Hi guys – my husband and i are thinking about getting an investment property.We are looking for a house less than $300,000,with potential for capital growth,and good rental return.
At the moment we are considering Ballarat because it seems it has huge potential for capital growth with the population growth and developments going on..Just wondering what does everybody think about Ballarat?
Any opinions or tips on this suburb will be greatly appreciated!
Thanks
What do you think is the potential for capital growth? Is there a lack of land NO Infact you have land all the way to Melton on the city side. Investing in property is about making your money work for you. If you buy property with limited capital return and its negative or just neutral cashflow what is the point of buying it.
Nigel Kibel | Property Know How
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There are other areas than Ballarat that could give you a better return,but it has had some capital growth. My cousin has 3 houses there that have doubled in the last few years in a lower income area. Some nice areas close in to the cbd or close to the uni. Wendouree West and Sebastopol,Redan etc are the lower areas,Alfredton and Ballarat central could achieve you some gains. Good luck in your search,don't just consider one town though search far and wide without emotion for something that fits in with your plan.
Hi Nigel,our thoughts was with that much going on in Ballarat there will be high chances that it will become a main city – even though there are heaps of land from Melton to Ballarat but if we manage to secure something near the CBD or university,the demand will always be there.Having said that we are new to property investments so we could be wrong – in your opinion, which is the best location to buy in regional Victoria area taking both rental yield and capital growth into account?
Hi Solomon10 – just wondering if you could suggest any other locations where we could look at?We are also considering Melton at the moment..
Thanks for your help
Joy
Under 300k i would be looking at what you can afford in Geelong, Corio and Norlane are slowly coming up,if you re in it for the long term and careful about buying there are some good deals about. Those last two do have a bad name which is gradually changing for the better,surrounded by Lovely Banks,Hamlyn Heights etc and close to Melbourne down the freeway one would think that the price couldn't stay so low for much longer. At a stretch you may get something worthwhile in Bendigo for your money if you are in the right place at the right time and prepared to add some value yourselves.
My suggestion is to stick to the "areas you know well" unless you are doing first hand research in one of the new developing areas. I remember people running to Point Cook years back due to cheap land (and because their friends bought it there) and now if you go to realestate and check the rental properties there appears a list of over 250 properties available at one of time and which sometimes even take 2 months to get rented. Just giving you something to think about.
Interested to hear how you went with Ballarat ‘Joy_Full’?
Noticed in the state budget which was quite a tight one that Ballarat was one of the winners – receiving $120M for investments in hospitals, roads etc.
Interestingly in the same week council approved the re-zoning of land to allow for the UB Tech expansion ($155M) which will create around 1600 jobs: http://www.thecourier.com.au/news/local/news/general/ub-tech-park-expansion-could-create-up-to-1600-jobs-claim/2544362.aspx
Looks like large scale developments are starting to take place in Ballarat incl the $5bn regional rail link. I’d put my money in Ballarat as a future prospect given its low entry price and growth. Geelong is over priced relatively speaking as a Regional.
Steve McKnight got started with investing in Ballarat and may still own a number of properties there and be monitoring their progress, so perhaps he can comment on the current investment climate in Ballarat ??
Cheers
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Shame Steve McKnight hasn’t responded to your comment ‘the crest’…
Would be interesting to obtain Steve’s view on Ballarat
I don't have any experience investing in Ballarat. But as with any investment in a smaller town you should undertake substantial DD on the area. Try and find out if there are any new schools or shopping centres being built in the area, jobs growth, net migration, average owners vs renters in the area, drivers of the local economy etc. this will help your work out the likelihood for capital appreciation.
Hi,
How did you go with the search in Ballarat? I am also thinking about investing in Ballarat, it is there or Geelong. I also thought that the student population would be helpful in terms or renting to them and getting a higher yeild.
Cheers Sarah
Hi Joyfull,
Are you in a rush in buying a property within the Melbourne Market?
Here are some reasons why I am asking you this.
1) The market in Melbourne is FLAT and prices will continue to fall or at least remain the same – Some areas in Melbourne are performing well but not at the price bracket you are looking at too.
2) Ballart is a interesting area: Nigel mentions that there is plenty of land, and his not wrong, You have so much land in areas like Melton, Bacchus marsh, Hopeton Park and many other areas.
3) Allot of homes on the market and there are quiet a bit for lease in the area and why? Unemployment is increasing in that region at quiet a quick pace, Manufacturing and agriculture have slowed down and there have been allot of lay offs in the area.
4) Interest rates have come down again and I will believe rates will come down even further…
My advice is be patient and just do allot of research!!!
Jpcashflow | JP Financial Group
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