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.
The population has increased by 8.2% from 2011 to 2016
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
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
(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
For Sale Now (Online)
Houses - 29
Median House Price (All)
Median Rent & Gross Rental Yield
$315 / 3.7%
Last 12 Month Capital Growth
Yes. Opportunity to add value in two common ways; 1. Cosmetic, 2.Extension with an additional bedroom
Train to CBD - 1h 19 mins
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.
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.
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