some are brand new. Realy good mix. Ended up with two 1960's Brick Veneers which are my preferred go.

May I please ask why you are not a fan of Ballarat East? I am looking at that area at the moment (new investor) and wonder if it is an area I should avoid.

 

[Tony3008]

The guy asking for $320 in Sebastopol I think is a bit steep, but hey if you can get it.

I have, but it did take three weeks by the end of which I was wondering whether I'd made a mistake.

 

[tobe]

Ive got 2 rentals in Ballarat east. there is a bit of a stigma from the locals. Its fairly flat, (where other parts ballarat may have views), its on the non Melbourne side and non train station side. next to it are sepastapole and another suburb starting with D that were new estates 20 years ago, that are pretty boring suburbs.

From what I can make out Ballarat east isnt Wendoree at least, and to my mind ballarat east is next to ballarat central (both my properties are within an easy walk to the main drag) so in time the area will lose the stigma and gentrify.

 

[Property Hoarde]

Just out of interest Property Hoarde, what would you consider a fair rental yield fro Ballarat?
Cheers

For a sit and hold.

I would expect at least 5.5% - 6% plus depreciation benefits.

 

[BernieLarkham]

Margaret Lomas has Ballarat as one of her hotspots

That must be recent as she was essentially knocking late last year when other guests on YMYC were singing it's praises. I'd suggest she has actually done some research and discovered what others already knew.

 

[ChasingSugar]

Sorry for the delay in reply. It is just a bit plain, a bit far out of the hussle and bussle, a mixed bunch of homes from many different eras.

It's certainly not a slum, and certainly there are some nice pockets, but I just prefer elsewhere.

JD.