Hi Everyone, What your opinion in investing in Ballarat? I am looking to purchase a investment property under $270K. I am looking around Ballarat and there are property fit in my budget.
I want to buy a property in reasonable size of block and build unit/s at back of the house. Avoiding buying new or renovated property which I can’t add value by doing some renovation.
Please advice and also if I have to avoid any places in Ballarat.
Thanks in advance.
I can give you my experience.
I purchase a miner cottage in Ballarat (Soldiers Hill is the exact suburb) for $220k, un-renovated in mid 2013.
After putting about $3,500 in small renovations with high impact (new painting, carpets, fencing, light fittings, etc), my rental income is $350p/w which is more than enough to cover for all property expenses (loan, rates, insurance, etc)
I think Ballarat is a good place to invest but the market is a bit slow. I guess it depends what’s you want to get out of it.
CheersJpcashflowParticipant@jpcashflowJoin Date: 2007Post Count: 575
I am looking a property in Ballarat east south of eureka street. I think I read some forum (Can’t remember where) to stay away from south of eureka street, but didn’t get any answer why. I also noticed price is bit higher in north of eureka street when compare to south. Can you please advice what’s happening on south of eureka street. I am thinking of putting an offer this Saturday.
Sounds like you’re trying to buy something sight unseen? It’s a bit dicey to just pluck something off the internet. Best to be seeing it for yourself or having someone do so on your behalf. That way you will better understand the surrounding areas, whether there are any nasty smells in the house caused by things such as extensive mould, whether there are any big problems hidden by the photos, whether you feel sea-sick when you walk on the floorboards because the house needs so much re-stumping, etc etc. And depending on your approach, the demand for the area in terms of rental housing, the type of tenant you would expect, and the type of person that would not aspire to live in the area.
I agree with JacM. I was living in Melbourne (Bayside) when I purchase my first property in Ballarat. I traveled every weekend for about 2 months until I ‘grasp’ a basic understanding of the area I wanted to purchase. That research and actual time spent in the local area paid off as I could see the opportunity in the house I bought.
I reckon that I would have never bought this IP out off internet alone.
RE Eureka St, I don’t know of any specific issues affecting that area. I believe that good IPs can be found in many areas, from Alfredton and Wendouree Lakes (premium locations) to Wendouree West and Sebastopol (bottom end of the spectrum). All depend what is your plan, strategy and final goal.
Hope this helps
Thanks Guys. Sorry for the miss communication. I am travelling to Ballarat basically every week. I had a look at the one property which in Ballarat East south of Eureka street. I drove around this place few times and can’t see anything odd happening in this area. I wanted to see any investors had any experience in this area?
Vendor didn’t accept my offer. I am going to wait for the weekend and will add another 5k and see whether he/she will accept.
My plan is build something at the back and keep the new one and sell the front houes(old) or keep both if everything stack up well.
JayJpcashflowParticipant@jpcashflowJoin Date: 2007Post Count: 575
$5k is a big increment to offer for no reason. There are a lot of circumstances and personalities at play here that you might not have enough knowledge about. Questions need to be asked to decipher what the next move should be.
Thanks JcM and Jpcashflow,
Vendor is asking 220K, Following conversation going between me and agent
– I email agent I want to put an offer for 205K with 60 day settlement
– Agent replied back and said vendor will accept $215K with a 30 day settlement”
– I replied and said can’t go above 210K.
– agent replied again and said Vendor vendor accepts 215K with 60day settlement.
My negotiation skill is very bad.DwightParticipant@bigvmanJoin Date: 2002Post Count: 42
How much do you want the house? What are you prepared to pay for it?
After you’ve worked this out you can take the emotion out of it.
If its a buyers market leave your offer and walk away. There will always be aanother property even if it doesnt look like it right now.
Cashflow Positive Investor
You might well be dealing with a lazy selling agent. Don’t sweat it, they probably won’t manage to sell the house, then the vendor will get jack of it and list with another agent. Keep an eye on it, it will probably appear as a new ad under another agent.
I haven’t put an official offer. only in email. Do you think i have to put an official offer. Today agent called me and said someone else might be interested in this property as well.TheNewGuyParticipant@thenewguyJoin Date: 2014Post Count: 151
Just remember that the agent is there to get the most money possible, and things like calling you to say that there is ‘other interest’ is a way to help get the sale and increase the price. If the property is only worth $210k to you, then don’t go above it (especially if you already said that you wouldn’t).
I would reply with an email and say, $210k with 60 day settlement, and you’ll come in and sign the contract today. I would state that the offer is valid to Friday (because they will have more open days on the weekend, so you don’t want them to have another showing), otherwise you’ll move on to other properties and the offer will be withdrawn.
My father did the same thing a few weeks ago, and it was rejected. After 4 weeks the agent came back and said they’d accept the offer now, my father dropped the offer by $50k, and they accepted…
- This reply was modified 5 years, 9 months ago by TheNewGuy.
Vendor accepted my offer for 210K. I am going to Ballarat tomorrow to look at the area again and officially sign the contract. Today I found this news and that worries me now. Buying IP is not easy :(TheNewGuyParticipant@thenewguyJoin Date: 2014Post Count: 151
Congrats. I wouldn’t worry about the article too much, as hopefully your IP won’t be empty for 5 years!
Now paper works are started and once received I will be talking to my solicitor before signing. Hopefully everything goes well.
Finally settlement happened last week. Now it’s on the market for rent. Hopefully everything goes well in future. I am planning to build a unit at the back. probably will start early next year.
Thanks guys for your help.