Thoughts on Ararat

Could Ararat avoid the risks of regional areas and achieve the sort of growth that Ballarat experienced.

Ararat Rural City is a versatile primary production area famous for its premium viticulture and wine industry, quality merino wool, and cropping and manufacturing industries. Ararat Rural City forms a “gateway” to important tourism destinations such as the Grampians Ranges, Pyrenees Ranges, Mt Langi Ghiran, Mt Cole and Lake Bolac. Ararat (pop. 7,500) is the district retail hub and is located 200 kilometres west of Melbourne on the Western Highway at the junction of several major highways.

Pros - Key train station between melbourne and adelaide and recent increases in services to both cities, Gateway to Grampians National Park, more than $500 million worth of private and government projects planned over the next four years, Hospitals and Schools, Historic Chinese settlement and Gold Rush town, World class wineries and On the Green music festival. Population is generally happy and healthy. Population growth around 3%.

High rental return on investment properties some as high as 8%
Large house and land for under $80,000 - 150,000.
Family households are mostly sole parent. (30% vs 23% dual parent)
Although prices slipped over the past 12 month by about 5% has been know for periods of rapid growth - between 2002 and 2005 experienced a big jump in capital growth with Median price increasing from $80,000 to 150,000.

I am starting to look at investment properties in the area anyone else have some ideas and opinions, or care to play the devils advocate?
 
Did you check out the longer term median house price changes..

1994-2005

Ararat: MHP 1994: $58,000...........2004: $129,000............Change of: 122%

1997-2008

1997 MHP $65,000..............2007: $158.000.................Change of 143%

The change in growth b/w 2006/07 was 9% while growth p/annum 97-07 was 9.3%

(These statistics from Victorian Valuer-General).

I don't have any IP's in Ararat, I actually live closer to Horsham and have some IP's there, because that was where I was getting some nice buys and it suited me. Just didn't get past Horsham.

You may not have read these links and bits of information, some of it is specific to Ararat, some, more to the region:

http://www.dpi.vic.gov.au/dpi/vro/wimregn.nsf/pages/natres_invwlw

http://www.wda.org.au/

http://www.provincialvictoria.vic.gov.au/investing_detail.aspx?view=6

http://www.wda.org.au/projects.htm

http://www.provincialvictoria.vic.g...080F9282782C38/web_grampians_pyrenees_RDV.pdf

http://www.getfarming.com.au/pages/farming/news_view.php?nId=7120013

http://www.dse.vic.gov.au/planningschemes/ararat/ordinance/21_mss06_arat.pdf

http://ararat.yourguide.com.au/news...nvolvement-in-prison-development/1390763.aspx

http://www.ararat.vic.gov.au/Page/Page.asp?Page_Id=790&h=1

Nice place, I would have no hesitation in investing in Ararat, or many of regional cities and towns, I get good rental returns and a good smattering of capital growth, (yes, I'm a buy well, and hold, kind of girl).

It all suits me, my requirements, and I know the areas,...a matter of your own due diligence and specific wants and needs from investing.

Good luck mate!

Also:

http://www.news.com.au/heraldsun/files/median house prices by suburb.pdf

(Victorian Median House Prices link from Heraldsun paper, via Vic Valuer-General stats...) Will give you the longer term data of cities/regional areas median hous prices to consider/compare, if you want.
 
don't forget less than 10 years ago they shut the states biggest mental health facility near by which employed a lot of people .. its to far to commute daily to melbourne or adelaide, and probably to far to commute to ballarat.

I can appreciate the tourism angle but they are busy trying to do similar things with winery in Wangaratta and there is the ever popular Yarra Valley to compete with.
 
Keneth:
there are so many places for sale in ararat...

looks like the whole town is for sale...

why is this??

Okie dokie, I have (Ararat) house numbers sold from 2003, 2005, Feb 2009 and April 2009:

Ararat: Annual sales 12 months to 30th June 2003, 173. Capital growth for the 12 mth period 16.774%.

2005: Total sales 151 37% growth (JUST the 12 mths....very shortterm keep in mind). Average growth p/annum for decade is 9% something.

Feb 2009: Ararat sales: 131

April sales 09: 110.

Just business as usual Keneth.

Yes, this did happen:
don't forget less than 10 years ago they shut the states biggest mental health facility near by which employed a lot of people

many were assisted into the community, assisted living or aged care within the communities...it's business as usual in Ararat, one door shuts, another opens, and don't forget this:

Ararat Prison
Value
Status Project Brief Issued
Department or agency Department of Justice
Private sector partner
Description On 30 July 2008 the government announced that a new prison would be built at Ararat under a public-private partnership arrangement. The new prison will be a 350-bed medium-security protection prison adjacent to the existing Ararat prison.
This project is a key part of the progressive upgrade of Victoria’s correctional system and will provide upgraded correctional services to meet future projected prisoner growth. There will be opportunities to share common buildings and support services between the new and existing facilities.

On 23 June 2009 a shortlist of three candidates was announced to proceed to the next stage of the tender process. The three shortlisted bidders are:


Aegis Correctional Partnership (Bilfinger Berger, Commonwealth Bank, St Hilliers Contracting, Hawkins Construction and Programmed Facility Management);
Secure Environments Consortium (Brookfield Multiplex Infrastructure, Brookfield Mulitplex Construction and Brookfield Multiplex Services); and
Plenary Justice Consortium (Plenary Group, John Holland and Honeywell).
The private sector consortium will design, build, finance and maintain the facility, while custodial services are provided by Corrections Victoria. In return, the consortium will receive service payments once the prison is operational, subject to meeting performance standards.
The Department of Justice is managing procurement of the facility. The Ararat prison is expected to be completed in 2012.

This is the first Victorian project to be procured in accordance with the National PPP Guidelines approved by COAG in November 2008 (available on the Infrastructure Australia website).

Contact information Johan Top, Project Director, Prison Facilities Masterplan Project
Phone: 61 3 8684 7708
Email: Johan Top

....and:

http://www.araratadvertiser.com.au/news/local/news/general/prison-is-on-target/1589740.aspx

Prison is on target
7/08/2009 8:58:00 AM
ARARAT - Work on the new transitional facility adjacent to the Ararat Prison is on target for completion early in 2010.
The Ararat Correctional Precinct Community Advisory Group toured the 40-bed transitional facility construction site adjacent to Ararat Prison with senior Corrections Victoria and Department of Justice personnel on Monday.

The group, which included Corrections Victoria Commissioner, Bob Hastings, Department of Justice regional director Grampians Region, Catherine Darbyshire, Ararat Rural City Mayor, Cr Gwenda Allgood and Ararat Rural City CEO, Steve Chapple, were given an update on the progress on the buildings being constructed by Creswick-based company Resicare Pty Ltd.

The group was advised that construction is progressing well and on schedule, with significant input from local subcontractors and suppliers.

Independent chair of CAG, Russell Rachinger indicated he was pleased with the number of local sub contractors engaged in the project.

''I'm pleased to see that all the subcontractors working on the project are from the Grampians region, with Ararat-based contractors including Ruthven Steel Fabrications (structural steelworks), Leeke Constructions (carpentry and framing) and S T Hamilton and Sons (siteworks),'' Mr Rachinger said.

During the site visit, the group was briefed about environmental initiatives included in the facility's design to minimise water and energy use, including rainwater collection for irrigation and toilet-flushing.

The transitional facility, expected to be completed in the first half of 2010, will enhance the protection of the community.

The transitional facility is one of two major projects planned for the Ararat Prison site, the other is a 350-bed expansion of the existing prison.

Late last month the State Government announced three short-listed bidders in the tender process for the 350-bed prison, which is expected to create about 250 jobs in the long term.

The tender is for the design, construction, financing and ongoing maintenance over a 25 year term for the 350-bed expansion.

The multi-million dollar projects are creating many jobs in the construction phase as well as long term employment with prison jobs.

The "stuff" that goes on in regional Victoria is often unbeknowns to city folk, or incorrect, or perception based information, and that can come from within towns and cities too.
 
If you are looking at that part of Western Victoria, I would suggest Horsham instead. Its around the same area, much bigger population than Ararat, good rental yield, decent capital growth and would be a less riskier option imho.
 
Some regional data...*subject to Interpretation.

From a decade of 1994-2005 and 1997-2008.

Statistics from Victorian Valuer General.

Horsham:Change in median house prices 94-05 was 88%

Horsham: Change from 1997-08 was 88% Averaged 6.6% growth per annum.

Latest Your Investment Property RP Data stats (April 09) for Horsham gives a gross rental yield % of :5.34% (Horsham).

Ararat: 940-05 change in median: 122%

Ararat: change in median for 97-08: 143% Growth P/A average of: 9.3%.......Gross rental yield: 6.41%

Just for fun we can toss in Western District's Hamilton: 94-05 160%

Hamilton: 97-08: 199% GPA Average for the decade 11.6%

Stawell:94-05: 69%

Stawell: 97-08: 112% GPA: 7.8%

Nhill: 94-05: 56%

Nhill: 97-08: 55% GPA: 4.4%

Murtoa: 94-05: 118%......97-08: 123% GPA: 8.4% Gross rental yield: 8.5% (API Home Price Guide source)

Ballarat: 94-05: 153%.....97-08: 176% GPA: 10.7%

Casterton: 94-05: 80%....97-08: 164% GPA: 10.2%
 
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