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I’ve been looking in Ballarat recently. It seems that Ballarat has also had a bit of a boom in the last few years. There are houses under 100k, but I didn’t feel that they’d be suitable for wrapping (1 or two bedroom). You’re generally looking at paying in excess of 150k for 3 or more bedrooms.
There’s also a lot of people doing renovations to squeeze every least bit of equity out before they sell. One place I looked at on Saturday (5 Oct) had an asking price of 160k+. It was in the lower end of town. The block wasn’t particulary large and the house needed about 20k-30k of renovations done. The agent was also very blase about his selling approach.
I’ve talked to quite a few agents. Houses are still moving very quickly and most people are trying to get as much as they can for them.
The good side however, is that most houses aren’t up for auction, so people may be willing to negotiate.
Peter T.
PIA written by Ian Somers is an excellent product and I have used it to perform an analysis of the properties I’ve purchased. The only two problems with it is:
1) It has a lot of variables, so you need to be careful of the numbers you enter. That said, properly used, it covers PI very thoughly.
2) It is primarily designed for the classic buy and hold negative geared property. Getting it to analyse a wrap deal would be tricky at best.
For buy and hold property, it is an invaluable tool for analysing the deal.
Peter T.
