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This makes me nervous, I’m looking for an IP in Ballarat ATM, I’m actually inspecting one in Soldiers Hill on Monday.
I also think the inspection times are a problem, seems odd to not have evening times. I’m also thinking that a picture of the bathroom might be a good idea to have in the gallery. I would call your property manager and express your concerns.
The vacancy rate in Soldiers Hill is just over 4%, and from conversations I’ve had with agents in the area, getting tenants in winter is hard work. Jan-March period is much easier. If you’re desperate it might be a consideration to drop the rent a little. Good luck, I hope you get tenants soon!
Hi, I’m also a newbie so probably best to take my advice with a grain of salt. I haven’t heard that before about buying an apartment or unit first, could they possibly mean that a unit/apartment would likely be cheaper than buying a house so you may have borrowing power remain after the purchase? We bought our PPOR 2.5 years ago and have built solid equity in it for an IP, and have huge borrowing power, so my advice is to consult with a broker or other finance professional rather than rely on the advice you hear.
Personally, I wouldn’t buy an apartment because of the very real risk of oversupply. I’m in Melbourne and we have definitely hit oversupply of apartments in the inner ring. The only way I would consider it would be if it was a larger than the norm apartment in a boutique complex, or it had something special about it. From my office I can see into an apartment building and those shoebox apartments are so depressing. If I was buying a unit/townhouse I would only do so if the property was on it’s own title.
My plan is to buy my first IP this year and it will be a house. My reasons for this include owning land and also that I believe the value of a house in the area I want to buy will rise much faster than a unit would, hopefully allowing me to tap into equity for my next property sooner. Hope this helps!
Hi Kris07, thank you for your advice. We actually inspected that property last week! It went to auction on Saturday and was passed in. The property has alot going for it, location most of all, but my partner and I weren’t sold on it. The most recent tenants were paying $355 a week rent which surprised me, seems high for the area, but it was good to know that there is that kind of market there. I think the vendors price expectations are a little high myself, so I’ll be interested to see what it sells for.
Hi Jacqui, thank you for your comment. I agree about maintaining weatherboards, it’s definitely on my radar. And yes, achieving better yields than we would in Melbourne is definitely part of the appeal of Ballarat. We won’t be considering anything under a 5% yield.
Thank you for your comment, it’s good to hear from someone with an IP in Ballarat.
We’re definitely planning to be in it for the long haul, we would hold the property for at a minimum 10 years, but most probably longer, to take advantage (hopefully) of the growth expected in Ballarat. Area wise we have been looking at established homes in the central/east of Ballarat.
Thank you Cattleya! I am quite a conservative person naturally, so yes, definitely feeling some cold feet! But I’m sure I will overcome that. We’re actually going to go into Ballarat tomorrow and do some inspections, so it feels like a step in the right direction to see if the area is right for us, and then we will wait for a good IP to present itself :)
Thank you for your advice, much appreciated!
