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.

The Numbers

 

Population

103,407 (2016)

 

Increasing/Decreasing Population

The population has increased by 8.2% from 2011 to 2016

 

Vacancy Rates

1.9% of properties in the region

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

 

Example Purchasing Feasibility

Click here

 

Average Days on Market 

56 days on average to sell a home

 

Percentage of Sales by Auction

This is not an auction market

 

Auction Clearance Rates

This is not an auction market

 

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 for an investment

 

Supply vs. Demand

DSR (Demand Supply Ratio) score of 56. 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

 

Recent Sold Price Range 

Un-renovated: $290k - $438k

Renovated: $365k - $590k

 

For Sale Now (Online) 

Houses - 13

 

Median House Price (3 Bed)

$341,000 

 

Median Rent & Gross Rental Yield 

$310 / 4.7%

 

Last 12 Month Capital Growth

17.14% 

 

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 15 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 15 each way.
 
Housing in the region is weatherboard character homes. The properties are generally smaller (2/3 beds) given the average lot sizes. 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 with character that are dated and/or un-renovated. These homes, in particular, will also appeal to owner-occupiers. We look for properties that value can be added by way of cosmetic renovation and future potential to extend. The home will be two bedrooms (unless we land a 3 bedroom home in your budget) with the scope to add an additional bedroom in the future. 
 
The Strategy:
To purchase a property under $380,000 with a block size circa 500m2. The property would ideally be un-renovated with scope to add value with capital input less than $20k. The property in its current condition would generally have a rental yield up to 4.6% and your monthly out of pocket expenses circa $430. Post-renovation we believe you can achieve rental yields up to 4.9% reducing your out of pocket expenses to circa $350. 
 
This will provide you with the best opportunity to create equity to re-purchase and build your portfolio. Buying a property that is renovated and has the higher yields will, of course, provide you with the net out of pocket expenses that you are after, however, your ability to create equity to repurchase and grow the portfolio will be dramatically reduced.

What's Around

The Numbers

 

Population

10,596 (2016)

 

Increasing/Decreasing Population

The population has remained steady from 2011 to 2016

 

Vacancy Rates

1% of properties in the region

are unoccupied. We don't like the rate to be above 2%. This number has been declining since July 2017

 

Example Purchasing Feasibility

Click here

 

Average Days on Market 

61 days on average to sell a home

 

Percentage of Sales by Auction

This is not an auction market

 

Auction Clearance Rates

This is not an auction market

 

Ratio of Renters to Owner Occupied

41% are renters / 59% 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 for an investment. We believe this will decrease as the suburb becomes more popular with good access to public transport and schools

 

Supply vs. Demand

DSR (Demand Supply Ratio) score of 71. 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)

30.40%. 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

$3,562

 

Recent Sold Price Range 

Un-renovated: $220k - $360k

Renovated: $360k - $500k

 

For Sale Now (Online) 

Houses - 26

 

Median House Price (All)

$258,000

 

Median Rent & Gross Rental Yield 

$270 / 5.4%

 

Last 12 Month Capital Growth

5.31% 

 

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 15 mins

 

 

 

 

 

 

 

The Region

 

The suburbs in this region that we like and would target is Wendouree. It's located to the North West of the town centre and North of Lake Wendouree. On the map below, we have indicated the zone in green where we would ideally be wanting to purchase, this is the sweet spot South of Norman street and as close as possible to Ballarat Grammar. Howitt St is fast becoming the medical hub of Ballarat with all the new medical facilities and infrastructure being built and moved to this precinct. Further south, is Lake Wendouree, where along the foreshore are multi-million dollar homes owned by locals and Melbourne residents alike. Wendouree is fast becoming the hot spot of Ballarat given its current low entry price.

 

The Wendouree train station that runs directly to Melbourne CBD is situated in the suburb. Trains run every 60 minutes into Melbourne and every 30 minutes during peak times. The travel time is approximately 1hr 15 each way. There is infrastructure being built that will increase the frequency of trains to every 20-minutes and ultimately speed up the travel time. At this stage, they are estimating it will be between 45 - 55 minutes direct into the Melbourne CBD.
 
Housing in the region is weatherboard character homes. The properties are generally smaller (2/3 beds) given the average lot sizes. 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 with character that are dated and/or un-renovated. These homes, in particular, will also appeal to owner-occupiers. We look for properties that value can be added by way of cosmetic renovation and future potential to extend. The home will be two bedrooms (unless we land a 3 bedroom home in your budget) with the scope to add an additional bedroom in the future. 
 
The Strategy:
To purchase a property under $380,000 with a block size circa 500m2. The property would ideally be un-renovated with scope to add value with capital input less than $20k. The property in its current condition would generally have a rental yield up to 4% and your monthly out of pocket expenses circa $500. Post-renovation we believe you can achieve rental yields up to 4.9% reducing your out of pocket expenses to circa $350. 
 
This will provide you with the best opportunity to create equity to re-purchase and build your portfolio. Buying a property that is renovated and has higher yields will, of course, provide you with the net out of pocket expenses that you are after, however, your ability to create equity to repurchase and grow the portfolio will be dramatically reduced.

What's Around

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PROPERTY STYLES

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LIFESTYLE

LIFESTYLE

INFRASTRUCTURE

The Wendouree Train line is getting an additional line meaning this will reduce commuters needing to use the train from Ballarat station. This reduces congestion going through Soldiers Hill.

What Social Media Is Saying

LIFESTYLE

What Social Media Is Saying