Ballarat

Our Suburb

Due-Diligence

 
In this section, we take a closer look at the regional town of Ballarat so you have a true understanding of the area and its surrounds. We digest the data that matters and take a look at the lifestyle elements that make Ballarat the region it is.

RAIL UPGRADES

There are a number of current and planned upgrades for the Ballarat to Melbourne CBD line, reducing the travel time and making the experience a more enjoyable daily commute.

These include; 

 

  • $518M of works currently underway including the duplication of rail lines, station upgrades and new train carriages

 

  • Drop out free mobile single allowing for mobile connectivity on the train all the way from Ballarat to the Melbourne CBD. The network is due for completion at the end of this month (December)

 

  • dd The state government has committed to a 59min journey within the next 18-24 months (the current journey is 79min) 

 

  • In the 2018/19 state budget, the government set aside $50M to investigate a fast rail link between the Geelong/Ballarat region and Melbourne. With the belief, a fast train would reduce travel time to circa 40mins

 

  • The Ballarat train station is currently undergoing major works with a 450+ carpark being built, the old good sheds converted into a convention centre and dining and retail precinct and the construction of a 77 room hotel.    

The Numbers

 

Population

103,407 (2016)

 

Increasing/Decreasing Population

The population has increased by 8.2% from 2011 to 2016

 

Vacancy Rates

0.9% of properties in the region

are unoccupied. We don't like the rate to be above 2%

 

Average Days on Market 

52 days on average to sell a home

 

Auction Clearance Rates

70.9%

 

Ratio of Renters to Owner Occupied

34.8% are renters / 65.2% are owner-occupied. We prefer renters to be under 35%. More owner occupiers generally mean properties are better looked after in the area and greater demand for tenants if for an investment

 

Supply vs. Demand

DSR (Demand Supply Ratio) score of 74. The DSR is a number out of 100 that gauges the demand relative to supply for a residential property market. We look for this to be always over 50. 60 is great, 70 is excellent

 

Housing Affordability

(Asset to Income)

26.13%. This is the percentage of the household income that goes towards paying a mortgage (based on an 80% LVR of the median property price). We like this to be under 40%

 

Monthly Household Income

$5,390

 

For Sale Now (Online) 

Houses - 29

 

Median House Price (All)

$443,000

 

Median Rent & Gross Rental Yield 

$315 / 3.7%

 

Last 12 Month Capital Growth

14.94% 

 

Renovation Potential

Yes. Opportunity to add value in two common ways; 1. Cosmetic, 2.Extension with an additional bedroom

 

Public Transport

Train to CBD - 1h 19 mins

The Region

 

The suburbs in this region that we like and would target are Soldiers Hill and Ballarat Central. These are located to the North of the town centre.

 

The Ballarat train station that runs directly to Melbourne CBD is 1.4km from Soldiers Hill. Trains run every hour into Melbourne and every 30 minutes during peak times. The travel time is approximately 1hr 19 each way.
 
Housing in the region is period bungalows and Victorian terraces. The properties are generally 3-4 bedrooms, with an average lot size of 500 - 700m2. There is a higher proportion of unrenovated properties in the region providing the opportunity for capital improvements. On the ground, there is an extremely high demand for smartly renovated properties, aiding in capital growth.
 
What we like to do:
We like to purchase homes that are packed with character, have the ability to add value (now or in the future) and sitting on a parcel of land of 500m2 or larger. These homes, in particular, will have amazing street appeal and owner-occupier appeal. We look for properties that value can be added by way of cosmetic renovation and future potential to extend. The home will be three bedrooms with the scope to add an additional bedroom in the future. 
 
The Strategy:
To purchase a property under $550,000 with a block size circa 500m2. The property would be in a condition to be leased as is, however, we would consider options for a small and smart renovation before leasing. As part of our feasibilities, we have allowed up to $40k for this, on the proviso that we can get a 12% deposit with HSBC.
 
This will provide you with the best opportunity to create equity in your portfolio, providing the ability to re-purchase and build your portfolio in the coming years. 

What's Around

PROPERTY STYLES

LIFESTYLE

What's Social Media Is Saying

* Milk Chocolate price data used on this website is sourced and relies upon information supplied by a number of external sources (including governmental authorities). This data is supplied on the basis that while Milk Chocolate believes all the information provided will be correct at the time of writing, it does not warrant its accuracy or completeness and to the full extent allowed by law excludes liability in contract, tort or otherwise, for any loss or damage sustained by you, or by any other person or body corporate arising from or in connection with the supply or use of the whole or any part of the information on this website through any cause whatsoever and limits any liability it may have to the amount paid to the external sources for the supply of such information.